In which type of marketing does a firm have the least commitment to international marketing
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In which type of marketing does a firm have the least commitment to international marketing? a) Domestic Marketing b) Exporting Marketing c) International Marketing d) Global Marketing a) Domestic Marketing The firm is most likely to have an ethnocentric orientation when it engages in __________. a) Export Marketing b) International Marketing c) Multinational Marketing d) Global Marketing a) Export Marketing Which of the following approaches to international marketing involvement best describes a company that coordinates activities across different countries or regions? a) Domestic Marketing b) Exporting Marketing c) International Marketing d) Global Marketing d) Global Marketing Firms with a polycentric orientation are guided by a: a) domestic marketing extension concept b) multi-domestic marketing concept c) global marketing concept d) none of the above b) Multi- Domestic Marketing Concept Companies view world regions as distinct markets that share economic, political, and/or cultural traits such that they would be viable candidates for a region-wide marketing approach. a) Ethnocentric Orientation b) Polycentric Orientation c) Regiocentric Orientation d) Geocentric Orientation c) Regiocentric Orientation International marketing obstacles include all the following EXCEPT: a) the self- reference criterion b) international competition c) development costs for new products d) government barriers c) development costs for new products Similarities of Generation Xers in the US, France, and Malaysia create opportunities for international firms due primarily to which business environment driver? a) converging consumer needs b) international competition c) economic growth d) regional economic and political integration a) converging consumer needs Which internationalization philosophy best describes a firm that views the world market without national or regional distinctions? a) Ethnocentric b) Geocentric c) Polycentric d) Regiocentric b) Geocentric Which business driver of internationalization has created perhaps the greatest opportunities for media and communication firms? a) Standardization b) Competition c) Economic Growth d) Technology d) Technology The self- reference criterion is an obstacle to: a) Government Barriers b) Internationalization c) Polycentric Orientation d) Standardization b) Internationalization Multinational companies: a) Account for two thirds of the world trade b) Have great economic weight c) Control about 20% of foreign assets d) All of the above d) All of the above In the Rostow Modernization Model, which stage is characterized by an economic structure that is dominated by agriculture? a) Primitive Society b) Traditional Society c) Take-off d) Capitalist Society b) Traditional Society Upgrade to remove ads Only ₩37,125/year During which stage of the Rostow Modernization Model does growth become the norm and improvements in production lead to the emergence of leading sectors? a) Traditional Society b) Drive to Maturity c) Transitional Society d) Take- Off d) Take- Off ______ are highly industrialized countries, which have strong industrial and service sectors. a) High- Income Countries b) Emerging Countries c) Low- Income Countries d) Second World Countries a) High- Income Countries Emerging markets are attractive to international firms due to their: a) Rapid rate of technological growth b) Rapid rate of economic growth c) Slow rate of inflation d) Rapid population growth b) Rapid economic growth The Rostow Modernization Model addresses all the following EXCEPT: a) High Mass Consumption b) Drive to Maturity c) Capitalist Society d) Traditional Society c) Capitalist Society A stage in which modern technology is fully adapted in all economic activity and new leading sectors emerge is known as _______. a) Drive to Maturity b) High Mass Consumption c) Take- Off d) Capitalist Society a) Drive to Maturity A stage in economic development characterized by leading sectors shifting towards durable goods is: a) Drive to Maturity b) High Mass Consumption c) Take- Off d) Transitional Society b) High Mass Consumption _______ countries are characterized by consumers with established preferences and intense competition. a) High- Income b) Nationalized c) Emerging d) Low- Income a) High- Income _______ result in binding agreement between parties, facilitated by an independent third party and is often preferred to litigation. a) Mediation b) Antitrust Laws c) Patents d) Arbitration d) Arbitration Which of the following is not an argument for protectionism? a) The market has excess production capacity b) The industry is an "infant" industry c) Natural resources need to be conserved d) Foreign trade zones exist in the market d) Foreign trade zones exist in the market Which of the following is frequently used to get around local content requirements? a) Foreign Trade Zones b) Voluntary export Restrictions c) Paratariff Measures d) Voluntary Import Expansion a) Foreign Trade Zones Upgrade to remove ads Only ₩37,125/year Standards as barriers to trade are frequently used as barriers to: a) Barter b) Exports c) Imports d) All of the above c) Imports A(n) _____ is usually initiated as the result of an action group calling for a ban on consumption of all goods associated with a particular country and/or company. a) Voluntary Export Restraint b) Boycott c) Sanction d) Embargo b) Boycott Which of the following is not a member of the G8? a) France b) China c) Italy d) Canada b) China Tariffs are designed to: a) Discourage imports of a particular good b) Generate revenue c) Penalize countries that impose tariffs on goods from the importing company d) All of the above d) All of the above Restrictions imposed by the US on Japan to protect the US automobile industry are known as _______. a) Voluntary Import Expansion b) Voluntary Import Restraints c) Nonautomatic Import Licenses d) Automatic Import Licenses b) Voluntary Import Restraints Which organizations were created as a result of the Bretton Woods Agreement in 1944 to address the needs of global economic development stability and rebuilding efforts? a) GATT and WTO b) IMF and World Bank c) G8 and G7 d) UNDP and FAO b) IMF and World Bank Foreign Trade Zones benefit international firms in all the following ways EXCEPT: a) FTZs lower prices for goods in the importing country b) FTZs are enclosed and safer than most ports c) JIT inventory can be shipped in bulk to FTZs d) Labeling, repairing, and sorting creates jobs in the exporting country d) Labeling, repairing, and sorting creates jobs in the exporting country Which of he following is not a form of currency control used by governments? a) Embargos b) Foreign Exchange Permits c) Blocked Currency d) Differential Exchange Rates a) Embargos Which of the following is a factor that prompts countries to favor with other countries? a) Sharing a culture b) Sharing a common border c) Sharing a common language d) All of the above d) All of the Above A history of dominance by one nation in a region often leads to shared: a) Cultural elements b) Currencies c) Natural resources d) None of the above a) Cultural elements Upgrade to remove ads Only ₩37,125/year Which of the following is not true regarding the members of the EU? a) Members of the EU are regionally proximal b) Members of the EU are culturally similar c) Members of the EU are adopting a common currency d) Members of the EU have a highly developed transportation b) Members of the EU are culturally similar The OPEC, NATO, and OECD are all examples of: a) Common markets b) Bilateral agreements c) Multilateral agreements d) Free trade agreements c) Multilateral agreements A customs union is a free trade association that may have either eliminated or greatly reduced all tariffs and other