CHAPTER 1 MARKETING: CREATING AND CAPTURING CUSTOMER VALUE

1) All of the following are accurate(chính xác) descriptions of modern marketing EXCEPT
which one?
A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous (đồng nghĩa) with marketing.
D) Marketing involves satisfying customers' needs.
E) Marketing is used by for-profit and not-for-profit organizations.
Answer: C

2) According to management guru Peter Drucker, "The aim(mục đích) of marketing is to

________."
C) make selling unnecessary (superfluous-ko cần thiết)

3) ________ is defined(xđịnh) as a social and managerial process by which individuals and

organizations obtain(đạt được) what they need and want through value creation and exchange.
D) Marketing

4) Which steps of the five-step marketing process are about understanding customers, creating
customer value, and building strong customer relationships?
C) the first four only

5) According to the simple five-step model of the marketing process, a company needs to
________ before designing a customer-driven marketing strategy.
D) understand the marketplace and customer needs and wants

6) ________ are human needs as shaped by individual personality and culture.

B) Wants

7) When backed by buying power, wants become ________.

B) demands

8) A(n) ________ is some combination (sự phối hợp)of products, services, information, or
experiences offered(được cung cấp) to consumers to satisfy(hài lòng) a need or want.
A) market offering (cung cấp cho thị trg`)

9) Which of the following refers(đề cập) to sellers being preoccupied with their own products
and losing sight of underlying consumer needs?
D) marketing myopia (tiếp thị thiển cận)

10) When marketers set low expectations (mong đợi)for a market offering(chào bán), the biggest
risk they run is ________.
C) failing to attract enough customers

11) ________ is the act of obtaining(có dc) a desired object (đối tượng mong muốn) from

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someone by offering something in return.
B) Exchange(trao đổi)

12) A(n) ________ is the set of actual (thực tế) and potential(tiềm năng) buyers of a product.
A) market

13) Consumer research, product development, communication, distribution(phân phối), pricing,

and service are all core ________ activities.
B) marketing

14) The art and science of choosing target markets and building profitable relationships with
them is called ________.
A) marketing management(sự quản lí)

15) Selecting which segments (phân đoạn) of a population of customers to serve is called
________.
D) target marketing

16) Which of the following is the set of benefits a company promises to deliver (phân phát) to
customers to satisfy their needs?
A) a money-back guarantee
B) low pricing
C) customer service
D) a value proposition (đề xuất)
E) an attribute

17) Which customer question is answered by a company’s value proposition?

A) “Why should I buy your brand rather than a competitor’s?”

18) Which of the following marketing management orientations focuses primarily on improving
efficiencies along the supply chain? (Định hướng quản lý tiếp thị sau đây tập trung chủ yếu vào
nâng cao hiệu quả trong chuỗi cung ứng?)
A) production concept (khái niệm sản xuất)

19) Which of the following marketing management concepts is most likely to lead to marketing
myopia?
E) product

20) According to the production concept, consumers will favor products that are ________ and
________.
E) available(phù hợp); affordable(giá cả phải chăng)

21) The ________ concept is aligned with the philosophy of continuous product improvement
and the belief that customers will choose products that offer the most in quality, performance,
and innovative features.( Các khái niệm ________ phù hợp với triết lý của liên tục cải tiến sản

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phẩm và niềm tin mà khách hàng sẽ chọn sản phẩm cung cấp nhiều nhất về chất lượng, hiệu suất,
và các tính năng sáng tạo.)

A) product

22) The product concept says that a company should do which of the following?
D) focus on making continuous product improvements

23) "Build a better mousetrap(bẫy chuột) and the world will beat a path to your door" reflects the
________ concept.
D) product

24) Which marketing orientation calls for aggressive promotional efforts and focuses on
generating transactions(giao dịch) to obtain profitable sales?
D) selling concept

25) Which marketing orientation holds that achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfactions better than
competitors do?
D) marketing concept

26) According to the authors of your text, the ________ concept is a "sense and respond"
philosophy rather than a "make and sell" philosophy.
C) marketing

27) A firm that uses the selling concept takes a(n) ________ approach.
C) inside-out

28) Herb Kelleher of Southwest Airlines used the marketing concept in his successful
organization. Having a customer department rather than a marketing department, as suggested by
Kelleher, is an example of a(n) ________ perspective.
A) outside-in

29) Though often criticized, the selling concept is particularly appropriate and effective with
which of the following types of products?
D) unsought(hàng hóa không mong muốn)

30) Which of the following reflects the marketing concept philosophy(triết học)?
A) "We don't have a marketing department; we have a customer department."

31) Customer-driven marketing usually works well when ________ and when customers
________.
D) a clear need exists; know what they want

32) Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and

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anticipates customer needs even better than customers themselves do and creates products and
services to meet current and future wants and demands. Marie's firm practices ________
marketing.
B) customer-driving

33) When customers don't know what they want or don't even know what's possible, the most
effective strategy is ________ marketing.
B) customer-driving

34) The societal marketing concept seeks to establish a balance between consumer short-run
wants and consumer ________.
C) long-run welfare (phúc lợi lâu dài)

35) Which marketing orientation holds that firms must strive to deliver value to customers in a
way that maintains or improves the consumer's and society's well-being?
D) societal marketing concept

36) The three areas of consideration that should be balanced in the societal marketing concept
are consumer wants, society's interests, and ________.
C) company profits

37) The set of marketing tools a firm uses to implement its marketing strategy is called the
________.
C) marketing mix

38) Building, keeping, and growing profitable relationships by delivering customer value and
satisfaction is called ________.
C) customer relationship management

39) Of the following, which is the most important concept of modern marketing?
A) customer relationship management

40) You have just taken a new position in an organization and you're learning about the job
functions of your new colleagues. You observe that your marketing manager is heavily involved
in the process of building and maintaining profitable customer relationships. Your marketing
manager frequently speaks about the need to acquire, keep, and grow customers. Your manager
is concerned with which one of the following?
E) customer relationship management

41) Customer-perceived value is determined by a customer's ________ of the benefits and costs
of a market offering relative to those of competing offers.
A) personal assessment (đánh giá cá nhân)

42) It is most accurate to say that customers buy from stores and firms that offer which of the
following?
B) the highest customer-perceived value (giá trị nhận thức cao nhất của khách hàng)

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43) The key to delivering customer satisfaction is to match ________ with ________.
E) customer expectations; product performance

44) Which of the following is the term for customers who make repeat purchases and tell others
about their positive experiences with a product or service?
B) customer evangelists (truyền bá khách hàng)

45) Which of the following strategies would a company most likely use to increase customer
satisfaction?
C) lowering prices

46) You are an assistant marketing director for a firm in a market with many low-margin
customers. What type of relationship would be most profitable for you to develop with these
customers?
B) basic relationships

47) A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a
________.
A) frequency marketing program

48) Pete Sanchez, a recent graduate of business school, has a different approach than his
marketing manager, who believes in keeping customers at arm's length and using mass media
advertising. Pete knows that today few successful firms still practice true ________.
C) mass (khối lượng)marketing

49) Which of the following has NOT contributed to the deeper, more interactive nature of today's
customer relationships?
D) traditional advertising

50) Which of the following best explains why consumers have greater power and control in
today's marketplace?
E) Through new communication technologies, customers have more access to information and
more methods of sharing their opinions with other customers.

51) The marketing world is embracing ________ because consumers can wield greater power
and control in the marketplace through communication technologies.
C) customer-managed relationships

52) Greater consumer control means that companies must rely more on marketing by ________
than by ________.
B) attraction; intrusion

53) Which of the following is an example of consumer-generated marketing?

C) MasterCard's use of "Priceless" commercials shot by customers
54) Partner relationship management focuses on working with ________ to bring more value to

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customers.
A) partners inside and outside of the company

55) In today's world, marketing should be done by ________ employees in an organization.

E) all

56) Through ________, many companies today are strengthening their connections to all
partners, from providers of raw materials to components to final products that are delivered to
final buyers.
A) supply chain management

57) Suzie Chan strengthens her company's connections by treating suppliers of raw materials,
vendors, and distributors as partners in delivering customer value. What type of management is
she practicing?
D) supply chain

58) The final step in the marketing process is ________.

A) capturing value from customers

59) Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely
to losing a single customer sale. He feels that this amounts to losing the entire stream of future
purchases that a customer is likely to make if she remains in the area. Stew Leonard's concern is
an illustration of which of the following?
D) customer lifetime value

60) When an airline goes after a "share of travel" from its customers, it is attempting to increase ________.
B) share of customer

61) Beyond simply retaining good customers, marketers want to constantly increase their "share
of customer." What does this mean in marketing terms?
B) Marketers want to increase the share they get of the customer's purchasing in their product
categories.

62) ________ is one of the best ways to increase share of customer.

C) Cross-selling

63) Amazon.com leverages relationships with its 35 million customers by offering them music,
videos, gifts, toys, consumer electronics, and office products, among other items. Based on
previous purchase history, the company recommends related CDs, books, videos, or other
products that might interest a customer. This most directly helps Amazon.com capture a greater
________.
B) share of customer

64) Which of the following is the total combined customer lifetime values of all a company's

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current and potential customers?
C) customer equity

65) The ultimate aim of customer relationship management is to produce ________.

A) customer equity

66) A potentially highly profitable, short-term customer is a ________.

A) true friend
B) butterfly

67) Customers can be classified into four relationship groups, according to their profitability and
projected loyalty. Which type of customers have the highest profit potential and strong loyalty?
D) true friends

68) Afia, a team leader in charge of customer relationship management, is planning strategies for
improving the profitability of her firm's least profitable but loyal customers. She is also
examining methods for "firing" customers in this group who cannot be made profitable. To
which of the following customer relationship groups do these customers belong?
D) barnacles

69) Since the beginning of the Great Recession, marketers have been emphasizing the ________
of their products more than ever.
D) safety

70) Which of the following has been the most common consumer response to the economic
downturn that began in 2008?
C) spending less and choosing products more carefully

71) Which of the following is a true statement about the Great Recession that began in 2008?
D) Consumers brought spending more in line with their incomes.

72) Which of the following statements about the Internet is most accurate?
C) The Internet makes it easy for consumers to view, interact with, and create marketing content.

73) Which version of the Web has introduced small, fast, and customizable applications that can
be accessed through multifunction mobile devices?
C) Web 3.0

74) Which of the following is currently the fastest-growing form of marketing?

B) online marketing

75) As part of the rapid globalization of today's economy, companies are selling more locally
produced goods in international markets and ________.
B) purchasing more supplies abroad

76) Which of the following is most essential to any definition of marketing?

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C) customer relationships

77) Greg Williams now has the buying power to purchase the computer system he has wanted for
the last six months. Greg's want now has become a(n) ________.
C) demand

78) Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories
with a profitable focus on buyers who have relatively modest means. This is an example of
________.
D) target marketing

79) An organic farmer has identified three distinct groups who might be interested in his
products: vegetarians, people who are concerned about chemicals in their foods, and people who
consider themselves innovators and trendsetters. These three groups are examples of ________.
B) market segments

80) Jolene's firm markets preplanning services for a mortician. She finds that most of her target
market wants to avoid discussing their future funeral needs, and she must somehow first get their
attention. Jolene's firm most likely practices the ________.
C) selling concept

81) Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further
for increased consumer affordability. This reflects the ________ concept.
B) production

82) Railroads were once operated based on the thinking that users wanted trains rather than
transportation, overlooking the challenge of other modes of transportation. This reflects the
________ concept.
A) product

83) Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing
so they contribute to a national obesity epidemic and environmental problems. These fast-food
restaurants overlook the ________ philosophy.
D) societal marketing concept

84) FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh
these benefits against the monetary cost of using FedEx along with any other costs of using the
service, they are acting upon ________.
C) customer-perceived value

85) Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel
and look to her expectations for Brand X lotion, Sally was measuring her level of ________.
B) customer satisfaction

86) The Niketown running club that organizes twice weekly evening runs and follow-up

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meetings in the Nike Store is an example of which of the following?
C) a club marketing program

87) Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a
contest calling for customers to create commercials for the restaurant. Winning entries will be
posted on the organization's home page. Elisandra's plan is an example of ________.
A) consumer-generated marketing

88) Kao Corp., which makes Ban deodorant, invited teenage girls to make an ad that would
encourage other girls to buy the product. This program is an example of ________.
E) consumer-generated content

89) At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her
staff aim to delight each customer, and they are quick to offer discounts or extra services
whenever a customer is anything less than satisfied. Gina and her staff strive to make every
customer a repeat customer. It is most accurate to say that instead of focusing on each individual
transaction, Gina and her staff put a priority on ________.
B) enlisting customer evangelists

90) Ben & Jerry's challenges all stakeholders, including employees, top management, and even
ice cream scoopers in their stores, to consider individual and community welfare in their day-to-
day decisions. Actions such as this by companies seizing the opportunity to do well by doing
good reflects ________.
B) social responsibility

91) A church targeting different demographic groups to increase attendance is an example of ________.
B) not-for-profit marketing

92) Your state's department of education has budgeted a significant amount of money for a radio,
print, television, and online advertising campaign emphasizing the long-term benefits, both
educationally and professionally, of reading every day. This is an example of a(n) ________
campaign.
B) social marketing

93) Which of the following is the most likely result of a marketing strategy that attempts to serve
all potential customers?
D) Not all customers will be satisfied.

94) Which of the following reflects the marketing concept?

D) "This is what I want; won't you please make it?"

95) In which of the following situations has a company most actively embraced customer-
managed relationships?
C) iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses
for the company's robotic vacuum.
96) When the economy tightens, customer loyalty and customer retention become ________ for

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marketers.
A) more important

CHAPTER 3 ANALYZING THE MARKETING ENVIRONMENT

1) You are directed to study the actors close to the company that affect its ability to serve its
customers-departments within the company, suppliers, marketing intermediaries, customer
markets, competitors, and publics. What are you studying?
B) the microenvironment

2) Which of the following terms is used to describe the factors and forces outside marketing that
affect marketing management's ability to build and maintain successful relationships with target
customers?
A) the marketing environment

3) You are directed to study the demographic, economic, natural, technological, political, and
cultural factors that are larger societal forces affecting your company. What are you studying?
A) the macroenvironment

4) Which of the following is NOT a type of factor in a company's macroenvironment?

D) competitive

5) All of the groups within a company are called the ________.

C) internal environment

6) Which type of organization helps companies to stock and move goods from their points of
origin to their destination?
B) physical distribution firms

7) Banks, credit companies, insurance companies, and other businesses that help finance
transactions or insure against the risks associated with the buying and selling of goods and
services are referred to as ________.
A) financial intermediaries

8) Currently, Diego Calabresa is employed by a firm that conducts marketing research and
creates ads for other companies that target and promote their products to the right markets. Who
is Diego's employer?
C) a marketing service agency

9) A(n) ________ is defined as any group that has an actual or potential interest in, or impact on,
an organization's ability to achieve its objectives.
D) public
10) Which of the following is NOT an example of the type of public that is part of a company's
marketing environment?
E) marketing department

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11) A radio station that carries news, features, and editorial opinions about your area is which
type of public?
B) media

12) A consumer organization, environmental group, or minority group has challenged your firm's
stand on a local issue. Your firm is being challenged by a ________ public.
D) citizen-action

13) Workers, managers, and members of the board are all part of a company's ________ public.
B) internal

14) Percy Original caters to a market of individuals and households that buys goods and services
for personal consumption. Percy Original caters to a ________ market.
D) consumer

15) Which type of market buys goods and services for further processing or for use in the
production process?
A) business

16) Which type of market buys goods and services to produce public services or to transfer them
to others who need them?
A) government

17) Rachel Patino works for a wholesale company called Distributors Unlimited. She is
responsible for buying and selling goods at a profit to small retailers. What is her market?
B) reseller

18) Your marketing department is currently researching the size, density, location, age, and
occupations of your target market. Which environment is being researched?
A) demographic

19) The three largest generational groups in America are the baby boomers, Generation X, and ________.
B) Millennials

20) Research has shown that the most important demographic trend in the United States is the ________.
A) changing age structure of the population

21) As a generational group, ________ are the most affluent Americans.

A) baby boomers

22) The youngest of the baby boomers are now in their ________.
C) mid-40s

23) Which of the following descriptions most accurately characterizes the baby boomers?
D) They hold 75% of the country's assets.
24) Which of the following descriptions most accurately characterizes Gen Xers?

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B) They were the first generation of latchkey kids.

25) Which demographic group is also referred to as the echo boomers?

B) Millennials

26) Large tween and teen markets belong to which demographic group?
B) Millennials

27) Which of the following descriptions most accurately characterizes Millennials?

A) They are children of baby boomers.

28) Which demographic group is characterized by a total fluency and comfort with computer,
digital, and Internet technology?
B) Millennials

29) Which of the following demographic groups has NOT seen a percentage increase in the past
50 years?
A) women staying at home with their children

30) In 1950, women made up under 40 percent of the workforce; now they make up ________
percent.
E) 59

31) Which of the following is a trend that depicts the increasingly nontraditional nature of
today's American family?
B) the falling percentage of married couples with children

32) Over the past two decades, the U.S. population has shifted most heavily toward the ________ states.
C) Sunbelt

33) Which of the following geographical areas has NOT seen a recent population increase?
D) the Northeast

34) In the 1950s, the American population began shifting from large cities to ________.
D) suburbs

35) An increasing number of American workers currently work out of their homes with
technological conveniences such as PCs, Internet access, and fax machines. These workers are
referred to as the ________ market.
B) SOHO

36) Which of the following groups of workers is projected to become smaller over the next ten
years?
B) manufacturing workers

37) Which of the following most accurately reflects the popularity of telecommuting?

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B) More than half of American businesses currently offer telecommuting programs for their
employees.

38) Because of increasing ________, Americans will demand higher quality products, books,
magazines, travel, personal computers, and Internet services.
C) levels of education

39) Which of the following is an accurate statement about the diversity of the American
population?
B) More than 12 percent of people living in the United States were born in another country.

40) Of the following, which ethnic minority is expected to be nearly 25% of the U.S. population by 2050?
C) Hispanics

41) With an expected increase in ethnic populations, marketers are likely to place a greater
emphasis on ________.
B) targeted advertising messages

42) Of the following diversity segments in the American population, which is currently the
largest?
A) adults with disabilities

43) The ________ environment consists of factors that affect consumer purchasing power and
spending patterns.
D) economic

44) A country with a(n) ________ economy consumes most of its own agricultural and industrial
outputs and offers few market opportunities.
D) subsistence

45) A country with a(n) ________ economy has rich markets for many different kinds of goods.
A) industrial

46) As a response to the Great Recession, most consumers have ________.

B) adopted back-to-basics spending patterns

47) Value marketing is the strategy of offering consumers ________.

D) reasonable quality at a fair price

48) Which of the following statements about income distribution in the United States is NOT true?
B) In recent decades, the middle class has grown.

49) The natural resources that are needed as inputs by marketers or that are affected by
marketing activities are referred to as the ________.
B) natural environment
50) Which of the following American government agencies is charged with setting and enforcing

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pollution standards?
A) the Environmental Protection Agency (EPA)

51) Which of the following has encouraged marketers to go beyond what is required by law and
pursue environmentally sustainable strategies?
C) the green movement

52) Many firms today use RFID technology to ________.

D) track products through various points in the distribution channel

53) Which country leads the world in research and development spending?
E) the United States

54) Which of the following is a result of regulations set up by the Food and Drug Administration
and the Consumer Product Safety Commission?
C) Research costs for companies have grown.

55) Marketers should be aware of laws, government agencies, and pressure groups that influence
or limit various organizations and individuals in a given society. This is most accurately
described as the ________ environment.
C) political

56) Even the most liberal advocates of free-market economies agree that the system works best
with ________ regulation.
D) at least some

57) Legislation affecting business around the world will continue to ________.
B) increase

58) The legislation created to limit the number of commercials aired during children's
programming is called the ________
D) Children's Television Act

59) Business legislation has been created for three basic reasons: to protect companies from each
other, to protect consumers, and to ________.
A) protect the interests of society

60) The recent rash of business scandals and increased concerns about the environment have
created fresh interest in the issues of ________ and ________.
B) ethics; social responsibility

61) A company or association's ________ is designed to help guide responses to complex social
responsibility issues.
A) code of ethics

62) The primary concern for consumers with the boom in Internet marketing is ________.

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C) privacy

63) Cause-related marketing is a(n) ________.

C) primary form of corporate giving

64) A society's basic values, perceptions, preferences, and behaviors are all part of its ________
environment.
B) cultural

65) Marketers should understand that a society's core beliefs and values have a high degree of
________.
A) persistence

66) Your company is making negotiations to enter a market in Lower Albania. You would most
likely discover that ________ beliefs and values are open to change in this country.
B) secondary

67) A society's ________ are expressed in how people view themselves, organizations, society,
nature, and the universe.
B) cultural values

68) Watching the cultural trends of how people view others, observers have noted an increased
interest in ________.
B) going out less and staying home more

69) Trends in people's views of organizations indicate that which of the following has increased
in the past twenty years?
C) distrust in big American businesses

70) Watching the cultural trends of how people view society, observers have noted that since
September 11, 2001, marketers responded to the increased ________ of Americans with special
products and promotions.
B) patriotism

71) Which of the following is a potential downside to using patriotic themes in marketing
programs?
C) Such promotions can be viewed as attempts to gain from others' triumph or tragedy.

