Question 1
1.
Customer value is the relationship between company profits and company costs.
Answer
True
False
Question 2
1.
The most critical element for successful strategic planning is top management's support and participation.
Answer
True
False
Question 3
Question 3
1.
The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers.

Answer
True
False
Question 4
1.
ExxonMobil was fulfilling its philanthropic responsibility when it partnered with the
National Fish and Wildlife Foundation to save the world’s remaining tigers by donating more than $11 million to establish the Save the Tiger Fund.
Answer
True
False
Question 5
Question 5
1.
Flexcar is a car rental agency that will rent cars by the hour. Hertz and Avis are part of
Flexcar's competitive environment.
Answer
True
False

Question 6
Question 6
1.
Global marketing standardization:
Answer is becoming less popular with the large multinationals local market encourages product, packaging, and advertising variations for each nation or actually raises production costs presumes markets throughout the world are becoming more alike
Question 7 is more popular with consumer products than with industrial goods
Question 7
1.
Mattel lost millions of dollars on its international marketing campaign for Holiday
Barbie dolls and accessories because Barbie prices were expressed in U.S. dollars and were set without regard for how they would translate into foreign currencies. The dolls were too expensive for most international markets. Mattel had a faulty _____ strategy.
Answer pricing countertrading

diversification product penetration product
Question 8
Question 8
1.
Miller has just purchased a new Allez A1 Specialized bicycle for $1,000. Miller realizes that the Allez A1 costs more than most bikes, and even at that price it doesn't come with a set of pedals. Even though other brands of bicycles cost much less than the Allez A1, Miller tells himself that the Allez A1 is more comfortable and has greater durability than most road bikes.
As Miller wonders if he made the right purchase decision, he is experiencing:
Answer attribute remorse cognitive dissonance evaluation distortion consumer cognition
Question 9
Question 9
1. perceptual disharmony
The fact that mothers in Japan feed their babies freeze-dried sardines and rice and most mothers in the United States would not eat a freeze-dried sardine, much less feed it to their babies, indicates how _____ influences the consumer decision-making process.

Answer culture perception motivation family life-cycle stage
Question 10
Question 10
1. reference group membership
Clayton’s purchase behavior is influenced by his love of rodeo, his patriotism, a fascination with agriculture, his love of country music, and his belief that everyone needs to enjoy life. All of these things are part of which personal influence on the consumer decisionmaking process?
Answer attitude personality
Question 11 beliefs lifestyle experiential learning
Question 11
1.

If DuPont runs advertisements encouraging people to buy clothing that contains
Lycra (a DuPont product), this would be an attempt to influence derived demand.
Answer
True
False
Question 12
Question 12
1.
When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers in the traditional powdered detergent segment switched to the liquid product. Rather than real sales growth, P&G simply experienced the shifting of existing customers to a new product. This exemplifies a drawback of multisegment targeting strategy called:
Answer demarketing selective perception undifferentiation cannibalization
Question 13
Question 13 market repositioning

1.
An 18-year-old college freshman might be a "party animal" living in a dorm. Another
18-year old freshman might be a husband with a small child and a full-time job. If you were in charge of a marketing program aimed at these men, what segmentation technique would be the easiest to employ that might help you to distinguish between them?
Answer age cohort analysis benefit product differentiation concentration
Question 14
Question 14
1. gender
Better World Travelers Club
For many years, if car owners wanted to make sure they would not be stranded if their car broke down, they became members of the American Automobile Association (AAA). Its members also received discounts at AAA-affiliated motels as well as access to maps and a trip planning service. Recently, a new company offering the same services as AAA has come on the market. Better World Travelers Club (BWTC) is competing against AAA by offering the same roadside assistance as AAA and at the same time pitching a go-green philosophy. The company is diligently courting the environmentally conscious traveler. BWTC has agreed to donate one percent of club revenues to environmental organizations that seek to reduce the use of fossil fuel and fight global warming. In addition, its members receive discounts on

travel to remote wilderness retreats, world-class eco-resorts, and "green" hotels (ones that utilize energy-efficient practices).
Refer to Better World Travelers Club. BWTC's design of travel packages that appeal to people who like hiking and camping and packages that appeal to those who like resorts would indicate the company is using a(n) _____ base.
Answer benefit segmentation demographic psychographic
Question 15 geodemographics usage-rate segmentation
Question 15
1.
According to the text, a true marketing decision support system should be:
Answer reactive customer-oriented interactive rigorous descriptive

