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481 Cards in this Set

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____________ include overhead and allocated items like depreciation, rent, salaries, and selling, general and administrative expenses. Select one:

a. Fixed costs


b. Variable costs


c. Marginal costs


d. Segmented costs

a. Fixed costs
_______________ is a method of estimating the price equivalence of the firm’s versus competitive products. Select one:

a. Perceptual mapping


b. Value-in-use analysis


c. Perceived value analysis


d. Conjoint analysis

c. Perceived value analysis
_______________ vary directly with the volume of sales and production, increasing as volume increases and decreasing as volume decreases. Select one:

a. Segmented costs


b. Fixed costs


c. Marginal costs


d. Variable costs

d. Variable costs
A _______________ demand curve occurs when volume increases significantly as price decreases. Select one:

a. negative-sloping


b. price-inelastic


c. positive-sloping


d. price-elastic

d. price-elastic
A firm is determining the price of a new product and uses a mark-up of 50%. If direct out-of-pocket cost is $50,000 and fully loaded manufacturing cost is $150,000, what price should be suggested if the firm uses cost-plus pricing? Select one:

a. $225,000


b. $200,000


c. $150,000


d. $75,000

a. $225,000
According to the text, _______________ pricing suggests setting the price based on the competitor’s price. Select one: a. skimming b. price parity c. verticald. penetration
b. price parity
According to the text, a _______________ demand curve occurs when volume is relatively insensitive to changes in price. Select one: a. negative-sloping b. price-inelasticc. price-elastic d. positive-sloping
b. price-inelastic
All of the following are critical considerations that should enter into pricing decisions EXCEPT: Select one: a. Competition b. Perceived customer value c. Governmental interventiond. Strategic objectives
c. Governmental intervention
All of the following are examples of fixed costs EXCEPT: Select one: a. Administrative expenses b. Managerial salaries c. Depreciation d. Raw materials
d. Raw materials
All of the following are major strategic options for developing market strategy EXCEPT: Select one: a. maximize profits b. maximize cash flow c. increase volume and/or market share d. introduce a fighting brand
d. introduce a fighting brand
For manufactured products, ____________ usually include raw materials, utilities to power production machines, direct labor, and sales commissions.Select one: a. segmented costs b. fixed costs c. marginal costs d. variable costs
d. variable costs
In _______________, the product cost is incremented upward by a margin to establish the selling price. Select one: a. conjoint pricing b. competitive pricing c. comparative pricing d. cost-plus pricing
d. cost-plus pricing
In which of the following approaches to measuring customer value does the firm offer a test product at different prices in different market areas, like geographic locations? Select one: a. Economic analysisb. Direct value assessment c. Price experimentd. Dollarmetric method
c. Price experiment
In which of the following pricing strategies does the firm earn high profit margins by pricing high, but provides less value to its relatively few customers? Select one: a. penetration pricing b. parity pricing c. skim pricingd. vertical pricing
c. skim pricing
In which of the following pricing strategies does the firm provide significant customer value by setting prices close to costs? Select one: a. parity pricing b. skim pricing c. penetration pricingd. vertical pricing
c. penetration pricing
Many grocery items are examples of which of the following market-level price sensitive situations? Select one: a. price-inelastic b. positive-sloping c. negative-sloping d. price-elastic
d. price-elastic
Perceived value is created primarily by all of the following elements in the marketing mix EXCEPT: Select one: a. Promotion b. Product c. Distribution d. Price
d. Price
Which of the following costs do not vary directly with the volume of sales or production? Select one: a. Fixed costsb. Variable costs c. Segmented costs d. Marginal costs
a. Fixed costs
Which of the following is NOT mentioned in the text as an advantage of cost-plus pricing systems? Select one: a. Assuming costs are known, the pricing task is simple. b. Prices are matched to market realities.c. If sales are made, they should be profitable with this pricing method. d. They are legally acceptable and in certain cases may be required.
b. Prices are matched to market realities.
Which of the following is the correct formula for the Price Elasticity of Demand? Select one: a. Percentage change in supply/percentage change in demand b. Percentage change of demand/percentage change in price c. Percentage change in demand/percentage change in supply d. Percentage change in price/percentage change in demand
b. Percentage change of demand/percentage change in price
Which of the following is the first step in using the perceived value analysis method to measure an offer’s perceived value? Select one: a. Rate each offer from the various suppliers b. Develop benefit/value scores c. Identify customers’ required benefits and values d. Weigh benefits and values
c. Identify customers’ required benefits and values
Which of the following methods of measuring customer value compares each options with the others? Then for each pair of option, customers would say which they prefer and how much extra they would pay. Select one: a. price experiment b. direct value assessment c. perceived value analysisd. dollarmetric method
d. dollarmetric method
Which of the following specific methodologies is NOT mentioned in the text as being available for measuring perceived value? Select one: a. Direct value assessment b. Factor analysis c. The dollarmetric method d. Perceived value analysis
b. Factor analysis
Which of the following types of costs is defined as the cost to make and sell one additional unit? Select one: a. fully loaded costs b. fixed costs c. marginal costsd. variable costs
c. marginal costs
_____________ assumes the possibility of a positive sum game and is at the heart of strategic account management.Select one: a. The Composition Model b. The Competitive Model c. The Distribution Model d. The Partnership Model
d. The Partnership Model
_____________ is the placement of an intermediary between a supplier and the customer. Select one: a. Disintermediation b. Channel churning c. Channel deflection d. Intermediation
d. Intermediation
_______________ is the number of channel members the firm uses at a particular level. Select one: a. Distribution channel breadth b. Distribution channel length c. Distribution channel depth d. Distribution channel intensity
a. Distribution channel breadth
_______________ is used when end-user customers minimally engage in search; the supplier attempts to have its products as widely distributed as possible and stresses the goal of maximizing the number of outlets. Select one: a. Exclusive distribution b. Selective distribution c. Horizontal distribution d. Intensive distribution
d. Intensive distribution
_______________ like Accenture and EDS add value by installing and servicing software and hardware from many vendors and making them work together. Select one: a. Systems integrators b. Value-added resellers c. EDI systems d. RFID systems
a. Systems integrators
________________ allows suppliers to set retail prices for their products. Select one: a. Tying agreements b. The Partnership Model c. Channel stuffing d. Retail price maintenance
d. Retail price maintenance
________________ are a new type of intermediary, building additional software modules on other firms’ platforms and modifying computer hardware for niche markets. Select one: a. EDI systems b. Value-added resellers c. Systems integrators d. RFID systems
b. Value-added resellers
________________ are used by retailers to require suppliers to pay direct payments to secure shelf space. Select one: a. Slotting feesb. Coupons c. Rebates d. Commissions
a. Slotting fees
________________ occur daily due to late shipments, invoice errors, unfulfilled promises, unacceptable product quality, and price and margin disagreements. Select one: a. Strategic conflicts b. Organizational conflicts c. Integrated conflicts d. Operational conflicts
d. Operational conflicts
________________ occurs when a firm overloads distributors and hence overstates its revenues. Select one: a. Channel stuffing b. The Partnership Model c. Tying agreements d. Retail price maintenance
a. Channel stuffing
________________ prohibits suppliers from setting different prices for different buyers, where this would reduce competition. Select one: a. The Robinson-Patman Act b. The Civil Rights Act of 1964 c. The Resale Price Maintenance Act d. The Sherman Antitrust Act
a. The Robinson-Patman Act
A(n) _______________ comprises a subset of intermediaries that facilitate a supplier firm’s goods and services reaching consumers and/or other end-user customers. Select one: a. divestment b. information provision c. distribution channel d. transfer of title
c. distribution channel
All of the following are characteristic of direct distribution EXCEPT:Select one: a. Simple end-user purchasing decisionb. Large quantity salesc. Small potential customer base d. Custom-tailored products
a. Simple end-user purchasing decision
All of the following are conditions in which upstream power in distribution systems would be prevalent EXCEPT:Select one: a. Supplier offers product important to the distributor’s success. b. Distributor has high switching costs. c. Supply is greater than demand. d. Supplier poses a credible threat of forward integration.
c. Supply is greater than demand.
All of the following are critical U.S. legal issues regarding distribution EXCEPT: Select one: a. price discrimination b. tying agreements c. all selections represent critical U.S. legal issues regarding distributiond. resale price maintenance
c. all selections represent critical U.S. legal issues regarding distribution
All of the following are mentioned in the text as actions taken by the distributor to improve its power position versus the supplier EXCEPT: Select one: a. Consider branding service packages. b. Build loyalty with end-user customers. c. Add value to end-user customers. d. Introduce fewer services
d. Introduce fewer services
All of the following are mentioned in the text as conditions in which downstream power among distributors would be prevalent EXCEPT: Select one: a. Demand is greater than supply. b. Distributor purchases a large percentage of the supplier’s output. c. Distributor has few switching costs. d. Distributor has considerable end-user customer information relative to the supplier.
a. Demand is greater than supply.
All of the following are mentioned in the text as functions of distribution EXCEPT: Select one: a. Information sharing b. Horizontal integration c. Physical movement d. Promotion
b. Horizontal integration
All of the following are strategic conflicts initiated by downstream customers EXCEPT: Select one: a. distributors become large and change the power balance. b. the supplier addresses a new market and competes with its distributor c. distributors supply private-label products. d. end-user customers grow and desire direct-to-supplier relationships.
the supplier addresses a new market and competes with its distributor
Examples of goods for which ________________ is sought include fine china and crystal, for which only high-class department stores such as Saks Fifth Avenue and specialty stores such as Tiffany’s may be deemed appropriate. Select one: a. selective distribution b. exclusive distributionc. horizontal distribution d. intensive distribution
b. exclusive distribution
In _______________, intermediaries like the distributors, wholesalers, and retailers play a major role in transferring products to consumers and end users. Select one: a. direct channels b. parallel channels c. indirect channelsd. horizontal channels
c. indirect channels
In _______________, supplier firms manage most of the contact with consumers and end users. Select one: a. indirect channels b. horizontal channels c. direct channelsd. parallel channels
c. direct channels
The variant of direct sales that occurs when selling activity is conducted by telephone rather than by face-to-face salespeople is referred to as _______________. Select one: a. flextime b. telecommutingc. videoconferencing d. telemarketing
d. telemarketing
Which of the following is NOT a characteristic of indirect distribution? Select one: a. Stockable items, manufactured in large quantities but sold in small quantities b. Rapid delivery and service is important c. Complex end-user customer purchasing decisions d. Large potential customer base
c. Complex end-user customer purchasing decisions
Which of the following is NOT a form of direct distribution in business to consumer markets? Select one: a. Face-to-face direct sales b. Direct marketing c. Advertisingd. The Internet
c. Advertising
Which of the following is NOT mentioned in the text as a form of direct distribution? Select one: a. Generalized retail distribution b. Direct marketing c. The Internet d. Direct sales: face-to-face
a. Generalized retail distribution
Which of the following is NOT mentioned in the text as a question the supplier should ask of potential distributors to improve the chances of success? Select one: a. Does the distributor have adequate market coverage? b. All of the selections represent questions that are important. c. What is the distributor’s credit and financial condition? d. How competent is the distributor’s management?
b. All of the selections represent questions that are important.
Which of the following occurs when strong suppliers try to force resellers to sell their entire product line? Select one: a. The Partnership Model b. Tying agreementsc. Retail price maintenance d. Channel stuffing
b. Tying agreements
______________ is the proportion of customers from the start of the year who are still customers at the end of the year. Select one: a. Customer defection b. Customer retentionc. Customer deflection d. Customer churn
b. Customer retention
_______________ is maintaining high performing salespeople in the sales force. Select one: a. Selection b. Recruitment c. Proofing d. Retaining
d. Retaining
________________ are responsible for building and sustaining relationships with individual strategic accounts. Select one: a. Sales representativesb. Global account managers c. Strategic account managers d. Sales managers
c. Strategic account managers
________________ develop plans for multinational accounts and manage the global account teams that implement their strategies. Select one: a. Global account managersb. Sales managers c. Sales representatives d. Strategic account managers
a. Global account managers