trade restrictions for members countries and that has adopted: a) Common external tariffs b) A central bank c) Common monetary policies d) A common currency a) Common external tariffs Which agreement had a purpose to provide for the European Monetary Union and to create the European Central Bank, a single currency, and the fixed exchange rates? a) The Warsaw Pact b) The Geneva Convention c) The Treaty of Rome d) The Maastricht Treaty d) The Maastricht Treaty Which of the following countries is not a member of the European Monetary Union? a) Austria b) Belgium c) Great Britain d) Germany c) Great Britain Which level of integration represents the highest level of integration? a) Political union b) Common market c) Monetary union d) Free trade agreement a) Political union True/ False- Regional proximity is not an important facilitator of economic cooperation. False True/ False- In regional economic integration, most countries begin with developing common market. False The process of learning the beliefs and behaviors that form ones own culture is called: a) Acculturation b) Enculturation c) Assimilation d) None of the above b) Enculturation The norms that refer to what an individual must or must not do in a certain culture are: a) Adiaphoras b) Exclusives c) Imperatives d) None of the above c) Imperatives Upgrade to remove ads Only ₩37,125/year Which of the following is not a pivotal constitute of culture? a) Ecology b) Ideology c) Acculturation d) Social Structure c) Acculturation Which of the following is true regarding subcultures? a) They are components of the broader culture b) They are based on regional differences c) They are based on ethnicity d) All of the above are true regarding subcultures d) All of the above are true regarding subcultures Haptics refer to: a) The use of touch while conversing b) The timing of verbal exchange c) The movement of parts of the body to communicate d) The relationship between physical space and the process of communication a) The use of touch while conversing What locals may do but an outsider cannot do is a: a) Cultural Imperative b) Cultural Adiaphora c) Cultural Assimilation d) Cultural Exclusive d) Cultural Exclusive New products will most likely sell better in a market that: a) has low uncertainty avoidance b) has high uncertainty avoidance c) is collective d) is individualist a) has low uncertainty avoidance Masculine societies emphasize values such as: a) Benevolence b) Ambition c) Preserving the environment d) Equality b) Ambition Ethnocentrism is the belief that: a) A particular culture is superior to another and that strategies used in the home country will work just as well abroad b) Purchasing foreign goods is wrong because it hurts the domestic economy c) A global consumer exists d) Each culture is different, and a unique marketing strategy should be created for each country a) A particular culture is superior to another and that strategies used in the home country will work just as well abroad "United Colors of Benetton," "ADM, Supermarket to the World," and Phillips' "Lest's Make Things Better," which feature individuals and synopses from different countries, are all examples of: a) Global Consumer Culture Positioning b) Local Consumer Culture Positioning c) Foreign Consumer Culture Positioning d) United Consumer Culture Positioning a) Global Consumer Culture Positioning Observational research, also known as----------- involves systematic monitoring of chat rooms, blogs, and personal websites to assess consumers' opinions about products and services. netnography, Checking the consistency of one set of secondary data with other data of known -------is an effective and often-used way of judging validity. validity The obvious advantage to decentralization of the marketing research function is that control rests in hands closer to the market, native 3rd party home offices have more intimate knowledge of the subtleties of the market and an appreciation of diversity in cultural differences Most problems in collecting primary data in international marketing research stem from --------- among countries and range from the inability or unwillingness of respondents to communicate their opinions to inadequacies in questionnaire translation. cultural diffrences Which of the following statements is true about the Japanese corporate culture? The focus on consensus and group makes it hard to challenge what has been decided. International marketers often need to collect certain types of information not normally collected by domestic marketing researchers. Unisys Corporation gives some guidance about the kind of information that organizations need to collect in the international environment. List and briefly discuss each of the five types of information suggested by the Unisys Corporation model. economic and Demographic data Cultural, sociological , and political climate Overview of market conditions summary of the technology in the enviornment competitive siuation Decentering is a hybrid of _____ translation. back Marketers use three different techniques------------to help ferret out translation errors ahead of time. back translation, parallel translation, decentering Which of the following countries has hierarchical, relationship-based corporate culture? South Korea Given the greater uncertainties and data limitations associated with foreign markets, two methods of forecasting demand are particularly suitable for international marketers: --------------. expert opinion and analogy To deal with the problems in analyzing and interpreting research information in international market, a researcher must possess a ------------for adapting research methods. Apart from this, the researcher must possess a -----------, and a------------------is helpful as well. Creative talent High degree of cultural understanding of the market Skeptical attitude in handling both primary and secondary data. To deal with the problems in analyzing and interpreting research information in international market, a marketing researcher must possess three talents. Are the three tallents Creative talent High degree of cultural understanding of the market Skeptical attitude in handling both primary and secondary data. Upgrade to remove ads Only ₩37,125/year The _____ method for estimating demand assumes that demand for a product develops in much the same way in all countries, as comparable economic development occurs in each country. Analogy Once a researcher has defined the research problem and established research objectives, the researcher must: determine the sources of information to fulfill the research objectives. -------------research is helpful in revealing the impact of socio-cultural factors on behavior patterns and in developing research hypotheses that can be tested in subsequent studies designed to quantify the concepts and relevant relationships uncovered in ---------- data collection. Qualitative With references to international marketing research, discuss the various problems related to the availability and use of secondary data.(3 problems) Availability of data- there may not be any reliability of Data- may not fit the needs, may not be accurate comparability of data -there may be nothing to compare it to validation of secondary data- multiple problems in verifying data with variances lost in translation, not being able to compare it, corruption in political and business to overstate or understate metrics in order to seek benefits for themselves or their businesses . The text describes four kinds of company—agency—customer relationships that might be used to bridge the cultural barrier that is present in most international marketing research. Which of the following is deemed to be best suited for managing the cultural barrier across the chain of communication? company—agency—local agency—customers International marketers often need to collect certain types of information not normally collected by domestic marketing researchers. Unisys Corporation gives some guidance about the kind of information that organizations need to collect in the international environment. List and briefly discuss each of the five types of information suggested by the Unisys Corporation model. 