72) The LOHAS market is most closely associated with which of the following cultural trends?
A) environmental sustainability

73) Cultural forecasters have noted a renewed American interest in ________.

D) spirituality

74) Marketers can take a(n) ________ by taking aggressive action to affect the publics and

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forces in their marketing environments.
B) proactive stance

75) Which of the following explains why few companies have been successful in shutting down
critics who post complaints on the Web?
A) The criticism is usually interpreted as protected speech.

76) LandPort Transportation and Omega Warehousing move and store the products your
company sells. The two businesses are examples of ________.
D) physical distribution firms

77) Innovations is a producer of electronic circuits that power a variety of technological devices
produced by other companies. Innovations sells its products to ________ markets.
A) business

78) ING, an international insurance and financial services company, is the primary sponsor of the
annual New York City Marathon, which is attended by over one million fans and watched by
approximately 300 million viewers worldwide. The ING logo and name appear throughout the
race course. ING most likely sponsors the event in order to appeal to which type of public?
D) general

79) Noora DeLange is helping her company develop a marketing program for a new product line.
The program involves emphasizing experience over acquisition and uses a marketing pitch that is
less overt than the company's previous programs. The marketing program is most likely designed
to appeal to which of the following demographic groups?
A) Gen Xers

80) Wholesome Soups, a maker of organic soups, is starting a new marketing campaign
emphasizing the ease of preparing and eating Wholesome Soups on the go. Print, television, and
Internet ads feature college-aged students enjoying Wholesome Soups in between classes and
during study breaks. Wholesome Soups' new marketing campaign is most likely aimed at which
of the following?
D) Millennials

81) Which of the following demographic trends is likely the most responsible for the increasing
number of people who telecommute?
A) the migration toward micropolitan and suburban areas

82) Chet Hoffman's chain of travel agencies has identified the lesbian, gay, bisexual, and
transgender community as a growing market that spends an increasing percentage of its income
on travel. Which of the following would be the LEAST effective component of a marketing plan
for Chet to take advantage of this opportunity?
C) implement a mass marketing campaign

83) With an expected increase in ethnic diversity within the American population, marketers are

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most likely to place a greater emphasis on which of the following?
B) differing advertising messages

84) The green movement will likely spark the LEAST interest in which of the following?
D) Internet usage

85) Norma Bernanke is a marketer at a pharmaceutical company that has just developed a new
medication to treat asthma. Which of the following components of the political environment
should Norma be LEAST concerned with as her company begins to develop a marketing plan for
the new product?
E) the Nutrition Labeling and Education Act

86) A regional supermarket chain runs print, radio, and television advertisements announcing
that 1% of each of its sales is donated to local after-school programs for underprivileged youth.
This is an example of ________ marketing.
A) cause-related

87) Which of the following is an example of a core belief?

A) Marriage is important.

88) Consumers undertaking which of the following would be most likely to be identified as
"cocooning" or "nesting"?
C) having a home entertainment center installed

89) Toyota's Prius was the first mass-produced hybrid vehicle, known for its fuel efficiency and
environmental friendliness. The Prius was initially most likely marketed to which of the
following groups?
B) the LOHAS market-

90) Assume that you are a manager at a firm that has hired lobbyists to influence legislation
affecting your firm's industry to its advantage. Your firm takes a(n) ________ approach to the
marketing environment.
B) proactive

91) Which of the following forces would marketers be MOST likely able to influence?
E) media publics

92) If baby boomers are predictors of where product and service demand will be, increased
demands will most likely be evident in ________ in the upcoming years.
C) financial services

93) Which of the following best explains why Gen Xers who are parents tend to put family
before career?
A) Gen Xers were the first generation of latchkey kids.

17
94) In considering the changing American family, which of the following are marketers likely to
consider the LEAST important?
A) The number of traditional households has increased.

95) Which of the following is the most reasonable to assume as more and more Americans move
to "micropolitan areas"?
B) Rural populations will offer an expanding market.

96) As a marketer of pesticides, which of the following should give you the LEAST amount of
concern?
D) persistence of cultural values

CHAPTER 4 MANAGING MARKETING INFORMATION TO GAIN CUSTOMER INSIGHTS

1) Despite the data glut that marketing managers receive, they are most likely to complain that
they lack which of the following?
A) enough information of the right kind
2) Which of the following statements is NOT true regarding information collected for marketers?
E) Managers have enough of the right information.
3) A marketing information system (MIS) consists of people and procedures to assess information
needs, ________, and help decision makers analyze and use the information.
C) develop the needed information
4) The real value of a company's marketing research and information system lies in the
________.
D) quality of customer insights it provides
5) A good MIS balances the information users would ________ against what they really ________
and what is ________.
C) like to have; need; feasible to offer
6) In general, marketers must weigh carefully the costs of additional information against the
________ resulting from it.
B) benefits
7) Diana Dion is currently researching data sources from within her company to make marketing
decisions. Diana is making use of ________ databases.
B) internal
8) Four common sources of internal data include the accounting department, operations, the sales
force, and the ________.

18
C) marketing department
9) Marketing information from which type of database usually can be accessed more quickly and
cheaply than other information sources?
D) internal
10) ________ is the systematic collection and analysis of publicly available information about
consumers, competitors, and developments in the marketing environment.
B) Competitive marketing intelligence
11) Your marketing department is attempting to improve strategic decision making, track
competitors' actions, and provide early warning of opportunities and threats. To achieve this
goal, which of the following would be the best for your department to use?
D) competitive marketing intelligence
12) Which of the following statements regarding competitive marketing intelligence is true?
D) Competitive marketing intelligence relies upon publicly available information.
13) Which of the following is NOT considered a source of competitive marketing intelligence?
D) causal research
14) Which of the following is NOT a potential source for competitive marketing intelligence?
D) collecting primary data
15) Which of the following is an example of a free online database that a company could access
in order to develop marketing intelligence?
D) the U.S. Security and Exchange Commission's database
16) ________ is the systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
C) Marketing research
17) Which of the following is LEAST likely to be a benefit of conducting marketing research?
C) measuring the effectiveness of pricing and accounting
18) What is the first step in the marketing research process?
B) defining the problem and research objectives
19) Your colleague is confused about using the marketing research process, as he knows that
something is wrong but is not sure of the specific causes to investigate. He seems to be having
problems with ________, which is often the hardest step to take.
C) defining the problem and research objectives

19
20) Which step in the four-step marketing research process has been left out of the following list:
defining the problems and research objectives, implementing the research plan, and interpreting
and reporting the findings?
D) developing the research plan
21) Causal research is used to ________.
A) test hypotheses about cause-and-effect relationships
22) In marketing research, managers often start with ________ research and later follow with
________ research.
A) exploratory; descriptive or causal
23) The objective of ________ research is to gather preliminary information that will help define
the problem and suggest hypotheses.
A) exploratory
24) In the second step of the marketing research process, research objectives should be translated
into specific ________.
B) information needs-
25) Secondary data consists of information ________.
C) that already exists but was collected for a different purpose
26) Which of the following is information gathered directly from respondents in order to
specifically address a question at hand?
C) primary data
27) Information collected from online databases is an example of ________ data.
B) secondary
28) Nielsen and the MONITOR are two sources that provide ________.
B) secondary data
29) Which form of data below can usually be obtained more quickly and at a lower cost than the
others?
D) secondary
30) It is most accurate to say that secondary data are ________.
E) not always very usable
31) Your assistant wants to use secondary data exclusively for the current research project. You
advise him that the use of secondary data has some potential problems. Which of the following is

20
NOT one of them?
C) It is generally more expensive to obtain than primary data.
32) For primary data to be useful to marketers, it must be relevant, current, unbiased, and ________.
B) accurate
33) Which method would a marketing researcher most likely use to obtain information that
people are unwilling or unable to provide?
A) observational
34) Ethnographic research ________.
B) is gathered where people live and work
35) Which of the following is true of ethnographic research?
B) It is often conducted by trained anthropologists or psychologists.
36) Survey research, though used to obtain many kinds of information in a variety of situations,
is best suited for gathering ________ information.
D) descriptive
37) Fredia Pellerano has just discovered the major advantage of survey research. She reports to
her supervisor that the advantage is its ________.
A) flexibility
38) Survey research is LEAST likely to be conducted through which of the following?
E) observation
39) Experimental research is best suited for gathering ________ information.
B) causal
40) Observational research is best suited for gathering ________ information.
A) exploratory
41) ABC Company has decided to use mail questionnaires to collect data. This method has all
the following advantages EXCEPT which one?
C) has an average response rate
42) Which of the following contact methods has the poorest response rate?
A) mail
43) Which of the following has the highest rating for speed of data collection and compilation?
D) Internet surveys
44) Which of the following is NOT a disadvantage of telephone interviews?

21
D) Interviewers can explain some questions and probe more deeply on others.
45) Which of the following contact methods is generally the LEAST flexible?
A) mail
46) Which form of marketing research is flexible, allows for explanation of difficult questions,
and lends itself to showing products and advertisements?
A) individual interviewing
47) A consumer is most likely to be paid a small fee for participating in which of the following?
D) a focus group interview
48) Focus group interviewing is a ________ research tool for gaining insights into consumer
thoughts and feelings.
C) qualitative
49) Focus group interviewing has become one of the major marketing research tools for getting
insight into consumer thoughts and feelings. However, if the sample size is too small, it is likely
to be difficult to ________.
D) generalize from the results
50) Which of the following is a disadvantage of online focus groups?
B) The Internet format can lack the real-world group dynamics of in-person focus groups.
51) Which of the following is NOT an advantage of Web-based research?
D) control over who respondents are
52) Researchers generally need to ask three questions when developing a sampling plan. Which
of the questions below is one of these three?
D) How should participants be chosen (sampling procedure)?
53) What is a major drawback of probability sampling?
A) It can be time consuming.
54) What are the two main types of research instruments used to collect primary data?
B) questionnaires and mechanical devices
55) The most common research instrument used is the ________.
C) questionnaire
56) Which of the following is the best advice about creating research questionnaires?
A) Use simple and direct language.
57) After a research instrument is selected, the next step in the marketing research process is

22
________.
C) implementing the research plan
58) AMF Research Group must guard against problems during the implementation phase of
marketing research for its clients. Which of the following is NOT a problem that should be
anticipated during this phase?
D) interpreting and reporting the findings
59) Typically, customer information is buried deep in separate databases, plans, and records of
many different company functions and departments. To overcome such problems, which of the
following should you try?
C) customer relationship management
60) Which of the following is true about customer relationship management (CRM)?
D) Its aim is to maximize customer loyalty.
61) What is the purpose of a data warehouse?
B) to gather and integrate information a company already has
62) In CRM, ________ techniques are used to sift through data and dig out interesting findings
about customers.
B) data mining
63) A successful CRM program can be expected to help a company achieve all of the following
EXCEPT ________.
D) understanding the competition better
64) Marketing information is only valuable when it is used to ________.
E) make better marketing decisions
65) Which of the following provides those within the company ready access to company research
information, stored reports, shared work documents, contact information for employees and other
stakeholders, and more?
A) an intranet
66) When managers use small convenience samples such as asking customers what they think or
inviting a small group out to lunch to get reactions, they are using ________.
B) informal surveys
67) Small organizations can obtain, with relatively little effort, most of which type of data
available to large businesses?

23
E) secondary
68) You have been asked to locate secondary data for your small organization's research needs.
Which of the following is NOT a common source for this type of research?
D) online surveys

69) Because of the scarcity of good secondary data, international researchers often must collect
their own primary data. An initial problem with this collection is developing good ________.
A) samples
70) Cultural differences, especially those involving language, can add to research costs in foreign
markets and can increase the ________.
A) risk of error
71) Anna Gregory just read a marketing research report about the top 25 countries that purchase
American products. What would the report most likely say about international research involving
these countries?
D) Despite the costs of international research, the costs of not doing it are higher.
72) Choose the statement that is NOT a typical consumer concern about intrusion on consumer
privacy.
D) Marketers make too many products and services available, creating unnecessary consumer
wants.
73) The best approach for researchers to take to guard consumer privacy includes all of the
following EXCEPT which one?
D) Sell the information only when it is financially worthwhile.
74) Many major companies have created the position of ________ to address concerns about the
privacy of customers.
C) chief privacy officer
75) To address concerns about the misuse of research study findings, several highly regarded
marketing associations have developed ________.
D) codes of research ethics
76) Frito-Lay's ________ gathers daily sales data and sorts it by product line and by region. The
marketing managers use the data to evaluate the market share of different Frito-Lay products

24
compared to one another and to competing snack foods in each region where the company does
business.
D) marketing information system

25
77) You want to observe how often consumers listen to music throughout their day and what
different audio devices they use. You are also interested in how consumers store and access their
own music collections. You should conduct ________ research.
E) exploratory
78) You are about to test the hypothesis that sales of your product will increase at a very similar
rate at either a $5 drop in unit price or a $7 drop in unit price. You are involved in what type of
research?
C) causal
79) Which type of research would be best suited for identifying which demographic groups
prefer diet soft drinks and why they have this preference?
B) descriptive
80) Nathan Zabalas owns a regional chain of drug stores. Before expanding nationwide, Nathan
is conducting marketing research to determine the best options for opening new stores. He plans
to start by collecting secondary data. Which of the following is NOT a source of secondary data
that Nathan might use?
C) online questionnaires
81) Walmart sends a trained observer to watch and interact with customers as they shop in a
Walmart store. This is an example of ________.
C) ethnographic research
82) When ZIBA designers looking for ideas on how to craft a shower-cleaning tool spent 10 days
in people's homes, watching consumers wash shower stalls, they were conducting ________
research.
D) ethnographic
83) Carls Jr. came out with a new hamburger and released it in two different cities with two
different price points. Marketers at Carls Jr. then analyzed the different levels of purchase made
at the two different price points, planning on using the information to help them set a nationwide
price for the new offering. This is an example of ________.
D) experimental research
84) Juanita Petino operates a dress shop in a suburban mall. Her research budget is very small, so
she utilizes low-cost or no-cost methods to gather research data. One method that works very
well for her is to change the themes in her local newspaper and radio advertising and watch the

26
result. Juanita is using ________ to gather data for marketing decisions.
B) experimental research
85) Maryann Rose is conducting research to determine consumers' personal grooming habits.
Because of the personal nature of the survey questions about this topic, Maryann wants to select
the contact method that is most likely to encourage respondents to answer honestly and that will
allow her to easily collect large amounts of data. Which contact method should Maryann select?
A) mail questionnaires
86) Tasoula Jeannopoulos has a limited budget for the market research she needs to conduct;
however, the sample size for her research is quite large. Which of the following methods of
contact would provide Tasoula with the most cost-effective way to reach a large sample of
potential customers?
C) Internet surveys
87) Del Monte has created a(n) ________ called "I Love My Dog"; this online community
allows company-selected dog enthusiasts to complete product-related polls, chat with product
developers, and provide feedback about specific products.
B) custom social network
88) You have decided to use only open-ended questions on your survey. Which of the following
questions would NOT be found on your survey?
B) How many cars does your family own?
89) You have decided to use only closed-ended questions on your survey. Which of the
following questions would NOT be found on your survey?
D) What do you like about your teacher?
90) Loft Industries sells roof trusses to contractors and builders and would like to conduct
research to determine how customers assess customer service. Which of the following research
instruments would be best for this firm?
C) questionnaires
91) As a small business consultant, you recommend to your clients that they use no-cost methods
of observation to gather market research. Which of the following are you NOT likely to
recommend your clients do?
D) hire additional staff to observe extensively

27
92) For a small business manager deciding where to relocate within the city, relevant research
will LEAST likely include ________.
E) options for repackaging the company's products
93) Marialba Hooper is conducting marketing research for a company that is investigating the
possibility of entering multiple international markets. As Marialba plans her research in 30
different countries, upon which of the following is she LEAST likely to rely?
A) free secondary data
94) Malaya Ramirez is organizing marketing research in Central American countries for a large
American corporation that is interested in expanding its market. The survey Malaya is using was
written in English and then translated into Spanish for use by Spanish-speaking respondents.
Which of the following is it most important for Malaya do before administering this
questionnaire to a sample of the market?
D) have the questionnaire translated back into English to check for accuracy
*95) You want to find out whether Americans between 21 and 40 years of age tend to vote
Democratic and whether Americans between 41 and 70 tend to vote Republican. You will most
likely use a ________ to collect your data.
C) stratified random sample
96) Michael Quinones is a customer service agent for a national car rental business. He has
access to the company's intranet, which provides performance reports, shared work documents,
contact information, and detailed information about customers. Which of the following is this
access most likely to enable Michael to do during interactions with customers?
D) reward customer loyalty with an upgrade or discount
98) Jason wanted to better understand how his customers assess service quality. This is an
example of a ________.
B) research objective
99) In this scenario, which of the following are examples of competitive marketing intelligence?
B) competitors' pamphlets
C) phone calls made to competitors to learn about their offerings
D) B and C only
100) Of the 141 companies on the list, Jason chose to survey only 75 of them. Jason sent surveys
to small companies and large companies. If Jason selected survey recipients randomly from the

28
groups of small companies and large companies, he was using a ________.
D) stratified random sample

CHAPTER 5 CONSUMER MARKETS AND CONSUMER BUYER BEHAVIOR

1) ________ is never simple, yet understanding it is the essential task of marketing management.
D) Buying behavior
2) The consumer market is made up of which of the following?
A) individuals who acquire goods or services for personal consumption
B) households that purchase goods or services for personal consumption
D) A and B
3) Economic, technological, and cultural forces are all ________ in the stimulus-response model
of buyer behavior.
B) stimuli
4) Of the following, the best starting point for understanding how consumers respond to various
marketing efforts is the ________ model of a buyer's behavior.
D) stimulus-response
5) Marketing stimuli consist of the four Ps. Which is NOT one of these?
B) politics
6) The marketer wants to understand how the stimuli are changed into responses inside the
consumer's ________, which has two parts. First, the buyer's characteristics influence how he or
she perceives and reacts to the stimuli. Second, the buyer's decision process itself affects the
buyer's behavior.
B) black box
7) In the model of buyer behavior, which of the following is NOT a major type of force or event
in the buyer's environment?
D) channel
8) ________ is the most basic cause of a person's wants and behavior.
A) Culture
9) Each culture contains smaller ________, or groups of people with shared value systems based
on common life experiences and situations.

29
C) subcultures
10) Which of the following is NOT considered an important American subculture by marketers?
D) opinion leaders
11) This group of consumers tends to buy more branded products and to make shopping a family
event, with children having a big say in the purchase decision. In general, they are very brand
loyal, and they favor companies who show special interest in them.
A) Hispanic Americans
12) ________, the fastest-growing U.S. population subsegment, now number nearly 50 million.
B) Hispanic Americans
13) Although more price-conscious than other population segments, ________ consumers tend to
be strongly motivated by quality and selection. Brands are important. They seem to enjoy
shopping more than other ethnic groups do.
B) African American
14) ________, the most affluent American demographic segment, now have more than $500
billion in annual spending power.
C) Asian Americans
15) Which of the following is NOT true of mature consumers?
D) They place more importance on brand names and are more brand loyal than members of other
age groups.
16) ________ are society's relatively permanent and ordered divisions whose members share
similar values, interests, and behaviors.
A) Social classes
17) What is one way that social class is NOT measured?
D) number of children in the family
18) Which of the following statements is true regarding social class in the United States?
C) Social classes tend to show distinct product preferences in clothing and automobiles.
19) Family is one of the ________ factors that influence consumer behavior.
B) social
20) ________ are groups to which an individual wishes to belong, as when a young basketball
player hopes to play someday for the Los Angeles Lakers.
B) Aspirational groups

30
21) ________ are people within a reference group who, because of special skills, knowledge,
personality, or other characteristics, exert influence on others.
A) Opinion leaders
22) Opinion leaders are also referred to as ________.
A) the influentials
23) Many companies, such as JetBlue and Sony, enlist everyday consumers who are enthusiastic
about their brands to become ________, brand ambassadors who share their passion for a
company's products with large circles of friends and acquaintances in return for insider
knowledge and other rewards.
B) brand evangelists
24) Companies that use brand ambassadors are participating in ________.
C) buzz marketing
25) Facebook and Second Life are both examples of ________.
C) social networks
26) The ________ is the most important consumer buying organization in society; the roles and
influences of different members have been researched extensively.
A) family
27) A ________ consists of the activities people are expected to perform according to the
persons around them.
B) role
28) A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage,
occupation, economic situation, lifestyle, and personality and self-concept.
A) personal characteristics
29) People change the goods and services they buy over time because of the two changing
factors of ________.
C) age and life-cycle stage
30) Consumer information provider PersonicX uses a life-stage segmentation system that places
U.S. households into one of 21 different life-stage groups. Which of the following PersonicX
groups consists of young, energetic, well-funded couples and young families who are busy with
their careers, social lives, and active recreation?
A) Taking Hold

31
31) ________ is a person's pattern of living as expressed in her psychographics, including her
activities, interests, and opinions.
C) Lifestyle
32) All of the following make up a person's lifestyle EXCEPT ________.
C) dissonance-reducing buying behavior
33) A customer's lifestyle can be measured by using the AIO dimensions. What does AIO stand
for?
A) Activities, Interests, Opinions
34) ________ refers to the unique psychological characteristics that distinguish a person or
group. It is usually described in traits such as self-confidence, dominance, sociability, autonomy,
defensiveness, adaptability, and aggressiveness.
D) Personality
35) Researchers have found that a number of well-known brands tended to be strongly associated
with one particular trait, such as Jeep with "ruggedness." Which of the following terms would a
marketer use to describe a specific mix of human traits that may be attributed to a particular
brand?
C) brand personality
36) Many marketers use the self-concept premise that people's possessions contribute to and
reflect their identities; that is, "we are what we have." According to this premise, consumers
________.
A) buy products to support their self-images
37) A person's buying choices are influenced by four major psychological factors. Which is NOT
one of these factors?
C) alternative evaluation
38) A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction.
D) motive
39) According to Freud's theories, people are ________ many of the psychological forces
shaping their behavior.
A) unaware of
40) The term ________ refers to qualitative research designed to probe consumers' hidden,
subconscious motivations.