According to the text, _______________ is using a set of criteria to choose salespeople from the recruitment pool. Select one: a. selection b. proofing c. training d. recruitment
a. selection
According to the text, _______________ is variable compensation based on sales or profits.Select one:a. commission b. bonusc. salaryd. gainshare
a. commission
All of the following are mentioned in the text as distinct steps necessary to translate the generalized market segment offer into the specific message delivered by individual salespersons to individual customers EXCEPT: Select one: a. Salespeople must be prepared to answer objections and sell against strong competition. b. Salespeople must be willing to make unethical decisions to compete against strong competition.c. Salespeople must translate the core strategy statements into specific benefits for their accounts. d. Salespeople and sales managers must analyze the specific customer needs and competitive threats at their accounts.
b. Salespeople must be willing to make unethical decisions to compete against strong competition.
All of the following are mentioned in the text as questions that salespeople should be able to answer affirmatively before the reward system will motivate the required behavior and results EXCEPT: Select one: a. Is the reward system legal? b. Do I believe that I will receive these rewards if I achieve my objectives? c. Do I value the promised rewards contingent on my achieving these objectives? d. Do I believe that I can achieve my objectives?
a. Is the reward system legal?
All of the following are mentioned in the text as steps used in sales training programs EXCEPT: Select one: a. Determining breakeven pointsb. Call objectives c. Need elicitation d. Handling objections
a. Determining breakeven points
Compensation paid regardless of sales performance is referred to as _______________. Select one: a. gainshare b. bonus c. salary d. commission
c. salary
Different salespeople are responsible for the firm’s most important customers in which of the following sales force organizational forms? Select one: a. Strategic/key account form b. Geographic form c. Product form d. Market segment form
a. Strategic/key account form
Ensuring that those salespeople hired acquire the necessary knowledge, skills, and abilities to make them effective is referred to as _______________. Select one: a. recruitment b. proofing c. selection d. training
d. training
In a _______________ process, senior sales managers partition overall revenue objective among sales regions. Select one: a. bottom-up b. virtual c. top-downd. horizontal
c. top-down
In a _______________ process, the district manager asks each salesperson to commit to certain sales levels by product and segment. Select one: a. top-down b. virtual c. horizontald. bottom-up
d. bottom-up
In many firms, the best salespeople spend _________ of their time face to face with customers trying to make sales. Select one: a. Less than 20% b. More than 60%c. 41% to 60% d. 21% to 40%
a. Less than 20%
Simply defined, _______________ is/are the firm’s desired results and the sales force’s central task. Select one: a. sales objectives b. the company’s mission c. the company’s vision d. strategic plans
a. sales objectives
Sizing and defining the pool from which salespeople will be selected is referred to as ________________. Select one: a. selection b. training c. recruitmentd. proofing
c. recruitment
Specialized selling effort can be constructed in all of the following ways EXCEPT: Select one: a. By product b. By competitorc. By distribution channel member d. By market segment
b. By competitor
The _______________ method to sales force sizing uses the following three steps: (1) estimate the total number of selling hours required to achieve sales objectives, (2) calculate the number of available selling hours per salesperson, and (3) calculate the required sales force size. Select one: a. judgmental b. analytic c. experimental d. standardized
b. analytic
The cost of all of the following salespeople is frequently almost completely variable EXCEPT: Select one: a. For brokers b. For a company’s own sales force c. For representatives d. For agents
b. For a company’s own sales force
Typically, the most common way the sales force deals with overall sales objectives is to break them down into _______________ like sales regions, sales districts, and individual sales territories. Select one: a. strategic units b. control units c. output objectives d. input objectives
b. control units
When a salesperson has total responsibility in a specific geographic area, the sales force organizational form is referred to as _______________. Select one: a. market-segment form b. geographic form c. product form d. key account form
b. geographic form
Which of the following describes compensation based on attaining a level of sales or profits? Select one: a. Gainshare b. Salary c. Commission d. Bonus
d. Bonus
Which of the following is NOT mentioned in the text as a key task of sales management? Select one: a. Determine and allocate selling effort. b. Design the sales organization. c. Set and achieve sales objectives. d. Develop new product offerings.
d. Develop new product offerings.
Which of the following is NOT mentioned in the text as a related decision that concerns the assessment and allocation of the selling effort? Select one: a. Selling effort allocation b. Sales force size c. Sales force activity d. Sales force intelligence
d. Sales force intelligence
Which of the following represent the two methods for approaching the sales force sizing decision? Select one: a. Experimental and analyticb. Systematic and analytic c. Standardized and analytic d. Experimental and intuitive
a. Experimental and analytic
_______________ is a complex blend of communications techniques providing extra value to customers, most often for trial to stimulate immediate sales. Select one: a. Advertising b. Public relations c. Publicity d. Sales promotion
d. Sales promotion
_______________ is the type of measure used widely for broadcast advertisements in which respondents are asked what advertisements they remember seeing during a particular program. Select one: a. Point of awareness b. Unaided recall c. Aided recall d. Recognition
b. Unaided recall
_______________ refers to repeated high levels of advertising followed by low, or no, advertising. Select one: a. Gross rating point b. Pulsing c. Flightingd. Continuous
c. Flighting
________________ is an advertising approach that appeals to people’s sense of logic. Select one: a. Humor-based advertising. b. Fear-based advertising. c. Rational advertising.d. Emotional advertising.
c. Rational advertising.
________________ measure customer responses over time, using either a customer panel or randomly selected respondents. Select one: a. Tracking studiesb. Factor analysis c. Perceptual maps d. Regression analysis
a. Tracking studies
According to the text, _______________ is the number of targeted individuals exposed to the advertising at least once during the planning period. Select one: a. gross rating point b. range c. reachd. frequency
c. reach
According to the text, _______________ products are those for which the buyer believes there is financial or psycho-social risk associated with the purchase. Select one: a. convenience b. simple c. low-involvement d. high-involvement
d. high-involvement
According to the text, a regular periodic pattern of advertising is referred to as _______________ advertising. Select one: a. pulsing b. continuousc. flighting d. gross rating point
b. continuous
According to the text, pulsing is a combination of _______________ and _______________ advertising. Select one: a. continuous and flightingb. pulsing and gross rating point c. reach and pulsing d. reach and gross rating point
a. continuous and flighting
Advertising creates product awareness that leads the customer through all of the following critical sequential stages EXCEPT: Select one: a. Culturalb. Knowledge c. Liking d. Trial
a. Cultural
All of the following are mentioned in the text as important advertising effectiveness measures EXCEPT: Select one: a. cost analysisb. aided recall c. unaided recall d. recognition
a. cost analysis
All of the following are mentioned in the text as main styles of advertising that appeals to emotions EXCEPT: Select one: a. Story telling b. Absolutec. Celebrity endorsement d. Humor
b. Absolute
Concerning the strategic dimension of advertising, which of the following objectives includes dimensions such as sales, market share, and brand loyalty? Select one: a. Output objectivesb. Intermediate objectives c. Direct objectivesd. Input objectives
a. Output objectives
Critical issues in choosing the actual media vehicles include all of the following EXCEPT: Select one: a. Audience type b. Cost to design the adc. Nature of the vehicle d. Audience size
b. Cost to design the ad
In general, _______________ focuses on securing neutral or favorable short-term press coverage for some aspect of the firm’s activities. Select one: a. advertising b. sales promotion c. public relations d. publicity
d. publicity
Public relations embraces all of the following aspects of a business EXCEPT: Select one: a. Crisis management b. Corporate reputation c. Profitabilityd. Government relations
c. Profitability
When an audience is less interested in a product, or has an unfavorable prior impression, _______________ advertising is generally more effective in gaining attention or minimizing objections. Select one: a. recency advertising b. primacy advertising c. fear-based advertising d. refutational advertising
b. primacy advertising
Which of the following advertising budgeting methods is based on the advertising spending actions of competitors? Select one: a. Competitive parityb. Percentage of sales c. Affordability d. Gross rating point
a. Competitive parity
Which of the following describes the average number of times a targeted individual is exposed to the advertising? Select one: a. Reach b. Gross rating pointc. Frequencyd. Range
c. Frequency
Which of the following describes the type of measure widely used for broadcast advertisements in which respondents are asked if they remember seeing an advertisement for a particular brand during a particular program? Select one: a. Aided recallb. Point of awareness c. Unaided recall d. Recognition
a. Aided recall
Which of the following is NOT a group the company typically works with in an advertising agency? Select one: a. Creative department b. Finance departmentc. Account relationship managersd. Media department
b. Finance department
Which of the following is NOT a main type of sales promotion? Select one: a. Corporate promotionb. Trade promotion c. Consumer promotion d. Retail promotion
a. Corporate promotion
Which of the following is NOT an advertising effectiveness measure used for both field and laboratory advertising tests? Select one: a. Unaided recall b. Satisfactionc. Aided recall d. Recognition
b. Satisfaction
Which of the following is the correct formula for calculating Gross Rating Points? Select one: a. Reach/Frequency b. Reach + Frequency c. Frequency/Reach d. Reach x Frequency
d. Reach x Frequency
Which of the following styles of advertising shows the product in use and focuses on its performance? Select one: a. One-sided appeal advertising b. Primacy advertising c. Comparative advertising d. Demonstration advertising
d. Demonstration advertising
While simple to implement, the _______________ advertising budgeting method suffers from the logical inconsistency that sales determines advertising spending, rather than advertising leading to sales. Select one: a. percentage of salesb. gross rating point c. affordability d. competitive parity
a. percentage of sales
______________ is the use of technological innovation to promote interaction and feedback without the use of human interaction, usually artificial intelligence. Select one: a. Non-personal communication b. Archived communication c. Personal communication d. Quasi-personal communication
d. Quasi-personal communication
_______________ communication occurs when customers advise one another of their experience with a particular product or service. Select one: a. Advertising b. Word-of-mouthc. Packaging d. Direct marketing
b. Word-of-mouth
_______________ generally involve higher variable costs since, to fulfill their promotional functions, intermediaries require incentives in the form of higher margins. Select one: a. Penetration strategies b. Skimming strategies c. Pull strategies d. Push strategies
d. Push strategies
_______________ include special price deals, merchandising allowances, and contests. Select one: a. Discounted promotions b. Trade promotions c. Cross promotions d. Consumer promotions
b. Trade promotions
________________ captures the idea of coordinating all communication messages with the right communication tools and techniques. Select one: a. Brand equity b. Target marketing c. Integrated marketing communicationsd. Marketing strategy
c. Integrated marketing communications
A firm has greater control over the message content in ______________ than in ______________. Select one: a. personal communication; mass communication b. archived communication; mass communication c. mass communication; personal communicationd. quasi-personal communication; personal communication
c. mass communication; personal communication
According to the text, _______________ is paid communication directed at a mass audience. Select one: a. packaging b. direct marketing c. word-of-mouthd. advertising
d. advertising
According to the text, all of the following are examples of mass communication EXCEPT: Select one: a. Face-to-face communicationb. Direct marketing c. Advertisingd. Packaging
a. Face-to-face communication
According to the text, consumer promotions include all of the following EXCEPT: Select one: a. Rebates and premiums b. Coupons and gamesc. Merchandising allowancesd. Point-of-purchase materials
c. Merchandising allowances
All of the following are main causes of miscommunication EXCEPT: Select one: a. Feedbackb. Encoding c. Distortion d. Decoding
a. Feedback
All of the following represent external challenges as a firm tries to determine the right mix of tools and techniques for reaching its various audiences EXCEPT: Select one: a. Regulators b. Competitive communications c. All selections represent external challenges. d. Noise
c. All selections represent external challenges.
In B2C, _______________ are generally more popular with small firms rather than with wellfinanced large firms. Select one: a. pull strategiesb. push strategies c. market-based strategiesd. integrated strategies
b. push strategies
In developing the firm’s communication strategy, all of the following questions must be answered EXCEPT: Select one: a. “What communications tool will the firm use to accomplish its communications objectives?” b. “What does the firm wish to accomplish with its communication effort?” c. “Who are the firm’s communications targets?” d. “What is the break-even point for the firm’s current products?”