Question 16
Question 16
1.
The publisher of a Canadian business magazine wanted to make several major changes in the magazine's content and format. To determine what changes would be supported by its subscribers and what changes would not be welcomed, the publisher should engage in:
Answer advertising database marketing marketing research a data retrieval system secondary data
Question 17
Question 17
1.
Hardie Siding Products
James Hardie began selling fiber cement siding products in the United States in 1989 to leading builders, lumberyards, and home improvement centers. Even though ads guaranteed the product would not rot or crack for 50 years, many builders hated the product. It was heavy to install, and it showed every flaw in a bad framing job. In 1997, Hardie decided to run ads in traditional lifestyle magazines and emphasize the emotional appeal of houses made

with strong, weather-resistant materials. Soon consumers began asking their builders or remodelers to use the product. Trade ads were used to explain how builders could take advantage of the interest created by the ads in lifestyle magazines. By 2000, the Hardieplank was the number one brand siding in North America. James Hardie is now the third most recognized brand of building material in the world.
Refer to Hardie Siding Products. Hardie now makes multiple types of fiber-cement siding products. There are different widths, textures, and profiles. The different types of siding the company makes are called its product:
Answer line mix reference point item standardization
Question 18
Question 18
1.
Rexona, marketed by Unilever (a Dutch company), is the world's number one deodorant brand. The brand is a leader in Europe, South America, Asia, Africa, and the
Middle East. Rexona is an example of a:
Answer master brand global brand

cannibalized brand master brand family brand
Question 19
Question 19
1.
Notices on Gummy Bear brand vitamin bottles stating that the vitamins are the “best tasting children’s gummy vitamins” would most likely be an example of persuasive labeling if:
Answer the words "new" and "improved" were also included on the package the federal government had not passed the Informational Labeling Act of 1996 consumers had not become saturated with promotional campaigns they were designed solely to promote the product
Question 20
Question 20
1. they were intended to create brand equity
Patio furniture, lighting fixtures, microwave ovens, canned corn, and athletic shoes are examples of:
Answer

Question 21
Question 21
1.
PLC line items line-extendable categories brand classes brand groupings product categories
Jabra Corporation
After years of development and testing, Jabra Corporation of San Diego, California, unveiled the Jabra 1000 earbud phone. The entire device fits in your ear. It resembles those tiny in-ear speakers that let you listen to an iPod in private--except that Jabra's unit is a transmitter as well. It picks up your voice by amplifying sound vibrations in your bones. Therefore, there's no microphone boom to jut out in front of your face. Because the bone vibrations must be amplified, a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds. This anti-noise chip generates a mirror image of outside noises, and the colliding sound waves erase each other.
The main electronics package--about the size of a deck of cards--also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak. This tech-talk isn't cheap: the earbud phone lists for $329.
Refer to Jabra Corporation. When the Jabra 1000 was first launched, it most likely appealed to which product adopter category?
Answer early adopter

Question 22 early majority late majority innovators laggards
Question 22
1.
The Ritzy Canine
The Ritzy Canine Carriage House looks like several other Manhattan boutique hotels. The lobby features a crystal chandelier, brocade-patterned wallpaper, gold-framed mirrors, and antique chairs. Room service and salon service are available as well as exercise facilities.
There is also a masseuse on staff. Dogs are the only guests, and hopefully they appreciate the video and video player in the $175-a-night Windsor suite. Without extras, a one-day visit will cost $33 to $38, depending on the size of the dog. The Ritzy Canine is a high-end doggy care center. In a world where people work long hours and take longer to settle down, they do not mind spending money on their dogs.
Refer to The Ritzy Canine. Supervised doggy care is the _____ service product, and dog massages would be _____ service products.
Answer central; peripheral primary; secondary core; supplementary essential; superfluous supplementary, core

