MBA6140 Quiz 7
1.
T12: What is most true of profitable marketing across borders?
i. Since needs and preferences differ among countries, products must be designed
to appeal uniquely to each geographic market.
ii. A balance must be found between the efficiencies of standardization and
catering precisely to local requirements and tastes.
iii. In truth, Coca Cola is less a global brand than it is a brand that has been adapted
to thousands of distinctive local settings.
iv. The so-called Law of Global Marketing is that variety in tastes throughout the
world demands variety in products.
2. T13: What is true of marketing information?
i. Sellers have benefitted much more from advances in information technologies
than buyers.
ii. Advances in information technology, including the Internet, have narrowed
many gaps between what sellers know about products and prices and what
buyers know.
iii. The Internet is largely responsible for so-called information asymmetries.
iv. None of the above
3. A9: According to "Preventing the Premature Death of Relationship Marketing," what was the
trouble with relationship marketing (RM) in the late 1990s?
i. Consumers welcomed RM initiatives, but few sellers bothered to seek
relationships with customers.
ii. The technology for effective RM, such as data mining, had yet to be developed.
iii. Customers were more likely to tolerate or resent RM efforts than welcome
them.
iv. According to surveys, RM greatly improved reported customer satisfaction
levels.
4. A9: When "Preventing the Premature Death of Relationship Marketing" was written,
i. RM was powerful in theory but troubled in practice.
ii. companies, collectively, tried to get consumers to maintain far too many
relationships with them.
iii. All of the above
iv. None of the above
5. A9: When "Preventing the Premature Death of Relationship Marketing" was written, what did
sellers often fail to do?
i. Offer incentives that truly promoted customer loyalty
ii. Give customers as much friendship, loyalty, and respect as they tried to get via
RM
iii. All of the above
iv. None of the above
6. A9: Which practice advocated in "Diamonds in the Data Mine" (A5) would the authors of
"Preventing the Premature Death of Relationship Marketing" question?
i. Using RM to develop customer loyalty
ii. The ethics of providing incentives to customers who may be trying to break bad
habits
iii. Relying on data mining to simulate personal relationships
iv. Treating "best customers" much better than ordinary customers
v. None of the above; nothing in "Preventing the Premature Death of Relationship
Marketing" suggests its authors would question anything in "Diamonds in the
Data Mine"
7. A9: Sir Alan Sugar once said, "Pan Am takes good care of you. Marks & Spencer loves you.
Securious cares. At Amstrad, we want your money." What does the article "Preventing the
Premature Death of Relationship Marketing" suggest about this sort of frankness?
i. RM cannot work unless marketers put customer interests above profits.
ii. Sellers should tell customers why an offer is a good one; trying to hide motives
for seeking relationships is ill-advised.
iii. RM initiatives should sell friendship, not products.
iv. Being honest with customers is too much to expect.
8. A9. What do the authors of "Preventing the Premature Death of Relationship Marketing"
suggest?
i. Data mining is the key to understanding customers.
ii. Understanding customers requires qualitative research.
iii. All of the above
iv. None of the above
9. A9: How do the authors of "Preventing the Premature Death of Relationship Marketing" view
marketers?
i. company representatives
ii. customer advocates
iii. All of the above
iv. None of the above
10. C5: What happened to Jane?
i. She was given an accurate price for the minivan she wanted, but was
deliberately misled about the trade-in value of her car
ii. She was misled into believing that the warranty on the used minivan she bought
was longer than it turned out to be when she experienced transmission
problems.
iii. She was given a new minivan to drive while her minivan was being repaired,
which was a sales trick intended to get her to trade her old minivan in on a new
one.
iv. None of the above
11. N10: In the article "Ethical Implications of Target Market Selection," the authors develop which
theme?
i. People should take responsibility for their actions and not blame bad choices on
marketers.
ii. Whether it is ethical to promote a product depends purely on the product and
not on the targeted segment.
iii. Whether target marketing is ethical often depends on both the type of product
and the characteristics of the people being targeted
iv. There's never anything unethical about marketing legal products to adults.
12. N10: In the article "Ethical Implications of Target Market Selection," the authors suggest that
marketers should proceed with caution when targeting which group or groups?
i. children
ii. people in underdeveloped countries
iii. poorly educated adults
iv. All of the above
13. N10: With regard to hair restoration products, how would the authors of the article "Ethical
Implications of Target Market Selection" classify a balding adult of normal intelligence who
desperately wants to stop hair loss?
i. sophisticated
ii. at risk
iii. vulnerable
iv. gullible
14. N10: According to the article "Ethical Implications of Target Market Selection," what may
prevent a person from using available information to make sound decisions?
i. bounded rationality
ii. cognitive dissonance
iii. All of the above
iv. None of the above
15. N10: In the article "Ethical Implications of Target Market Selection," costs borne directly by
nonparticipants in an exchange are referred to as
i. peripherals
ii. internalities
iii. externalities
iv. demerits
16. N11: Kotler suggests that the essence if the marketing concept is, "Give the customer what he
wants." What does this axiom imply?
i. Identify customer needs, wants, and preferences using marketing research; then
apply what is learned.
ii. The customer knows best.
iii. Seller beware.
iv. Don't question what the customer wants.