d. “What is the break-even point for the firm’s current products?”
In the marketing context, most ______________ is between salespeople and other firm representatives like technical and customer-service personnel. Select one: a. mass communication b. quasi-personal communication c. personal communicationd. archived communication
c. personal communication
In which of the following communication tools does a firm typically provide information in the form of a story, press release, photograph, or video to a third-party transmitter that incorporates the material in its own communications? Select one: a. Word-of-mouth b. Advertising c. Publicityd. Packaging
c. Publicity
Most B2B firms use ______________ strategies, most effectively delivered by the sales force. Select one: a. Skimming communications b. Push communicationsc. Penetration communications d. Pull communications
b. Push communications
The focus of communication efforts is on indirect customers further down the channel for which of the following types of communications effort? Select one: a. Push strategy b. Skimming strategy c. Penetration strategy d. Pull strategy
d. Pull strategy
Traditional categories of communication tools include all of the following EXCEPT: Select one: a. Archived communicationb. Non-personal communicationc. Quasi-personal communication d. Personal communication
a. Archived communication
Typically, firms have little control over word-of-mouth communication, but, increasingly, they orchestrate ______________ campaigns to encourage positive word-of-mouth communication. Select one: a. buzz-marketingb. personal communication c. mass communication d. advertising
a. buzz-marketing
Which of the following areas of the communication process is most likely caused by a salesperson’s accent affecting the message the customer receives? Select one: a. Distortionb. Decoding c. Feedback d. Encoding
a. Distortion
Which of the following best describes direct interpersonal (face-to-face) contact with targeted individuals or groups?Select one: a. Cultural communication b. Cross-cultural communication c. Mass communication d. Personal communication
d. Personal communication
Which of the following communications objectives is most applicable if the market objective is to increase customer retention (reduce defection)? Select one: a. Secure new leads and qualify potential customers. b. Establish head-to-head trial against the competitor’s product. c. Persuade customers to purchase and use in larger quantities. d. Reinforce customers’ beliefs that they made the best decision.
d. Reinforce customers’ beliefs that they made the best decision.
Which of the following communications objectives is most applicable if the market objective is to secure new business? Select one: a. Reinforce customers’ belief that they made the best decision. b. Persuade customers to purchase and use in larger quantities. c. Establish head-to-head trial against the competitor’s product. d. Secure new leads and qualify potential customers.
d. Secure new leads and qualify potential customers.
Which of the following communications objectives would be most applicable if the customer is a component manufacturer? Select one: a. Inventory sufficient component quantities to satisfy finished-goods manufacturer. b. Purchase subcomponent for use in the component. c. Learn how to assemble the firm’s subcomponents in the customer’s component. d. Train salespeople to communicate benefits and sell the finished product to retailers
d. Train salespeople to communicate benefits and sell the finished product to retailers
Which of the following describes communication that is directed at individuals? Select one: a. Packaging b. Advertising c. Direct marketingd. Publicity
c. Direct marketing
Which of the following DOES NOT represent an internal challenge as a firm tries to determine the right mix of tools and techniques for reaching its various audiences? Select one: a. “We don’t need it.” b. “We need standardization” c. “It’s an unnecessary expense.” d. “We’ve already done that.”
b. “We need standardization”
Which of the following embraces all forms of communication enabled by the Internet. Select one: a. mass communication b. work-of-mouth communication c. digital communicationd. personal communication
c. digital communication
Which of the following is NOT a growth option according to the strategic alternatives dimension of market strategy? Select one: a. Attract competitors’ customers. b. Reduce customer defection rate. c. Increase customer defection rate.d. Increase use by current customers.
c. Increase customer defection rate.
Which of the following is the likely cause of miscommunication when consumers receive similar print and TV advertisements messages differently? Select one: a. Encoding b. Distortion c. Decodingd. Feedback
b. Distortion
Which of the following represents an old view of integrated marketing communications? Select one: a. Proliferating media choices b. Broad appeal c. Multiple communications targets d. Interactive communication
b. Broad appeal
Which of the following types of communications effort focuses on direct customers? Select one: a. Skimming strategy b. Penetration strategy c. Push strategy d. Pull strategy
c. Push strategy
Which of the following would represent the cause of miscommunication if someone in the firm decided on the intended message, but this message was not sent? Select one: a. Decoding b. Feedback c. Encodingd. Distortion
c. Encoding
Which of the following would represent the cause of miscommunication if salesforce training is ineffective, and the right message is not communicated? Select one: a. Distortionb. Feedback c. Decoding d. Encoding
d. Encoding
_____________ innovations improve products and processes on existing performance dimensions.Select one: a. Virtual b. Selective c. Sustainingd. Disruptive
c. Sustaining
______________ are a skeptical group that adopts only when half the population has adopted. They tend to be price sensitive. Select one: a. Innovators b. Late majority c. Early majority d. Laggards
b. Late majority
______________ are motivated by current problems and make decisions deliberately, based in part on the experience of early adopters. They look for proven track records and prefer to buy recognized brands and from market leaders. Select one: a. Early majorityb. Innovators c. Late majority d. Laggards
a. Early majority
______________ are the first to adopt an innovation and are considered to be risk takers. They take pride in being first, are considered experts, and proactively seek opportunities to try new things. Select one: a. Late majority b. Early adopters c. Early majority d. Innovators
d. Innovators
________________ is the new-product development approach that focuses on marketable products, often by improving ease of use or developing complementary products. Select one: a. Perceptual mapping b. Market-focused developmentc. Basic technology research d. Applied technology research
b. Market-focused development
Early majority represent 34 percent of the population and are also called _____________. Select one: a. Pragmatists b. Visionariesc. Explorers d. Conservatives
a. Pragmatists
A major distinction in the types of product tests is between _______________ and _______________, typically conducted in that order.Select one: a. beta tests and sigma tests b. beta tests and alpha tests c. alpha tests and beta testsd. sigma tests and beta tests
c. alpha tests and beta tests
According to the text, _______________ is the factor in the adoption process that describes the relationship with past experience and current life style.Select one:a. divisibilityb. compatibility c. complexityd. relative advantage
b. compatibility
An example of a ______________ is investing in a project that fails.Select one: a. Type III error b. Type II error c. Type I errord. Type IV error
c. Type I error
An example of a ______________ is rejecting projects that would have succeeded. Select one: a. Type II errorb. Type I error c. Type III error d. Type IV error
a. Type II error
At which of the following stages of the new-product development process would significant facilities investment be required to scale up pilot plant production to commercial levels? Select one: a. Market testing b. Development c. Commercializationd. Concept development
c. Commercialization
Bound by tradition and suspicious of change are characteristics of which of the following adopter groups? Select one: a. Late majority b. Early adopters c. Early majority d. Laggards
d. Laggards
Early adopters represent 13.5 percent of the population and are also called _____________. Select one: a. Explorers b. Visionariesc. Conservatives d. Pragmatists
b. Visionaries
In the new product development process, successful business-case analysis sets the stage for ________________. Select one: a. commercialization b. idea generation c. developmentd. test marketing
c. development
Pharmaceutical firms developing new delivery methods like pills, patches, or injections is an example of which of the following approaches to new product development? Select one: a. Basic technology research b. Market tinkeringc. Applied technology research d. Market-focused development
Market-focused development
Pharmaceutical research that adapts new chemical entities to treat specific medical conditions is an example of ________________. Select one: a. perceptual mapping b. applied technology researchc. basic technology research d. market-focused development
b. applied technology research
Product testing performed in-company is commonly referred to as which of the following? Select one: a. beta tests b. theta tests c. alpha testsd. sigma tests
c. alpha tests
The extent of benefits offered compared to existing alternatives is described by which speed-ofadoption factor? Select one: a. Compatibility b. Complexityc. Relative advantage d. Divisibility
c. Relative advantage
The extent to which the benefits can be communicated describes which speed-of-adoption factor? Select one: a. Divisibility b. Complexity c. Compatibility d. Communicability
d. Communicability
Which of the following approaches to new-product development is aimed at disruptive innovations rather than immediate new products? Select one: a. applied technology research b. perceptual mapping c. basic technology researchd. market-focused development
c. basic technology research
Which of the following is NOT a stage of the new-product development process? Select one: a. concept definition b. extrapolationc. business-case analysis d. idea generation
b. extrapolation
Which of the following speed-of-adoption factors implies greater learning requirements? Select one: a. Divisibility b. Relative advantage c. Complexityd. Compatibility
c. Complexity
Which of the following types of innovations offers different value propositions? Select one: a. Virtual b. Sustaining c. Disruptived. Selective
c. Disruptive
Which speed-of-adoption factor is described as the ability to try on a limited basis? Select one: a. Divisibilityb. Relative advantage c. Compatibility d. Complexity
a. Divisibility
_______________ customer service helps the customer use the product and deals with any problems or complaints that may occur.a. Post-purchase b. Pre-purchasec. Vertical purchased. Horizontal purchase
a. Post-purchase
_______________ customer service is conceptualized as those activities that help prepare the customer for the purchase decision.a. Horizontal purchaseb. Pre-purchase c. Vertical purchased. Post-purchase
b. Pre-purchase
_______________ is the supplementary service element that refers to dialogue probing customer requirements and developing a tailored solution for the customer.a. Informationb. Hospitalityc. Order-takingd. Consultation
d.Consultation
________________ is a natural consequence of significant human involvement in many service delivery systems.a. Compatibilityb. Validityc. Flexibilityd. Variability
d. Variability
A _____________ is any act or performance that one party can offer another that is essentially intangible and does not result in the ownership of anything.a. priceb. service c. productd. promotion
b. service
Accepting applications, orders, and reservations is the supplementary service element referred to as _______________.a. hospitalityb. consultationc. informationd. order-taking
d. order-taking
According to the text, _______________ is the physical goods typically required to provide services.a. service softwareb. service equipment c. service facilitiesd. service personnel
b. service equipment
According to the text, _______________ is the willingness to help customers and provide prompt service.a. empathyb. responsiveness c. reliabilityd. assurance
b. responsiveness
According to the text, ________________ is provision of caring, individualized attention to customers.a. empathy b. responsivenessc. assuranced. reliability
a. empathy
According to the text, conditions under which service guarantees have maximum impact include all of the following EXCEPT:a. When failure has significant negative consequencesb. When the customer’s ego is involvedc. When the customer has little experience with the serviced. When the price of the service is low
d. When the price of the service is low
According to the text, data provided in response to customers’ questions and in anticipation of their needs is the supplementary service element referred to as ________________.a. information b. order-takingc. consultationd. hospitality
a. information
According to the text, deregulation has led to easier market entry in all of the following industries EXCEPT:a. Transportation.b. Automobile manufacturing c. Telecommunications.d. Financial services.
b. Automobile manufacturing
According to the text, in developed countries, _______________ now accounts for upward of 70 percent of both employment and GDP.a. services b. coal miningc. manufacturingd. agriculture
a. services
According to the text, which of the following supplementary service elements refers to the requests for payment?a. Order-takingb. Billing c. Consultationd. Information
b. Billing
Activities that fulfill the _______________ customer service function are the various forms of promotion designed to provide product and location information to the customer and personal selling.a. pre-purchase b. horizontal purchasec. vertical purchased. post-purchase
a. pre-purchase
All of the following are mentioned in the text as factors that differentiate services from products EXCEPT:a. Divisibilityb. Acquisitionc. Validity d. Perishability
c. Validity
All of the following are mentioned in the text as factors that have led to growth in private-sector services in recent years EXCEPT:a. Globalizationb. Franchisingc. Insourcing d. Deregulation
c. Insourcing
Appearance of physical facilities, equipment, personnel, and communication materials is the key variable referred to as _______________.a. assuranceb. reliabilityc. empathyd. tangibles
d. tangibles