32
C) motivation research

41) A marketing research company asked members of a focus group to describe several brands
as animals. This is an example of ________.
B) interpretive consumer research
42) Maslow's theory is that ________ can be arranged in a hierarchy.
D) human needs
43) Which of the following is NOT part of Maslow's Hierarchy of Needs?
C) stimulus needs
44) What is the LEAST pressing in Maslow's Hierarchy of Needs?
D) self-actualization needs
45) ________ is the process by which people select, organize, and interpret information to form
a meaningful picture of the world.
B) Perception
46) People cannot focus on all of the stimuli that surround them each day. A person's tendency to
screen out most of the information to which he is exposed is called ________.
D) selective attention
47) People tend to interpret new information in a way that will support what they already
believe. This is called ________.
B) selective distortion
48) People forget much that they learn. They tend to retain information that supports their
attitudes and beliefs. This is called ________.
B) selective retention
49) Some consumers worry that they will be affected by marketing messages without even
knowing it. They are concerned about ________ advertising.
B) subliminal
50) ________ describes changes in an individual's behavior arising from experience.
B) Learning
51) Learning occurs through the interplay of all of the following EXCEPT ________.
D) dissonance behavior

33
52) ________ are subtle stimuli that determine where, when, and how a person responds to an
idea.
A) Cues
53) If a consumer's experience is rewarding, that consumer will probably use the product more
and more. The consumer's response to the product will be ________.
C) reinforced
54) Applying ________, marketers can affect demand for a product by associating it with strong
drives, using motivating cues, and providing positive reinforcement.
C) learning theory
55) A(n) ________ is a descriptive thought that a person has about something.
C) belief
56) A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies
toward an object or idea.
D) attitude
57) When consumers are highly involved with the purchase of an expensive product and they
perceive significant differences among brands, they most likely will undertake ________.
B) complex buying behavior
58) When consumers are highly involved with the purchase of an expensive, infrequent, or risky
purchase but see little difference among brands, they most likely will undertake ________.
D) dissonance-reducing buying behavior
59) When customers have a low involvement in a purchase but perceive significant brand
differences, they will most likely engage in ________.
D) variety-seeking buying behavior
60) The buyer decision process consists of five stages. Which of the following is NOT one of
these stages?
C) variety-seeking buying behavior
61) The buying process starts with ________, in which the buyer recognizes a problem.
A) need recognition
62) If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to
buy it then. If not, the consumer may store the need in memory or undertake a(n) ________.
D) information search

34
63) The consumer can obtain information from any of several sources. Which of the following is
NOT one of these types of sources?
C) attitude
64) The information sources that are the most effective at influencing a consumer's purchase
decision are ________. These sources legitimize or evaluate products for the buyer.
D) personal
65) Marketers describe the way a consumer processes information to arrive at brand choices as ________.
A) alternative evaluation
66) Blake is in the process of buying a new car. He is highly involved in the purchase and
perceives significant differences among his three favorite models. Blake's next step is most likely
to be ________.
B) alternative evaluation
67) Generally, the consumer's purchase decision will be to buy the most preferred brand, but two
factors can come between the purchase intention and the purchase decision. Which of the
following is one of these factors?
B) attitude of others
68) After the purchase of a product, consumers will be either satisfied or dissatisfied and engage in _____.
C) postpurchase behavior
69) The relationship between the consumer's expectations and the product's ________
determines whether the buyer is satisfied or dissatisfied with a purchase.
A) perceived performance
70) Almost all major purchases result in ________, or discomfort caused by postpurchase conflict.
B) cognitive dissonance
71) When a customer feels uneasy about losing out on the benefits of a brand she chose not to
purchase, she is experiencing ________.
D) cognitive dissonance
72) Consumers learn about new products for the first time and make the decision to buy them
during the ________.
B) adoption process
73) Which of the following is NOT one of the stages that customers go through in the process of
learning about and making decisions about a new product or service?

35
D) acceptance
74) Which of the following is the final stage in the new product adoption process?
B) adoption
75) Relative advantage, compatibility, complexity, divisibility, and communicability are all
examples of ________.
C) product characteristics that influence rate of adoption
76) Generation Xers, who were born between 1965 and 1976, share the childhood experiences of
higher parental divorce rates, recession, and corporate downsizing. They tend to care about the
environment and value experience over acquisition. Generation Xers make up a ________.
A) subculture
77) A shoe company uses ads featuring the members of a country music band with the hope that
the band's fans will see them wearing the company's shoes and want to wear the same shoes. The
shoe company is hoping that fans of the band view the band as a ________.
B) reference group
78) Rashmi Singh always knows about the trendiest fashions. She actively shares her knowledge
with a wide group of friends and colleagues about where to shop for cutting-edge fashion at great
deals, and her advice is often followed. Rashmi is an example of a(n) ________.
C) opinion leader
79) Shane Sudendorf is an active member of her sorority, two intramural teams, and a service
organization at her college. She also actively participates on two online social networks, posting
information about her day along with her thoughts on music, food, fashion, and culture. From
this description, which of the following is the best way to describe Shane?
A) an opinion leader
80) There is a trend in the United States toward rediscovering the flavor of regional cooking and
the use of locally grown ingredients. People are choosing to spend hours in the kitchen using
only the freshest ingredients to recreate local culinary traditions. This change in ________ is one
of the reasons the number of farmers markets in the United States has increased by 70 percent in
the last eight years.
C) lifestyle
81) According to one analyst, a Harley-Davidson motorcycle can make you feel like "the
toughest, baddest guy on the block." Harley-Davidson promotes its motorcycles with images of

36
independence, freedom, and power. Harley-Davidson has created a(n) ________.
D) brand personality

82) A marketer of hair care products targeted at African American women created an advertising
message that told the women their hair could be worn any way they wanted as opposed to
wearing it straight. The message suggested the women did not need to conform to the
mainstream media definition of beauty. It is most accurate to say that this ad was based on an
understanding of ________.
C) self-concept
83) Mark has long supported the actions and decisions of his city's mayor. However, many recent
news stories have raised questions about the ethics of the mayor's programs and initiatives. Mark
doubts that the mayor, in whom he has such faith, could behave unethically, and Mark tends to
distrust the information in the media. Mark continues to support the mayor. It is most accurate to
say that Mark has engaged in ________.
A) selective distortion
84) Juana looked at her September issue of O magazine and did not see anything of interest.
After her mother was diagnosed with bipolar disorder, she found the issue extremely interesting
because it offered advice on how to help people who are suffering from this problem. The issue
became quite interesting to Juana due to ________.
C) selective attention
85) Bob's job description had been changed. The rationale for the changes made no sense to Bob
when they were explained. Bob continued to perform most of his job duties as usual. He has
engaged in ________.
D) selective attention
86) Stephanie and Jamal attended a sales seminar. Both left the seminar with differing opinions
about what was important to implement in their jobs. Both used the information in different
ways, according to what each already believed was important. They have engaged in ________.
A) selective distortion
87) George is buying his first house. He has found two houses that he thinks he likes. He is
highly involved in the purchase and perceives significant differences between these two houses.
George will likely undertake ________.

37
B) complex buying behavior
88) Pat thought he had received the best deal on his new car. Shortly after the purchase, Pat
started to notice certain disadvantages of his new car as he learned more about other cars
available. Pat is experiencing ________.
C) post purchase dissonance
89) For the past 10 years Bill and Margaret Kennedy have saved money to go to the Super Bowl
should their team, the Chicago Bears, ever win the NFC championship. This is the year, and
several tour companies offer attractive, but very similar, packages to the game. They want to be
certain to choose the best one. Bill and Margaret are most likely to exhibit ________.
B) dissonance-reducing buying behavior
90) Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific
brand; instead, she does a lot of brand switching. Carrie exhibits ________.
D) variety-seeking buying behavior
91) Lexus works to keep customers happy after each sale, aiming to delight the customer in order
to gain a customer for life. In this pursuit, Lexus is focused on which step of the buyer decision
process?
E) post purchase behavior
92) An invitation to go skiing for the weekend forced Donna to look at her current wardrobe. She
decided she needed a much warmer coat. Donna was in which stage of the purchase decision?
C) need recognition
93) Donna wants to buy a new coat. During the ________ stage of her purchase process she will
ask her friends to recommend a store and/or a style of coat. She will search the newspaper for
coat sales, and she will visit nearby stores to see what is available in her price range.
D) information search
94) Robert has taken up bicycle riding as a hobby and as a way to maintain his physical stamina.
He understands he will need to drink adequate water when he is bike riding. He wants to buy a
hydration system. Having gathered a great deal of information, he has decided to compare three
systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water. Robert is in the
________ stage of his purchase decision.
B) evaluation of alternatives
95) Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of

38
the wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp
taste that she really enjoyed. These statements were made during the ________ stage of the
purchase decision.
E) postpurchase behavior
96) Cameron loves to know about and purchase the most up-to-date technological gadgets.
Among his friends, he is almost always the first to own the newest electronic product. Often the
products that Cameron buys become adopted by large groups of consumers, but occasionally
Cameron will purchase a product that is adopted by only a small portion of the population. To
which of the following adopter groups does Cameron belong?
A) innovator
97) Which of the following would a marketer be LEAST likely to do to encourage habitual
buying behavior?
D) stress several key points in ad copy
CHAPTER 6 BUSINESS BUYER MARKETS AND BUSINESS BUYER BEHAVIOR

1) In which of the following ways is Boeing like most other large companies?
E) Most of its business comes from commercial and industrial customers.
2) As a purchasing agent, Benni Lopez buys goods and services for use in the production of
products that are sold and supplied to others. Benni is involved in ________.
D) business buyer behavior
3) Business buying behavior refers to the buying behavior of organizations that buy all of the
following EXCEPT ________.
E) products purchased for personal consumption
4) In one way or another, most large companies sell to ________.
B) other organizations
5) When compared to consumer markets, business markets are ________.
C) huge
6) Which of the following is NOT a way that business and consumer markets differ?
C) satisfaction of needs through purchases
7) There are many sets of ________ purchases made for each set of ________ purchases.
D) business; consumer
E) product; service
8) Which of the following is true about business marketers in comparison to consumer
marketers?
A) They deal with far fewer but far larger buyers.
9) Hewlett-Packard and Dell buy Intel microprocessor chips because consumers buy personal
computers. This demonstrates an economic principle called ________.
C) derived demand
10) The Pure Drug Company produces insulin, a product with a very stable demand, even though
the price has changed several times in the past two years. Insulin is a product with ________

39
demand.
C) inelastic
11) The demand for many business goods and services tends to change more, and more quickly,
than the demand for consumer goods and services does. This is referred to as ________ demand.
A) fluctuating
12) Large business purchasers usually call for detailed product specifications, written purchase
orders, careful supplier searches, and formal approval. These are all examples of how the
business buying decision process is more ________ than the consumer buying decision process
is.
A) formalized
13) The owners of the company you work for have developed a core network of suppliers they
are working closely with to ensure an appropriate and dependable supply of products. This is an
example of ________ management.
E) supplier development
14) Although there are many differences between business buying behavior and consumer
buying behavior, both respond to the same four stimuli: product, price, promotion, and
________.
C) place

15) Economic, technological, and political factors are all ________ that affect the business
buying process.
B) environmental factors
16) In a typical organization, buying activity consists of two major parts: the buying ________
and the buying ________.
D) center; decision process
17) Which business buying situation is the marketer's greatest opportunity and challenge?
C) new task
18) In which type of buying situation would a supplier most likely focus on maintaining product
and service quality?
A) straight rebuy
19) You just lost a major account because a competitor provided the most complete system to
meet the customer's needs and solve the customer's problems, and made the sale. In other words,
the competition beat you with ________.
A) solutions selling
20) Another name for systems selling is ________ selling.
A) solutions
21) The decision-making unit of a buying organization is called the ________.
A) business buyer
B) buying center
22) A ________ consists of the actual users of products, those who control buying information,
those who influence the decisions, those who do the actual buying, and those who make the
buying decisions.
C) buying center
23) In routine buying situations, which members of the buying center have formal or informal
power to select or approve the final suppliers?
D) deciders

40
24) A(n) ________ controls the flow of information to others in the buying center.
D) gatekeeper
25) Don Amspacher, in his role on the buying committee, provides information for evaluating
the alternative purchase decisions and helps define and set specifications for evaluating
alternatives for purchasing. Don is a(n) ________.
B) influencer
26) Gretchen Kabor has formal authority to select the suppliers and arrange terms of purchase for
many of the items her firm uses. Her role in the buying center is that of ________.
C) buyer
27) A buying center is not a fixed, formally identified unit within an organization, but rather a set
of ________ assumed by different people for different purchases.
C) buying roles
28) Which of the following is NOT included in the decision-making unit of a buying
organization?
D) individuals who supply the product
29) Which of the following statements about buying centers is true?
E) The buying center may involve informal participants who are not obvious to sellers.
30) When suppliers' offers are very similar, business buyers have little basis for a strictly ________.
B) rational choice
31) When competing products differ greatly, business buyers are more accountable for their
purchase choices and tend to pay more attention to ________.
A) economic factors
32) Buyers are heavily influenced by the current and expected economic environment. That
includes which of the following buyer influences?
E) all of the above
33) To ensure an adequate and available supply of key scarce materials, many companies are
now willing to ________.
B) buy and hold large inventories of the materials
34) The major influences on the buying process at General Aeronautics include company policies and
systems, technological change, and economic developments. The types of influences on the buying
process in this scenario are most accurately categorized as ________ and ________.
E) organizational; environmental
35) Which of the following types of factors influencing members of a buying center are typically
the most difficult for marketers to assess?
C) interpersonal
36) Policies, procedures, and systems are all examples of ________ influences on business buyer
behavior.
D) organizational
37) Which of the following accurately describes a cultural difference international marketers
should be aware of?
D) Japanese people tend to put a high value on rank.
38) Which of the following is the best advice for an international marketer planning to interact
with businesspeople from many different cultures?
C) Cultures really are different, so do your best to learn about those differences.
39) Status, empathy, and persuasiveness are all examples of ________ influences on business
buyer behavior.

41
C) interpersonal
40) Charlie Van Dusen, executive vice president of National Central Bank, is going through all
of the stages of the buying process to purchase a computer system for the bank. Charlie is facing
a(n) ________ situation.
C) new-task buying
41) Which of the following is an example of an internal stimulus that might lead to the business
buying process stage of problem recognition?
C) A buyer is unhappy with a current supplier's price.
42) The first step of the business buying process is ________.
C) problem recognition
43) Business marketers often alert customers to potential problems and then show how their
products provide solutions. These marketers are hoping to influence which stage of the business
buying process?
C) problem recognition
44) The purchasing agent at your company is working with engineers and users to define the
items to purchase by describing general characteristics and quantities needed. He is also ranking
the importance of reliability, durability, and price. The buyer is preparing a(n) ________.
B) product specifications list
C) general need description
45) In which stage of the business buying process is a supplier most likely to provide a buyer
with information about the importance of different product characteristics?
B) general need description
46) Which of the following is the process of the buying center deciding on the best product
characteristics?
E) product specification
47) During which stage of the business buying process is a buyer most likely to conduct a value
analysis, carefully studying components to determine if they can be redesigned, standardized, or
made less expensively?
E) product specification
48) Empire Products has begun a process to find the best suppliers. Empire Products is actively
engaged in ________.
C) supplier search
49) A buyer would be most likely to review trade directories in which stage of the business
buying process?
D) supplier search
50) In the generally accepted stages of the business buying process, the step following product
specification is ________.
B) supplier search
51) In the generally accepted stages of the business buying process, the step following problem
recognition is ________.
D) general need description
52) Members of the buying center at ABC Kid's World are drawing up a list of desired toy
supplier attributes and their relative importance. Next, they intend to compare several suppliers
to these attributes. In which step of the business buying process is the buying center at ABC
Kid's World engaged?
C) supplier selection

42
53) Which of the following statements about the supplier selection stage of the business buying
decision process is true?
E) Before selecting a supplier, many companies consider the supplier's reputation for ethical
corporate behavior and honest communication.
54) During the ________ stage of the business buying decision process, the buying center
assesses the proposals.
B) supplier selection
55) In the case of maintenance, repair, and operating items, buyers may use a ________ rather
than periodic purchase orders.
A) blanket contract
56) In which stage of the business buying process is it a supplier's task to make sure that the
supplier is giving the buyer the expected satisfaction?
B) performance review
57) Which of the following is the last stage of the business buying process?
C) performance review
58) Under a ________, a supplier monitors and replenishes a buyer's stock automatically as
needed.
A) vendor-managed inventory

59) Instead of focusing on individual purchases, a seller should focus on managing the
________.
E) total customer relationship
60) Which of the following can be especially useful for a company that needs to conduct secure
and frequent communications and transactions with key suppliers?
B) an extranet
61) Reverse auctions, trading exchanges, and company buying sites are all ways that companies
can participate in ________.
E) e-procurement
62) Using a(n) ________, a company puts its purchasing requests online and invites suppliers to
bid for the business.
C) reverse auction
63) The Bentley department store chain makes extensive use of e-procurement. As a buyer, the
store should expect to enjoy all of these benefits of e-procurement EXCEPT ________.
D) reduced payroll
64) B-to-B e-procurement yields many benefits. These include all of the following EXCEPT ________.
C) elimination of inventory problems
65) A problem with the rapidly expanding use of e-purchasing is that it ________.
A) can erode established customer-supplier relationships
66) The leading barrier to expanding electronic links with customers and partners online is ________.
C) concern over security
67) A firewall is a(n) ________.
A) commonly used technique to safeguard Internet and extranet transactions
68) Which of the following statements about e-procurement security issues is true?
E) Providing e-procurement security can involve a substantial financial investment from a
company.
69) Sage, Inc. provides food services to schools, hospitals, and nursing homes in the Midwest.

43
Management at Sage is involved in the ________ market.
D) institutional
70) Many institutional markets are characterized by ________ and ________.
C) low budgets; captive patrons
71) Government organizations tend to favor ________ suppliers over ________ suppliers.
D) domestic; foreign
72) All of the following are difficulties associated with selling to government buyers EXCEPT ________.
D) low sales volume
73) There are many factors considered in government buying, but ________ is typically the most important.
A) price
74) Total government spending is determined by ________ rather than by any ________ to
develop this market.
C) elected officials; marketing effort
75) The world's largest buyer of products and services is ________.
C) the U.S. government
76) Which of the following is NOT part of the business market?
C) Sue buys a gift for her mother.

77) Giant Food Stores buys a lot of frozen turkey products at Thanksgiving and Christmas due to
high consumer demand. This is an example of ________ demand.
B) derived
78) Demand for outboard motors depends on consumers purchasing fishing boats. This is an
example of ________ demand.
C) derived
79) ABC Enterprises sold 9,000 units @ $2.99/unit in July. The firm sold 9,000 units @
$4.29/unit in August. This illustrates ________ demand.
E) inelastic
80) UPS serves both consumer and business markets, but most of its revenues come from its
business customers. UPS has become a strategic logistics ally for many of its business customers,
going far beyond offering delivery services to offering inventory management, international
trade management, and even financing to its commercial customers. This is an example of which
of the following differences between the consumer and business markets?
B) Buyers and sellers in the business market build close, long-term relationships.
81) You call in a department manager to assist in a purchase of industrial equipment. You are
considering a change in product specifications, terms, and possibly suppliers. This is most likely
a ________ situation.
A) modified rebuy
82) You regularly purchase cleaning supplies for your custodial staff, using the same vendor and
ordering relatively consistent amounts of the same products with each purchase. This is an
example of a ________ situation.
C) straight rebuy
83) Worthington Farm raises chickens. For years, it has used wooden coops to haul its poultry to
market. The owner of the farm needs to buy some replacement coops and is considering buying
plastic coops that are slightly more expensive than wooden ones but much easier to clean after
use. This purchase of coops is an example of a ________.