1) Economic and demographic - general data on growth in the economy, inflation, business cycle trends and the like; profitability analysis for the division's products 2) Cultural, sociological, and political climate- a general non-economical review of conditions affecting the division's business. In addition to the more obvious subjects it covers ecology, safety, leisure time and their potential impacts on the division's interest. 3) Overview of market conditions- a detailed analysis of market conditions that the division faces , by market segment, including international market segment. 4) Summary of the technology of the environment- a summary of the state of the art technology as it relates to the divisions business carefully broken down by product segments 5) Competitive situation- A review of competitor's sales revenues, methods of market segmentation, products, and apparent strategies on an international scope. In the international arena, the greatest problem in sampling stems from the lack of adequate demographic data from which meaningful samples can be drawn. What are the various advantages and disadvantages of the decentralization of the international marketing research function? The obvious advantage of to decentralization of the research function is that control rests in hands closer to the market. locals have generally have more intimate knowledge of the sublets of the market and an appreciation of the diversity that characterizes most foreign markets. One disadvantage of decentralized research management is possible ineffective communications with home- office executives. Another potential unwarranted dominance of large-market studies in decisions about global standardization. he most universal survey research problem in foreign countries is the ----------. language barrier Which of the following countries comes a close second to the United States with respect to the quantity and quality of the marketing-related data available? Japan Upgrade to remove ads Only ₩37,125/year The key in using expert opinion to help forecast demand is _____, that is, comparing estimates produced by different sources. triangulation To effectively judge the reliability of secondary data sources, following questions should be asked: Who collected the data? For what purposes were the data collected? How (by what methodology) were the data collected? Are the data internally consistent and logical in light of known data sources or market factors? Direct observation of consumers in choice or product usage situations is another important--------- approach to marketing research. qualitative Back translations may not always ensure an accurate translation because of---------------------------------. Parallel translation is used to overcome this problem. commonly used idioms in both languages In the context of the research process, which of the following should an organization immediately do once it has determined the sources of information to fulfill the research objectives? Consider the costs and benefits of the research effort. What is the 2nd step of the research process? Determine the sources of Information to fulfill the research objectives. What is the 3rd step of the research process? Consider the cost and benefits of the research effort What is the 5th step of the research process? Analyze, Interpret and Summarize the results. What is the 1st step of the research process? Define the research problem and establish the research objectives. What is the 6th step of the research process? Effectively communicate the decisions to decision makers Upgrade to remove ads Only ₩37,125/year What is the 4th step of the research process? Gather relevant data from primary, secondary, or combined primary/secondary data sources One disadvantage of decentralized research management is possible ineffective communications with _____. home-office executives 4 Legal Systems 1.) Common Law 2.) Civil/Code Law 3.) Islamic Law 4.) Marxist-Socialist Law Common Law Seeks interpretation through the past decisions of higher courts which interpret the same statutes of apply established and customary principles of law to a similar set of facts -Ownership is established by use Civil/Code Law Based on an all inclusive system of written rules (codes) of law -Ownership is established by registration 3 Forms of Dispute Resolution 1.) Conciliation (Mediation) 2.) Arbitration 3.) Litigation Conciliation Non-binding agreement to have a 3rd party mediate differences; comes up with ways to resolve the dispure -Private; confidential Arbitration Choose a qualified person to rule on the case and make a binding decision Litigation Lawsuits in public court -Damage image -Fear of unfair treatment -High cost -Loss of confidentiality Marketing Research The systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making Types of Data Gathered 1.) Economic and Demographic 2.) Cultural, Sociological, Political Climate 3.) Market Conditions 4.) Technological Environment 5.) Competitive Situation Research Process 1.) Define the problem 2.) Determine sources of information 3.) Consider costs/benefits 4.) Gather relevant data - primary/secondary 5.) Analyze, interpret, summarize results 6.) Effectively communicate results Challenges in International Research 1.) Availability of Data 2.) Reliability of Data 3.) Comparability of Data Primary Data Data collected specifically for the research problem at hand Quantitative Research Asked to reply to structured questions with specific answers (yes/no) -Can present data with precise numbers Qualitative Research Open-ended, free response questions -Focus Groups: "how did you feel; what did you like" Problems Gathering Primary Data 1.) Ability to Communicate Opinions 2.) Willingness to Respond 3.) Sampling in Survey Field 4.) Language Back Translation Question is translated from one language to another, and then back again, afterwards comparing the two versions Parallel Translation Multiple translators are used for back translation and results are compared Decentering Ex: English version translated to French and then translated back to English by a different translator, They're compared and then the original is modified and then repeated Multicultural Research Designing studies to get adequate results from multiple cultures is hard to do due to cultural factors arising from different cultures -Adaptations must be made to succeed Solutions to Research Challenges 1.) Possess a high degree of cultural understanding 2.) Adapt research methods 3.) Be skeptical of data Benefits of Being Global 1.) Large Consumer Market 2.) Economies of Scale 3.) Knowledge Transfer 4 Phases of Planning 1.) Preliminary Analysis and Screening 2.) Adapting the Marketing Mix 3.) Developing the Marketing Plan 4.) Implementation and Control Preliminary Analysis and Screening Matching Company and Country Needs -Environmental factors, company character, and screening criteria -Home Country Constraints (political, legal, economic, other) -Host Country Constraints Adapting the Marketing Mix Matching mix requirements, defining and selecting market segments -Product adaptation, features, packaging, etc. -Promotion strategies -Channels of distribution and logistics Developing the Marketing Plan -Situation Analysis -Objectives and Goals -Strategy and Tactics -Selecting Mode of Entry -Budgets -Action Plan Implementation and Control -Objectives -Standards -Assign Responsibility -Measure Performance -Correct for Error Alternative Market Entry Strategies 1.) Exporting 2.) Contractual Agreements 3.) Strategic