Knowledge and courtesy of employees and ability to convey trust and confidence is the key variable referred to as _______________.a. responsivenessb. empathyc. assuranced. reliability
c. assurance
Methods of delivering _______________ customer service include installation, spare parts availability, and traditional technical service departments in many manufacturing companies.a. pre-purchaseb. horizontal purchasec. post-purchase d. vertical purchase
c. post-purchase
Service facilities can be conceptualized as comprising both a(n)_____________ and a(n)_____________.a. high and lowb. interior and exterior c. expensive and inexpensived. strong and weak
b. interior and exterior
The ability to perform the promised service dependably and accurately is the key variable referred to as _______________.a. empathyb. responsivenessc. assuranced. reliability
d. reliability
The major method of reducing service _______________ is appropriate attention to employee selection and training.a. variability b. compatibilityc. validityd. flexibility
a. variability
The supplementary service element that lies outside the routine of normal service delivery is referred to as _______________.a. order-takingb. hospitalityc. consultationd. exceptions
d. exceptions
The supplementary service element that refers to action taken to pay the bill is referred to as _______________.a. payment b. consultationc. order-takingd. information
a. payment
Which of the following is NOT a factor that makes services significantly different from products?a. Technology b. Inseparabilityc. Variabilityd. Intangibility
a. Technology
Which of the following is NOT a tangible element of a service used by customers to anticipate the experience and form their expectations?a. Service equipmentb. Service software c. Service facilitiesd. Service personnel
b. Service software
Which of the following is NOT mentioned in the text as a supplementary element that supports a firm’s core product or service?a. Informationb. Consultationc. Culture d. Order-taking
c. Culture
Which of the following is not one of the key variables that influence perceived service quality according to SERVQUAL?a. Responsivenessb. Self-efficacy c. Empathyd. Assurance
b. Self-efficacy
Which of the following phrases describes the point at which a customer is either satisfied or dissatisfied?a. ”Moment of Guarantee”b. “Moment of Truth” c. ”Moment of Inseparability”d. ”Moment of Commitment”
b. “Moment of Truth”
Which of the following supplementary service elements refers to consideration and courtesy in attending to customer needs?a. Consultationb. Hospitality c. Order-takingd. Information
b. Hospitality
_______________ allows the firm to balance its objectives and resource allocations across the collection of its various products.a. Strategic managementb. Product cannibalizationc. Portfolio management d. Product positioning
c. Portfolio management
_______________ do not directly vary with the number of units sold, but are associated with individual products.a. Marginal fixed costsb. Indirect fixed costsc. Direct fixed costs d. Variable costs
c. Direct fixed costs
_______________ explores differences in customer needs and developing strategies for market segments..a. Product proliferationb. Market penetrationc. Product concentrationd. Market segmentation
d. Market segmentation
________________ is the dollar value of an opportunity secured by discounting all cash outflows and inflows by a predetermined factor, typically the firm’s cost of capital.a. Paybackb. Conjoint analysisc. Internal rate of returnd. Net present value
d. Net present value
A case in which a firm introduces a lower-margin product that is expected to lead to reduced sales of a higher-margin product is referred to as _______________.a. product proliferationb. market skimmingc. customer proliferationd. product cannibalization
d. product cannibalization
A(n) ______________ portfolio occurs when the firm funds too many new products and creates problems with cash flow or other resources.a. conjointedb. balancedc. culturald. unbalanced
d. unbalanced
According to the growth-share matrix, products/businesses with high market growth and high market share are often called _______________a. stars b. dogsc. wildcatsd. cash cows
a. stars
According to the growth-share matrix, products/businesses with low market growth but high market share are often referred to as _______________.a. starsb. wildcatsc. cash cows d. dogs
c. cash cows
According to the growth-share matrix, products/businesses with low market growth and low market share are called _______________.a. cash cowsb. dogs c. starsd. wildcats
b. dogs
According to the growth-share matrix, those products/businesses that are typically viewed as the most risky, because of the inherent uncertainty in high-growth markets and the weak market-share position are known as _______________.a. cash cowsb. starsc. dogsd. wildcats
d. wildcats
According to the text, costs that vary directly with sales volume are referred to as _______________.a. variable costs b. indirect fixed costsc. direct fixed costsd. total costs
a. variable costs
According to the text, the multifactor portfolio matrix is also known as the _______________.a. growth-share matrixb. GE/McKinsey screen c. IBM/Oracle screend. Microsoft/Intel screen
b. GE/McKinsey screen
According to the text, which of the following should represent the firm’s primary internal cash source?a. dogsb. cash cows c. starsd. wildcats
b. cash cows
All of the following are examples of financial analysis approaches to developing a successful product management strategy EXCEPT:a. Conjoint analysis b. Internal rate of returnc. Net present valued. Payback
a. Conjoint analysis
An example of _______________ is when an Apple Ipod customer buys a Macintosh computer.a. post complementarityb. dual complementarityc. negative complementarityd. positive complementarity
d. positive complementarity
For the firm conducting the analysis, _______________ is that firm’s market share divided by the largest competitor’s market share.a. differentiated market shareb. relative market share c. common market shared. absolute market share
b. relative market share
The discount rate that equalizes the opportunity’s cash inflow and cash outflows is called the ______________.a. internal rate of return b. economic profitc. payback periodd. external rate of return
a. internal rate of return
The original portfolio analysis model is the _______________.a. multifactor portfolio matrixb. growth-share matrix c. market share divisord. brand equity technique
b. growth-share matrix
Variety in customer needs often drives _____________ as firms add products to fill product line gaps.a. product proliferation b. product concentrationc. market segmentationd. market penetration
a. product proliferation
Which of the following companies developed and introduced the original growth-share matrix?a. the Boston Consulting Group b. Motorolac. General Electricd. Microsoft
a. the Boston Consulting Group
Which of the following is the correct equation for return on investment?a. revenues/expensesb. profits/investment c. assets/profitsd. inventory/profits
b. profits/investment
_____________ captures the idea of enduring and distinct human or emotional characteristics associated with a brand.a. Brand personalityb. Brand positioningc. Brand awarenessd. Brand image
a. Brand personality
______________ always suffers when brand identity and brand image are mismatched.a. Brand migrationb. Brand awarenessc. Brand equity d. Brand architecture
c. Brand equity
______________ reduces customers’ search costs and purchase risks because of what customers believe before purchase.a. Pre-purchase dissonanceb. Post-purchase equityc. Post-purchase dissonanced. Pre-purchase equity
d. Pre-purchase equity
_______________ comprises associations people actually hold of a brand.a. Brand leveragingb. Brand imagec. Brand identity d. Brand awareness
c. Brand identity
_______________ is the value that an individual customer receives from a branded product or service, over and above the value received from an identical unbranded product or service.a. Customer brand equity b. Organizational brand equityc. Customer use satisfactiond. Organizational use satisfaction
a. Customer brand equity
_________________ is the firm’s organizing structure for its multiple brands.a. Brand healthb. Brand equityc. Brand architecture d. Brand awareness
c. Brand architecture
_________________ occurs when the firm undertakes a brand extension.a. Brand measuringb. Brand leveraging c. Brand awarenessd. Brand equity
b. Brand leveraging
A set of brand assets and liabilities linked to a brand, its name, and symbol that adds to or subtracts from the value provided by a product or service to a firm or that firm’s customers is the definition of _______________.a. brand intentionb. brand equity c. brand penetrationd. brand awareness
b. brand equity
According to the text, a firm pursuing a(n) _______________ strategy emphasizes a monolithic brand for several products or product lines.a. umbrella branding b. multibrandingc. skimmingd. penetration
a. umbrella branding
According to the text, repositioning can be achieved in any of the following three basic ways EXCEPT:a. Changing associations or adding new associationsb. Altering the competitive targetc. Targeting new market segmentsd. Harvesting the business
d. Harvesting the business
All of the following are advantages for using a multi-branding strategy EXCEPT:a. Minimizing transfer of negative associationsb. Intra-firm competitionc. Targeting and positioningd. Scale economies
d. Scale economies
All of the following are reasons that brand extensions tend to fail EXCEPT:a. The new product class has a dominant competitor.b. The brand has a unique image and associations that do not transfer.c. Associations between the brand and product extension are obvious. d. The positioning is confusing or inconsistent.
c. Associations between the brand and product extension are obvious.
All of the following are types of measures that are part of a balanced scorecard approach EXCEPT:a. Time series analysis b. Profitabilityc. Purchasing and salesd. Perceptual
a. Time series analysis
In a(n) _______________ strategy, the firm selects an individual brand name or names for each of the various product categories in which it competes.a. multibrandingb. skimmingc. umbrella branding d. penetration
a. multibranding
Intel introducing Celeron to protect Pentium is an example of a _________________.a. flanker brand b. new productc. line extensiond. virtual brand
a. flanker brand
The _______________ views organizational brand equity as the difference between market value and balance sheet book value, plus non-brand intangibles such as patents, know-how, and human resources.a. cash flow method.b. earnings method.c. market value method. d. replacement cost method.
c. market value method.
The key to sustaining a strong brand is continual assessment of ______________.a. competitor pricingb. brand health c. company profitabilityd. cash flow
b. brand health
The various colors and flavors of Jello and J&J’s Tylenol being offered in several sizes, shapes, and physical forms are examples of _________________.a. virtual brandsb. line extensions c. new productsd. flanker brands
b. line extensions
Which of the following DOES NOT describe effective brand associations?a. Uniqueb. Strongc. Favorabled. Expensive
d. Expensive
Which of the following is NOT an example of a brand name that has become synonymous with a product category?a. Kleenexb. Chrysler c. Band-Aidd. Xerox
b. Chrysler
_______________ means emphasizing increases in short-term cash flow at the expense of maintaining market share or sales volume.a. Maintainingb. Harvesting c. Segmentingd. Concentrating
b. Harvesting
A(n) _______________ strategy means that the firm copies the leader, but is more effective in execution.a. innovationb. imitation c. concentrationd. divestment
b. imitation
According to the text, a market may be viewed as inhospitable to decline if any of the following exists EXCEPT:a. Competitors are viable and credible.b. The market is commodity-based.c. The decline is rapid or uncertain.d. Customer switching costs are high.
d. Customer switching costs are high.
According to the text, all of the following are alternative approaches to increasing product use EXCEPT:a. Make the product easier to useb. Increasing quantity per use occasionc. Developing new product usesd. Design the product for infinite life span
d. Design the product for infinite life span
According to the text, presence of the experience curve leads to two broad pricing options that include ______________ and _______________.a. penetration pricing and skim pricing b. structured pricing and skim pricingc. skim pricing and regulated pricingd. regulated pricing and penetration pricing
a. penetration pricing and skim pricing
According to the text, the most common government-imposed barrier is _______________.a. a sanctionb. a quotac. an embargod. a patent
d. a patent
According to the text, to _______________ means selling the business to another organization.a. liquidateb. maintainc. harvestd. divest
d. divest
In _______________, prices stay high as costs are reduced, and the firm earns high margins for limited fixed investment.a. price regulationsb. price structuringc. price penetrationd. price skimming
d. price skimming
Low prices during introduction are typically termed _______________ and the firm must accept low profit margins for a substantial time period.a. mainstream pricingb. modified pricingc. penetration pricing d. skimming pricing
c. penetration pricing
Markets in the decline stage of the product life cycle are particularly inhospitable if any of the following exist EXCEPT:a. Government pressures competitors to stay in business.b. Competitors are emotionally committed to the productc. Competitor exit barriers are low.d. The product is a part of a vertically integrated supply chain
c. Competitor exit barriers are low.
The concept that a follower firm may acquire several unprofitable or marginally profitable low market share products from other firms and develop a strong competitor is called _______________.a. market segmentationb. harvestingc. kennelingd. direct attack
c. kenneling
The key feature of the _______________ stage of the product life cycle is the potential for market segmentation that makes market research skills critical.a. late growth b. introductoryc. early growthd. maturity
a. late growth
The net financial position of the majority of products at the introduction stage of the product life cycle is _______________.a. constantb. negative c. positived. predictable
b. negative
Which of the following describes the theory where as accumulated volume in making, promoting, and distributing a product increases, cost can be made to decline in a predictable manner ?a. Comparative advantageb. Market dominationc. Experience curve d. Absolute advantage
c. Experience curve