Question 23
Question 23
1.
Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get a baseline mammogram, she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Courtney most likely to rate the mammogram provider?
Answer empathy assurance tangibles reliability
Question 24 responsiveness
Question 24
1.
A manufacturer may only produce one product, yet additional products may be required to actually use the first product. This creates a:
Answer

1.
Question 25
Question 25 discrepancy of quantity discrepancy of assortment spatial discrepancy temporal discrepancy discrepancy of possession
The Discovery Channel joined with the BBC to send an expedition of top scientists to explore a seabed site off Indonesia. Because these two cable networks compete for viewership, there is a potential for _____ as a result of this project.
Answer horizontal conflict trade loading value-added pricing exclusive distribution
Question 26
Question 26
1. channel partnering

A _____ is an off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise--its own.
Answer mass merchandiser factory outlet wholesale club discount store
Question 27
Question 27
1. bargain basement store
Diaz
John Diaz immigrated to Tallahassee from Cuba in the 1960s. He set up a coffee shop called
Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop.
Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.
Refer to Diaz. The smell of fresh coffee, the fact it is made where drinkers can watch the process, and the comfortable chairs all are used to create the store's:

Answer atmosphere cultural impact target strategy merchandise mix
Question 28
Question 28
1. promotional strategy
Java Jacket is a company that designs and prints ads on the paper jackets that go around hot coffee cups sold in coffee shops. To find clients to advertise on the coffee cup jackets, the company sent a representative to companies like Warner Brothers, eBay.com, and the Wall Street Journal to tell them how their ads on coffee cup jackets would give them inexpensive exposure to a large number of potential customers. Java Jacket's activities can best be described as:
Answer mass communication implicit communication personal selling public relations
Question 29
Question 29 telemarketing

1.
Frigo Design has developed easy-to-install panel sets to update any refrigerator, dishwasher, or compactor made since 1942. As Frigo Design plans its promotion for its new chalkboard panels, which of the following factors will be likely to affect its promotional mix?
Answer
Its chalkboard panels are a new product.
Its chalkboard panels are targeted to families with school-aged children.
Its chalkboard panels are easy to install.
Its panels fit any refrigerator, dishwasher, or compactor made since 1942.
Question 30
Question 30
1.
All of these factors will affect Frigo's promotional mix.
Interpersonal communication is:
Answer nonpaid information such as publicity paid communication placed in personal media long-distance communication between a business and its target market direct face-to-face communication between two or more people noise-free communication

Question 31
Question 31
1.
To provide more delivery service to the consumer market, UPS created UPS stores.
According to the AIDA model, to create attention for this more convenient and less expensive way to mail packages through UPS, its marketing department should have relied on which element of the promotional mix?
Answer public relations sales promotion event sponsorship personal selling
Question 32 direct marketing
Question 32
1.
The communication process itself consists of:
Answer message, media, and transmittal source, receiver, and channel sender, receiver, and message

Question 33 encoding, decoding, channel, sender, and receiver comprehension, noise, and feedback
Question 33
1.
_____ is a purchase situation in which two or more people communicate in an attempt to influence each other.
Answer
Implicit communication
Personal selling
Question 34
Mass communication
Public relations
Synergistic communication
Question 34
1.
One of the reasons for the growing popularity of integrated marketing communications is the proliferation of thousands of new media choices.
Answer
True

Question 35
Question 35
1.
False
Nature Valley uses popular magazines, radio, and cable television to promote its brand of trail mix. Nature Valley uses mass communication.
Answer
True
False
Question 36
Question 36
1.
Media vehicles like Time and Newsweek magazines appeal to a wide cross section of the population. In contrast, American Rifleman and Fitness magazines have high levels of:
Answer longevity audience selectivity geographic selectivity flexibility market singularity