International Alliances 4.) Direct Foreign Investment Exporting Direct Exporting - selling to customers in another country Indirect Exporting - selling to customers through an intermediary -Internet -Direct Sales Contractual Agreements Long-term, nonequity associations between a company and another in a foreign market -Licensing -Franchising Strategic International Alliance A business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective Joint Venture A partnership of two or more participating companies that have joined forces to create a separate legal entity -Established, separate, legal entities -Acknowledge intent by the partners to share in the mgmt -Partnerships b/w legally incorporated entities -Equity positions are held by each of the partners Consortia Similar to Joint Ventures Except: -Typically involve a large number of participants -Frequently operate in a country or market in which none of the participants is currently active Foreign Direct Investment Typical strategies are Mergers, Acquisitions, and Greenfield Ventures Which of the following statements about market segmentation is TRUE? A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter. C) It is a process of creating an image or identity of the product in the minds of the target market. D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results. D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________. A) market research B) market positioning C) marketing effectiveness D) market segmentation E) market dominance B) market positioning 00:0001:14 The process of selecting one or more market segments to enter is called market ________. A) targeting B) dominance C) positioning D) segmentation E) research A) targeting When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats? A) differentiated marketing B) affiliate marketing C) guerrilla marketing D) affinity marketing E) grassroots marketing E) grassroots marketing When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation. A) psychographic lifestyle B) personality C) behavioral occasions D) social class E) demographic A) psychographic lifestyle Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler. A) life stage B) gender C) age D) income E) social class C) age The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 illustrates what quality of baby boomers? A) being willing to pay for price for valued offerings B) being turned off by overt marketing practices C) being pragmatic and prizing self-sufficiency D) wanting to purchase online E) wanting to turn back the hands of time E) wanting to turn back the hands of time Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment. A) life stage B) age C) behavior D) user status E) income A) life stage Which of the following statements about Gen Xers is TRUE? A) Gen Xers are often willing to change brands. B) Gen Xers are selective, confident, and impatient. C) Gen Xers are socially conscious and concerned about the environment. D) Gen Xers prize self-sufficiency and are pragmatic. E) Technology is a barrier for Gen Xers. D) Gen Xers prize self-sufficiency and are pragmatic. ________ is the science of using psychology and demographics to better understand consumers. A) Psychographics B) Interactionism C) Clustering D) Demographic transition E) Customerization A) Psychographics The dimensions in the VALS framework are consumer resources and ________. A) marketer resources B) product innovation C) consumer maturity D) impulsiveness E) consumer motivation E) consumer motivation Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing? A) initiator B) influencer C) decider D) buyer E) gatekeeper A) initiator 00:0001:14 Upgrade to remove ads Only ₩37,125/year Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. A) attitude B) buyer-readiness stage C) loyalty status D) user status E) benefits D) user status A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own. A) hard-core loyals B) split loyals C) shifting loyals D) switchers E) antiloyals B) split loyals If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important? A) personal characteristics B) demographic variables C) situational factors D) operating variables E) purchasing approaches B) demographic variables Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets. A) situational factors B) demographic C) purchasing approaches D) personal characteristics E) operating variables A) situational factors In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________. A) macrosegmentation B) microsegmentation C) geographic segmentation D) global segmentation E) short-term segmentation A) macrosegmentation A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve. A) demographic variables B) situational factors C) operating variables D) purchasing approaches E) personal characteristics A) demographic variables A marketer is interested in segmenting a business market based on technology and customer capabilities. These criteria illustrate which of the following major segmentation variables? A) demographic variables B) purchasing approaches C) situational factors D) personal characteristics E) operating variables E) operating variables A marketer is interested in segmenting a business market on ________ if the marketer's variables are loyalty and attitudes toward risk. A) situational factors B) purchasing approaches C) personal characteristics D) operating variables E) demographic variables C) personal characteristics A ________ offering consists of two parts: a naked solution and discretionary options. A) differentiated market B) flexible market C) rigid market D) vertical market E) horizontal market B) flexible market When marketers present flexible market offerings to all members of a business segment, their offerings consist of two parts. Which part contains the product and service elements that all segment members value? A) naked solution B) discretionary solution C) maximum solution D) pseudo solution E) virtual solution A) naked solution Upgrade to remove ads Only ₩37,125/year Which of the following statements is TRUE about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment? A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied. B) A segment is unattractive if buyers possess strong or growing bargaining power. C) A segment is attractive when there are actual or potential substitutes for the product. D) A segment is attractive if it already contains numerous, strong, or aggressive competitors. E) The most attractive segment is one in which entry barriers are low and exit barriers are high. B) A segment is unattractive if buyers possess strong or growing bargaining power. During which step of the needs-based segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? A) Step 2-segment identification B) Step 3-segment attractiveness C) Step 6-segment "acid test" D) Step 1-needs-based segmentation E) Step 7-marketing-mix strategy D) Step 1-needs-based segmentation If an organization's marketing department wants to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, it would most likely occur in the ________ step of the segmentation process. A) needs-based segmentation B) segment identification C) segment profitability D) segment "acid test" E) marketing-mix strategy D) segment "acid test" In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access. A) need-based segmentation B) segment identification C) segment attractiveness D) segment profitability E) segment "acid test" C) segment attractiveness In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable. A) segment "acid test" B) segment attractiveness C) segment profitability D) need-based segmentation E) segment identification E) segment identification To be useful, a market segment should be ________, which means the largest possible homogeneous group worth going after with a tailored marketing program. A) measurable B) substantial C) accessible D) differentiable