Which of the following describes the two broad options for a follower firm that chooses to exit an industry?a. Liquidate or harvestb. Harvest or maintainc. Maintain or liquidated. Divest or liquidate
d. Divest or liquidate
Which of the following is NOT a reason that firms underinvest in mature products?a. Inertiab. Fear of cannibalizationc. Limited view of the competitiond. Political power of mature-product champions
d. Political power of mature-product champions
Which of the following is NOT mentioned in the text as a basic option for follower firms in the early growth stage?a. Settle for second place.b. Seek market leadership.c. Exit the marketd. Change the market culture.
d. Change the market culture.
Which of the following is not one of the four strategic options viable for a leader in the early growth stage of the product life cycle?a. Retreat to a market segment.b. Maintain position.c. Enhance position.d. All are viable strategic options.
d. All are viable strategic options
Which of the following is NOT one of the three types of barriers considered critical in forestalling competition from entering a newly developing market?a. Firm-drivenb. Product/market-specificc. Government-imposedd. Culture-specific
d. Culture-specific
Which of the following strategies for firms competing in fragmented markets is described as a way to reduce variation and improve consistency across various suppliers?a. Acquisitionb. Harvestingc. Standardization d. Direct entry
c. Standardization
Which of the following strategies is especially viable if the leader has been lazy, over-milking the product via underinvestment, or arrogant in serving customers inadequately?a. Kennelingb. Market segmentationc. Harvestingd. Direct attack
d. Direct attack
________________ establish the type of results the firm intends to achieve and are qualitative and directional in nature.a. Tactical objectivesb. Operational objectivesc. Strategic objectives d. Functional objectives
c. Strategic objectives
_________________ should specify how much growth, market share, profit, and/or cash flow the firm should earn during a specific time frame.a. Functional objectivesb. Strategic objectivesc. Tactical objectivesd. Operational objectives
d. Operational objectives
___________________ is a net benefit or cluster of benefits, offered to a sizable group of customers, which they value and are willing to pay for, but cannot get, or believe they cannot get, elsewhere.a. Cross-functional coordinationb. Market sharec. Market potentiald. Differential advantage
d. Differential advantage
A well-designed ______________ provides a convincing answer to a deceptively simple question: “Why should target customers prefer the firm’s offer to those of competitors?”a. cross-sell strategyb. operational focusc. strategic focusd. value proposition
d. value proposition
According to the text, _______________ is sometimes called the heart of the product/market strategya. segmentationb. positioning c. cost reductiond. downsizing
b. positioning
All of the following are methods used to improve margins and investment returns EXCEPT:a. Improve the sales mix.b. Increase operating costs. c. Raise prices.d. Improve asset utilization.
b. Increase operating costs.
All of the following represent basic dimensions that are important when choosing customer targets EXCEPT:a. Choice of geographic location of headquarters b. Targeting specific person type/rolesc. Targeting levels within the distribution systemd. Choosing the distribution system
a. Choice of geographic location of headquarters
Examples of a person who will benefit in a personal way from a purchase decision but does not personally carry the cost include all of the following EXCEPT:a. Accountants, financial advisors, and lawyers for customers with investable funds b. Children as a means of influencing parental decisionsc. Architects, interior designers, product designersd. Ultimate consumers and users of a company’s product or service
d. Ultimate consumers and users of a company’s product or service
For which of the following strategies does the firm place most marketing effort upstream on direct customers like manufacturers and distributors?a. Virtual strategyb. Cross-sell strategyc. Pull strategyd. Push strategy
d. Push strategy
In the ______________ and ______________ stages of the product life cycle, firms often set priorities on growth and/or market share.a. maturity and declineb. introduction and early growth c. early growth and declined. introduction and decline
b. introduction and early growth
In which of the following stages of the product life cycle do high-market-share leaders typically focus on retaining existing customers and increasing their purchases?a. Late maturity stage b. Introduction stagec. Pre-introduction staged. Early growth stage
a. Late maturity stage
In which of the following stages of the product life cycle do low-market-share leaders typically focus on attracting competitors’ customers?a. Early growth stageb. Maturity stage c. Introduction staged. Pre-introduction stage
b. Maturity stage
Positioning requires the firm to make all of the following key decisions EXCEPT:a. Design the value proposition.b. Determine the firm’s asset utilization. c. Frame competitor targets.d. Select customer targets.
b. Determine the firm’s asset utilization.
Positioning statements should meet all of the following criteria EXCEPT:a. Be sustainable.b. Be common. c. Be compelling.d. Be authentic.
b. Be common
The purpose of _______________ is to create a unique and favorable image for the firm’s products in the customer’s mind.a. downsizingb. cost reductionc. positioning d. segmentation
c. positioning
The two components of performance objectives include ______________ and ______________.a. implementation programs and operational objectivesb. operational objectives and tactical focusc. strategic objectives and operational objectives d. positioning and strategic focus
c. strategic objectives and operational objectives
Using the ______________, a firm places most marketing effort downstream on indirect customers which are consumers and end users.a. pull strategy b. virtual strategyc. push strategyd. cross-sell strategy
a. pull strategy
When a firm allocates resources _____________, it allocates resources among target market segments.a. virtuallyb. transparentlyc. internallyd. externally
d. externally
When a firm targets multiple segments, it faces all of the possible situations in implementation EXCEPT:a. Negative synergiesb. Positive synergiesc. Independenced. The firm faces all of the situations during implementation.
d. The firm faces all of the situations during implementation.
Which of the following is NOT a method used to increase unit sales volume resulting in improved profits?a. Attract customers from competitors.b. Decrease customer retention c. Increase customer use.d. Secure new business.
b. Decrease customer retention
Which of the following is NOT mentioned in the text as a tactics used to increase usage of a product by customers?a. Provide price incentives to purchase larger quantities.b. Increase the rate of product obsolescence.c. Find new uses for the product.d. Reduce the unit of purchase.
d. Reduce the unit of purchase.
Which of the following is NOT one of the four pillars of a market-segment strategy?a. Implementation programsb. Performance objectivesc. Tactical focus d. Positioning
c. Tactical focus
Which of the following options for improving margins and investment returns is the most straightforward?a. Reduce operating costs.b. Improve asset utilization.c. Increase prices. d. Improve the sales mix.
c. Increase prices.
Which of the following strategic alternatives does NOT relate directly to increasing profit margins?a. Improving asset utilization b. Reducing operating costc. Raising priced. Improving sales mix
a. Improving asset utilization
While ______________ are qualitative and directional, establishing the general direction the firm wants to take, _______________ are quantitative and time bound.a. strategic objectives; operational objectives b. operational objectives; tactical objectivesc. tactical objectives; operational objectivesd. operational objectives; strategic objectives
a. strategic objectives; operational objectives
_______________ include country, region, county size, city or SMSA size, population density, and climate.a. Behavioral variablesb. Geographic variables c. Demographic variablesd. Social/psychological variables
b. Geographic variables
_______________ include use occasion, decision-making practices, user situation, composition of the decision-making unit, and type of purchase decision.a. Behavioral variables b. Geographic variablesc. Demographic variablesd. Social/psychological variables
a. Behavioral variables
_______________ is the conceptual process of grouping together actual and potential customers in a market for the purpose of selecting targets for effort and for designing marketing programs.a. Market penetrationb. Market expansionc. Market extensiond. Market segmentation
d. Market segmentation
A proper market segmentation perspective assumes _______________ of needs and wants for all product categories.a. cultural biasb. factor similaritiesc. homogeneityd. heterogeneity
d. heterogeneity
A well-executed market segment strategy provides a firm with all of the following EXCEPT:a. develops a clearer focus on market strategyb. secures higher levels of customer satisfaction and loyaltyc. secures better insight into strengths and weaknesses of the firm’s internal resourcesd. identifies opportunities for customization to target segments
c. secures better insight into strengths and weaknesses of the firm’s internal resources
According to the text, _______________ are physical descriptors of customers.a. behavioral variablesb. social/psychological variablesc. demographic variables d. geographic variables
c. demographic variables
All of the following are examples of demographic variables for organizations EXCEPT:a. Profitabilityb. Power structure c. Legal entityd. Firm size
b. Power structure
All of the following are examples of social/psychological variables EXCEPT:a. Family life cycle stage b. Activitiesc. Interestsd. Opinions
a. Family life cycle stage
All of the following are mentioned in the text as examples of candidate descriptor variables used to segment markets EXCEPT:a. Technological variables b. Behavioral variablesc. Demographic variablesd. Social/psychological variables
a. Technological variables
All of the following represent new ways of developing market segment strategy and positioning EXCEPT:a. Analytically driven segmentationb. Market segments based mainly on demographicsc. Databases central to segmentationd. Precise segmentation
b. Market segments based mainly on demographics
For consumers, demographic variables include all of the following EXCEPT:a. Ageb. Educationc. Genderd. Personality
d. Personality
PRIZM is a ______________ segmentation system fo, developed by Claritas Inc., a leading marketing services firm.a. demographic b. lifestylec. geographicd. technological
b. lifestyle
The end result of _______________ is the identification of a number of market segments.a. market penetrationb. market extensionc. market expansiond. market segmentation
d. market segmentation
The firm can approach the market segmentation process from two different directions: _____________ or _____________.a. customer needs first or candidate descriptor variables first b. candidate descriptor variables first or competitor analysis firstc. competitor analysis first or customer needs firstd. internal resources first or external resources first
a. customer needs first or candidate descriptor variables first
The many methodological approaches to forming market segments fall into two main categories, which are ______________ and ______________.a. qualitative and judgmentalb. qualitative and quantitative c. intuitive and qualitatived. quantitative and data-crunching
b. qualitative and quantitative
When the market segmentation methods of _______________ is used, it commonly involves government or trade association data used by several competitors in the same industry.a. “That’s the way the data are available” b. “That’s the way we’re organized”c. “That’s that way we can afford to do it”d. “That’s the way we’ve always done it”
a. “That’s the way the data are available”
Which of the following approaches to market segmentation ignores the impact of changes in the environment, customers, and competitors?a. “That’s the way the data are available.”b. “That’s the way we’re organized.”c. “That’s the way we’ve always done it.” d. “That’s that way we can afford to do it.”
c. “That’s the way we’ve always done it.”
Which of the following best describes the approach to market segmentation that assumes that independent data-gatherers had the firm’s market segmentation problem as their prime goal when devising data collection instruments?a. “That’s the way we’ve always done it.” b. “That’s the way the data are available.”c. “That’s the way we’re organized.”d. “That’s that way we can afford to do it.”
b. “That’s the way the data are available.”
Which of the following is NOT an example of a consumer’s demographic variable?a. Languageb. Lifestyle characteristics c. Aged. Nationality
b. Lifestyle characteristics
Which of the following is NOT an example of a social/psychological variable?a. Personalityb. Life stage c. Attitudesd. Social class
d. Social class
Which of the following is NOT mentioned in the text as an improper approach to market segmentation?a. “That’s that way we can afford to do it.” b. “That’s the way we’ve always done it.”c. “That’s the way the data are available.”d. “That’s the way we’re organized.”
a. “That’s that way we can afford to do it.”
Which of the following represents the new way of developing market segment strategy and positioning?a. Few large segmentsb. Intuition-driven segmentation c. Many small segmentsd. Crude segmentation
c. Many small segments
______________ firms enter mature markets with limited product lines.Select one: a. Me-toob. Pioneer c. Segmenter d. Follow-the-leader
a. Me-too
_______________ addresses the question of whether the product is appropriate for the market.Select one: a. Product-company fit b. Company-culture fit c. Product-market fitd. Company-market fit
c. Product-market fit
_______________ is the name for firms that blaze trails and create and innovate new markets by consistent and extensive R&D spending.Select one: a. Me-too b. Segmenter c. Follow-the-leader d. Pioneer
d. Pioneer
According to the text, firms with high levels of technical expertise would be better off pursuing a _______________ strategy.Select one: a. product-growthb. market-growth c. cultural-growth d. customer-growth
a. product-growth
All things being equal, _______________ is more distant from the firm’s technological base than _______________ and is therefore more risky.Select one: a. market extension; product expansion b. product extension; product expansion c. product expansion; product extension d. market extension; market expansion
c. product expansion; product extension