44
A) modified rebuy
84) The EPA has mandated that, in order to reduce local pollution, your printing plant switch
from oil-based to water-based inks. This will require entirely new printing presses and a new
printing plate technology. After carefully searching through numerous manufacturers' equipment
descriptions and gathering opinions from all relevant parties related to the work, your printing
plant's buying center will be ready to make this ________ purchase.
B) new task
85) Don Brady is responsible for obtaining price quotations from various vendors. After
reviewing them, Don then determines whether or not to include the vendor on the approved
vendor list. Don apparently plays two roles, that of ________ and ________.
D) decider; buyer
86) One of Dr. Albrecht's dental assistants told the dentist he should buy a machine that would
sterilize his tools without using any water because water tends to cause the tools to rust or
corrode over time. In terms of the buying center, the dental assistant had the role of ________.
D) influencer
87) One of Dr. Albrecht's dental assistants told the dentist he should buy a machine that would
sterilize his tools without using any water because water tends to cause the tools to rust or
corrode over time. Dr. Albrecht, who runs a solo practice in a small rural town, located some
articles on the chemical sterilizer and read about how the machine works. After gathering more
information and talking to salespeople, Dr. Albrecht placed his order for the machine. In terms of
the buying center, Dr. Albrecht had the role of ________.
B) decider
88) A trucking company is considering purchasing new trucks that are powered by ethanol
instead of diesel fuel. In terms of the buying center, the truck drivers who must make sure that
the trucks do not run out of fuel are the ________.
E) users
89) Worthington Farm raises chickens. For years, it has used wooden coops to haul its poultry to
market. When Bob Worthington went to reuse some of his coops, he noticed many of them could
not be sufficiently cleaned for reuse and needed to be replaced. Worthington was at which stage
of the business buying process when he decided to replace his old coops?
A) problem recognition
90) John Herr's company has standardized the size of its paper bags so that each bag can be used
in five to seven different store departments. This approach to cost reduction likely took place in
the ________ stage of the business buying process.
C) product specification
91) Most newspapers use ________ so they do not need to rely on only one supplier to provide
the tons of paper that they use annually.
B) multiple sourcing
92) Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate
sharing of expertise. It allows Pace retailers to link with other Pace retailers to ask for managerial
and marketing advice. It also allows Pace retailers to ask their suppliers about product usage,
deliveries, and warranties, and it allows suppliers to send new-product information directly to
Pace retailers. In this scenario, Pace Hardware is using a(n) ________.
A) extranet
93) Which of the following was most likely being used when Boeing received orders for $100
million in spare parts in the first year its Web site was in operation?

45
A) e-procurement
94) All of the following organizations are likely considered to be a part of the institutional
market EXCEPT ________.
C) Lancaster Township
95) Which of the following is most likely true about a straight rebuy?
C) It often involves products with low risks.
96) In what type of buying situation would a seller most likely send only a catalog to the buyer
during the proposal solicitation stage of the business buying process?
C) straight rebuy

CHAPTER 7 CUSTOMER-DRIVEN MARKETING STRATEGY: CREATING VALUE

FOR TARGET CUSTOMERS

1) When a company identifies the parts of the market it can serve best and most profitably, it is
practicing ________.
C) market targeting
2) What are the four steps, in order, to designing a customer-driven marketing strategy?
C) market segmentation, targeting, differentiation, and positioning
3) Even though several options are available at any one time, there ________ to segment a market.
B) is no single way
4) Your firm has decided to localize its products and services to meet local market demands. A
good approach to use would be ________ segmentation.
A) geographic
5) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation,
income, and family life cycle. What type of segmentation does Pendergraff use?
D) demographic
6) Which of the following is the most popular method for segmenting markets?
A) demographic
7) Demographic variables are frequently used in market segmentation because they ________.
D) are easy to measure in comparison to many other methods
8) Marketers must be most careful to guard against which of the following when using age and
life-cycle segmentation?
B) stereotyping
9) When Positive Image, Inc. caters to clothing, cosmetics, and toiletries markets, it most likely

46
uses which type of segmentation?
B) gender
10) Marketers of automobiles, financial services, and travel are most likely to use which of the
following types of segmentation?
B) income
11) Lifestyle characteristics and personality characteristics are two types of variables used in
________ segmentation. D) psychographic
12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to
a product is ________ segmentation.
A) behavioral
13) Which type of segmentation centers on the use of the word when, such as when consumers get
the idea to buy, when they actually make their purchase, or when they use the purchased item?
C) occasion
14) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users,
and regular users of a product. This method of segmentation is called ________.
A) user status
15) Your current assignment at York Foods is to find the major benefits people look for in
product classes, the kinds of people who look for each benefit, and the major brands that deliver
each benefit. What is this segmentation method called?
A) benefit
16) Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________
segmentation.
C) usage rate
17) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this
information to segment consumers by ________.
B) loyalty status
18) By studying its less loyal buyers, a company can detect which brands are most ________ its
own.
A) competitive with
19) Many firms make an effort to identify smaller, better-defined target groups by using ________.
C) multiple segmentation bases

47
20) Consumer and business marketers use many of the same variables to segment markets.
Business marketers use all of the following EXCEPT ________.
E) brand personalities
21) As in consumer segmentation, many marketers believe that ________ and ________
segmentation provide the best basis for segmenting business markets.
C) benefits; buying behavior

22) International Drilling Company segments its foreign markets by their overall level of
economic development. This firm segments on what basis?
D) economic factors
23) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the
consumers are located in different countries. This is an example of ________.
A) intermarket segmentation
24) Cross-market segmentation is also known as ________.
A) intermarket segmentation
25) When the size, purchasing power, and profiles of a market segment can be determined, it
possesses the requirement of being ________.
A) measurable
26) When a business market segment is large or profitable enough to serve, it is termed ________.
C) substantial
27) When an effective program can be designed for attracting and serving a chosen segment, the
segment is best described as ________.
D) actionable
28) You have discovered that the segments you are targeting are conceptually distinguishable and respond
differently to different marketing mix elements and programs. These segments are ________.
D) differentiable
29) The markets you have chosen to serve in four western states can be effectively reached and
served. You would tell the marketing manager that these segments are ________.
B) accessible
30) To evaluate the different market segments your company serves, you would look at all of
these factors EXCEPT which one?

48
D) company values
31) Barney Hopkins has compiled a list of things that make segments more attractive. Which one
of the following items should NOT be on the list?
D) competition with superior resources
32) Which of the following is NOT one of the reasons a segment would be less attractive to a company?
C) concentrated market

33) In general, a company should enter only segments in which it can ________ and ________.
B) offer superior value; gain advantages over competitors
34) Mass marketers, such as Target and Venture Stores, often ignore market segment differences
and target the whole market with one offer. What is their approach to segmenting?
A) undifferentiated marketing
35) The 55-year-old baby boomers share common needs in music and performers. When a music
company decides to serve this group, the group is called a(n) ________.
B) target market
36) When New Port Shipping uses segmented marketing, it targets several segments and designs
separate offers for each one. This approach is called ________ marketing.
B) differentiated
37) Developing a strong position within several segments creates more total sales than ________
marketing across all segments.
A) undifferentiated
38) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh
________ against ________ when selecting this strategy.
C) increased sales; increased costs
39) P&G sells six brands of laundry detergent in the United States, each designed for one of six
laundry segments P&G has identified. Together, these six brands take 62% of market share.
Which of the following is a disadvantage of P&G's differentiated marketing strategy?
C) increased costs for separate marketing plans for each brand
40) Successful niche marketing is most dependent on a firm's ________ and its ________.
D) greater knowledge of customers' needs; special reputation
41) Using concentrated marketing, the marketer goes after a ________ share of ________.

49
C) large; one or a few niches
42) Today, the low cost of setting up shop ________ makes it even more profitable to serve very
small niches.
C) on the Internet
43) Which of the segmenting strategies carries higher-than-average risks in consumer markets?
A) concentrated

44) As You Like It, Inc. customizes its offers to each individual consumer. This practice of
tailoring products and marketing programs to suit the tastes of specific individuals and locations
is referred to as ________ marketing.
E) micro
45) ________ tailors brands and promotions to the needs and wants of specific cities,
neighborhoods, and even stores.
D) Local marketing
46) Which of the following is the narrowest marketing strategy?
B) local marketing
47) Which of the following is NOT a drawback of local marketing?
E) Supporting technologies are not available.
48) When Walmart customizes its merchandise store by store to meet shopper needs, it is
practicing ________.
C) local marketing
49) When a company interacts one-on-one with large numbers of customers to create customer-unique
value by designing products and services tailor-made to individual needs, it is following ________.
C) mass customization
50) When choosing a target marketing strategy, many factors need to be considered. Which of
the following does your text NOT mention as important?
D) product cost
51) When competitors use differentiated or concentrated marketing, ________ marketing can be
disastrous.
B) undifferentiated
52) Target marketing sometimes generates controversy and concern. Issues usually involve the

50
targeting of ________ consumers with ________ products.
D) vulnerable; potentially harmful
53) It is considered socially irresponsible when the marketing of adult products spills over into
the ________ segment.
B) child
54) Cigarette, beer, and fast-food marketers have generated much controversy in recent years by
their attempts to target ________. C) inner-city minorities
55) Most attempts to target children and minority groups provide ________ to target customers.
A) benefits56) In target marketing, the issue of social responsibility is not really who is targeted,
but rather ________ and for ________.
A) why; what
B) how; what
57) Which group determines a product's position relative to competing products?
D) consumers
58) A product's position is based on important attributes as perceived by ________.
D) consumers
59) Which of the listed choices is NOT a positioning task?
B) surveying frequent users of the product
60) A company or store gains a(n) ________ by differentiating its products and delivering more
value.
A) competitive advantage
61) A company or market offer can be differentiated along the lines of product, image, services,
channels, or ________.
C) people
62) Which type of differentiation is used to gain competitive advantage through the way a firm
designs its distribution coverage, expertise, and performance?
B) channel differentiation
63) When firms use symbols, colors, or characters to convey their personalities, they are using
________ differentiation.
A) image
64) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to

51
it. What does USP stand for?
D) unique selling proposition
65) A brand difference is worth establishing and promoting to the extent that it satisfies all of the
criteria below EXCEPT which one?
C) divisible
66) You have just created the "perfect" ad. It communicates the full mix of benefits upon which
the brand is differentiated and positioned. This full positioning of the brand is called ________.
A) its value proposition
67) The answer to the customer's question "Why should I buy your brand?" is found in the ________.
C) value proposition
68) What competitive positioning can attack a more-for-more strategy by introducing a brand
offering with comparable quality at a lower price?
A) more-for-the-same
69) Which positioning strategy offers consumers a "good deal" by offering equivalent-quality
products or services at a lower price?
C) same-for-less
70) "Less-for-much-less" positioning involves meeting consumers' ________.
B) lower quality requirements in exchange for a lower price
71) Few people can afford the best in everything they buy. At times everyone needs a product
with less quality or performance with a correspondingly lower price. In this case a consumer
would purchase a product positioned with a ________ strategy.
D) less-for-much-less
72) Which difficult-to-sustain positioning strategy attempts to deliver the "best-of-both"?
B) more-for-less
73) When it first opened for business, Home Depot claimed to offer better products at lower
prices. This hard-to-sustain value proposition is called ________.
B) more-for-less
74) Which type of statement first indicates the product's membership in a category and then
shows its point-of-difference from other members of the category?
D) positioning statement
75) What is the following an example of? "To busy, mobile professionals who need to always be

52
in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable
way to stay connected to data, people, and resources while on the go."
A) positioning statement
76) When marketers at Procter & Gamble selected the Millennials, a demographic that includes college
students, as an untapped group of potential customers for their Febreze line of products, they were
executing which step in the process of designing a customer-driven marketing strategy?
D) targeting
77) When Pacific Fisheries groups its customers by regions such as Asia, Australia, or New
Zealand, it is using which segmenting base?
C) geographic location
78) When Burger King targets children, teens, adults, and seniors with different ads and media, it
is practicing ________ segmentation.
B) age and life-cycle
79) Segmenting voters as either Democrats or Republicans is an example of ________.
A) psychographic segmentation
80) At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately,
Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the
members of the middle working class. This segmentation approach is ________.
E) psychographic
81) MTV targets the world's teenagers, who have similar needs and buying behavior even though
they are located in different countries. This is called ________ segmentation.
D) intermarket
82) An organic farmer has identified three distinct groups who might be interested in his
products: vegetarians, people who are concerned about chemicals in their foods, and people who
consider themselves innovators and trendsetters. These three groups are examples of ________.
B) market segments
83) A catalog retailer has identified African-American professionals between the ages of thirty-
five and forty-five as the group of customers within the larger market that is a potential market
for its products. The retailer plans to direct its marketing efforts toward this group of consumers.
The retailer has identified a ________.
A) target market

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84) Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it and mass
promotes it. This firm uses ________ marketing.
B) undifferentiated
85) A marketer focuses on several commonalities among all consumers. This marketer appears to
be engaging in ________.
B) undifferentiated marketing
86) Sanguine Services is a small company that practices a marketing strategy in which its limited
resources are used to go after a large share of two small niches. Sanguine practices which one of
these strategies?
D) concentrated
87) Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown.
Though the towns are only 40 miles apart, the consumers at both stores are very different
demographically. Bob and Phyllis alter the product offerings between both locations in an effort
to cater to both demographic groups. This is an example of ________.
A) local marketing
C) mass customization
E) A and C
88) Jay Bee Promotions tailors its advertising and promotional services to the needs and
preferences of individual customers. Which of the following terms does NOT apply to this type
of marketing?
D) concentrated
89) There are several different sports watches for cyclists. When compared to its competitors, the
Bike Nashbar watch is the least expensive. The Acumen Basic is the only one designed for older
cyclists who prefer a larger display. Sports Instrument is the most comfortable of all the available
watches. This describes the ________ of the three sports watches.
C) positions
90) When comparing itself to its competitors, Hidden Valley describes its Ranch dressing as the
original. This is the ________ the manufacturer has planned for the product.
C) position
91) The Jay Group hires better employees than the competition by conducting lengthy searches
and interviews. Management also trains employees much better than competitors do. The Jay

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Group has gained a strong competitive advantage through which type of differentiation?
B) people
92) Ford Motor Company emphasizes "Quality First Ford Tough" in its truck products. In doing
so, the company has developed a differentiation strategy based on ________.
B) image
93) Cheap Heaps Auto specializes in lower quality vehicles, with a few dents, that are priced a
great deal lower than other used cars. Cheap Heaps has chosen to position its products with a
________ strategy.
D) less-for-much-less
94) Neiman Marcus claims superior quality, performance, and style. The owners provide the
most upscale products and services and charge a higher price to cover the higher costs. What
type of positioning does Neiman Marcus use?
B) more-for-more
95) Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company
positioning and brand positioning in a formal way. Superior's management would use a ________.
D) positioning statement
96) Which of the following statements illustrates why stereotypes should be avoided when using
age and life-cycle segmentation?
C) Some 70 year olds use wheelchairs; others play tennis.
97) Which of the following is the most logical reason for P&G offering products that compete
with one another on the same supermarket shelves?
C) Different people want different mixes of benefits from the products they buy.

Chapter 8 Products, Services, and Brands: Building Customer Value

1) We define a ________ as anything that can be offered to a market for attention, acquisition,
use, or consumption and that might satisfy a want or need.D) product
2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for
sale that are essentially intangible and do not result in the ownership of anything.B) Services
3) A product is a key element in the ________. At one extreme, it may consist of pure tangible
goods or at the other extreme, pure services.A) market offering
4) To differentiate themselves, many companies go beyond offering products and services; they
are also developing and delivering customer ________. B) experiences
5) Product planners need to consider products and services on three levels. Each level adds more

55
customer value. The most basic level is the ________, which addresses the question, "What is
the buyer really buying?"C) core customer value
6) The third level of a product that product planners must consider is a(n) ________ that offers
additional consumer services and benefits.B) augmented product
7) Products and services fall into two broad classifications based on the types of consumers that
use them. Which is one of these broad classes?A) industrial products
8) ________ are products and services bought by final consumers for personal consumption.
These include convenience products, shopping products, specialty products, and unsought
products.B) Consumer products
9) ________ are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style. Consumers spend much time and effort
in gathering information and making comparisons about these products.Shopping products
10) ________ are consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special purchase effort.
C) Specialty products
11) ________ are consumer products that the consumer either does not know about or knows
about but does not normally think about buying. These products require a lot of advertising,
personal selling, and other marketing efforts.C) Unsought products
12) ________ are those products purchased for further processing or for use in conducting a
business.D) Industrial products
13) Most manufactured materials and parts are sold directly to ________. Price and service are
the major marketing factors; branding and advertising tend to be less important.industrial users
14) ________ are industrial products that aid in the buyer's production or operations, including
installations and accessory equipment.C) Capital items
15) Which of the following capital items is NOT considered accessory equipment? buildings
16) Which of the following does NOT belong to the materials and parts group of industrial
products?C) repair and maintenance items
17) Paper, pencils, paint, nails, and brooms are examples of ________.A) supplies
18) ________ consists of activities undertaken to create, maintain, or change the attitudes and
behavior of target consumers toward an organization.B) Organization marketing
19) ________ consists of activities undertaken to create, maintain, or change attitudes toward
particular people.) Person marketing
20) ________ involves activities undertaken to create, maintain, or change attitudes toward
particular cities, states, and regions. B) Place marketing
21) ________ is defined as the use of commercial marketing concepts and tools in programs
designed to influence individuals' behavior to improve their well-being and that of society.
C) Social marketing
22) Public health campaigns to reduce alcoholism, drug abuse, smoking, and obesity are all
examples of ________.B) social marketing
23) Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by ________ such as quality, features, and style and
design.B) product attributes
24) ________ is one of the marketer's major positioning tools because it has a direct impact on
product or service performance; it is therefore closely linked to customer value and satisfaction.
B) Product quality
25) ________ is an approach in which all the company's people are involved in constantly

56
improving the products, services, and business processes.C) Total quality management
26) What are the two dimensions of product quality?A) consistency and level
27) Which of the following types of quality refers to freedom from defects and consistency in
delivering a targeted level of performance?D) conformance
28) A sensational ________ may grab attention and produce pleasing aesthetics, but it does not
necessarily improve a product's performance.B) style
29) ________ contributes to a product's usefulness as well as to its looks.B) Design
30) A(n) ________ is a name, term, sign, symbol, design, or a combination of these, that
identifies the maker or seller of a product or service.B) brand
31) ________ involves designing and producing the container or wrapper for a product.
A) Packaging
32) In recent years, product safety and environmental responsibility have become major
________ concerns.B) packaging
33) At the very least, a product's ________ identifies the product or brand. It might also describe
several things about the product and promote the brand.C) label
34) The ________ requires sellers to provide detailed nutritional information on food products.
B) Nutritional Labeling and Educational Act of 1990
35) ________ has been affected by the need to include unit pricing, open dating, and nutritional
information.C) Labeling
36) Many companies now use a combination of phone, e-mail, fax, Internet, and other
technologies to provide ________.C) support services
37) A ________ is a group of products that are closely related because they function in a similar
manner, are sold to the same customer groups, are marketed through the same type of outlets, or
fall within given price ranges.A) product line
38) The major product line decision involves ________.D) product line length
39) Berkowitz Piano Company can expand its product line in one of two common ways. Which
of the following is one of those ways?
B) line filling
40) An alternative to product line stretching is ________, adding more items within the present
range of the line.
C) product line filling
41) When a company lengthens its product line beyond its current range, it is ________.
B) product line stretching
42) A ________ consists of all the product lines and items that a particular seller offers for sale.
A) product mix
43) Product mix ________ refers to the number of different product lines the company carries.
C) width
44) Product mix ________ refers to the total number of items a company carries within its
product lines.A) length
45) Product mix ________ refers to the number of versions offered of each product in the line.
Colgate toothpaste comes in 16 varieties, ranging from Colgate Total to Colgate Kids
Toothpastes.B) depth
46) The ________ of the product mix refers to how closely related the various product lines are
in end use, production requirements, distribution channels, or some other way.consistency
47) A company can increase its business in four ways. Which is NOT one of these ways?
D) It can discontinue some of its lines.