Question 37
Question 37
1.
A medium's ability to reach a precisely defined market is its:
Answer audience selectivity market singularity geographic selectivity noise filtering ability
Question 38
Question 38
1. life span
Because Samuel Cabot, Inc., a manufacturer of premium-grade wood stains, wants to spend its promotional budget on advertisements that will have a long life span so the ad will be around when the homeowner needs such a product, it should use _____ advertising.
Answer newspaper radio

Question 39
Question 39
1. television magazine creative
A(n) _____ media schedule combines continuous scheduling throughout the year with a flighted schedule during the best sales periods.
Answer pulsing bursting unremitting rhythmic
1.
Question 40
Question 40 vibrating
Tools for the public relations manager include all of the following EXCEPT:
Answer press relations

Question 41 product publicity lobbying sales promotions corporate communications
Question 41
1.
A unique form of institutional advertising called _____ advertising is a means for corporations to express their viewpoints on various controversial issues.
Answer advocacy persuasive issue
Question 42 comparative image
Question 42
1.
The sponsorship of a racing team in the Tour de France bicycle race is an example of a public relations activity.
Answer

True
False
Question 43
Question 43
1.
Often the task of lead qualification is handled by a telemarketing group or a sales support person who frees the sales representative from the time-consuming task by engaging in:
Answer prequalification database mining co-opting cold calling
Question 44
Question 44
1. networking
When Jane Ming purchased a subscription to Southern Living magazine, she received a free cookbook entitled Christmas Cookies. The cookbook is an example of a(n):
Answer

contest premium
Question 45 trade sample product placement loyalty incentive
Question 45
1.
Point-of-purchase promotions work best for:
Answer high-involvement products purchases that require extensive decision making complex products that require technical knowledge to operate
Question 46 impulse buys expensive products like perfume and jewelry
Question 46
1.
Trade sales promotions are popular among manufacturers because they can do all of the following at trade shows EXCEPT:

Answer introduce new products create long-term relationships between manufacturers and customers enhance the corporate image test the market response to new products
Question 47
Question 47
1. gather competitive information
_____ is a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
Answer
Question 48
Question 48
1.
Networking
Adaptive selling
Stimulus-response selling
Relationship selling
Needs-dependent selling

Hewlett-Packard offered $25 to individual Office Depot salespeople for each HP Laser
Jet printer they sold. The $25 is push money.
Answer
True
False
Question 49
Question 49
1.
Answer
Which of the following describes a disadvantage associated with markup pricing? how difficult it is to implement its failure to explicitly consider product demand its dependence on marginal costs too many factors influence it
Question 50 none of these
Question 50
1.

Continental Lite
In the mid-1990s, Continental Airlines chose to compete head-on with Southwest Airlines by launching Continental Lite, an alternative low-fare commercial airline passenger operation.
Top executives at Continental had expected its no-frills operation to break even within a year of its inception, but the airline fell short of the goal. A source close to the company explained it by saying, "Its costs were too high, and its revenues were too low." Some observers criticized Continental's marketing efforts. When the no-frills service was first launched, it lacked a distinct name or identity, missing its chance to make a splash. Then Continental tried to sell three "brands" at once--Lite, a new premium service, and its more traditional long-haul domestic flights. As one rival expressed it, "You cannot be all things to all people."
Refer to Continental Lite. Consumers who traveled on Continental Lite or Southwest were very sensitive to price changes. This suggests:
Answer inelastic demand elastic supply elastic demand inelastic supply
Question 51 unitary elasticity
Question 51
1.
While shopping, Anita found a "gardening kit" containing a pair of work gloves, a trowel, and a hand rake handsomely arranged in a clay flower pot. The items, which were sold together, retailed at $24.50, but had been marked down to $12.99. The retailer sold only one for $24.50 and six at the $12.99 price. Demand for the gardening kit package is:

Answer unitary predictable synergistic inelastic
Question 52
Question 52
1. elastic
Consumer Buying Habits
In a sluggish economy, consumers will buy even the most modest of products with the same discretion once shown only to big-ticket items, like computers, air fares, and designer clothes. The results are a growing popularity of cheaper private-label products and the likelihood that price wars among consumer goods could lead to the same kind of consolidation that occurred in the airline and electronics industries. Moreover, analysts say changing buying habits will force premium brand marketers to lower their prices to protect their positions. These companies may also upgrade products to distinguish them from private labels and promote their brands more aggressively than ever.
One analyst says that consumers are forcing product innovation. Products have to be sold on merit. As a result, there will be fewer brands of significance, but the significant brands will be stronger. Brand loyalty is believed to exist only when, or if, value is provided. How do the significant brands compete? One analyst says that a combination of sensible pricing and innovation with a strong brand name can stabilize market share. Reformulated or repackaged products are typical examples of innovative attempts to solidify market share.

Refer to Consumer Buying Habits. In the past, Procter & Gamble set prices on significant brands such as Pampers so that total revenue was as large as possible relative to total costs.
This represents a _____ approach.
Answer profit maximization market share pricing demand-oriented pricing sales maximization status quo pricing
Question 53
Question 53
1.
If demand for milk is elastic, consumers will not change their purchasing habits greatly when the price of milk changes.
Answer
True
False
Question 54
Question 54
1.

Ahmad Jing operates a wedding consultant service. He will often provide essentially the same service to different customers at distinctly different prices depending on how he likes the customer and how much he thinks the customer needs his services. Jing uses:
Answer
Question 55
Question 55
1. two-part pricing an illegal pricing policy flexible pricing bait and switch practices price maintenance
State laws that put a lower limit on wholesale and retail prices are called _____. In states that have these laws, selling below cost is illegal.
Answer unfair trade practice acts price-fixing laws predatory pricing acts price discrimination rulings channel controls

Question 56
Question 56
1.
Merck & Co., the manufacturer of the AIDS drug Crixidan, distributes exclusively to one distributor, Stadtlanders Pharmacy. The pharmacy has been criticized for charging too high a price for the drug and taking advantage of inelastic demand. Stadtlanders claims the charges are ethical because of high staffing costs and associated discounts with various health plans. This situation describes issues associated with:
Answer resale price maintenance price bundling flexible pricing
Question 57
Question 57
1. professional services pricing uniform delivered pricing
If a company decides to divide its market area into segments or regions and charge a flat rate for freight to all customers in a given region, the company is using _____ pricing.
Answer

Question 58
Question 58
1. zone uniform delivered freight absorption
FOB origin basing-point
A manufacturer using uniform delivered pricing is legally discriminating against buyers who are located close to the point of shipping because they pay the same amount as buyers located far from the point of shipping pay.
Answer
True
False
Question 59
Question 59
1.

_____ is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer segments.
Answer
Organizational optimization
Consumer relationship marketing (CRM)
Total quality management (TQM)
Customer relationship management (CRM)
Market aggregation
Question 60
Question 60
1.
According to the CEO of Allied Office Products, “We're a head-count business: I know that if you have a 60-person office, you should buy $298 worth of basic office supplies — paper, pens, staples —from us with each order, but if that's all we get, we stagnate. For us to grow, we have to convince the customer, who already likes our products and service, to buy more than just basic supplies; we have to increase the order by 10, 20, or 30 times.” Allied's salespeople are trained to push the company's less traditional, higher-margin lines such as coffee and refreshments, printing and forms management, and office furniture. Allied’s salespeople are engaging in:
Answer cross-selling trading up buyer empowerment alliance building

Question 61
Question 61
1. bundling
Volvo has a Web site that caters to car enthusiasts who might want to see concept cars evolve into real-life products. Volvo would likely have used data mining to locate people who were car enthusiasts and innovators.
Answer
True
False
Question 62
Question 62
1.
Channel interactions are the relationships a manufacturer has with its distributors.
Answer
True
False