Entry into another English-speaking country for a domestically based firm in the English-speaking world would be considered a _______________.Select one: a. market extensionb. product extensionc. market expansiond. product expansion
a. market extension
Even when monopoly positions cannot be achieved, firms that successfully pioneer new markets may enjoy _______________ . These are a set of benefits that may accrue simply because the pioneer was the first entrant.Select one: a. follow-the-leader advantages b. me-too advantages c. segmenter advantage d. first-mover advantages
d. first-mover advantages
For a bank skilled in making corporate loans, lock-box services would be considered a _______________.Select one: a. product expansion b. product extensionc. market extension d. market expansion
b. product extension
For a domestically based firm in the English-speaking world, entry into a non-English-speaking country would be considered a _______________.Select one: a. market extension b. product expansion c. market expansiond. product extension
c. market expansion
For which of the following strategies is technological expertise no longer the driving force; rather, marketing research to understand customers and identify potential markets are the major skills required?Select one: a. Follow-the-leader strategy b. Innovator strategy c. Pioneer strategy d. Segmenter strategy
d. Segmenter strategy
Growth path is specifically concerned with the trade-off between expected financial return and risk, and a firm must consider all of the following factors EXCEPT:Select one: a. Its assessment of risk b. All selections are critical factors to considerc. Its core competencies d. The revenue and profit potential of its opportunities
b. All selections are critical factors to consider
In which of the following growth approaches does the firm focus on existing products and markets?Select one: a. Product and market diversification b. Market penetrationc. Market growth d. Product growth
b. Market penetration
In which of the following growth options is the level of risk clearly the greatest?Select one: a. Product extension b. Market penetration c. Market expansion d. Conglomeration
d. Conglomeration
In which of the following strategies are new products and services typically introduced as a result of consistent and extensive R&D spending?Select one: a. Segmenter b. Pioneerc. Follow-the-leader d. Me-too
b. Pioneer
Many Chinese firms pursue or have pursued which of the following market-entry approaches?Select one: a. Me-toob. Follow-the-leaderc. Pioneer d. Segmenter
a. Me-too
Ski resorts that expand their range of offerings beyond skiing to include ice-skating, downhill sledding, dog-sledding, snowmobiling, and tubing are practicing _______________.Select one: a. product expansion b. product extensionc. market expansion d. market extension
b. product extension
The _______________ option focuses on growth that is constant with the firm’s core competencies and has the least knowledge risk.Select one: a. product growth b. market growth c. market penetrationd. product and market diversification
c. market penetration
The skills and resources required to engage in continual product upgrading and marketing the product successfully are referred to as _______________.Select one: a. Company-culture fit b. Company-market fit c. Product-market fit d. Product-company fit
d. Product-company fit
To create shareholder value, _______________ require a low-cost position.Select one: a. pioneer strategies b. follow-the-leader strategies c. me-too strategiesd. segmenter strategies
c. me-too strategies
Whereas _______________ place extensive effort in producing new-to-the-world products and services via high investment in research, _______________ focus attention on development.Select one: a. follow-the-leader firms; segmenter firms b. segmenter firms; pioneer firms c. pioneer firms; follow-the-leader firms d. follow-the-leader firms; pioneer firms
c. pioneer firms; follow-the-leader firms
Which of the following companies possesses the R&D skills and internal processes to consistently develop new products and services and has the marketing capabilities to open up new markets?Select one: a. Pioneerb. Follow-the-leader c. Segmenter d. Me-too
a. Pioneer
Which of the following is NOT a dimension focused on the internal resources when a company is articulating its mission?Select one: a. Technology b. Customer needsc. Core ingredient d. Product or service
b. Customer needs
Which of the following is NOT a subconstruct that is embraced by the concept of fit?Select one: a. Product-market fit b. Product-company fit c. Company-culture fit d. Company-market fit
c. Company-culture fit
Which of the following is NOT mentioned in the text as one of the four approaches for growth that are embedded in the growth path matrix?Select one: a. Product growth b. Cultural growthc. Market growth d. Market penetration
b. Cultural growth
Which of the following strategies can be extremely effective when the market is fairly well developed?Select one: a. Pioneer strategy b. Innovator strategy c. Segmenter strategyd. Follow-the-leader strategy
c. Segmenter strategy
_____________ comprises all routinely generated data from transactions with customers and suppliers and information from internal enterprise databases on costs, production, and capacity.Select one: a. Technical analysis b. Public data c. Focus groups d. Company data
d. Company data
______________ uses numerical data and mathematical analysis, often from large representative samples.Select one: a. Blogs and wikis b. Focus groups c. Quantitative researchd. Qualitative research
c. Quantitative research
_______________ allow researchers to definitively establish causal relationships like A -> B.Select one: a. Telephone surveys b. Experimentsc. Sample surveys d. Focus groups
b. Experiments
_______________ has the advantages of being fast and easy to implement and lower cost due to no printing or postage, but the disadvantage of possible non-representative samples because of limited computer use.Select one: a. Telephone interviewing b. Mail surveys c. Internet surveysd. Face-to-face personal interviews
c. Internet surveys
_______________ have the advantages of fairly quick completion, less interviewer bias, and easier supervision, but the disadvantage of high refusal rates.Select one: a. Face-to-face personal interviews b. Telephone interviewsc. Mail surveys d. Internet surveys
b. Telephone interviews
_______________ is the maximum market-level sales the firm expects to occur in a future time period.Select one: a. Target market b. Market segment c. Market share d. Market potential
d. Market potential
________________ are one of the most popular qualitative data collection methodologies used by researchers.Select one: a. Focus groupsb. Surveysc. Blogs and wikis d. One-on-one interviews
a. Focus groups
_________________ of the target population are the most common ways to secure primary data for quantitative analysis.Select one: a. Sample surveysb. Observations c. Experiments d. Focus groups
a. Sample surveys
Which of the following is represented by the question: “If I repeat the data collection, would I get the same results?”Select one: a. Complexity b. External validity c. Reliabilityd. Internal validity
c. Reliability
A.C. Nielsen and IRI and reports from industry and financial analysts are examples of which of the following types of data?Select one: a. Focus groups b. Company data c. Technical analysis d. Public data
d. Public data
A(n) ______________ requires forming a panel of individuals who agree to provide responses periodically over time.Select one: a. longitudinal studyb. blog c. focus group d. experiment
a. longitudinal study
All of the following are basic types of secondary data EXCEPT:Select one: a. Technical analysis b. Experimentationc. Public data d. Company data
b. Experimentation
All of the following are examples of types of questions a researcher should ask when collecting and evaluating quantitative data EXCEPT:Select one: a. Reliability b. Complexityc. External validity d. Internal validity
b. Complexity
_______________ follows directly from analysis of market potential, from forecasts of market size, and the firm’s estimates of market share, typically contained in the marketing plan.Select one: a. Bottom-up forecasting b. Top-down forecastingc. Synthetic sales forecasting d. Linear extrapolation
b. Top-down forecasting
Derived from anthropology, ________________ is an observational method where researchers spend a day in the life of their customers.Select one: a. a wiki b. a focus group c. ethnographic researchd. a blog
c. ethnographic research
In _______________, the researcher asks respondents to pretend they are a brand’s friend and write it a letter or asks why a neighbor or work colleague may like or dislike a particular product.Select one: a. role-playingb. story telling c. imagery d. word associations
a. role-playing
In which of the following types of projective techniques does the researcher supply a stimulus word to which the respondent offers the first word that comes to mind?Select one: a. Role-playing b. Word associationsc. Imagery d. Story telling
b. Word associations
In which of the following types of projective techniques does the researcher show the respondent a picture or provides a situation relevant to the research topic after which the respondent makes up a story about one or more characters in the stimulus?Select one: a. Word associations b. Role-playing c. Imagery d. Story telling
d. Story telling
In which of the following types of projective techniques does the researcher ask the respondent to draw a picture that shows the individual interacting with the product and then asks for an interpretation of the picture?Select one: a. Role-playing b. Imageryc. Story telling d. Word associations
b. Imagery
The downside of __________________ is that salespeople may low-ball their estimates if the firm uses these sales forecasts to set sales quotas that affect their take-home pay.Select one: a. bottom-up forecastingb. synthetic sales forecasting c. linear extrapolation d. top-down forecasting
a. bottom-up forecasting
The most common causal-factor method for predicting market size is ________________.Select one: a. Delphi method b. judgmental extrapolation c. linear extrapolation d. multiple regression analysis
d. multiple regression analysis
Typically, a focus group is composed of _____________ moderated by a skilled facilitator.Select one: a. 8 to 12 membersb. 4 to 8 members c. 12 to 18 members d. 2 to 6 members
a. 8 to 12 members
Which of the following approaches to asking questions instructs respondents to put a “1” against the brand they would be most likely to buy, “2” against the next most like brand, etc., until they have ordered all brands?Select one: a. Paired comparison b. Semantic differential scales c. Constant sumd. Rank ordering
d. Rank ordering
Which of the following is represented by the question: “Do these data measure what I want to be measuring?”Select one: a. External validity b. Complexity c. Reliability d. Internal validity
d. Internal validity
Which of the following is represented by the question: “Will the results I secure generalize to other populations?”Select one: a. External validityb. Internal validity c. Complexity d. Reliability
a. External validity
Which of the following methods of collecting survey has the advantages of high completion rates, high level of control, and minimized missing data, but the disadvantage of being the most expensive?Select one: a. Face-to-face personal interviewsb. Telephone interviewing c. Internet surveysd. Mail surveys
a. Face-to-face personal interviews
Which of the following methods of collecting survey has the advantages of being inexpensive and having no interviewer bias, but the disadvantage of having very low response rates?Select one: a. Telephone interviewing b. Internet surveys c. Face-to-face personal interviews d. Mail surveys
d. Mail surveys
Which of the following methods of forecasting market size is described as follows? Each person makes a market forecast and specifies the rationale. Each then receives a complete package of all forecasts and rationales and then revises their forecasts.Select one: a. Delphi methodb. Linear extrapolation c. Judgmental extrapolation d. Executive judgment
a. Delphi method
Which of the following represents the first element of the marketing research process?Select one: a. Identify a researchable problem. b. Define the business issue.c. Formulate objectives and hypotheses. d. Develop the research plan.
b. Define the business issue.
Which of the following research techniques is also known as motivation research?Select one:a. Focus groups b. One-on-one interviews c. Observation d. Projective techniques
d. Projective techniques
Which of the following sales forecasting methods uses two-variable regression analysis to estimate the year-by-year change in sales and then adds the increment to the previous year’s sales to derive future sales?Select one: a. Delphi method b. Moving average c. Linear extrapolationd. Judgmental extrapolation
c. Linear extrapolation
Which of the following statements about qualitative research is FALSE?Select one: a. Qualitative research is rarely conclusive. b. Qualitative research is not concerned with numbers. c. Qualitative research projects to a larger population.d. Qualitative research is generally flexible and versatile.
c. Qualitative research projects to a larger population.
_______________ are those firms offering similar benefits but with different products, technology, and/or business models?Select one: a. Direct competitorsb. Strategic alliances c. De novo start-ups d. Indirect competitors
d. Indirect competitors
_______________ implies that the information is already available but needs to be collected, sorted, and given meaning in the context of the questions management wants to answer.Select one: a. Hypothetical data b. Syndicated data c. Primary data d. Secondary data
d. Secondary data
_______________ is the competitive threat that occurs when the firm’s supplier decides to incorporate functions that the firm currently performs into its own operations.Select one: a. Suppliers integrating forwardb. Suppliers integrating backward c. Customers integrating backward d. Customers integrating forward
a. Suppliers integrating forward
_________________ prohibit revealing information to third parties and are standard for consultants and others who work for the firm on a contract basis.Select one: a. Novo start-up agreements b. Nondisclosure agreements c. Non-compete agreements d. Strategic alliance agreements
b. Nondisclosure agreements
__________________ includes measures like profitability and market share.Select one: a. Quantitative datab. Nominal data c. Subjective data d. Qualitative data
a. Quantitative data
__________________ includes the expertise of competitors’ managers and their anticipated strategic moves.Select one: a. Nominal data b. Quantitative data c. Objective data d. Qualitative data
d. Qualitative data