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48) Service providers must consider four special characteristics when designing marketing
programs. Which is NOT one of these characteristics?D) heterogeneity
49) ________ means that services cannot be seen, tasted, felt, heard, or smelled before they are
bought.C) Service intangibility
50) ________ means that services cannot be separated from their providers, whether the
providers are people or machines.B) Service inseparability
51) Which of the following is NOT one of the links in the service-profit chain, linking service
firm profits with employee and customer satisfaction?B) evidence management
52) Through ________, the service firm trains and motivates its customer-contact employees and
supporting service people to work as a team to provide customer satisfaction.
D) internal marketing
53) ________ means that service quality depends on the quality of buyer-seller interaction
during the service encounter.A) Interactive marketing
54) All of the following are methods for developing a differentiated service offer, delivery, or
image EXCEPT B) increasing the quantity of service by giving up some durability
55) Some analysts see ________ as the major enduring asset of a company, outlasting the
company's specific products and facilities.A) brands
56) A(n) ________ represents consumers' perceptions and feelings about a product and its
performance.C) brand
57) Which of the following is NOT one of the four consumer perception dimensions used by ad
agency Young & Rubicam to measure brand strength?C) brand valuation
58) The total financial value of a brand is estimated through the process of brand valuation
59) The fundamental asset underlying brand equity is ________ the value of the customer
relationships that the brand creates. B) customer equity
60) Which of the following is the lowest level on which marketers can position their brands in
target customers' minds?
C) product attributes
61) The strongest brands go beyond attributes or benefit positioning; they are positioned on
D) strong beliefs and values
62) Which of the following is NOT a desirable quality for a brand name?
C) The brand should almost always be a long word to get attention.
63) All of the following are a manufacturer's sponsorship options for a product EXCEPT
B) multibrands
64) In the competition between ________ and ________ brands, retailers have the advantages of
controlling what products will be stocked, where products will be stocked, what prices will be
charged, and which products will be featured in print promotions.C) national; private
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65) An increasing number of retailers and wholesalers have created their own ________, also
called store brands.B) private brands
66) For a fee, some companies ________ names or symbols previously created by other
manufacturers, names of well-known celebrities, and/or characters from popular movies and
books, any of which can provide an instant and proven brand name.E) license
67) ________ is used when two established brand names of different companies are used on the
same product.C) Co-branding
68) Which of the following is an advantage offered by co-branding?
C) A company can expand its existing brand into a category it otherwise might have difficulty

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entering alone.
69) A company has four choices when it comes to developing brands. What is NOT one of those
choices?D) width and depth extension
70) ________ occurs when a company introduces additional items in a given product category
under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.
A) A line extension
71) A ________ involves the use of a successful brand name to launch new or modified products
in a new category.C) brand extension
72) Which of the following is a potential drawback of multibranding?
D) The company's resources may be spread over too many brands.
73) Which strategy involves weeding out weaker brands and focusing marketing dollars only on
brands that can achieve the number-one or number-two market share positions in their
categories?A) megabrand
74) Major brand marketers often spend huge amounts on advertising to create brand ________
and to build preference and loyalty.B) awareness
75) While advertising campaigns can help to create name recognition, brand knowledge, and
maybe even some brand preference, brands are not maintained by advertising but by ________.
C) brand experience
76) Which of the following product offerings is intangible?E) a limousine ride
77) When the Twin Six Cafe provides gourmet menu options to its customers, as well as
impeccable service-which even allows customers to hand-select their own cuts of meat __
is/are evident.E) a core benefit, an actual product, and an augmented product
78) A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania,
from locally grown wood is an example of a(n) ________.C) specialty product
79) You have an upset stomach. Your spouse rushes to the corner convenience store for a bottle
of Pepto-Bismol. This product is a(n) ________ product.A) convenience
80) Mabel Lu is planning to buy a new washing machine. She notices that they come in
numerous price ranges. She wants to make sure she gets the most for her money. This product is
a(n) ________ product.D) shopping
81) General Electric's campaign stating, "We bring good things to life" is an example of
B) corporate image marketing
82) "I love New York" is an example of ________.E) place marketing
83) The Ad Council of America has developed dozens of ________ marketing campaigns,
including classics such as "Smokey the Bear," "Keep America Beautiful," and "Only You Can
Prevent Forest Fires."A) social
84) To achieve their social change objectives, social marketing programs _____E) C and D
85) Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits and
use excess market capacity, Helene Curtis then marketed shampoo for oily hair and color-treated
hair. This is an example of ________.A) line filling
86) Which of the following is/are examples of product line length?D) A and C
87) Manor Plaza Barber's customers have noticed that the quality of a haircut depends on who
provides it as well as when, where, and how it is provided. What have the customers noticed?
C) service variability
88) The impossibility of a barber storing haircuts for later sale is an example of which of the
following?D) service perishability
91) Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though

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the Kroger tuna costs $0.15 less per can. Chicken of the Sea has brand ________.B) equity
92) A manager of a Holiday Inn said, "We have power and value in the market and people are
willing to pay for it." This manager is referring to ________.C) brand equity
93) Costco's Kirkland products are an example of a(n) ________.C) private brand
94) An apparel marketer is planning to launch an existing brand name into a new product
category. Which brand development strategy is being implemented?B) brand extension
95) Each new iPod product introduction advances the causes of democratizing technology and
approachable innovation. iPod, an expert at fostering customer community, has been ranked one
of the Breakaway Brands by the brand consultancy Landor Associates. iPod is positioned on
E) beliefs and values
Chapter 9 New Product Development and Product Life-Cycle Strategies

1) Which of the following is NOT a challenge presented by the product life cycle that a firm
must face?E) It is difficult to plot the stages as a product goes through them.
2) What are the two ways that a company can obtain new products?
C) new-product development and acquisition
3) Product improvements, product modifications, and original products can all be classified as
B) new products
4) Which of the following is NOT a potential reason for a new product to fail?
A) an underestimated market size
5) Your firm added three new products earlier this year to increase variety for customers. Two of
them failed to reach even minimal sales. Which of the following is LEAST likely to have been
the cause of their failure?D) Research was too extensive.
6) New-product development starts with ________.A) idea generation
7) Executives, manufacturing employees, and salespeople are all examples of ________.
B) internal sources for new-product ideas
8) Your company decides to use only internal sources for developing new-product ideas. Which
of the following would NOT be consulted?D) suppliers
9) Which of the following is NOT a recommended method for companies to tap into their
customers as sources for new-product ideas?
B) relying heavily on customers to know what types of technical products they need
10) Your firm asks you to consult external sources for new-product ideas. All of the following
are common external sources EXCEPT ________.the firm's executives
11) Which of the following is the practice of inviting broad communities of customers,
employees, independent researchers, and members of the public into the new-product innovation
process?C) crowdsourcing
12) The purpose of idea generation is to create a ________ number of ideas. The purpose of
succeeding stages is to ________ that number.D) large number; reduce
13) The owners of GrayBerry Gifts have just brainstormed a large number of ideas for adding
new products and services after visiting several buying fairs. The owners will begin the first
idea-reducing stage, called ________, to arrive at a realistic number to adopt.D) idea screening
14) Which of the following is most likely to be included in an executive's write up of a new-
product idea to be presented to a new-product committee?
A) the proposed customer value proposition
15) A detailed version of a new idea stated in meaningful customer terms is called a ________.
B) product concept

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16) A ________ is the way consumers perceive an actual or potential product.product image
17) An attractive idea must be developed into a ________.B) product concept
18) ________ calls for testing new-product concepts with groups of target consumers.
19) In the concept testing stage of new-product development, a product concept in ________
form is presented to groups of target consumers.D) market-tested
20) With what groups do firms conduct concept testing for new products?C) target customers
21) For some ________, a simple description consisting of a word or picture might be sufficient.
A) concept tests
22) After concept testing, a firm would engage in which stage in developing and marketing a
new product?B) marketing strategy development
23) The first part of the marketing strategy statement describes the target market; the planned
product positioning; and goals for sales, profits, and ________.A) market share
24) The second part of the marketing strategy statement outlines the product's planned price,
distribution, and ________ for the first year.C) marketing budget
25) The third part of the marketing strategy statement includes all of the following EXCEPT
________.D) short-run sales
26) A review of the sales, costs, and profit projections for a new product to find out whether they
satisfy the company's objectives is called a ________.C) business analysis
27) During which stage of new-product development will management most likely estimate
minimum and maximum sales to assess the range of risk in launching a new product?
C) business analysis
28) Once managers of The Grecian Urn have decided on their product concept and marketing
strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of
the new-product development process.C) business analysis
29) New World Releases is conducting a business analysis to determine which of the many new
songs available to management should be released. Sales must be estimated before costs can be
estimated. Which of the following did your text recommend for forecasting sales?
C) considering the sales history of similar products and conducting surveys of market opinions
30) Once the product or service passes the business analysis test, it moves into what stage?
31) In the ________ stage of new-product development, products undergo rigorous tests to make
sure that they perform safely and effectively or that consumers will find value in them.
D) product development
32) In a ________, new products and marketing tactics are tested among specifically identified
groups of customers and stores.A) controlled test market
33) In a ________, new products and marketing tactics are tested online in a virtual shopping
environment.B) simulated test market
34) Once the prototype of Wainwright Industries' new riding lawnmower, made especially for
women, passes product tests, the next step is ________.A) test marketing
35) Bonneville Communications is concerned about test marketing its new device. Which of the
following is NOT a disadvantage of test marketing that would likely concern Bonneville
Communications?D) People who are surveyed tend to tell less than the truth.
36) Under what circumstances might it be wise for a company to do little or no test marketing?
E) when the costs of developing and introducing the product are low
37) Many marketers are now using new interactive technologies, such as Frito-Lay's online
virtual convenience store, to reduce the cost of ________.E) test marketing
38) The major purpose of test marketing is to provide management with the information needed

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to make a final decision about ________.C) whether to launch the new product
39) Introducing a new product into the market is called ________. D) commercialization
40) Which of the following costs is most likely associated with the commercialization stage of
new-product development?A) building or renting a manufacturing facility
41) A company getting ready to launch a new product must make several decisions. The
company must first decide on ______D) when to time the new product introduction
42) Following the decision to "time" the introduction of the new product, a company must decide
________ to launch the new product.A) where
43) Using a ________, a company launches a product in a few regional markets and then
expands based on how successful the product is.D) market rollout
44) Which type of new-product development process focuses on finding new ways to solve
customer problems and create more customer-satisfying experiences?
C) customer-centered new-product development
45) ________ is a new-product development approach in which one company department works
to complete its stage of the process before passing the new product along to the next department
and stage. C) Sequential product development
46) In order to get their new products to market more quickly, many companies are adopting a
faster, team-oriented approach called _____C) team-based new-product development
47) At Fantastic Flavors, a large regional chain of candy stores, employees from marketing,
design, production, and finance work in a cross-functional group to save time and money in the
new-product development process. Fantastic Flavors uses a(n) ________ approach.
C) team-based new-product development
48) The team-based new-product development approach uses cross-functional teams that overlap
the steps in the process to achieve which of the following goals?
B) save time and increase effectiveness
49) Which of the following is a disadvantage of a team-based approach to new-product
development?D) Organizational confusion and tension can affect the process.
50) The innovation management system approach yields two favorable outcomes: it helps create
an innovation-oriented company culture, and it ________.
B) yields a larger number of new-product ideas
51) The search for new-product ideas should be ________ rather than haphazard.B) systematic
52) ________ is the product life cycle period when sales fall off and profits drop.D) Decline
53) Increasing profits will most likely occur at which stage of the PLC?C) growth
54) Which stage in the PLC is characterized by rapid market acceptance and increasing sales?
C) growth
55) Some products that have entered the decline stage have been cycled back to the growth stage
through ________.A) promotion or repositioning
56) All of the following are stages in the PLC EXCEPT ________.D) adoption
57) Which stage of the typical consumer product life cycle is out of order below?C) maturity
58) Which of the following CANNOT be described using the PLC concept? C) product image
59) All of the following are accurate descriptions of a style EXCEPT which one?
D) Styles last only a short time and tend to attract only a limited following.
60) Sherri's Exclusives sells currently accepted and popular clothing items in given fields. What
does she stock in her store?B) fashions
61) The PLC concept can be applied by marketers as a useful framework for describing how
C) products and markets work

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62) Using the PLC concept to develop marketing strategy can be difficult because strategy is
both a ________ and a(n) ________ of the product's life cycle.B) cause; result
63) In which stage of the PLC will promotional expenditures be especially high in an attempt to
create consumer awareness? D) introduction
64) In which stage of the PLC will promotional expenditures be high in an attempt to respond to
increasing competition?A) growth
65) Which stage in the PLC normally lasts longest and poses strong challenges to the marketing
managers?C) maturity
66) Which of the following would lead to greater competition in the maturity stage of the PLC?
A) overcapacity
67) Most products in the marketplace are in the ________ stage of the product life cycle.
C) maturity
68) When a product is in the maturity stage, the company should consider ________.
B) modifying the product, market, or marketing mix
69) Which of the following best represents the options a company has when a product is
declining? C) maintain, harvest, or drop the product
70) Superior Luggage Company has undertaken the task of identifying its products in the decline
stage of the PLC. Which of the following should NOT be done in the identification process?
D) regularly reviewing management's pet projects
71) Manufacturers must comply with specific laws regarding __B) product quality and safety
72) Because of ________, a company cannot make its product illegally similar to a competitor's
already established product.B) patent laws
73) Which of the following best describes the role of a product steward?E) A and D
74) The advantages of standardizing an international product include all of the following
EXCEPT ________C) the adaptation of products to different markets
75) Because names, labels, and colors may not easily translate from one country to another,
international marketers must carefully assess ________.D) packaging
76) ________ occurred when Alton Johnson's fascination with the fruits of Brazil led him to
develop juices with new fruit flavors by Bosa Nova for the American market. Idea generation
77) Which of the following is the most likely reason that employees at your firm regularly attend
trade shows and seminars?C) to get new-product ideas
78) JoAnn Fabrics, Inc. has just created a new combination of colors and fabric types. The firm
wants to be sure of the way consumers think about its new product. The firm is concerned with
the product ________.C) image
79) Which of the following is a product concept?
D) a thin, lightweight laptop with extended battery life appealing to students and young
professionals who want access to their computer anywhere, anytime
Chapter 10 Pricing: Understanding and Capturing Customer Value

1) ________ is the amount of money charged for a product or service.C) Price

2) Price is the only element in the marketing mix that produces ________.A) revenue
3) ________ is an important element in the marketing mix. It is the only element that does not
represent costs.C) Price
4) Consumer perceptions of the product's value set the ________ for prices.C) ceiling
5) Product costs set a(n) ________ to a product's price.B) floor
6) Which of the following is a customer-oriented approach to pricing?

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A) customer value-based pricing
7) ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key
to pricing.A) Customer value-based pricing
8) In ________, price is considered along with the other marketing mix variables before the
marketing program is set.A) value-based pricing
9) Value-based pricing is the reverse process of ________.C) cost-based pricing
10) With ________, price is set to match consumers' perceptions of product value.
D) value-based pricing
11) Measuring ________ can be difficult. A company might conduct surveys or experiments to
test this in the different products it offers.C) perceived value
12) Underpriced products sell very well, but they produce less revenue than they would have if
price were raised to the ________ level.A) perceived
13) If a seller charges ________ than the buyer's perceived value, the company's sales will
________.B) more; suffer
14) Some companies have adopted a(n) ________ strategy, offering just the right combination of
quality and good service at a fair price.B) good-value pricing
15) When McDonald's and other fast food restaurants offer "value menu" items at surprisingly
low prices, they are using ________.C) good-value pricing
16) Walmart is famous for using what important type of value pricing?B) everyday low pricing
17) ________ involves charging a constant, everyday low price with few or no temporary price
discounts.D) EDLP
18) ________ involves attaching features and services to differentiate a company's offers and to
support charging higher prices.C) Value-added pricing
19) When there is price competition, many companies adopt ________ rather than cutting prices
to match competitors.B) value-added strategies
20) Ryanair offers free flights to a quarter of its customers and rock-bottom prices to many of its
other customers. Ryanair then charges for all extra services, such as baggage handling and in-
flight refreshments. Which of the following best describes Ryanair's pricing method?
B) good-value pricing
21) ________ pricing involves setting prices based on the costs for producing, distributing, and
selling the product plus a fair rate of return for the company's efforts and risks.C) Cost-based
22) Fixed costs ________ as the number of units produced increases.D) remain the same
23) Costs that do not vary with production or sales level are referred to as __A) fixed costs
24) Rent, electricity, and executive salaries are examples of ________.A) fixed costs
25) Costs that vary directly with the level of production are referred to as _B) variable costs
26) ________ are the sum of the ________ and ________ for any given level of production.
D) Total costs; fixed; variable costs
27) SRAC is the acronym for which concept related to costs at different levels of production?
C) short-run average cost
28) The LRAC is most closely related to which of the following?
C) the cost of producing a greater quantity of units
29) The learning curve is also referred to as the ________.B) experience curve
30) As production workers become better organized and more familiar with equipment, the
average cost per unit decreases. This is called the ________.B) experience curve
31) With a higher volume of product, most companies can expect to ________.
A) gain economies of scale

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32) The experience curve reveals that ________.D) A, B, and C
33) When a downward-sloping experience curve exists, a company should usually ________ the
selling price of that product in order to bring in higher revenues.C) decrease
34) Which of the following is a risk a company takes when building a strategy around the
experience curve?
E) Aggressive pricing may give the product a cheap image, causing customers to lose interest.
35) A company building its pricing strategy around the experience curve would be most likely to
A) price its products low
36) The company designs what it considers to be a good product, totals the expenses of making
the product, and sets a price that adds a standard markup to the cost of the product. This
approach to pricing is called ________.C) cost-plus pricing
37) Lawyers, accountants, and other professionals typically price by adding a standard markup
for profit. This is known as ________.B) cost-plus pricing
38) The simplest pricing method is ________.C) markup pricing
39) Which of the following is a reason why markup pricing is NOT practical?
D) This method ignores demand.
40) One reason ________ remains popular is that sellers are more certain about costs than about
demand.A) markup pricing
41) Price competition is minimized when all firms in an industry use which pricing method?
B) markup pricing
42) Many people feel that ________ pricing is fairer to both buyers and sellers. Sellers earn a fair
return on their investment but do not take advantage of buyers when buyers' demand becomes
great.B) markup
43) Which of the following is a cost-based approach to pricing? C) target return pricing
44) Break-even pricing, or a variation called ________, is when the firm tries to determine the
price at which it will break even or make the profit it is seeking.B) target return pricing
45) Target return pricing uses the concept of a(n) ________, which shows the total cost and total
revenue expected at different sales volume levels.B) break-even chart
46) The break-even volume is the point at which ________.
A) the total revenue and total costs lines intersect
47) Which of the following statements about break-even analysis is true?
E) It is calculated using variable costs, the unit price, and fixed costs.
48) As a manufacturer increases price, the ________ drops. B) break-even volume
49) Which of the following involves setting prices based on competitors' strategies, costs, prices,
and market offerings?E) competition-based pricing
50) Which of the following is an external factor that affects pricing decisions?B) demand
51) ________ that influence pricing decisions include the nature of the market and other
environmental factors.C) External factors
52) In order to form a consistent and effective integrated marketing program, price decisions
should be coordinated with each of the following EXCEPT ________.C) competitors' prices
53) With target costing, marketers will first ________ and then ________.
E) determine a selling price; target costs to ensure that the price is met
54) A company that wants to emphasize the premium quality of its product and enhance the
product's allure would be most likely to position its product on ________.A) high prices
55) Price setting is usually determined by ________ in small companies.A) top management
56) Price setting is usually determined by ________ in large companies.E) both B and C

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57) In industrial markets, ________ typically has the final say in setting the pricing objectives
and policies of a company.B) top management
58) In industries in which pricing is a key factor, ________ often set the best prices or help
others in setting them.E) pricing departments
59) Under ________, the market consists of many buyers and sellers trading in a uniform
commodity such as wheat, copper, or financial securities.A) pure competition
60) Under ________, the market consists of many buyers and sellers who trade over a range of
prices rather than a single market price.B) monopolistic competition
61) Firms are less affected by competitors' pricing strategies under ________ than under ____
monopolistic competition; oligopolistic competition
62) Under ________, the market consists of one seller.A) a pure monopoly
63) The relationship between the price charged and the resulting demand level can be shown as
the ________.A) demand curve
64) Which of the following is true about the demand curve?
E) It shows the relationship between product demand and product price.
65) Ascot Tires has decided to decrease its prices. The company can expect that ________ for its
product will increase.C) demand
66) ________ describes how responsive demand will be to a change in price.A) Price elasticity
67) If demand hardly changes with a small change in price, we say the demand is ________.
B) inelastic
68) If demand changes greatly with a small change in price, we say the demand is D) elastic
69) Price elasticity of demand is ________ divided by ________.
A) percent change in quantity demanded; percent change in price
70) Buyers are less price sensitive in all of the following situations EXCEPT ________.
D) when the total expenditure for a product is high relative to their income
71) The less ________ the demand, the ________ it benefits the seller to raise the price.
B) elastic; more
72) Dips in the economy and the instant price comparisons made possible by the Internet have
both contributed to ________.B) increased consumer price sensitivity
73) In the aftermath of the Great Recession, consumers have become more value conscious
74) A company should set prices that will allow ________ to receive a fair profit.) resellersDiff:
75) When companies set prices, the government and social concerns are two ________ affecting
pricing decisions.A) external factors
76) Amos Zook, an Amish farmer, sells organically grown produce. Often he will trade some of
his produce for dairy products produced by other Amish farmers. The sum of the values
exchanged for the produce is the ________.A) price
77) Trader Joe's offers an assortment of exclusive gourmet products at impossibly low prices.
These prices are not limited-time offers or special discounts. Instead, they reflect Trader Joe's
________ strategy.A) everyday low pricing
78) Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in
an effort to differentiate its offering from PS3 games. This is an example of ________.
D) value-added pricing
79) The long-run average cost curve (LRAC) helps the producer understand which of the
following?A) how large a business should be in order to be most efficient
80) Assume a manufacturer with fixed costs of $100,000, a variable cost of $10, and expected
sales of 50,000 units wants to earn a 20 percent markup on sales. What is the manufacturer's

