A, True or False (2’X10=20’)
1. Inter-organizational relationship is a unique phenomenon in China
2. The marginal effect of advertising on sales is always same throughout
different stages of new product diffusion.
3. Frequent price promotion hurts brand equity.
4. The sales quantity of a new product is evenly distributed in different time
periods.
5. Advertising is a more efficient way to increase consumer’s new product
awareness level than personal communication.
6. Bundled products are always priced lower than non-bundled products.
7. New product development involves very high cost and risks of failure.
Therefore, companies should not develop new product.
8. The higher the price, the lower the demand, given others constant.
9. Product line extension could possibly damage the reputation of the mother
brand.
10. The marketing concept holds that the key to achieving organizational goals
consists of the company being more effective than competitors in creating,
delivering, and communicating superior customer value to its chosen target
markets.
Answers: 1,F 2,F 3,T, 4,F 5,T, 6,F, 7,F 8,F, 9,T, 10, T
B. Multiple Choices (3’x10=30’)
1, Which of the following could explain why the prices of ice cream products made
by Haagen-dazs are much higher in China market than in US market?
a. the income level of the target customers in China is higher than income level of
the target customers in US.
b. the transportation across the continent involves very high cost
c. the company uses market-skimming pricing tactic
d. the quality level of Haagen-dazs product in China is much higher than that in US.
2, Starbucks offers a special mug worth a price of RMB30 to the customers. With
this mug, customers could save RMB2 each time they purchase any Starbucks
coffee. Which of following could best explain Starbuck’s profit driven behavior?
a, environment sustainability b, two-part tariff extracting more consumer surplus
c, attracting more customers d, transfer to mug industry
3, General Mills offers different product lines in China market from those in US.
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What kind of strategy General Mills uses here in the world marketplace?
a, price discrimination
b, cost leadership
c, focus
d, differentiation
4, Every night after working the swing shift, Sierra stops by the 7-Eleven store near
her house. She often buys bread and drinks while she’s there even though the prices
at the 7-Eleven store are higher than at her local supermarket. The7-Eleven store is
an example of a __________.
a. specialty store
b. superstore
c. warehouse store
d. convenience store
5, In the buying center, __________ are people who request that something be
purchased, including users or others.
a. initiators
b. influencers
c. deciders
d. approvers
6, A(n) __________ market is characterized by a fairly narrowly defined market
with a complete and distinct set of needs, and a willingness to pay a premium to
meet those needs.
a. local
b. niche
c. individual
d. derived
7, Best Buy will often try to sell a buyer of a high-end television monitor an
extended warranty. This is an example of selling a __________.
a. pure tangible good
b. tangible good with accompanying services
c. hybrid
d. pure service
8, Which of the following is NOT an entry barrier?
a. Economies of scale.
b. Scarce locations.
c. High capital requirements.
d. Abundance of distributors.
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9, In the absence of noticeable and rapid healing, Susan is not sure whether she got
good service by her physician. Medical services are a good example of this type of
difficulty— __________—where the consumer finds hard to evaluate even after
consumption.
a. search qualities
b. experience qualities
c. credence qualities
d. differentiation qualities
10, Intel, one of the largest producers of integrated circuit chips, puts a great deal of
effort into expanding production of chips to drive down the cost and thus expand
the market. This is most indicative of the __________ concept.
a. production
b. product
c. customer
d. marketing
1,c, 2,b 3,d, 4,d 5,a 6,a, 7,b, 8,d, 9,c 10,a
C. Short Essay Questions (10’+10’=20’)
1, Please discuss why online players like those shops in the taobao.com promote its
brand image in the offline environment. (10’)
Answer Keys
Highly competitive online market. So many competitors. Offline advertising or promotion may
improve the consumer’s awareness level
Synergy of online and offline
2, A customer service manager of Industrial and Commercial Bank of China invites you to help
them improve the service quality to clients in residence. What kind of suggestions you could
give them? (10’)
Answer Keys
Reliability; responsiveness, assurance, empathy, tangibles (explain and how to be applied)
D. Long Essay Questions (30’)
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Suppose that you are invited to provide consulting services for Yong Qi barber shop.
This company has hundreds of chain stores in Shanghai, Beijing and Hangzhou.
Currently, the firm has two business units: hair cut services and massage services.
Now, the firm plans to expand its business into acupuncture area.
1) Please comment on the industry attractiveness level of hair cut services, apply
Porter’s five forces model. (10’)
Answer Keys
Supplier power: generally low, because it’s easy to train a professional barber. Yet
training a highly proficient hair designer is difficult.
Customer power: generally high. Because hair cut is not a critical event in daily life.
Rivalry: a highly competitive industry with many competitors.
Entry barrier: low
Substitute: no substitute
It is not an attractive industry
2) Please comment on the competitive advantages that Yong Qi might have in this
industry. (10’)
Answer Keys
Scale of economy, higher bargaining power to suppliers (e.g. shampoo), flexible for
customers in terms of places of services, standardized service procedure,
3) Please advise how Yong Qi could apply marketing 4Ps as a tool to develop its
new business in the acupuncture area. (10’)
Answer Keys
Promotion: Brand extension to another industry, existing customer base. Customer’s
awareness level might be high. No need for advertising. But person to person promotion to
reduce the customer’s suspicion of new services.
Existing customer referral; loyalty card
Product: acupuncture service might be a double-edged new product. On the one hand, the entry
barrier might be high, requiring special certificate. On other hand, it might complement the
massage services.
Service quality issue.
Services extension.
Communication and setting up trust with the customer
Price: lower price to penetrate the market
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bundling massage services with new acupuncture services; considering that massage services
and acupuncture services are complementary, the prices of bundled services should be higher
than the sum of the two services if performed alone; market skimming strategy
Place (channel): word of mouth dissemination, store design
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