E) actionable B) substantial The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________. A) measurable B) substantial C) differentiable D) accessible E) actionable D) accessible If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process? A) needs-based segmentation B) segment identification C) segment attractiveness D) segment positioning E) segment "acid-test" D) segment positioning For a segment to meet the ________ criterion of usefulness, the marketer must be able to formulate effective programs for attracting and serving the segments. A) measurable B) substantial C) accessible D) differentiable E) actionable E) actionable If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments. A) measurable B) substantial C) accessible D) differentiable E) actionable D) differentiable Upgrade to remove ads Only ₩37,125/year In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________. A) company's objectives and resources B) effectiveness of the suppliers C) flexibility of legal rules governing the business D) socio-economic infrastructure E) global nature of the product A) company's objectives and resources In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer. A) niche B) mass C) guerrilla D) segmented E) differentiated B) mass In ________ marketing, the firm operates in several market segments and designs different products for each segment. A) individual B) undifferentiated C) differentiated D) concentrated E) niche C) differentiated General Motors, a leading American multinational automaker, sells cars for every purpose, budget, and personality. This is an example of ________ marketing. A) undifferentiated B) differentiated C) concentrated D) niche E) micro B) differentiated Marketers usually identify niches by ________. A) dividing a segment into subsegments B) conducting VALS tests C) allowing consumers to gravitate toward product brands D) examining the demographics section of the handbook of marketing E) producing products that can be used in a variety of ways A) dividing a segment into subsegments Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage A) single-segment concentration All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage A) single-segment concentration Which of the following best represents the chief advantage of pursuing a strategy of multiple segment specialization? A) It makes the company almost bulletproof to competitors' actions. B) It diversifies the firm's risk. C) It creates synergy between markets. D) It is a low-cost strategy. E) It treats all buyers the same and, therefore, lowers promotion costs. B) It diversifies the firm's risk. All marketing strategy is built on segmentation, targeting, and ________. A) positioning B) product C) planning D) promotion E) performance A) positioning The goal of positioning is to ________. A) locate the brand in the minds of consumers to maximize the potential benefit to the firm B) discover the different needs and groups existing in the marketplace C) target those customers marketers can satisfy in a superior way D) collect information about competitors that will directly influence the firms' strategy E) help the firm anticipate what the actions of its competitors will be A) locate the brand in the minds of consumers to maximize the potential benefit to the firm Upgrade to remove ads Only ₩37,125/year The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product. A) an award-winning promotional campaign B) a customer-focused value proposition C) a demand channel D) everyday low pricing E) employee value proposition B) a customer-focused value proposition Which of the following best describes a car company's value proposition? A) We charge a 20 percent premium on our cars. B) We target safety-conscious upscale families. C) We sell the safest, most durable wagon. D) We are the market leader in the small car category. E) We focus on expanding in faster-growing markets. C) We sell the safest, most durable wagon. Perdue's cogent reason why a target market should buy its chicken is "More tender golden chicken at a moderate premium price," also known as its ________. A) customer-focused value proposition B) competitive frame of reference C) points-of-parity D) straddle positioning E) perceptual map A) customer-focused value proposition Which of the following best describes BR Chicken's value proposition? A) We sell chicken at most major malls. B) We undertake home delivery services. C) We target quality-conscious consumers of chicken. D) We sell tender golden chicken at a moderate price. E) We charge a 10 percent premium on our chicken. D) We sell tender golden chicken at a moderate price. Points-of-________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands. A) parity B) difference C) inflection D) presence E) divergence A) parity The three criteria that determine whether a brand association can truly function as a point-of-difference are ________. A) comparability, authenticity, deliverability B) desirability, peculiarity, deliverability C) deviance, peculiarity, deformity D) desirability, deliverability, differentiability E) differentiability, authenticity, desirability D) desirability, deliverability, differentiability Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers? A) differentiability B) peculiarity C) desirability D) believability E) deliverability E) deliverability A brand must demonstrate ________, for it to function as a true point-of-difference. A) clear superiority of an attribute or benefit B) clear profitability to the company C) clear similarity to the attributes of other brands D) technological advances for an attribute or benefit E) exploitation of competitors' weakness A) clear superiority of an attribute or benefit ________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class. A) Category points-of-difference B) Conceptual points-of-parity C) Competitive points-of-parity D) Category points-of-parity E) Competitive points-of-difference D) Category points-of-parity Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling? A) points-of-difference B) points-of-conflict C) points-of-parity D) points-of-presence E) points-of-inflection A) points-of-difference Upgrade to remove ads Only ₩37,125/year Nivea became the leader in the skin cream class on the "gentle," "protective," and "caring" platform. The company further moved into classes such as deodorants, shampoos, and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse, and its cosmetics would be colorful enough. This is an example of ________. A) competitive points-of-parity B) competitive points-of-difference C) category points-of-parity D) category points-of-difference E) competitive points-of-presence C) category points-of-parity Marketers typically focus on brand ________ in choosing the points-of-parity and points-of-difference that make up their brand positioning. A) equity B) awareness C) benefits D) architecture E) extensions C) benefits Which of the following statements about brand mantras is TRUE? A) They guide only major decisions; they have no influence on mundane decisions. B) Their influence does not extend beyond tactical concerns. C) They must economically communicate what the brand is and avoid communicating what it is not. D) They can provide guidance about what ad campaigns to run and where and how to sell the brand. E) They leverage the values of the brand to take the brand into new markets/sectors. D) They can provide guidance about what ad campaigns to run and where and how to sell the brand. Brand mantras typically are designed to capture the brand's points-of-________. A) conflict B) parity C) inflection D) difference E) presence D) difference Tums claims to have the most acid-reducing components of any antacid. In what way is the brand's category membership being conveyed? A) comparing to exemplars B) relying on the product descriptor C) announcing category