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markup price?B) $15
81) General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.
This approach is called ________.E) target-return pricing
82) A company faces fixed costs of $100,000 and variable costs of $8.00/unit. It plans to directly
sell its product to the market for $12.00. How many units must it produce and sell to break even?
B) 25,000
83) Ecstasy Pharmaceuticals faces fixed costs with its new drug of $1,000,000. The company
sells the drug in bottles of 50 pills for $10.00. It estimates that it must sell 200,000 bottles to
break even. What is the total cost to produce a bottle of 50 pills?B) $5.00
84) A manufacturer is trying to determine its break-even volume. With fixed costs of $100,000, a
variable cost of $10, and expected sales of 50,000 units, what should the manufacturer's unit cost
be to break even?B) $12
85) As a manufacturer decreases price, ________ volume increases.B) break-even
86) P&G surveyed the market and identified an unserved segment of the electric toothbrush
market. Using these results, P&G created Spinbrush. The unorthodox order of this marketing mix
decision is an example of ________.C) target costing
87) PoolPak produces climate-control systems for large swimming pools. The company's
customers are more concerned about service support for maintaining a system than its initial
price. PoolPak may use this knowledge to become more competitive through ________.
D) a nonprice position
88) By pledging to be a leader in providing clean, renewable energy sources and developing
products and services that help consumers protect the environment, Green Mountain Power
competes successfully against "cheaper" brands that focus on more price-sensitive consumers.
Green Mountain Power has the firm belief that even kilowatt-hours can be ________.
C) differentiated
89) In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of
seafood products on one street. An individual store dare not charge more than the going price
without the risk of losing business to the other stores that are selling the fish at a common price.
This is an example of what type of market?A) pure competition
90) Companies are fortunate to have demand that is more ________ because they may be able to
set higher prices.D) inelastic
91) If demand falls by 1 percent when price is increased by 2 percent, then ________.
A) elasticity is -1/2E) A and B
92) Jimmy's Hardware, an independent local retailer, is losing business to Walmart. This is most
likely because he cannot match Walmart's pricing strategy of ________.A) EDLP
93) Consumers who have less time and patience for watching for supermarket specials and
clipping coupons would most likely prefer ________.C) EDLP
94) ________ pricing works only if that price actually brings in the expected level of sales.
E) Target return
Chapter 11 Pricing Strategies

1) A company sets not a single price, but rather a ________ that covers different items in its line
that change over time as products move through their life cycles.B) pricing structure
2) Companies facing the challenge of setting prices for the first time can choose between two
broad strategies: market-penetration pricing and ________.C) market-skimming pricing
3) Of the following, which statement(s) would NOT support a market-skimming policy for a new

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product?D) Competitors can enter the market easily.
4) A firm is using ________ when it charges a high, premium price for a new product with the
intention of reducing the price in the future.A) price skimming
5) ________ pricing is the approach of setting a low initial price in order to attract a large
number of buyers quickly and win a large market share.B) Market-penetration
6) Which of the following conditions would NOT support the use of a market-penetration pricing
strategy?C) The product's quality and image support a high price.
7) Which of the following is a reason that a marketer would choose a penetration pricing
strategy?E) to discourage competition from entering the market
8) Companies usually develop ________ rather than ________.
B) product lines; single products
9) A marketer must be familiar with the five major product mix pricing situations. Which of the
following is NOT one of them?D) unbundled product pricing
10) A challenge for management in product line pricing is to decide on the price steps between
the ________.A) various products in a line
11) Typically, producers who use captive-product pricing set the price of the main product
________ and set ________ on the supplies necessary to use the product.C) low; high markups
12) Mach 3 razor blades must be used in the Mach 3 razor. Which type of pricing is being used?
C) captive product pricing
13) In the case of services, captive product pricing is called ________ pricing.C) two-part
14) When amusement parks and movie theaters charge admission plus fees for food and other
attractions, they are following a(n) ________ pricing strategy.C) two-part
15) HiPoint Telephone Company uses two-part pricing for its long-distance call charges.
Because this is a service, the price is broken into a fixed fee plus a(n) ________.
B) variable usage rate
16) Companies involved in deciding which items to include in the base price and which to offer
as options are engaged in ________ pricing.B) optional product
17) Using ________, companies are able to turn their trash into cash, allowing them to make the
price of their main product more competitive.D) by-product pricing
18) Using product bundle pricing, sellers combine several products and offer the bundle
B) at a reduced price
19) What is a major advantage of product bundle pricing?
A) It can promote the sales of products consumers might not otherwise buy.
20) Which of the following is NOT a price adjustment strategy?C) free samples
21) Service Industries, Inc. plans to offer a price-adjustment strategy in the near future. It could
consider each of the following EXCEPT ________.C) physiological pricing
22) A quantity discount is a price reduction to buyers who purchase ________.B) large volumes
23) Trade or functional discounts are offered by manufacturers to ________.
A) channel members who perform tasks that the manufacturer would otherwise have to perform
24) Which of the following is an example of a cash discount?A) 2/10, net 30
25) When General Motors provides payments or price reductions to its new car dealers as
rewards for participating in advertising and sales support programs, it is granting a ________.
D) promotional allowance
26) Trade-in allowances are most commonly used in the ________ industry.B) automobile
27) By definition, ________ is used when a firm sells a product or service at two or more prices,
even though the difference in price is not based on differences in cost.A) segmented pricing

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28) The New Age Gallery has three admission prices for students, adults, and seniors. All three
groups are entitled to the same services. This form of pricing is called ________.
C) customer-segmented pricing
29) Under product-form pricing, different versions of a product are priced differently, but not
according to differences in its ________.A) costs
30) When a firm varies its price by the season, month, day, or even hour, it is using ________
pricing.D) time-based
31) Consumers usually perceive higher-priced products as ________.B) having a higher quality
32) Consumers are less likely to use price to judge the quality of a product when they ________.
C) have experience with the product
33) Which of the following refers to the prices that a buyer carries in his or her mind and refers
to when looking at a given product?B) reference prices
34) When consumers cannot judge quality because they lack the information or skill, price
becomes ________.C) an important quality signal
35) All of the following are typical ways a buyer might form a reference price EXCEPT
D) identifying perceived value
36) What type of pricing is being used when a company temporarily prices its product below the
list price or even below cost to create buying excitement and urgency?D) promotional pricing
37) Promotional pricing can have all of the following adverse effects EXCEPT ________.
C) giving pricing secrets away to competitors
38) In a form of promotion pricing, customers buy products from manufacturers' dealers within a
specified time period, and then the manufacturer sends the customer a check called a ________.
A) cash rebate
39) Low-interest financing and longer warranties are both examples of B) promotional pricing
40) Which of the following is NOT a geographical pricing strategy?C) dynamic pricing
41) Durango China Company charges all customers within different identified geographical
areas a single total price. The more distant the area, the higher the price. This is ________.
B) zone pricing
42) Under which type of geographic pricing strategy does each customer pay the exact freight for
the product from the factory to its destination?D) FOB-origin pricing
43) Using this pricing strategy, the seller takes responsibility for part or all of the actual freight
charges in order to get the desired business.B) freight-absorption
44) Which of the following is the opposite of FOB-origin pricing?C) uniform-delivered pricing
45) Freight-absorption pricing is used for ________ and ________.
C) market penetration; holding on to increasingly competitive markets
46) When a company charges the same rate to ship a product anywhere in the United States, it is
using which form of geographic pricing?D) uniform-delivered
47) The Internet offers ________, where the price can easily be adjusted to meet changes in
demand.B) dynamic pricing
48) Some companies are reversing the fixed pricing trend and using _D) dynamic pricing
49) Most companies that conduct international business ________ to ________.
A) adjust their prices; take local market conditions into consideration
50) Price escalation in international markets may result from differences in market conditions or
B) selling strategies
51) Which of the following is LEAST likely to cause price escalation in foreign markets?
D) the additional costs of improving a country's infrastructure

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52) Price escalation in international markets may result from four of these five marketing
conditions. Which one will have the LEAST effect?E) language barriers
53) There are many reasons why a firm might consider cutting its price. All of the following are
among them EXCEPT ________.D) a drive to reduce market share
54) Which of the following is a reason for a company to raise its prices?
A) to address the issue of overdemand for a product
55) Which of the following is a major factor that influences price increases?
A) cost inflation
56) A company that raises its prices is most at risk of being accused of which of the following?
B) price gouging
57) Competitors are most likely to react to a price change when __B) the product is uniform
58) When a competitor cuts its price, a company is most likely to decide to ________ if it
believes it will not lose much market share or would lose too much profit by cutting its own
price.C) maintain its current prices and profit margin
59) When faced with a competitor who has cut its product's price, which of the following is
typically the most cost-effective way for a company to maintain its own price but raise the
perceived value of its offer?C) altering the company's marketing communications
60) Which of the following is NOT an effective action that a company can take to combat a
competitor's price cut on a product?D) improve quality and decrease price
61) When a firm improves the quality and increases the price of a product in reaction to a
competitor making a price reduction, the firm is
C) moving its brand into a higher price-value position
62) A company would most likely consider launching a low-price "fighter brand" in response to
a competitor reducing prices if ________.
A) the market segment being lost is price sensitive
63) Price fixing, predatory pricing, retail price maintenance, and deceptive pricing are examples
of ________.B) major public policy issues in pricing
64) The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to
curb the formation of ________.A) monopolies
65) When sellers set prices after talking to competitors and engaging in collusion, they are
involved in ________.C) price fixing
D) skimming pricing
66) Federal legislation on price fixing requires that sellers set their prices ________.
B) without communication from competitors
67) If a large retailer sold numerous items below cost with the intention of punishing small
competitors and gaining higher long-run profits by putting those competitors out of business, the
retailer would be guilty of ________.C) predatory pricing
68) Which of the following would most likely be considered predatory pricing?
B) pricing below cost to drive out competitors
69) The Robinson-Patman Act seeks to prevent unfair ________ by ensuring that sellers offer the
same price terms to customers at a given price level.B) price discrimination
70) Price discrimination is legal under which of the following conditions?
C) when a seller can prove its costs are different when selling to different retailers
71) Price discrimination may be used to match competition as long as the strategy is temporary,
localized, and ________.A) defensive
72) Mark's Markers, a manufacturer of color markers, has required its dealers to charge a

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specified retail price for its markers. Mark's is most likely guilty of ________.
B) retail price maintenance
73) ________ results when a company uses pricing methods that make it difficult for consumers
to understand just what price they are really payingC) Price confusion
74) Failure to enter the current price into a retailer's system may result in charges of ________.
B) scanner fraud
75) Comparison pricing claims are legal if they are truthful. However, sellers should not
advertise a price reduction unless ________.E) all of the above
76) Valeo Fashions has just introduced a new line of fashion dresses for teens. It will initially
enter the market at high prices in a ________ pricing strategy. B) market-skimming
77) When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers, Pepsi was
using ________. B) market-penetration pricing
78) Johnson Boats wants to introduce a new model of boat into mature markets in highly
developed countries with the goal of quickly gaining mass-market share. As a consultant, you
should recommend a ________ pricing strategy.B) market-penetration
79) When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and
$1,099, it is using ________.A) product line pricing
80) When Polaroid set the general price range of its cameras low and the markup on its film
high, it was practicing ________.D) captive product pricing
81) When product managers at Schwinn make decisions about which types of bicycle seats,
handle bars, and saddlebags to offer customers on their bikes, they are engaged in ________.
B) optional product pricing
82) A car maker’s strategy of advertising a basic vehicle model with few conveniences and
comforts at a low price to entice buyers and then convincing customers to buy higher-priced
models with more amenities is an example of which of the following?B) optional product pricing
83) When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas
cards the week after Christmas, Whallans is giving a(n) ________ discount.B) seasonal
offers weekly tanning sessions for $15 and season passes with unlimited tanning for $150.
Brown Baby Tanning Salon is offering ________ pricing.D) discount
85) Secret Sneaker will give anyone $10 for an old pair of sneakers, regardless of condition,
when that person purchases a new pair of sneakers. The end result is essentially reducing the
price of the new sneakers by $10. What is this type of price adjustment called?
D) trade-in allowance
86) Bose prices its most expensive noise reduction earphones at $399.95, which is a full $100.00
more than its next most expensive earphones. It costs Bose only a few dollars more to make the
most expensive earphones. Bose is using ________ pricing.B) product-form
87) The Chicago Bears organization charges different prices for seats in different areas of Soldier
Field, even though the costs are the same. This form of pricing is called ________.
A) location-based pricing
88) Manor Cinemas has announced that seniors over 60 years of age can enter the theater for free
prior to 4:00 p.m. when accompanied by a paying customer. This is an example of ________.
A) promotional pricing
89) The JC Whitney Company of Chicago offers replacement parts for older Volkswagen
Beetles. Parts are often shipped from other locations throughout the United States. However, the
company charges for shipping as if every part was shipped from its Chicago headquarters. The
company practices ________.

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D) basing-point pricing
90) If Northwest Awnings charges the same price for delivery of its product to any customer that
is located within the Great Lakes states, but a different price to customers outside of the Great
Lakes states, the company is using ________.D) zone pricing
91) Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the
products sold varies according to individual customer accounts and situations. For example,
long-time customers receive discounts. This strategy is an example of _C) dynamic pricing
92) In response to price cuts from competitors, a cereal company with several more expensive
and higher quality cereals introduced a lower-priced option to its product line. This is an example
of which of the following responses to a competitor’s price cut?
D) launching a "fighter brand"
93) A number of top fashion-modeling agencies would most likely be charged with ________ for
jointly determining what commissions they would charge for models.E) price fixing
94) Savings for You, a discount retail chain, is highly competitive. When entering a new market,
Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller
companies with less purchasing power out of the market. Savings for You is most at risk of being
accused of ________.E) predatory pricing
95) Market-skimming pricing would likely be most effective in selling ________.
B) an electronic device for which research and development must be recouped96) Among the
following, a market-penetration strategy will likely be most effective with
C) convenience items for which there is much competition
97) A manufacturer offers 3/10, net 30 terms to a wholesaler for a recent purchase. The
wholesaler may deduct ________ percent if the bill is paid within ________ days.
D) 3; 10
Chapter 12 Marketing Channels: Delivering Customer Value

1) Which of the following is NOT a typical supply chain member?D) government agencies
2) ________ the manufacturer or service provider is the set of firms that supply the raw
materials, components, parts, information, finances, and expertise needed to create a product or
service.B) Upstream from
3) Another term for the supply chain that suggests a sense and respond view of the market is
B) demand chain
4) When suppliers, distributors, and customers partner with each other to improve the
performance of the entire system, they are participating in a __A) value delivery network
5) Most producers today sell their goods directly to ________.C) intermediaries
6) From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products wanted
by ________.C) consumers
7) Producers benefit from using intermediaries because they ________.
A) offer greater efficiency in making goods available to target markets
8) Intermediaries play an important role in matching ________.B) supply and demand
9) Channel members add value by bridging the major gaps of ________ that separate goods and
services from those who would use them.C) time, place, and possession
10) Which of the following is NOT a key function that intermediaries play in completing
transactions?D) risk taking
11) Which of the following is NOT a key function that intermediaries play in helping to fulfill a

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completed transaction?B) promotion
12) In a(n) ________ channel, the same member both produces and distributes a product or
service.B) direct
13) In marketing terms, we say that the number of intermediary levels indicates the ________ of
a channel.D) length
14) At minimum, a marketing channel consists of a producer and a(n) ________.E) customer
15) To a producer of goods, a greater number of channel levels means ________ and greater
channel complexity. B) less control-
16) Which of the following is an example of a complete business-to-business channel?
E) producer to distributor to business customer
17) All of the institutions in a channel are connected by flows, including physical flow, flow of
ownership, payment flow, information flow, and ________ flow.A) promotion
18) A distribution channel is more than a collection of firms connected by various flows; it is
a(n) ________ in which people and companies interact to accomplish individual, company, and
channel goals.B) complex behavioral system
19) An advantage of a channel of distribution over selling direct to consumers is that each
channel member plays a(n) ________ in the channel.B) specialized role
20) Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who
should do what and for what rewards. Joanie is experiencing ________.B) channel conflict
21) ________ conflict, which occurs between different levels of the same channel, is more
common than ________ conflict, which occurs among firms at the same level of the channel.
B) Vertical; horizontal
22) Historically, ________ have lacked the leadership to assign member roles and manage
conflict.)conventional distribution channels
23) A conventional distribution channel consists of one or more ________ producers,
wholesalers, and retailers.B) independent
24) A channel consisting of one or more separate producers, wholesalers, or retailers that seek to
maximize their own profit-even at the expense of profits for the channel as a whole-is a(n)
B) conventional distribution channel
25) An advantage of a vertical marketing system (VMS) is that it acts as a ________ system.
A) unified
26) A corporate VMS has the advantage of controlling the entire distribution chain through
B) single ownership
27) Which of the following are the three major types of vertical marketing systems?
C) contractual, corporate, and administered
28) A distinguishing feature of a contractual VMS is that coordination and conflict management
among the independent members of the channel are attained through ________.
D) contractual agreements
29) The most common type of contractual relationship in business is the ________.
A) franchise organization
30) Leadership in which type of marketing system is assumed not through common ownership or
contractual ties but through the size and power of one or a few dominant channel members?
B) administered VMS
31) In a ________, two or more companies at one level join together to develop a new marketing
opportunity. B) horizontal marketing system
32) Which of the following is an example of a manufacturer-sponsored retailer franchise system?

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C) Ford and its network of independent franchised dealers
33) When McDonald's offers its products inside of a Walmart store, it is using a(n) ________.
E) horizontal marketing system
34) As marketing manager for Globe Imports and Exports, you want to start reaping the benefits
of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which
one?C) selling at a higher gross margin
35) Which of the following is the most likely disadvantage of adding new channels in a
multichannel distribution system?B) decreasing control over the system
36) Due in a large part to advances in technology, ________ is a major trend whereby product
and service producers are bypassing intermediaries and going directly to final buyers, or
radically new types of channel intermediaries are emerging to displace traditional ones.
C) disintermediation
37) The four major steps of designing a channel system are analyzing consumer needs, setting
channel objectives, ________, and evaluating the alternatives.
B) identifying major channel alternatives
38) Which of the following should be the first step in designing a marketing channel?
B) identifying what consumers want from the channel39) To increase a channel's service level,
the channel must provide a greater assortment of products, more add-on services, or ________.
C) faster delivery
40) Companies should state their channel objectives in terms of targeted levels of
C) customer service
41) When a company is identifying its major channel alternatives, it should consider its choices
in terms of ________ of intermediaries.C) types, number, and responsibilities
42) Which product will most likely be intensively distributed?) BMW cars
43) Which type of product might require a more direct marketing channel to avoid delays and too
much handling?B) perishable products
44) When determining the number of channel members to use at each level, three strategies are
available: intensive, exclusive, and ________ distribution.B) selective
45) An intensive distribution strategy is most suitable for which consumer product category?
A) convenience products
46) Sometimes a producer chooses only a few dealers in a territory to distribute its products or
services. Generally these dealers are given a right to ________ distribution.exclusive
47) Which type of distribution is used when the producer wants more than one, but fewer than
all, of the intermediaries who are willing to carry its products? B) selective
48) When establishing the responsibilities of channel members, the producer establishes a list
price, sets discounts for intermediaries, and defines each channel member's.B) territory
49) When a company compares the likely sales, costs, and profitability of different channel
alternatives, it is using ________ criteria to evaluate its channel options.C) economic
50) It is most common for international marketers to ________ their channel strategies for each
country.B) adapt
51) China and India each contain more than one billion people. However, companies can access
only a small percentage of these potential markets due to ________.
A) inadequate distribution systems
52) A company should think of its intermediaries as both its ________ and ________.
B) customers; partners
53) Most companies practice strong PRM to forge long-term relationships with channel