__________________ is a net benefit or cluster of benefits, offered to a sizable group of customers, which they value and are willing to pay for but cannot get, or believe they cannot get, elsewhere.Select one: a. Cross-sectional advantage b. Differential advantagec. Fundamental advantage d. Virtual advantage
b. Differential advantage
A broad definition of _______________ would include any organization (except customers) whose activities impact the firm’s sales.Select one: a. supplementer b. competitor c. complementerd. none of these
c. complementer
According to the five-forces model, three of the five forces the firm faces are competition and includes all of the following EXCEPT:Select one: a. Current direct competitors b. New direct competitors c. Shadow competitorsd. Indirect competitors
c. Shadow competitors
According to the text, describing competitors involves all of the following key areas EXCEPT:Select one: a. What competitor data should the firm collect? b. What processes should the firm use for competitive data-gathering? c. What frameworks can the firm use to describe competitors? d. All of the selections are key areas.
d. All of the selections are key areas.
According to the text, the _______________ is the set of major work activities conducted by the competitor and the manner in which these are connected to external entities such as suppliers and customers.Select one: a. processes b. culture c. infrastructure d. value chain
d. value chain
All of the following are examples of external sources of data that relate to the firm’s product line EXCEPT:Select one: a. Competitors’ product catalogs b. Trade industry press c. Industry trade associations d. Industry studies conducted by the firm’s own personnel
d. Industry studies conducted by the firm’s own personnel
All of the following are key areas to consider when identifying competitors EXCEPT:Select one: a. The firm as a competitor b. The structure of competition c. All selections are recognized as key areas to consider.d. Competitive dynamics
c. All selections are recognized as key areas to consider.
Examples of primary data include all of the following EXCEPT:Select one: a. The firm’s executives b. The firm’s employees c. The firm’s annual reportd. The firm’s sales force
c. The firm’s annual report
In a competitor’s organization, the behaviors, norms, beliefs, and values that together describe what the competitor stands for and how its members operate and behave is called _______________.Select one: a. processes b. infrastructure c. value chain d. culture
d. culture
Sources of secondary data include all of the following EXCEPT:Select one: a. The Internet b. Customer surveys c. News releases d. Patent filings
b. Customer surveys
The question “What effort is GE placing into innovation versus increasing efficiency?” is an example of which level of collecting competitor data?Select one: a. Corporate b. Business unitc. Governmental d. Market segment
a. Corporate
When the customer believes it has the competence to fulfill the supplier function and that potential for additional profit margin is sufficiently attractive, _______________.Select one: a. customers may integrate backward b. suppliers may integrate forward c. suppliers may integrate backward d. customers may integrate forward
a. customers may integrate backward
Which of the following best describes the competitive threat that occurs when the firms’ customers decide to incorporate into its own operations functions that the firm currently performs?Select one: a. Customers integrating forward b. Suppliers integrating backward c. Customers integrating backwardd. Suppliers integrating forward
c. Customers integrating backward
Which of the following is NOT an example of an internal source of data that relates the functionality dimension of competition?Select one: a. Product comparison studies b. Reverse engineering c. Competitors’ sales literatured. Manufacturing sales and other personnel assessments
c. Competitors’ sales literature
Which of the following is NOT mentioned in the text as an important source of secondary data?Select one: a. Investment bankers b. Stock market analysts c. The competitor’s suppliers d. Trade associations
c. The competitor’s suppliers
Which of the following is NOT one of the competitive evaluation questions that competitor assessment analysis and game theory helps to answer?Select one: a. What is the profitability index of the firm’s competitor?b. What options does the competitor have to be successful? c. Is the competitor capable? d. What would the competitor have to do to pursue each option?
a. What is the profitability index of the firm’s competitor?
Which of the following is NOT one of the core questions about the value chain that a firm asks when analyzing the competition?Select one: a. Where does the competitor have a value advantage? b. Where is the competitor at a value disadvantage? c. Where does the competitor have a cost advantage? d. Where does the competitor break even?
d. Where does the competitor break even?
Which of the following is the FIRST step in the framework for gaining competitive insight?Select one: a. Identifyb. Manage c. Describe d. Evaluate
a. Identify
Which of the following is the LAST step in the framework for gaining competitive insight?Select one: a. Manage b. Identify c. Evaluate d. Describe
a. Manage
Which of the following prohibits former employees from working for competitors for a defined time period?Select one: a. Nondisclosure agreement b. Non-compete agreementc. Strategic alliance agreement d. Novo start-up agreement
b. Non-compete agreement
____________ is the competitive product’s price, plus the net added value from the firm’s product.Select one: a. Economic value for the customer b. Bargaining power of the supplier c. Bargaining power of the customer d. Enforcement valueFeedback
a. Economic value for the customer
_______________ are generally concerned with such dimensions as performance level, performance reliability, time and place availability, accuracy, and ease of use.Select one: a. Psychological benefits b. Functional benefitsc. Environmental benefits d. Economic benefits
b. Functional benefits
_______________ concern on the financial aspects like price and credit terms.Select one: a. Psychological benefits b. Economic benefits c. Environmental benefits d. Functional benefits
b. Economic benefits
_______________ is the final stage of the purchase-decision process.Select one: a. Acquiring information b. Recognizing problems c. Post-purchase processd. Evaluating alternatives
c. Post-purchase process
_______________ is the first stage of the purchase-decision process.Select one: a. Recognizing problemsb. Evaluating alternatives c. Acquiring information d. Post-purchase process
a. Recognizing problems
_________________ are those a person would like to join for reasons like prestige.Select one: a. Primary reference groups b. Tuangou groups c. Secondary reference groups d. Aspirational groups
d. Aspirational groups
_________________ include club and church members and professional organizations.Select one:a. Aspirational groups b. Secondary reference groupsc. Primary reference groups d. Tuangou groups
b. Secondary reference groups
A person exercising indirect influence by providing expertise like specifications can be best described as a ______________.Select one: a. gatekeeper b. buyer c. specifier d. use
c. specifier
A(n) _______________ includes grandparents, aunts, uncles, cousins, and in-laws.Select one: a. situational family b. extended family c. subsidized family d. nuclear family
b. extended family
According to Maslow’s hierarchy of needs, all of the following are examples of physiological needs EXCEPT:Select one: a. shelter b. drink c. food d. friendship
d. friendship
According to the text, all of the following are examples of environmental influences that affect the consumer purchase-decision process EXCEPT:Select one: a. social class b. cognitive resourcesc. culture d. personal influences
b. cognitive resources
Which of the following best describes people who are conservative, conventional, with concrete beliefs based on traditional established codes such as family, church, community, and nation according to the VALS Lifestyle Framework?Select one: a. achievers b. actualizers c. strivers d. believers
d. believers
An individual who seeks to prevent the customer from purchasing the firm’s product is often referred to as a _______________.Select one: a. specifier b. gatekeeper c. spoilerd. buyer
c. spoiler
Family members and organizational work groups are examples of __________________.Select one: a. aspirational groups b. primary reference groupsc. secondary reference groups d. tuangou groups
b. primary reference groups
First purchase of a house and first outsourcing of work previously done internally are examples of which of the following purchase-decision categories?Select one: a. extended problem-solvingb. limited problem-solving c. perceptual problem-solving d. routinized-response behavior
a. extended problem-solving
______________ purchases are exemplified whenever a new supplier must be considered by the buyer wire or where a new material might replace a traditional choice, such as substitution of plastics for metal, or replacing traditional seeds with genetically altered varieties.Select one: a. Limited problem-solvingb. Routinized-response behavior c. Extended problem-solving d. Perceptual problem-solving
a. Limited problem-solving
Practical people with constructive skills who value self-sufficiency are called _______________ according to the VALS Lifestyle Framework.Select one: a. actualizers b. achievers c. makersd. strivers
c. makers
The customer making choices rapidly with little effort and often based on brand loyalty is an example of _______________.Select one: a. perceptual problem-solving b. routinized-response behaviorc. extended problem-solving d. limited problem-solving
b. routinized-response behavior
The individual who has little direct role in the purchase decision, but often has veto power, is described as which of the following?Select one: a. buyer b. specifier c. userd. gatekeeper
c. user
Which of the following best describes the type of family that includes the immediate group of father, mother, and children?Select one: a. extended family b. nuclear familyc. situational family d. subsidized family
b. nuclear family
Which of the following roles in the purchase process best describes an individual who has the power to impede access to the decision-maker and influencers?Select one: a. user b. gatekeeperc. buyer d. specifier
b. gatekeeper
Which of the following roles in the purchase process best describes an individual with the formal power to consummate the purchasing act with a supplier?Select one: a. specifier b. user c. gatekeeper d. buyer
d. buyer
Which of the following roles of the purchase process best describes a person who promotes the firm’s interests, based on positive experiences with the supplier and/or personal relationships?Select one: a. specifier b. buyer c. spoiler d. champion
d. champion
Which of the following type of values typically satisfy status, affiliation, reassurance, risk, and security needs?Select one: a. environmental values b. functional values c. economic values d. psychological values
d. psychological values
Which of the following types of resources address people’s ability to process information to make purchase decisions?Select one: a. economic resources b. time availability c. environmental resources d. cognitive resources
d. cognitive resources
A ______________ is uniquely identified, like having a specific size and color.Select one: a. product itemb. product classc. product form d. target market
a. product item
A firm’s ________________ offer current customers similar benefits with similar products, technology, and/or business models.Select one: a. indirect competitors b. current direct competitorsc. new direct entrants d. current suppliers
b. current direct competitors
According to the text, fragmentation generally occurs because of some combination of the following reasons EXCEPT:Select one: a. High entry barriersb. High exit barriers c. Diverse market needs d. Regulation
a. High entry barriers
According to the text, population shifts often follow ______________.Select one: a. the rotation of the earth b. the sunc. the ocean currents d. the moon
b. the sun
An initial broad approach to defining a market ensures against ________________.Select one: a. marketing segmentation b. product imitation c. marketing innovation d. marketing myopia
d. marketing myopia
Detergents and kitchen appliances are examples of which of the following stages of the product life cycle in USA?Select one: a. Late growth b. Maturityc. Introduction d. Decline
b. Maturity
Economists use the term ______________ to describe concentrated markets.Select one: a. fragmented b. multiple c. oligopoly d. monopoly
c. oligopoly
Examples of products in concentrated markets include all of the following EXCEPT:Select one:a. Dentistryb. GE in steam turbine generators c. Gillette in shaving products d. IBM mainframe computers
a. Dentistry
In a(n) _____________, two entities combine as equal partners to create a stronger firm.Select one:a. acquisition b. spin off c. leveraged buyout d. merger
d. merger
In developed countries, a recent trend is ________________, which is a return to rural communities.Select one: a. cross-sectional growth b. inurban growth c. transgenerational growth d. exurban growth
d. exurban growth
In many developed nations, annual population growth rates are _________________.Select one:a. about 10 percentb. less than 1 percent c. about 20 percent d. about 5 percent
b. less than 1 percent
In which of the following stages of the product life cycle are most sales to repeat and loyal users?Select one: a. Maturityb. Decline c. Late growth d. Introduction
a. Maturity
In which of the following stages of the product life cycle do firms typically offer a single product design, sometimes with erratic quality, and prices that may not cover total costs?Select one: a. Decline b. Early growth c. Maturity d. Introduction
d. Introduction
In which of the following stages of the product life cycle is sales volume initially low?Select one: a. Decline b. Early growth c. Introductiond. Maturity
c. Introduction
_____________ is/are the most common means for describing, over time, the evolution of markets and products, product classes, product forms, product lines, and product items.Select one: a. Life cycles b. Perceptual mapping c. Target marketingd. Conjoint analysis
a. Life cycles
Several ______________ make up each product class (or category).Select one: a. product items b. product lines c. product formsd. product segments
c. product forms
Slow growth or flat year-to-year sales characterize which of the following stages of the product life cycle?Select one: a. Introduction b. Decline c. Late growth d. Maturity