benefits D) focusing on reliability E) persuasion based on believability C) announcing category benefits SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes B) comparing to exemplars ________ is a company's ability to perform in one or more ways that competitors cannot or will not match. A) Brand positioning B) Market research C) Competitive advantage D) Competitor analysis E) Competitive intelligence C) Competitive advantage Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to people's memories, associations, and stories. A) cultural branding B) narrative branding C) brand journalism D) emotional branding E) personal branding B) narrative branding Which of the following statements about the branding guidelines for a small business is TRUE? A) A small business must creatively conduct low-cost marketing research. B) A small business must avoid leveraging secondary brand associations. C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image. D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers. E) A small business must focus on building more than two strong brands based on a number of associations. A) A small business must creatively conduct low-cost marketing research. The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis. A) consumer profitability analysis B) competitor indexing C) service blueprint D) competitive frame of reference E) cluster analysis D) competitive frame of reference ________ refers to the products or sets of products with which a brand competes and which function as close substitutes. A) Consumer profitability analysis B) Competitive frame of reference C) Category membership D) Value membership E) Demand field C) Category membership Using the market approach, ________ are defined as companies that satisfy the same customer need. A) communities B) competitors C) trendsetters D) industries E) task groups B) competitors A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another. A) community B) task force C) industry D) focus group E) umbrella brand C) industry When Coca-Cola determines the bottled-water competitors for its Dasani brand by identifying the products or sets of products with which a brand competes and which function as close substitutes, it is determining Dasani's ________. A) customer-focused value proposition B) points-of-parity C) points-of-difference D) category membership E) brand mantra D) category membership When Coca-Cola focused on developing its soft-drink business but missed seeing the market for coffee bars and fresh-fruit-juice bars that eventually impinged on its soft-drink business, it was suffering from ________ because it defined competition in traditional category and industry terms. A) factor elimination B) marketing myopia C) factor reduction D) category points-of-parity E) reliance on product description B) marketing myopia When the total market expands, the market ________ usually gains the most. A) challenger B) leader C) follower D) nicher E) entrant B) leader When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy. A) market-penetration B) new-market segment C) geographical-expansion D) niche identification E) blue-ocean B) new-market segment When food product companies advertise recipes that use their branded products in entirely different ways, they are increasing the ________ consumption of the brand. A) amount of B) level of C) dedication to D) frequency of E) awareness D) frequency of Which of the following is the most constructive response a market leader can make when defending its market share? A) maintain basic cost control B) innovate continuously C) provide desired benefits D) meet challengers with a swift response E) provide expected benefits B) innovate continuously ________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable. A) Position B) Flank C) Preemptive D) Mobile E) Contraction A) Position If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ defense strategy. A) preemptive B) counteroffensive C) mobile D) flank E) contraction A) preemptive A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a market ________. A) challenger B) leader C) follower D) nicher E) entrant C) follower Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack. A) guerilla B) frontal C) encirclement D) bypass E) flank B) frontal Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an example of a(n) ________ attack. A) frontal B) flank C) guerrilla D) encirclement E) bypass B) flank A marketing manager has decided to "leapfrog" the competition by moving into cuttingedge technologies. This indirect approach to attacking competition can be characterized as a(n) ________ attack. A) flank B) encirclement C) bypass D) guerrilla E) frontal C) bypass In his article, "Innovative Imitation," Theodore Levitt argues that ________. A) imitation is wrong and should be punished B) product imitation might be as profitable as product innovation C) innovation is not possible without substantial imitation D) innovation cannot begin unless dissatisfaction with imitation occurs E) imitation should be against the law because of the intellectual property decision involved B) product imitation might be as profitable as product innovation An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a ________. A) marketing king B) market nicher C) segment king D) guerilla marketer E) strategic clone B) market nicher A firm that is based in France designs jewelry and takes custom orders from around the world. They design up to 15 pieces of jewelry in a year and ensure that each design uses distinctive stones and is unique. Such nichemanship is an example of ________ specialist role. A) customer-size B) product C) product-feature D) job-shop E) quality-price D) job-shop The first step in the strategic brand management process is ________. A) measuring consumer brand loyalty B) identifying and establishing brand positioning C) planning and implementing brand marketing D) measuring and interpreting brand performance E) growing and sustaining brand value B) identifying and establishing brand positioning The American Marketing Association defines a ________ as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors." A) copyright B) trademark C) slogan D) brand E) logo D) brand Branding is ________. A) all about creating unanimity between products B) the process of performing market research and selling products or services to customers C) endowing products and services with the power of a brand D) the process of comparing competing brands available in the market E) use of online interactive media to promote products and brands C) endowing products and services with the power of a brand Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________. A) the imported brand will not survive the competition from Maytag B) Maytag has positive customer-based brand equity C) the South Korean company has a low advertising budget D) the imported brand is unreliable E) the Maytag washing machine has better features than the imported brand B) Maytag has positive customer-based brand equity When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________. A) brand knowledge B) ethnocentric bias C) self-serving bias D) cognitive dissonance E) brand identity A) brand knowledge Which of the following is a marketing advantage of strong brands? A) no vulnerability to marketing crises B) more elastic consumer response to price increases C) guaranteed profits D) additional brand extension opportunities E) more inelastic consumer response to price decreases D) additional brand extension opportunities When a marketer expresses his or her vision of what a brand must be and do for consumers, he or she is expressing what is called a brand ________. A) promise B) personality C) identity D) position E) revitalization A) promise Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, redlacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the