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members. What does PRM stand for?D) partner relationship management
54) Caterpillar, the famous heavy equipment manufacturer, has a reputation for working in
harmony with its worldwide distribution network of independent dealers. Caterpillar has shared
its successes with its dealers and protected its dealers during difficult economic times. This is an
example of ________.E) PRM
55) Sometimes a seller requires its dealers to abstain from handling competitors' products in an
arrangement called ________.B) exclusive dealing
56) Exclusive dealing is legal as long as it does not ________ or tend to create a monopoly and
as long as both parties enter into the agreement ________.
C) substantially lessen competition; voluntarily
57) A producer of a strong brand that agrees to sell its brand to a dealer only if the dealer will
take some or all of the rest of the line is using ________.
D) a tying agreement
58) Marketing logistics involves getting the right product to the right customer in the right place
at the right time. Which one of the following is NOT included in this process?
D) gathering customer's ideas for new products
59) Marketing logistics involves which of the following distribution flows?
B) outbound, inbound, and reverse
60) ________ logistics controls the movement of products from points of production to
consumers.C) Outbound
61) ________ logistics concerns the methods consumers use to send products to a producer for
return or repair.B) Reverse
62) Which of the following is NOT an area of responsibility for a logistics manager?
C) promotions
63) Which of the following innovations has created opportunities for significant gains in
distribution efficiency?B) Web-based logistics systems
64) The goal of marketing logistics should be to provide a ________ level of customer service at
the least costB) targeted
65) The difference between distribution centers and storage warehouses is that distribution
centers are designed to C) move goods rather than just store them
66) To reduce inventory management costs, many companies use a system called ________,
which involves carrying only small inventories of parts or merchandise, often only enough for a
few days of operation. B) just-in-time logistics
67) Through the use of ________, or "smart tag" technology, a company is able to locate a
product's exact position within the supply chain.A) RFID
68) Which of the following transportation modes is used for digital products?C) the Internet
69) In the proper order, identify the correct terms for these intermodal transportation
combinations: rail and truck, water and truck, water and rail.
D) piggyback; fishyback; trainship
70) Using ________, retailers can share real-time data on sales and current inventory levels with
suppliers who take responsibility for ordering and delivering products to retailers, thereby saving
time and money.B) continuous inventory replenishment systems
71) Lancaster Box Company wants to provide better customer service while trimming
distribution costs through teamwork, both inside the company and among all the marketing
channel organizations. Lancaster Box is thinking of ________.
A) integrated logistics management

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72) Which of the following best states the goal of integrated supply chain management?
C) to harmonize all of the company's logistics decisions
73) When Home Depot allows key suppliers to use its stores as a testing ground for new
merchandising programs, it is conducting a(n) ________.C) shared project
74) Today, a growing number of firms now outsource some or all of their logistics to ________.
D) third-party logistics providers
75) UPS Supply Chain Solutions, which handles all of its clients' "grunt work" associated with
logistics, is an example of ________.D) a third-party logistics provider
76) Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a
regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect
from its new channel member?D) identifying raw materials and other productive inputs
77) Which of the following is NOT a marketing intermediary?
A) the supplier of the raw materials used to make glass windows
78) Which of the following is the best example of a direct channel?
D) Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
79) Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer.
This is an example of a(n) ________.C) indirect marketing channel
80) When two Taco Bell restaurants have a disagreement over who should be able to sell in
quantity at a discount to the local high school band, they are in a ________ conflict.
D) horizontal
81) Staples Office Supply opened an online store that created competition with many of its
dealers. The corporate office created a(n) ________ conflict.A) vertical
82) Which of the following is an example of horizontal channel conflict?E) A and D
83) Which of the following is an example of a multichannel distribution system?
B) JC Penney's catalog and retail store sales
84) Blockbuster offers DVD rentals through its Total Access online rental service and through its
bricks-and-mortar stores. This is an example of a(n)________.
E) multichannel distribution system
85) When Netflix began delivering DVDs directly to customers through the mail instead of using
a brick-and-mortar system, Netflix was following the trend of ________.B) disintermediation
86) Chewing gum is stocked in many outlets in the same market or community; in fact, it is
placed in as many outlets as possible. This is an example of ________ distribution.
D) intensive
87) Which product will most likely be exclusively distributed?A) BMW cars88) Tiffany & Co
jewelry can only be found in a limited number of intermediaries. This is an example of ________
distribution.A) exclusive
89) Max Samuelson is a high-end fashion designer who markets his clothing lines through a
limited number of highly reputable retailers. Max uses.A) exclusive distribution
90) Fresh Direct, an online grocer delivering to homes and offices in and around New York City,
recently switched its entire fleet to biodiesel trucks. These trucks run on used cooking oil rather
than gas, drastically reducing the company's carbon dioxide footprint. Fresh Direct has
developed a(n) ________.B) green supply chain
91) Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of
$25,000 to customers around the world. Speed of delivery to distant markets is a must.
Management should consider using ________ as its main carrier.B) air
92) Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local

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markets. It has just been awarded a contract with a company 500 miles down the coast.
Management should consider switching from truck to ________ transport.A) water
93) Which of the following modes of transportation would most likely be used to quickly haul
lettuce from California where it was grown to markets in Nevada?A) trucks
94) Which type of vertical marketing system (VMS) gives an organization more control over
both production and resale of its products, while at the same time increasing the organization's
capital investment and its fixed costs?D) corporate
95) Why is it important for manufacturers to be sensitive to the needs of their dealers?
D) Dealer support is essential to creating value for the customer.
96) What type of utility does warehousing provide to consumers by holding onto products until
consumers need them?A) time
97) A manufacturer that uses a third-party logistics provider to fulfill all of its logistics need is
using a(n) ________.B) conventional distribution channel
Chapter 14 Communicating Customer Value: Integrated Marketing
Communications Strategy
1) A company's total marketing communications mix consists of a special blend of advertising,
sales promotion, public relations, personal selling, and direct-marketing tools that the company
uses to communicate customer value and build customer relationships. This is also called
________. C) the promotion mix
2) The use of short-term incentives to encourage the purchase or sale of a product or service is
called ________. B) sales promotion
3) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an
identified sponsor is called ________. B) advertising
4) Which of the five major promotion tools includes building up a positive corporate image and
handling unfavorable stories and events?D) public relations
5) Which of the following is NOT a major category in a company's promotion mix?
B) strategic positioning
6) Which major promotion category makes use of catalogs, telephone marketing, kiosks, and the
Internet?B) direct marketing
7) Which major promotion category makes use of displays, discounts, coupons, and
demonstrations?A) sales promotion
8) The promotion mix is the company's primary communication activity; the marketing mix must
be coordinated for the greatest communication impact. What is NOT included in the entire
marketing mix? B) competitor
9) Today's consumers do not need to rely on marketer-supplied information about products and
services because they can use ________ to seek out a wealth of information.
C) the Internet and other technologies
10) Which of the following is NOT a factor in the changes occurring in today's marketing
communications?
D) Mass media no longer capture the majority of promotional budgets.
11) Moving away from ________, marketers have been shifting toward highly focused
marketing, spawning a new generation of more specialized and highly targeted communications
efforts.A) mass marketing
12) Which of the following is NOT an example of a specialized and highly targeted media that
an advertiser might use to reach smaller customer segments? D) network television
13) Companies are doing less ________ and more ________ as a result of an explosion of more

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focused media that better match today's targeting strategies. D) broadcasting; narrowcasting
14) All of the following are reasons that marketers are losing confidence in television advertising
EXCEPT which one?
B) TV and other mass media no longer capture the lion share of promotional budgets.
15) Companies often fail to integrate their various communications to consumers because
C) communications often come from different parts of the company
16) Consumers today receive commercial messages from a broad range of sources. However,
consumers ________ the way marketers do.
A) don't distinguish between message sources
17) More companies are adopting the concept of ________, which carefully integrates and A)
integrated marketing communications
18) Advertising, sales promotion, personal selling, public relations, and direct marketing are all
A) communications channels that should be integrated under the concept of integrated marketing
communications
19) Integrated marketing communications require a company's mass-market advertisements,
Web site, e-mail, and personal selling communications to all have ________.
E) the same message, look, and feel
20) To produce better communications consistency, a unified company image, and greater sales
impact, some companies employ a(n) ________.B) marketing communications director
21) Integrated marketing communications produces better communications ________ and
greater ________ impact.A) consistency; sales
22) Today, marketers are moving toward viewing communications as managing the ________
over time.D) customer relationship
23) Using integrated marketing communications, the communications process should start with
________.D) an audit of all potential customer touch points
24) Which of the following is NOT one of the four major communication functions?C) noise
25) The communication channel a company uses to move its advertising messages from sender
to receiver is called the ________.B) media
26) The receiver assigns meaning to the symbols encoded by a company in its advertisements
through a process known as ________.D) decoding
27) In the communication process, the reaction of the receiver after being exposed to a message
is called the ________.A) response
28) When a customer lets a producer know something about its products or advertising, the
customer is providing ________.C) feedback
29) A consumer is reading a magazine with an advertisement, but is distracted from reading the
advertisement or its key points. This unplanned static or distortion during the communication
process is called ________.A) noise
30) In the communication process, the more the sender's field of experience ________ that of the
receiver, the more ________ the message is likely to beB) overlaps with; effective
31) To communicate effectively, a marketing communicator must ________ the consumer's field
of experience.C) understand
32) Marketing communicators must be good at ________ messages that take into account how
the target audience ________ them.C) encoding; decodes
33) Marketing communicators must do all of the following EXCEPT ________.
B) deliver products to the customer
34) In the AIDA model, the D stands for ________.B) desire

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35) The AIDA model identifies the characteristics of an effective ________marketing message
36) The six ________ stages that consumers normally pass through on their way to making a
purchase begin with awareness and end with purchase.B) buyer-readiness
37) The six buyer-readiness stages include all of the following EXCEPT ________.E) hesitation
38) In the model of buyer-readiness stages, the first stage is ________.D) awareness
39) All of the following are strategies a marketer would use to lead consumers into making the
final step toward a purchase EXCEPT which one?D) use extensive "teaser" advertising
40) A message showing a product's quality, economy, value, or performance is called a(n)
________ appeal.B) rational
41) Marketers using humor in their messages claim that they attract more attention and create
more loyalty and belief in the brand. This type of message is called a(n) ________ appeal.
C) emotional
42) Though a popular appeal, when used poorly ________ can detract from comprehension,
quickly wear out its welcome, overshadow the product, or even irritate consumers.
A) humor
43) Moral appeals are directed to the audience's sense of what is "right" and ________.A) proper
44) The communicator must decide how to handle message structure issues. One issue is whether
to ________ or not.A) draw a conclusion
45) A(n) ________ argument is only likely to be effective when the audience is highly educated
or likely to hear opposing claims or when the communicator has a negative association to
overcome.A) two-sided
46) Which of the following represent(s) a two-sided message?D) A and B
47) In designing the message structure, marketers must decide whether to present the ________
arguments first or last in a message.D) strongest
48) A marketer is making decisions about the headline, copy, illustration, and colors for a print
ad. The marketer is making decisions about the ________E) message format
49) The two broad types of ________ channels are personal and nonpersonal.
C) communication
50) Communication through the mail is categorized as a(n) ________ communication channel.
C) personal
51) Creating word-of-mouth campaigns by cultivating opinion leaders and getting them to spread
information about a product or service to others in their communities is known as ________.
C) buzz marketing
52) Nonpersonal communication channels include major media, ________, and events.
C) atmospheres
53) Vast numbers of consumers are aware of your product. It is now your goal to enhance
preference for your product. You plan to use nonpersonal communications through print media
and display media. This will include all of the following EXCEPT ________.C) Internet "chats"
54) To ________, a marketer can ask target audience members whether they remember the
message, how many times they saw it, and what points they remember.B) collect feedback
55) ________ from marketing communications may suggest changes in the promotion program
or in the product offer itself.C) Feedback
56) Companies use all of the following methods to set their advertising budget EXCEPT the
B) integrated method
57) Using the ________ method for setting an advertising budget, the company starts with total
revenues, deducts operating expenses and capital outlays, and then devotes some portion of the

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remaining funds to advertising. E) affordable
58) Though the ________ method of setting an advertising budget is simple to use and helps
management think about the relationships among promotion spending, selling price, and profit
per unit, it wrongly views sales as the cause of promotion rather than the result.
A) percentage-of-sales
59) Which method of setting an advertising budget is based on analyzing competitors' spending?
C) competitive-parity method
60) Perhaps the most logical budget-setting method is the ________ method because it is based
on spending necessary to accomplish specific promotion goals. D) objective-and-task
61) Advertising has some shortcomings. What is NOT one of them?
C) It slowly reaches many people.
62) ________ is the company's most expensive promotion tool.B) Personal selling
63) Which promotional tool is most effective in building up buyers' preferences, convictions,
and, most importantly, actions?B) personal selling
64) Sales promotion features a wide assortment of tools. Which of the following is NOT one of
these tools? C) catalogs
65) "Buy it now" is the message of ________. D) sales promotion
66) ________ consists of strong short-term incentives that invite and reward quick responses
from customers.D) Sales promotion
67) ________ is very believable because news stories, features, sponsorships, and events seem
more real and believable to readers than ads do.B) Public relations
68) Which promotional tool is described as nonpublic, immediate, customized, and interactive?
C) direct marketing69) Which promotional mix strategy directs marketing efforts toward final
consumers?A) pull
70) Which promotional mix strategy directs marketing efforts toward market channel members?
C) push
companies are more likely to emphasize a ________ promotion strategy, while business-to-
business companies are more likely to emphasize a ________ promotion strategy.A) pull; push
72) In the introduction stage of the product life cycle, a combination of ________ is best for
producing high awareness.B) advertising and public relations
73) Which of the following would be classified as bait-and-switch advertising?
A) advertising a cheaper brand but only making a more expensive one available to customers
74) A company's salespeople should always follow the rules of ________.
D) fair competition
75) The FTC has adopted a three-day cooling-off rule to give special protection to ________.
C) customers who were not seeking a product
76) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional
salespeople to sell its products to wholesalers and cities. This is an example of ________.
B) personal selling
77) Harpo Enterprises maintains the Oprah Winfrey show, a Web site, and O magazine. Because
Harpo Enterprises practices integrated marketing communications, these different brand contacts
all maintain ________ in design and tone.C) consistency

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78) Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions for its
catalogs, Web site, and retail outlets. It uses the same models in its catalog and in its print ads as
well as on its Web site. Delia's works to make sure its public relations activities as well as its
sales promotions harmonize with its advertising in all venues. From this information, you can
infer that Delia's is using ________.C) integrated marketing communication
79) HP's advertising agency assembles words and illustrations into an advertisement that will
convey the company's intended brand message. In the communication process, HP is ________.
B) encoding
80) The decision to use a cleaning genie to communicate the strength and power of Mr. Clean
cleaning liquid is representative of the ________ process of the communication model.
B) encoding
81) In the communication process, an actual HP printer/fax machine advertisement is called
D) the message
82) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured
actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup.
In terms of the communication model, the sender of this message is ________.D) Maybelline
83) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured
actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup.
In terms of the communication model, the medium of this ad isLadies' Home Journal
84) Mercy University's initial ads for the school's new MBA program are most likely intended to
create ________.B) awareness
85) When a car maker wants to introduce a new model, it is most likely to begin with an
extensive ________ advertising campaign to create name familiarity and interest.C) teaser
86) An example of a(n) ________ appeal is the Salvation Army appeal, "While you are trying to
figure out what to get the man who has everything, don't forget the man who has nothing."
D) moral
87) A manufacturer of a variety of technological devices asked its marketing department to
develop inexpensive methods of building and maintaining brand awareness and excitement. The
marketing department then recruited consumers who were early adopters of technological
devices to spread the word about the company's new products. This is an example of ________.
C) buzz marketing
88) Toward the end of the fiscal year, the owner of a small company came back from lunch
concerned because he had learned that a business targeting the same customers as his was
planning on spending $150,000 on promotion. As soon as he arrived at the office, he called his
financial manager and said, "I want to budget $150,000 for next year's promotion." Which
method of promotional budgeting did the owner want to use?C) the competitive-parity method

89) An e-mail from Amazon.com offers free shipping on your next purchase of more than $35.
This is an example of ________. A) sales promotion
90) A newspaper article announced that VoiceStream Wireless, the nation's sixth-largest wireless
carrier, was changing its name to T-Mobile and that to begin the makeover process it had
replaced spokesperson Jamie Lee Curtis with Catherine Zeta-Jones. Of which element of the
promotion mix is this an example?C) public relations
91) An ad in a professional journal targeted to an audience of dentists asked dentists to
recommend Crest toothpaste to their patients. It offered toothpaste samples that dentists could
buy at cost to give to their patients to encourage patients to take better care of their teeth. The

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manufacturer of Crest toothpaste was using ________.C) a push strategy
92) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine
advising consumers to request their body shops use Glasis paint is an example of how a company
uses ________.E) a pull strategy
93) Management of a company that adheres to the principle of integrated marketing
communications is most likely to believe which of the following?
A) The use of multiple marketing communications channels is advantageous.
94) Tara Keegan owns Live Well, a small chain of health stores offering a variety of natural
health products and related services. In order to implement integrated marketing
communications, Tara has hired a marketing communications director, whose job it will be to
ensure that each ________ will deliver a consistent and positive message about the company.
B) brand contact
95) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured
actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup.
In terms of the communication model, which of the following would be the best way for the
source to measure feedback?C) the number of people who redeem the coupon
96) Mariah Goldberg, a marketing manager for a manufacturer of children's toys, is looking for
ways to reach potential customers who typically avoid salespeople and advertisements. Which of
the following would be the most economical promotional tool for Mariah to use?
C) public relations
97) Clean and Clear, a large producer of all-natural hair care and beauty products, is most likely
to use which of the promotion mix strategies to gain increased shelf space in stores and to gain
increased customer sales? C) push and pull
98) A maker of vitamin drinks wants to compete with the leading brands in the category and has
decided to use a heavy push strategy, putting most of the brand's marketing budget into trade and
consumer sales promotion. Which of the following is a potential disadvantage of this approach?
E) The strategy may spark a spiral of price-slashing that will undercut the brand's future for
short-term gains.
Chapter 15 Advertising and Public Relations

1) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an
identified sponsor is called ________. C) advertising
2) A company's total marketing communications package consists of a special blend of
advertising, sales promotion, public relations, personal selling, and direct-marketing tools that
the company uses to communicate customer value and build customer relationships. This is also
called ________.C) the promotion mix
3) Advertising is used mostly by which of the following?B) business firms
4) Reach, frequency, and impact are all ________ made when developing an advertising
program.D) media decisions
5) Competitive parity and objective-and-task are two options for ________ made when
developing an advertising program.B) budget decisions
6) Advertising ________ define the task that advertising must accomplish with a specific target
audience during a specific period of time.A) objectives
7) An advertising objective is classified by its primary purpose, which is to inform, persuade, or
C) remind
8) Which of the following is an objective of informative advertising?

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D) suggest new uses for a product
9) What is one of the primary goals of reminder advertising?
A) maintain customer relationships
10) When the advertising objective is to build primary demand for a new product category,
________ advertising will most likely be used. B) informative
11) ________ advertising becomes more important as competition increases. The company's
objective is to build selective demand.E) Persuasive
12) Persuasive advertising becomes ________ advertising when a company directly or indirectly
compares its brand with one or more other brands.C) comparative
13) What is a potential problem associated with comparative advertising?
D) Competitors respond with their own ads, which often result in negative publicity for both
brands.
14) A product in the maturity stage will often require ________ advertising.D) reminder
15) After determining its advertising objectives, the company's next step in developing an
advertising program is to ________.A) set its advertising budget
16) All of the following require high advertising budgets EXCEPT _ E) mature brands
17) Which of the following may require heavy advertising in order to be set apart from similar
products?A) undifferentiated brands
18) Some large corporations have developed ________ to help determine the optimal investment
across various media; such tools are useful when determining the relationship between
promotional spending and brand salesC) statistical models
19) Which of the following is the most likely result of reducing brand-building advertising for a
product?B) reduced long-term market share
20) Which of the following is an element of developing an advertising strategy?
A) selecting advertising media
21) Soaring media costs, focused target marketing strategies, and the growing array of new
media have increased the importance of ________.E) media planning
22) To be successful, an advertisement must _E) gain the attention of consumers
23) The Internet, video on demand (VOD), and DVD rentals present which of the following
problems for marketers?
D) Consumers have more choices about what to watch or not watch.
24) Which of the following represents the merge between advertising and entertainment?
A) Madison & Vine
25) The goal of ________ is to make an advertisement so useful or entertaining that people want
to watch it. B) advertainment
26) Product placement in television programs and movies is an example of ________.
B) advertainment
27) Branded Coca-Cola cups have been prominently featured on episodes of American Idol. This
is an example of ________.E) product placement
28) What is the term used to describe the idea that will be communicated to consumers through
an advertisement?B) message strategy
29) Developing an effective message strategy begins with identifying ________ that can be used
as advertising appeals.D) customer benefits
30) ________ tend to be straightforward outlines of benefits and positioning points that the
advertiser wants to stress.B) Message strategy statements
31) After creating a message strategy statement, the advertiser must develop a compelling

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________ that will bring the message strategy to life in a distinctive and memorable way.
A) creative concept
32) The big idea or the creative concept may emerge as a(n) ________, a phrase, or a
combination of the two.B) visualization
33) Which of the following are the three characteristics an advertising appeal should have?
C) meaningful, believable, and distinctive
34) Which message execution style depicts average people using a product in an everyday
setting?C) slice of life
35) Which message execution style focuses on the company's skill and knowledge in making the
product?D) technical expertise
36) Advertisements built around dream themes use which type of execution style?C) fantasy
37) The AFLAC duck and Tony the Tiger are examples of ________ used in successful
advertising campaigns.E) personality symbols
38) Which execution style presents survey evidence that a brand is better than other brands?
A) scientific evidence
39) Some advertisers use edgy humor in their advertisements in order to break through the
commercial clutter. This is an example of an advertisement's ________.C) tone
40) Illustrations, the headline, and the copy are three ________ elements of an advertisement.
C) format
41) What is the first element that a reader notices in a print ad? B) illustration
42) An amateur 30-second video telling the story of online crafts marketplace Etsy.com
exemplifies which growing trend in advertising?B) consumer-generated messages
43) How can consumer-generated ads benefit companies and their products?
E) Consumers become engaged in the product and consider its value in their lives.
44) All of the following are major steps in advertising media selection EXCEPT ________.
D) deciding on format elements
45) ________ is a measure of the percentage of people in the target market who are exposed to
the ad campaign during a given period of time.
A) Reach
46) The number of times an average person in the target market is exposed to an ad is known as
the ________. C) frequency
47) The advertiser must decide on the ________, or desired media impact, of a message in a
specific medium.C) qualitative value
48) Of the following, which is most difficult for advertisers to measure?D) media engagement
49) For many years, ________ dominated the media mix used by national advertisers.
B) television and magazines
50) Cell phones are one type of ________.A) digital media
51) The Internet, direct mail, magazines, and radio all offer advertisers which of the following
advantages? A) audience selectivity
52) You are looking to advertise your new product, and you want good mass marketing coverage
and low cost per exposure. You should choose ________ as your advertising media.
D) television
53) Which of the following statements about magazines as an advertising medium is true?
A) Magazines have long lead times and deadlines that can reduce flexibility.