d. Maturity
The most severe supplier threat is _______________.Select one: a. backward integration b. forward integrationc. cross integration d. virtual integration
b. forward integration
The most severe threat from buyers is _______________.Select one: a. backward integration b. forward integration c. cross integration d. virtual integration
a. backward integration
The stage of the life cycle described with slow growth or flat year-to-year sales is ________________.Select one: a. decline b. early growth c. maturityd. introduction
c. maturity
The stage of the life cycle in which many firms increase sales volume and work at managing costs is ________________.Select one: a. early growthb. introduction c. maturity d. decline
a. early growth
The stage of the life cycle in which strong competitors initiate tough actions to maintain their growth rates as they force weaker entrants to withdraw is ________________.Select one: a. decline b. introduction c. late growthd. maturity
c. late growth
Which of the following is a NEW way in the changing view of marketing insight?Select one:a. Change is evolutionary. b. Life cycles are fixed and constrained. c. Firms operate independently. d. Competitive advantages are quickly dissipated.
d. Competitive advantages are quickly dissipated.
Which of the following is a subset of the product line?Select one: a. Product class b. Product form c. Product itemd. Target market
c. Product item
Which of the following is NOT a country that currently surpasses the U.S. in per-capita income?Select one: a. Norway b. Canadac. Singapore d. Qatar
b. Canada
Which of the following is not an element of the five-forces model?Select one: a. Technologyb. Suppliers c. New direct entrants d. Buyers
a. Technology
Which of the following is NOT an example of a force according to the PESTLE model?Select one: a. Technological forces b. Economic forces c. Political forces d. Viral forces
d. Viral forces
Which of the following is NOT an example of a product class?Select one: a. Theater b. iPodsc. Home videos d. Television
b. iPods
Which of the following is NOT an example of a product in the decline stage of the product life cycle?Select one: a. Chemical-film cameras b. Carbon paper c. Videotapes d. Laptop computers
d. Laptop computers
Which of the following is NOT one of the five stages of the classic product life cycle?Select one: a. Innovationb. Decline c. Early growth d. Maturity
a. Innovation
Which of the following statements is FALSE?Select one: a. Profit curves mirror sales curves.b. Profit margins drop in late growth. c. Profit margins are greatest in early growth. d. Profit curves do not mirror sales curves.
a. Profit curves mirror sales curves.
_____________ is the number of customers at the end of the year, divided by the number of customers at the start of the year.Select one: a. Defection rateb. Retention ratec. Churn rate d. Discount rate
b. Retention rate
________________ is the ongoing process of identifying and creating new value with individual customers and sharing these benefits over a lifetime of association with them.Select one: a. Customer Relationship Managementb. Multidimensional scaling c. Target marketing d. Perceptual mappingFeedback
a. Customer Relationship Management
__________________ is the level after which the firm’s communications create customer resentment.Select one: a. Communications retention rateb. Communications benchmark c. Communications tipping pointd. Communications black box
c. Communications tipping point
According to the text, all of the following are approaches to improving customer lifetime value for potential customers EXCEPT:Select one: a. ignoring potential customers b. cutting prices to attract customersc. acquiring new customers d. retrieving former customers
b. cutting prices to attract customers
According to the text, all of the following are methods used to increase customer lifetime value EXCEPT:Select one: a. increase the profit margin b. increase the discount ratec. increase the customer retention rate d. decrease the customer defection rate
b. increase the discount rate
According to the text, all of the following are options used to increase customer the margin from current customers EXCEPT:Select one: a. customer satisfaction and loyalty b. standardization c. raise prices d. reduce operating costs
b. standardization
According to the text, the profit earned from an individual customer during a single time period is called _____________.Select one: a. cost of capital b. profit marginc. current assets d. customer lifetime value
b. profit margin
According to the text, which of the following is NOT a method of increasing customer lifetime value?Select one: a. Increase the customer defection rate.b. Increase the profit margin. c. Reduce the discount rate. d. Increase the customer retention rate.
a. Increase the customer defection rate
According to the text, which of the following is NOT an approach to improving customer lifetime value for current customers?Select one: a. Retrieve current customers.b. Delete customers. c. Improve customer retention. d. Grow customer margins.
a. Retrieve current customers.
According to the text, which of the following is NOT mentioned as one of the three issues crucial for success of a CRM?Select one: a. Customer benefits b. Technology c. Competitor benchmarkingd. CRM system objectives
c. Competitor benchmarking
All of the following are characteristics of superior customer databases EXCEPT:Select one: a. accessible b. expensive c. relevant d. accurate
b. expensive
All of the following are NEW ways in the changing view of optimizing shareholder value EXCEPT:Select one: a. firms should fire some customers b. customers are the firm’s core assets c. product profitability drives incentive programsd. customer databases are pivotal
c. product profitability drives incentive programs
All of the following are reasons for ceasing to do business with a current customer or forgoing a relationship with a potential customer EXCEPT:Select one: a. Standardization requirementsb. Non-payer c. Capacity constraints d. Mismatched to the offer
a. Standardization requirements
Customer lifetime value (CLV) depends on all of the following factors EXCEPT:Select one: a. retention rate b. profit margin c. inflation rated. discount rate
c. inflation rate
Customer lifetime value (CLV) depends on which of the following factors?Select one: a. All of the indicated factorb. Discount rate c. Profit margin d. Retention rate
a. All of the indicated factors
For which of the following types of rewards does the customer accumulate points, then collect the reward?Select one: a. Hyperbolic reward b. Virtual reward c. Probabilistic reward d. Deterministic reward
d. Deterministic reward
For which of the following types of rewards does the customer win either a large reward or nothing?Select one: a. Virtual reward b. Deterministic reward c. Probabilistic rewardd. Hyperbolic reward
c. Probabilistic reward
In the customer lifetime value formula, “d” represents ______________.Select one: a. discount rateb. defection rate c. doubled rate d. declining rate
a. discount rate
In the customer lifetime value formula, “r” represents ______________.Select one: a. reduction rate b. regulated rate c. retention rated. profit margin rate
c. retention rate
Most firms invest heavily in sophisticated accounting systems and data analysis tools to help managers answer questions that include all of the following EXCEPT:Select one: a. Should we discontinue this old product and, if so, when? b. Should we introduce a new product? c. Are our current products profitable? d. How ethical are our employees?
d. How ethical are our employees?
Suppose the firm earns an annual profit margin of $400,000. The customer retention rate is 70 percent, and the firm’s discount rate is 12 percent. If the margin multiple is 1.67, then what is the customer lifetime value?Select one: a. $80,000 b. $280,000 c. $668,000d. $33,600
c. $668,000
The _____________ is the firm’s cost of capital.Select one: a. discount rateb. growth rate c. retention rate d. defection rate
a. discount rate
The ______________ is the probability that a customer at the start of the year will still be a customer at the end of the year.Select one: a. discount rate b. retention ratec. growth rate d. defection rate
b. retention rate
The discount rate is typically provided by the firm’s ________________.Select one: a. Chief Financial Officerb. Board of Directors c. Chief Executive Officer d. Chief Marketing Officer
a. Chief Financial Officer
To attract new customers, a firm has to incur a(n) ______________, which needs to be a part of the customer lifetime value calculation.Select one:a. defection cost b. retention cost c. acquisition costd. discount cost
c. acquisition cost
What is the calculated defection rate if a firm starts the year with 100 customers and ends the year with 80 of these same customers?Select one: a. 60 percent b. 80 percent c. 40 percent d. 20 percent
d. 20 percent
What is the calculated retention rate if a firm starts the year with 100 customers and ends the year with 80 of these same customers?Select one: a. 60 percent b. 90 percent c. 70 percent d. 80 percent
d. 80 percent
Which of the following accurately describes the 20:80 rule?Select one: a. There is a 20 percent probability that a firm will lose 80% of its customers annually. b. 20 percent of the firm’s revenues are derived from 80 percent of its customers.c. There is a 20 percent probability that a firm will acquire 80 new customers annually. d. 20 percent of the firm’s expenses are derived from 80 percent of its customers.
b. 20 percent of the firm’s revenues are derived from 80 percent of its customers.
Which of the following accurately describes the 20:80:20 rule?Select one: a. 20 percent of the firm’s revenues are derived from 80 percent of its customers, which represents 20% of the firm’s losses. b. There is an 20 percent probability that a firm will acquire 80 new customers annually. c. 20 percent of the firm’s expenses are derived from 80 percent of its customers, which represents 20% of the firm’s losses.d. There is a 20 percent probability that a firm will lose 80% of its customers annually.
a. 20 percent of the firm’s revenues are derived from 80 percent of its customers, which represents 20% of the firm’s losses
Which of the following accurately describes the 80:20 rule?Select one: a. There is an 80 percent probability that a firm will lose 20% of its customers annually. b. There is an 80 percent probability that a firm will acquire 20 new customers annually. c. 80 percent of the firm’s expenses are derived from 20 percent of its customers. d. 80 percent of the firm’s revenue is derived from 20 percent of its customers.
d. 80 percent of the firm’s revenue is derived from 20 percent of its customers.
Which of the following accurately describes the 80:20:120 rule?Select one: a. 80 percent of the firm’s revenue is derived from 20 percent of its customers, which provides 120% of the firm’s profits.b. There is an 80 percent probability that a firm will lose 20% of its customers annually, leading to 120% in losses. c. There is an 80 percent probability that a firm will acquire 20 new customers annually, resulting in 120% of the firm’s profits.d. 80 percent of the firm’s expenses are derived from 20 percent of its customers, which provides 120% of the firm’s losses.
a. 80 percent of the firm’s revenue is derived from 20 percent of its customers, which provides 120% of the firm’s profits.
Which of the following approaches for acquiring customers is most commonly used among general medical practitioners?Select one: a. Churning activities b. Firm and business unit acquisitions c. Affiliations d. Independent marketing activities
c. Affiliations
Which of the following is a NEW way in the changing view of optimizing shareholder value?Select one: a. Products are at the heart of the firm’s decision making b. Measure customer profitability c. Measure product profitability d. Firms should attract, retain, and grow all customers
d. Firms should attract, retain, and grow all customers
Which of the following is NOT mentioned in the text as a major approach for acquiring customers?Select one: a. Independent marketing activities b. Churning activitiesc. Affiliations d. Firm and business unit acquisitions
b. Churning activities
Which of the following is NOT mentioned in the text as a major option for addressing low-profit or unprofitable customers?Select one: a. Review the current way in which the firm interfaces with its customers. b. Pass the customer over to distributors or contract sales forces. c. Fire the customer. d. All selections are viable options for addressing low-profit or unprofitable customers.
d. All selections are viable options for addressing low-profit or unprofitable customers.
Which of the following is NOT mentioned in the text as a specific benefit from a reward program?Select one: a. Stimulates loyal customers to spread positive word of mouth. b. The firm gains insight into customer behavior. c. Encourages loyal customers to spend more with the firm. d. Makes loyal customers more price-sensitive.
d. Makes loyal customers more price-sensitive.
Which of the following shows the correct formula for calculating customer lifetime value?Select one:a. CLV = r + m/(1+d-r) b. CLV = r * d/(1+m-r) c. CLV = d * r/(1+m-r) d. CLV = m * r/(1+d-r)
d. CLV = m * r/(1+d-r)
Which of the following statements is TRUE?Select one: a. If sales revenues are less than costs, the firm earns a profit.b. If sales revenues are greater than costs, the firm earns a profit.c. If costs are greater than sales revenue, the firm earns a profit. d. All of the statements are incorrect.
b. If sales revenues are greater than costs, the firm earns a profit.
Which of the following statements is TRUE?Select one:a. As the retention rate increases, the steady-state market share increases. b. There is no correlation between the retention rate and steady-state market share. c. As the retention rate increases, the steady-state market share decreases. d. As the retention rate decreases, the steady-state market share increases.
a. As the retention rate increases, the steady-state market share increases.
Which of the following statements is TRUE?Select one: a. Retaining current customers cost 50 percent more than acquiring new customers. b. Retaining current customers is generally more costly than acquiring new customers. c. Retaining current customers is generally less costly than acquiring new customers. d. There is no difference in the cost of retaining current customers and acquiring new customers.
c. Retaining current customers is generally less costly than acquiring new customers.
Working through third parties like distributors and selling agents is an example of which of the following approaches for acquiring customers?Select one: a. Channel strategiesb. Independent marketing activities c. Churning activities d. Firm and business unit acquisitions
a. Channel strategies