BrandAsset® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario? A) energized differentiation B) relevance C) esteem D) knowledge E) advantage A) energized differentiation The failure of Cracker Jack cereal is an example of consumers' ________ dictating that the extensions were inappropriate for the brand. A) brand knowledge B) brand equity C) brand stature D) power grid E) brand salience A) brand knowledge According to the BrandAsset® Valuator model, strong new brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still C) high knowledge-evidence of past performance-a lower level of esteem, and even lower relevance, energy, and differentiation D) high levels on energy, differentiation, relevance, knowledge, and esteem E) low levels on energy, differentiation, relevance, knowledge, and esteem B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still According to BrandAsset® Valuator model, leadership brands show ________. A) high levels of energy, differentiation, relevance, knowledge, and esteem B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still D) low levels on energy, differentiation, relevance, knowledge, and esteem E) high knowledge-evidence of past performance-a lower level of esteem, and even lower relevance, energy, and differentiation A) high levels of energy, differentiation, relevance, knowledge, and esteem Aromas Inc. introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the BrandDynamics Pyramid? A) presence B) bonding C) relevance D) performance E) advantage A) presence A consumer who expresses rational and emotional attachments to a brand to the exclusion of most other brands has reached the ________ level in the BrandDynamics Pyramid. A) advantage B) relevance C) presence D) performance E) bonding E) bonding According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Can this brand deliver?" A) performance B) bonding C) advantage D) relevance E) presence A) performance With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop an intense, active loyalty? A) salience B) imagery C) feelings D) judgments E) resonance E) resonance With respect to the "six brand building blocks," brand ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it. A) imagery B) judgment C) resonance D) salience E) performance C) resonance From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand? A) the product and all accompanying marketing activities and supporting marketing programs B) the service and all accompanying marketing activities and programs C) the initial choices for the brand elements or identities making up the brand D) associations indirectly transferred to the brand by linking it to some other entity E) the profitability associated with brand development C) the initial choices for the brand elements or identities making up the brand Red Bull enlisted college students as "Red Bull student brand managers" to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario? A) the profitability associated with brand development B) associations indirectly transferred to the brand by linking it to a person C) the product and all accompanying marketing activities and supporting marketing programs D) the initial choices for the brand elements or identities making up the brand E) associations indirectly transferred to the brand by linking it to a place C) the product and all accompanying marketing activities and supporting marketing programs The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of the brand equity drivers is most applicable in the given scenario? A) the associations indirectly transferred to the brand by linking it to a place or thing B) the product and all accompanying marketing activities and supporting marketing programs C) the initial choices for the brand elements or identities making up the brand D) the profitability associated with brand development E) the service and all accompanying marketing activities and programs A) the associations indirectly transferred to the brand by linking it to a place or thing Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand. A) elements B) value propositions C) perceptions D) images E) extensions A) elements Which of the following is a defensive criterion for choosing brand elements? A) adaptable B) memorable C) meaningful D) likeable E) significance A) adaptable With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" to help consumers grasp what the brand is and what makes it special. A) the tangibility of a product B) a product's shape C) a slogan D) a patent E) a copyright C) a slogan A brand ________ can be defined as any information-bearing experience a customer or prospect has with the brand, its product category, or its market. A) value B) personality C) trait D) character E) contact E) contact In response to the need to reinforce the brand promise, ________ is about mixing and matching marketing activities to maximize their individual and collective effects. A) personalized marketing B) mass customization C) globalized marketing D) relationship marketing E) integrated marketing E) integrated marketing AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray? A) choosing the right moment to capture employees' attention and imagination B) furnishing energizing and informative internal communication C) bringing the brand alive for employees D) linking internal and external marketing E) understanding how brand communities work D) linking internal and external marketing ________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making. A) Internal marketing campaigns B) Brand portfolio audits C) Brand value chains D) Sales cycles E) Brand-tracking studies E) Brand-tracking studies Brand ________ is the job of estimating the total financial worth of the brand. A) tracking B) auditing C) equity D) valuation E) harmonization D) valuation Apple's iPod Shuffle is an example of ________. A) a sub-brand B) a parent brand C) family brand D) a brand mix E) an umbrella brand A) a sub-brand Using an established brand to introduce a new product is called brand ________. A) harmonization B) valuation C) extension D) positioning E) parity C) extension The introduction of Diet Coke by the Coca-Cola Company is an example of ________. A) line extension B) brand harmonization C) category extension D) brand dilution E) co-branding A) line extension A ________ consists of all products-original as well as line and category extensionssold under a particular brand. A) brand line B) cobrand C) generic brand D) licensed product E) subbrand A) brand line A major advantage of a ________ strategy is that if the product fails, the company has not tied its reputation to the product. A) blanket family name B) licensing C) separate family brand name D) category extension E) brand revitalization C) separate family brand name A brand ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category. A) architecture B) position C) portfolio D) extension E) image C) portfolio ________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning. A) Flanker B) Attacker C) Defender D) Cash cow E) Simulation A) Flanker Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company. A) product licensing B) brand extensions C) brand architecture D) brand audits E) brand dilutions B) brand extensions Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offeringsin effect ________ the parent brand. A) diluting B) cannibalizing C) reinforcing D) eroding E) revamping B) cannibalizing In its focus on bottom-line financial value, the ________ approach offers limited guidance for go-to-market strategies and does not fully account for competitive moves. A) brand equity B) brand value chain C) customer tracking D) customer equity E) brand extension D) customer equity Which of the following is NOT a weakness of a customer equity perspective (relative to a brand equity perspective)? A) It offers limited guidance for go-to-market