54) Which of the following statements about radio as an advertising medium is true?

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C) One advantage of radio advertising is its high demographic selectivity.
55) Companies are doing less ________ and more ________ as a result of an explosion of more
focused media that better match today's targeting strategies.
D) broadcasting; narrowcasting
56) 30 Rock and Newsweek are both examples of ________, specific media within each general
media type. C) media vehicles
57) When selecting a media vehicle, the media planner looks both at the total cost of using a
medium and at the ____A) cost per thousand persons reached
58) When a media planner determines whether an advertisement for diapers should be placed in
Parents magazine or Maxim, the planner is evaluating the media vehicle's D) audience quality
59) Audience quality, audience engagement, and editorial quality are all considerations when a
media planner ________.C) selects a media vehicle
60) ________ means scheduling ads evenly within a given period. ________ means scheduling
ads unevenly over a given time period.C) Continuity; Pulsing
61) Scheduling ads unevenly, which is called ________, builds awareness that is intended to be
carried over to the next advertising period. B) pulsing
62) To measure the ________ of an ad after it has been aired, the advertiser can evaluate how the
ad affected consumer recall, product awareness, and preference.C) communication effects
63) One way to measure the ________ effects of advertising is to ________ past sales and past
advertising expenditures.D) sales; compare
64) All of the following are benefits of standardized global advertising EXCEPT ________.
C) higher appeal to varying demographics
65) Most international advertisers develop global ________ for the sake of efficiency, but they
adapt their advertising ________ to make them responsive to local market needs and
expectations. C) strategies; programs
66) Advertising media costs ________ from country to country.A) differ vastly
67) Unilever decided not to purchase advertising during the Super Bowl a second time because
the maker of Dove ________.
B) earned a better response for less money through an outdoor campaign and a viral campaign
68) Which of the five major promotion tools includes building up a positive corporate image and
handling unfavorable stories and events? D) public relations
69) Lobbying, or building and maintaining relations with legislators and government officials to
influence legislation and regulation, is part of ________.D) public relations
70) Which of the following functions is LEAST likely to be performed by a public relations
department? E) media vehicle selection
71) When nonprofit organizations need financial or volunteer support, they often turn to public
relations experts to help them in the area of ________.D) development
72) Trade associations have used ________ to rebuild interest in declining commodities such as
eggs, pork, and milk. D) public relations
73) ________ use several tools, including the news, speeches, corporate identity materials, and
special events.C) Public relations professionals
74) Logos, uniforms, brochures, and company trucks are all examples of ________ that can be
used to help a company create a visual image for the public. D) corporate identity materials
75) News conferences, press tours, and grand openings are examples of ________, a type of tool
commonly used by public relations professionals.B) special events
76) Quaker Oats has been selling oatmeal for many years and is a trusted leader in the oatmeal

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market. What will be the most likely objective of advertisements for a new flavor of oatmeal
being introduced by Quaker Oats? D) maintain customer relationships
77) Suave ran ads featuring a woman with beautiful hair questioning "Suave or Matrix? Can You
Tell?" This is an example of ________.C) comparative advertising
78) When Procter & Gamble (P&G) developed the Mr. Clean Magic Eraser, the company needed
to explain how the product cleans grime from walls without removing paint. What type of
campaign was most likely used by P&G for the Mr. Clean Magic Eraser?
A) informative advertising
79) Apex detergent is relatively undifferentiated from two other detergent brands, Acme and
Brighton detergents. Therefore, Apex is most likely to require which of the following?
C) heavy advertising to set it apart from others
80) In its advertisements, Timex promotes its affordable and sturdy watches. Fossil emphasizes
style and fashion in its advertisements, and Rolex stresses luxury and status. These are all
examples of ________ appeals.E) distinctive
81) An ad for a new convection oven shows a busy professional woman serving dinner to her
family. The convection oven is seen in the background, and the headline reads, "The latest
development in time travel." This is an example of what type of execution style?
B) slice of life
82) An ad for Mongoose mountain bikes shows a serious biker traversing remote and rugged but
beautiful terrain and states, "There are places that are so awesome and so killer that you'd like to
tell the whole world about them. But please, don't." This ad uses the ________ execution style.
B) lifestyle
83) When Taco Bell uses a Chihuahua, a small dog, to represent its product, which type of
execution style is being used?C) personality symbol
84) When Maxwell House shows one of its buyers carefully selecting coffee beans, which type
of execution style is being used?E) technical expertise
85) When a pharmaceutical ad includes a world-renowned heart surgeon describing the benefits
of the medication, which type of execution style is being used?E) technical expertise
86) Which of the following is an example of user-generated content?
C) MasterCard's use of "Priceless" commercials shot by customer
87) You receive a report that 68% of your target market has been exposed to your ad campaign
during a given period of time. The information in the report relates to ___A) reach
88) Capture Cameras is launching a new advertising campaign to demonstrate the quality of its
digital cameras. Which media option would give the audience the most control over exposure to
the ads?A) the Internet
89) IAMS Pet Food runs a commercial on the Animal Planet cable channel during an episode of
The Dog Whisperer. The advertising agency for IAMS is taking advantage of which of the
following? C) narrowcasting
90) ABC Advertising Agency was recently hired to create an advertising campaign for a local
water park. Since the park is only open during the spring and summer months, ________ plays a
major role in the firm's decision about scheduling advertisements.E) media timing
91) Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly
contacts members of the local and state-wide media with information about community events
and charity fundraisers sponsored by her company. This is an example of the ________ function
of public relations.A) press relations
92) The National Pork Board developed the very successful "Pork. The Other White Meat"

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campaign. The campaign provided nutritional information and pork recipes in an attempt to
encourage consumers to view pork as a tasty alternative to poultry and fish. Which of the
following functions was the goal of this public relations campaign?
E) build up a positive image for pork
93) In an attempt to set the company apart from its competitors, United Parcel Service has its
employees wear brown uniforms and drive brown trucks. What type of public relations tool is
UPS using? C) corporate identity materials
94) U-Frame-It is a small company that has hired a local ad agency to put together an advertising
campaign. Which of the following questions should be answered first?
C) What are the communication and sales objectives of U-Frame-It?
95) Franklin & Marshall College wishes to contact high school seniors at independent schools in
Pennsylvania. Which of the following media would be most effective and efficient?
D) a direct mail piece sent to selected students
96) The advertising agency hired by Mrs. Brown's Cookie Company has developed a series of
commercials about the new cookie flavors created by the company. The head of the marketing
department thinks that pulsing would be the most appropriate way to schedule the commercials.
What is the potential benefit of pulsing the cookie ads?
B) The costs of advertising would be low.
97) Which of the following best explains why public relations is often overlooked as a tool for
supporting product marketing objectives?
D) Many public relations professionals see their jobs as communicating, not necessarily brand
building.
Chapter 16 Personal Selling and Sales Promotion

1) Which of the following elements of the promotion mix involves making personal connections
with customers for the purpose of making sales?A) personal selling
2) A ________ is an individual acting on behalf of a company who performs one or more of the
following activities: prospecting, communicating, servicing, and information gathering.
D) salesperson
3) ________ involves two-way, personal communication between salespeople and individual
customers, either in person, by telephone, or through Web conferences.
C) Personal selling
4) Whom do members of a sales force typically represent?D) A and C
5) A company can unite its marketing and sales functions through all of the following activities
EXCEPT ________.A) assigning a telemarketer the task of visiting a customer
6) When a company sets out to analyze, plan, implement, and control sales force activities, the
company is undertaking ________.B) sales force management
7) Of the three typical types of sales force structures, which one is often supported by many
levels of sales management positions in specific geographical areas?A) territorial
8) All of the following are considered advantages of a territorial sales force structure EXCEPT
D) salespeople develop in-depth knowledge of a product line
9) Which of the following is NOT a disadvantage of a product sales force structure?
D) increased customer delivery time
10) Companies that use a customer sales force structure organize their salespeople by ________.
C) industry
11) Which of the following would a company most likely use to determine sales force size?

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A) the workload approach
12) What is the term used to identify the individuals in a company who travel to call on
customers in the field?B) outside sales force
13) Members of a company's ________ conduct business from their offices using telephones, e-
mails, or visits from prospective buyers to generate sales. B) inside sales force
14) To reduce time demands on their outside sales forces, many companies have increased the
size of their inside sales forces, which include technical support people, sales assistants, and C)
telemarketers
15) A sales assistant working for an outside sales force will most likely have all of the following
duties EXCEPT ________.E) determining price points
16) The growing trend of using a group of people from sales, marketing, engineering, finance,
technical support, and even upper management to service large, complex accounts is known as
________ selling.C) team
17) Which of the following best explains why companies are adopting the team selling approach
to service large, complex accounts?
A) Products have become too complicated for one salesperson to support.
18) All of the following are disadvantages of the team selling approach EXCEPT which one?
C) Selling teams decrease costs.
19) All of the following are problems associated with the poor selection of salespeople EXCEPT
D) less office support
20) According to research by the Gallup polling organization, which of the following is one of
the four key talents a successful salesperson must possess?
B) disciplined work style
21) During the hiring process, companies that test sales applicants typically measure all of the
following abilities EXCEPT ________.C) accounting skills
22) The purpose of a training program for salespeople is to teach them about all of the following
EXCEPT ________.D) the company retirement benefits
23) Which of the following is a primary reason that companies use e-learning to conduct sales
training programs?E) E-learning cuts training costs.
24) Commissions or bonuses that a salesperson receives from a company are categorized as the
________ of a compensation plan.C) variable amount
25) All of the following are basic types of compensation plan for salespeople EXCEPT
D) commission plus bonus
26) Companies are increasingly moving away from high commission compensation plans
because such plans often lead to salespeople
C) being too pushy and harming customer relationships
27) Helping the sales force "work smart" is the goal of ________.A) sales supervision
28) The aim of sales management motivation is to encourage salespeople to _B) "work hard"
29) Which sales management tool helps a salesperson know which customers to visit and which
activities to carry out during a week?C) call plan
30) Companies are always looking for ways to increase face-to-face selling time. All of the
following are ways to accomplish this goal EXCEPT ________.
D) reducing the number of customers each sales rep must visit
31) Which of the following is an advantage created by the use of a sales force automation
system?E) more efficient scheduling of sales calls and sales presentations
32) Which of the following is a potential drawback of using Web-based technologies for making

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sales presentations and servicing accounts?
C) The systems can intimidate salespeople who are unfamiliar with the technology.
33) A company that treats its salespeople as valuable contributors with unlimited income
opportunities has developed a(n) ________ that will have fewer turnovers and higher sales force
performance.B) organizational climate
34) A sales ________ is the standard that establishes the amount each salesperson should sell
and how sales should be divided among the company's products.C) quota
35) Sales ________ encourage a sales force to make a selling effort that is above and beyond the
normal expectation.A) contests
36) A salesperson's ________ is often related to how well he or she meets a sales quota.
B) compensation
37) A(n) ________ is a salesperson's write-up of his or her completed sales activities.
B) call report
38) Which of the following questions would provide management with the LEAST beneficial
information regarding the performance of its sales force?
E) Does the sales force complete its sales reports and expense reports in a timely manner?
39) The selling process consists of several steps that the salesperson must master, focusing on the
goals of ________ and ________ from them.getting new customers; obtaining orders
40) Prospecting is the step in the selling process in which the salesperson ________.
C) identifies qualified potential customers
41) A salesperson in the prospecting stage most likely uses of the following methods EXCEPT
A) referrals from competing salespeople
42) Which of the following is the LEAST relevant characteristic that a salesperson should
consider when qualifying a prospect?B) longevity in the market
43) During the prospecting stage, a salesperson needs to discriminate between good leads and
poor leads, a process known as ________.D) qualifying
44) A salesperson who researches a company's buying styles and product line is most likely in
the ________ stage of the selling process. B) preapproach
45) The salesperson meets the customer for the first time in the ________ step of the selling
process.D) approach
46) Technologies such as handheld computers and interactive whiteboards enable salespeople to
enhance the ________ stage of the selling process.C) presentation and demonstration
47) Which type of sales approach is best for today's customers who expect answers, results, and
useful products? B) customer-solution
48) The qualities that buyers value most in salespeople include empathy, honesty, dependability,
thoroughness, follow-through, and ________.A) good listening
49) A salesperson should seek out, clarify, and overcome any customer objections during the
sales presentation in order to ________.D) turn the objections into reasons for buying
50) The qualities buyers dislike most in salespeople include all EXCEPT which of the following?
C) being reliant on technology
51) The step of ________ is difficult for some salespeople because they lack confidence, feel
guilty about asking for an order, or may not recognize the right time to ask for an order.
D) closing the sale
52) Salespeople should be trained to recognize ________ signals from the buyer, which can
include physical actions such as leaning forward and nodding or asking questions about prices
and credit terms.D) closing

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53) Which of the following is NOT a closing technique?
E) asking the buyer to clarify any objections
54) Which step in the sales process is most focused on ensuring customer satisfaction and repeat
business?E) follow-up
55) Which of the following best describes the practice of value selling?
B) delivering superior customer value and capturing a fair return on that value
C) closing deals quickly to meet team sales quotas
56) A ________ is a short-term incentive used to encourage the immediate purchase of a product
or service.) sales promotion
57) Sales promotions are targeted toward all of the following EXCEPT ________.B) investors
58) The rapid growth of sales promotions in consumer markets is most likely the result of all of
the following factors EXCEPT ________.D) declining advertising costs
59) Consumers are increasingly ignoring promotions and not making immediate purchases
because of ________.B) promotion clutter
60) Sellers use trade promotions for all of the following reasons EXCEPT to ________.
D) encourage salespeople to sign up new accounts
61) Of the main consumer promotion tools, which is the MOST effective for introducing a new
product or creating excitement for an existing one?B) samples
62) Which of the following consumer promotion tools is the MOST costly way for companies to
introduce a new product?A) samples
63) Which consumer promotion tool requires consumers to send a proof of purchase to the
manufacturer?D) cash refunds
64) Which of the following involves marking a reduced price directly on a product's packaging
and often results in the stimulation of short-term sales? C) price packs
65) ________ are goods offered either free or at low cost as an incentive to buy a product.
B) Premiums
66) A ________ has the advertiser's name on it and is given as a gift to consumers.
D) promotional product
67) Which consumer promotion offers consumers the chance to win something by presenting
them with an item such as a scratch-off card or a bingo number ?A) game
68) Marketers who send coupons to customers' cell phones are using ________.
B) mobile marketing
69) Marathons, concerts, and festivals with corporate sponsors are examples of ________.
D) event marketing
70) Manufacturers direct more sales promotion dollars toward ________ than to ________.
C) retailers and wholesalers; consumers
71) Manufacturers may offer a(n) ________ in return for the retailer's agreement to feature the
manufacturer's products in advertising or display.B) allowance
72) A manufacturer that offers cash or gifts to dealers for encouraging the purchase of the
manufacturer's goods is using ________.B) push money
73) Business promotion tools are used for all of the following reasons EXCEPT to ________.
E) increase manufacturing
74) Trade shows offer manufacturers the opportunity to do all of the following EXCEPT
A) establish a sales contest
75) Which of the following questions would be the best one to help a marketer evaluate the
return on a sales promotion investment?

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D) Did the promotion increase purchases from current customers or attract new customers?
76) Ultra-Tech, Inc. has decided to switch to a customer sales force structure. Which of the
following advantages is the company now LEAST likely to enjoy?
E) The company can expect salespeople to develop in-depth knowledge of numerous and
complex product lines.
77) Johnson Business Solutions, Inc. maintains one sales force for its copy machines and a
separate sales force for its computer systems. Johnson Business Solutions utilizes a(n) ________
structure.A) product sales force
78) Morrill Motors splits the United States into 10 sales regions. Within each of those regions,
the company maintains two sales teams one for existing customers and one for prospects. What
type of sales force structure does Morrill Motors use?D) complex
79) J&M Manufacturing has 2,000 Type-A accounts, each requiring 35 calls per year, and 1,000
Type-B accounts, each requiring 15 calls per year. What is the sales force's workload?
D) 85,000 calls
80) Stahl, Inc. has 1,000 Type-A accounts, each requiring 28 calls per year, and 2,200 Type-B
accounts, each requiring 15 calls per year. If each salesperson at Stahl, Inc. can make 1,500 sales
calls per year, approximately how many salespeople will be needed? C) 41
81) East Bay Communications has increased its inside sales force. This will help East Bay in all
EXCEPT which one of the following ways?
E) East Bay customers will have full access to sales automation technology.
82) You are applying for a position with the inside sales force at Carson Medical Sales. If you
earn the job, you will most likely be expected to perform all of the following tasks EXCEPT
E) travel to visit customers
83) An IBM sales representative is giving a product demonstration to a Best Buy representative.
Assisting with the demonstration are an engineer, a financial analyst, and an information systems
specialist. If IBM wins the Best Buy account, then all four IBM representatives will service the
Best Buy account. This is an example of ________. A) team selling
84) Mary Conti is sales manager for National Computer Training. She wants to evaluate the
performance of her sales force responsible for the New England territory. Mary will most likely
review all of the following in her evaluation EXCEPT ________. A) call plans
85) The sales force of Conway Pools has qualified a number of leads. Which of the following
will most likely occur next?
C) The outside sales force will learn as much as possible about the prospects.
86) Marlene Arau is a member of the sales force at Urban Fashions, a clothing manufacturer.
Marlene is preparing for a first meeting with a wholesaler who is a potential customer. Marlene
is learning as much as she can about the wholesaler's organization. Marlene is in the ________
step of the personal selling process. C) preapproach
87) Which of the following is an example of a sales promotion?
C) a coupon for $5 off a visit to an amusement park
88) An insert in a Land's End catalog offers free shipping on your next purchase. This is an
example of a ________.
A) sales promotion
89) Monty Boyd travels frequently on West Coast Airlines for his job as an account manager.
Monty earns points for every mile he flies, and he will soon have enough points to receive a free
airline ticket. West Coast Airlines is building a customer relationship with Monty using which of
the following?E) frequency marketing program

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90) Toro ran a clever preseason promotion on some of its snow blower models, offering some
money back if the snowfall in the buyer's market area turned out to be below average. This is an
example of a(n) ________.E) rebate
91) An example of a(n) ________ is a five-foot-high cardboard display of Tony the Tiger next to
Frosted Flakes cereal boxes.B) POP promotion
92) Kirk Wilkins renewed his cell phone contract with Zip Wireless and purchased a new cell
phone through the Zip Web site. If Kirk mails Zip his phone receipt, proof of purchase, and a
completed form, he will receive $50 in the mail. What type of sales promotion is being used by
Zip?E) rebate
93) Happy Pet is a large petfood company that sells its products to retail pet supply stores as well
as wholesalers. The sales force at Happy Pet is LEAST likely to do which of the following?
A) work directly with final customers
94) At Finley's Fine Goods, members of the sales force and marketing department tend to have
disagreements when things go wrong with a customer. The marketers blame the salespeople for
poorly executing their strategies, while the salespeople blame the marketers for being out of
touch with the customer. Which of the following steps should upper-level management at
Finley's Fine Goods take to help bring the sales and marketing functions closer together?
E) appoint a marketing executive to oversee both marketing and sales
95) The sales force at Messimer Computing recently began telemarketing and Web selling. How
will telemarketing and Web selling most likely benefit Messimer Computing?
C) Messimer sales reps will be able to service hard-to-reach customers more effectively.
96) Sales have been slow recently at B & B Materials, so management has organized a training
program to improve the performance of its sales force. Which of the following would most likely
lead to improved sales for B & B Materials?
B) information about the marketing strategies used by competitors
97) At Deck Decor, a manufacturer of outdoor furniture and accessories, the marketing and sales
force objectives are to grow relationships with existing customers and to acquire new business.
Which of the following compensation plans should management establish to encourage the sales
force to pursue both of these objectives?
E) salary plus commission plus bonus for new accounts
98) Your inside sales force is responsible for prospecting and qualifying customers. Which of the
following will likely occur?
C) A salesperson may have to approach many qualified customers just to make one sale.

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