17. N11: According to Kotler, what must usually be done to get companies to change practices that
are profitable, but are not in the best interest of the public at large.
i. Their offerings must be boycotted.
ii. Legislation must be imposed that forces them to change.
iii. Some form of public pressure must be exerted on them.
iv. They must be left alone because, as long as markets are free, socially
irresponsible companies will be punished by the market.
18. N11: The notion that the law represents the minimal moral standards of a society is reflected in
the writings of
i. Karl Marx and Mao Tse Tung
ii. Plato, Jeremy Bentham, and John Stuart Mill
iii. Immanuel Kant; specifically, his categorical imperative
iv. Thomas Hobbes and John Locke
19. N11: What does Kotler say about himself?
i. He has refused to help businesses market harmful products.
ii. Much like Ralph Nader, he has become uncompromising consumer advocate.
iii. He has concluded that, as long as people want to buy certain harmful products,
the marketer's calling is to make such products available.
iv. None of the above
20. According to Gupta & Lehmann, marketing managers should design customer-based strategies
that focus on
i. customer acquisition
ii. profit margin per customer
iii. customer retention
iv. All of the above
21. From Gupta & Lehmann's perspective, customer value refers to what?
i. The value the firm provides customers.
ii. The value of customers to the firm.
iii. All of the above
iv. None of the above
22. According to Gupta & Lehmann, studies show that the typical merger
i. creates significant market and/or operating synergy and, thus, increases
shareholder value
ii. neither creates nor destroys shareholder value
iii. destroys shareholder value
iv. results is substantial cost reductions that create shareholder value
23. Regarding AT&T's acquisition of TCI and MediaOne,
i. AT&T spent $4,200 per customer
ii. AT&T would require nearly a 44% profit margin, even under very optimistic
assumptions, to break even
iii. All of the above
iv. None of the above
24. According to Gupta & Lehmann, one effect of the bursting of the internet bubble is that analysts
are gradually beginning to appreciate the value of customer-based measures, especially number
of customers, and the limitations of financial measures.
i. True
ii. False
25. According to Gupta & Lehmann, what is true of marketing programs?
i. Cross-selling and up-selling programs aim at increasing margin per customer.
ii. Customer service and loyalty programs aim at increasing retention
iii. All of the aabove
iv. None of the above
26. Gupta and Lehmann claim that, if you can figure out where a firm's relationships with its
customers are headed, you have a strong start on understanding a firm's value and long-term
stock price. Accordingly, you need to estimate where which of the following are headed over
time?
i. the customer acquisition rate
ii. the customer retention rate
iii. the change in margin per customer
iv. the acquisition cost
v. the retention cost
vi. All of the above
27. Gupta & Lehmann suggest that organically growing your business entails
i. acquiring new customers, but not by acquiring another firm
ii.
iii.
iv.
v.
retaining existing customers
exacting more revenues and profits from existing customers
All of the above
acquiring customers by acquiring another firm
28. Gupta & Lehmann suggest that the purpose of a profit tree is
i. very similar to the purpose of defensive analysis in a situation assessment
ii. to show critical decision points and how a customer generates profits
iii. to show how a firm can leverage its customer base
iv. All of the above
29. According to Gupta & Lehmann, one feature of profit trees is that they
i. isolate decision points so that there are no interactions, for example, between
acquisition decisions and overall retention costs or margins
ii. allude to interdependencies among decisions, for example, between acquisition
decisions and overall retention costs and margins
iii. point to how firms can steel customers from competitors
iv. None of the above
30. With the intent of conveying that, maintaining its cars is cheaper than maintaining other brands,
Honda once used the slogan, We keep it simple. In Gupta & Lehmann's vernacular, the type of
value to which Honda alluded is
i. economic
ii. functional
iii. All of the above
iv. None of the above
31. A maker of luggage once demonstrated that its suitcases would not open accidentally by
showing them being thrown around by an ape. In Gupta & Lehmann's vernacular, the type of
value to which this demonstration alluded is
i. economic
ii. functional
iii. All of the above
iv. None of the above
32. According to Gupta & Lehmann, what is true of brand equity?
i. Brand awareness is a source of brand equity
ii. Brand loyalty makes the strongest contribution to brand equity
iii. All of the above
iv. Brand equity is measured by dividing stock price by the book value of a firm's
assets.
33. According to Gupta & Lehmann, what is true of frequent discounting?
i. It can lead to erosion of brand equity.
ii. It can decrease customer loyalty.
iii. It can increase customer price sensitivity
iv. All of the above
34. Gupta & Lehmann advise companies to
i. build cause-effect models in which customer value to the firm is the dependent
variable and variables such as loyalty and satisfaction are causal antecedents
ii. identify which variables have the greatest impact on customer value to the firm
by collecting and analyzing pertinent data
iii. All of the above
iv. rely predominantly on knowledge gained from experience to identify the
variables that have the greatest impact on customer value to the firm
35. What do Gupta & Lehmann have to say about firms that are organized along product lines (e.g.,
Toyota's Scion, Toyota, and Lexus brands)?
i. Such structures tend to reward brand managers for maximizing brand
profitability, which may be detrimental to firm profitability.
ii. Were the Toyota company truly a customer centered organization, then some
customers looking for a top-of-the-line Toyota would be steered away from
buying a Toyota and onto buying a Lexus.
iii. Designing organizational structures in which information is exchanged freely
among product-based divisions and incentives reward doing what's best for the
firm, rather than the division, is difficult.
iv. All of the above