strategies. B) It has quantifiable measures of financial performance. C) It ignores the advantages of creating a strong brand. D) It overlooks the option value of brands. E) It does not fully account for social network effects or word-of-mouth. B) It has quantifiable measures of financial performance. WD40 offers a Smart Straw version of its popular multipurpose lubricant with a built-in straw that pops up for use. This is an example of which of the following main strategies for growing the core of the business? A) Make the core of the brand as distinctive as possible. B) Drive distribution through both existing and new channels. C) Offer the core product in new formats or versions. D) Increase costs and revenue. E) Expand to another geographic region. C) Offer the core product in new formats or versions. Galaxy chocolate has successfully competed with Cadbury by positioning itself as "your partner in chocolate indulgence" and featuring smoother product shapes, more refined taste, and sleeker packaging, which represents which of the following main strategies for growing the core of the business? A) Make the core of the brand as distinctive as possible. B) Drive distribution through both existing and new channels. C) Offer the core product in new formats or versions. D) Increase costs and revenue. E) Expand to another geographic region. A) Make the core of the brand as distinctive as possible. A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. A) function B) product C) benefit D) process E) structure B) product When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product. A) consumption B) expected C) potential D) augmented E) basic C) potential When a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy? A) pure tangible good B) basic product C) augmented product D) potential product E) generic product B) basic product Which of the following are tangible goods that normally survive many uses? A) generic goods B) durable goods C) core benefits D) convenience goods E) unsought goods B) durable goods The five product levels add more customer value, and together they constitute a(n) ________. A) core benefit B) basic product C) augmented product D) customer-value hierarchy E) expected product D) customer-value hierarchy Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________. A) natural products B) component materials C) operating supplies D) equipment E) processed materials D) equipment If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________. A) reliability B) conformance quality C) durability D) compatibility E) interoperability B) conformance quality For ________ to be valued for products like vehicles and kitchen appliances, it should not be associated with an excessive price premium and the product must not be subject to rapid technological obsolescence. A) conformance quality B) performance quality C) repairability D) durability E) style D) durability Smith & Adams Poultry set up a computer system so that its customers (restaurants and hotels) can directly inform its central supply system about purchase volumes and dates, as well as automatically receive confirmation of orders and shipments. This is an example of a company differentiating its service in terms of ________. A) customer relationships B) customer training C) installation D) delivery ease E) ordering ease E) ordering ease Realizing that although household products is a huge category-taking up an entire supermarket aisle or more-it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________. A) design B) durability C) conformance D) reliability E) performance quality A) design A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a ________. A) product type B) product class C) need family D) product variant E) product line E) product line A ________ is the set of all products and items a particular seller offers for sale. A) product line B) product mix C) product extension D) product system E) product class B) product mix Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a product ________ of five lines. A) type B) length C) class D) mix E) width E) width In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements. A) convenience item B) flagship product C) staple item D) potential product E) basic platform E) basic platform Which of the following is a purpose of product mapping? A) studying market matrices B) integrating target markets C) identifying market segments D) educating consumers E) integrating target matrices C) identifying market segments A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market. A) down-market stretch B) up-market stretch C) two-way stretch D) marketing research E) disintermediation A) down-market stretch Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for the full season at one time. This is an example of what type of product-mix pricing? A) mixed bundling B) pure bundling C) product line pricing D) captive-product pricing E) two-part pricing A) mixed bundling Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles. A) optional-feature B) two-part C) by-product D) product line E) captive-product E) captive-product The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved. A) branding synergy B) increased advertising dollars C) multiple brands D) bundled package E) pure bundling C) multiple brands ________ branding is a special case of co-branding involving creating brand equity for materials, components, or parts that are necessarily contained within other branded products. A) Cross B) Ingredient C) Equity D) Family E) Generic B) Ingredient Packaging includes all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package. A) retailer B) design C) shipping D) consumer E) supplier C) shipping ________ are formal statements of expected product performance by the manufacturer. A) Insurances B) Warranties C) Bonds D) Invoices E) Balance sheets B) Warranties Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk. A) actual B) perceived C) real D) implied E) stated B) perceived Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition. A) not known B) different C) inferior D) equivalent E) superior E) superior Which of the following is most closely related with the organic growth of an organization? A) acquiring a product or service brand B) entering new market places C) increasing the operational profitability D) increasing productivity of employees E) developing new products from within E) developing new products from within Most new-product activities are devoted to ________. A) changing the target markets B) developing new-to-the-world products C) introducing backward integration D) improving existing products E) changing the existing market dynamics D) improving existing products Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it pursues ________. A) disruptive technologies B) incremental innovation C) complex innovations D) discontinuous innovations E) radical innovations E) radical innovations Which of the following methods for new-product development incorporates buyers' preferences in the final design of the product? A) quality function deployment B) market leadership C) cost leadership D) incremental innovation E) disruptive technology A) quality function deployment After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step? A) commercializing the product B) performing concept testing C) conducting beta testing with customers D) creating a marketing strategy for the product E) performing business analysis C) conducting beta testing with customers Which of the following questions is answered during the business analysis of ideas? A) Does the product meet a need? B) Do we have a technically and commercially sound product? C) Can we find a cost-effective, affordable marketing strategy? D) Can this product meet sales expectations? E) Can we find a good concept consumers say they would try? D) Can this product meet sales expectations?
