1. Which of the following is a correct statement about marketing research?
A. Marketing research should encourage the manipulation of respondents when necessary.
B. Those who conduct marketing research must use a more flexible, less-constraining set of ethical standards if they're to get accurate and useful information.
C. Marketing research should be used ethically and should produce unbiased, factual information.
D. Fundraising should be presented under the guise of being market research.
2. If detailed customer information is kept over a period of time, a company may be able to construct an important measure of a customer's profitability known as
A. primary customer profit.
B. customer lifetime value.
C. customer net worth.
D. customer earning potential.
3. Which of the following is a correct statement about segmentation schemes?
A. Firms are likely to use a different segmentation scheme depending on whether they're production, sales, or marketing oriented.
B. Firms are likely to use multiple segmentation methods to leverage the capacities of each.
C. Firms are likely to use one or rarely two segmentation schemes as an economic convenience.
D. Firms are likely to use selected segmentation schemes to enter into undifferentiated markets.
4. If a marketing researcher is ready to move beyond preliminary insights, he or she is ready to engage in
A. data warehousing.
B. exploratory research.
C. conclusive research.
D. syndicated marketing surveys.
5. Marketing researchers (both ethical and not) have found it more and more difficult to get quality information, especially about sensitive topics. Responsible marketers know they must ______to get reluctant respondents to provide honest information.
A. deconstruct unstructured questions
B. choose only extroverts and other marketing researchers
C. assure consumers that their individual responses will be kept confidential
D. use either focus group or in-depth interviews
6. When the market research problem isn't clearly defined, a researcher should engage in ______
research.
A. data mining
B. syndicated marketing surveys
C. exploratory
D. conclusive
7. When confronted with an angry and emotional customer, the best first step toward service recovery is to
A. call security in case it's necessary to escort the person from the building.
B. gently but firms tell the person you won't tolerate being addressed in that tone of voice and turn away until he or she calmsdown.
C. listen carefully and with empathy until the customer feels he or she has been heard.
D. match the person's voice in intensity and volume to gain control of the confrontation.
8. The basic benefit of a brand is that it
A. provides a way for a firm to differentiate its product offerings from those of its competitors.
B. creates a basis for effective packaging.
C. offers consumers promotional parity.
D. allows manufacturers to ignore promotional expenditures.
9. Many product dominant firms use quality service
A. as a way to minimize the cost of production.
B. as a way to increase the perishability of their products and induce replacement purchases.
C. to maintain a sustainable competitive advantage.
D. to support a standards gap.
10. Proctor & Gamble is a huge national brand manufacturer. By having leading brands like Tide and Crest,
P&G
A. can increase brand dilution.
B. has greater control over marketing strategy.
C. has greater opportunity to dictate retail pricing.
D. can monopolize store brands.
11.Colgate-Palmolive's ______includes Oral Care, Personal Care, Household Care, Fabric Care, and Pet
Nutrition product lines.
A. product personality
B. primary packaging parts
C. product assortment
D. perceived generic cobrands
12. During the ______stage of the product life cycle, sales rise, profits rise rapidly, and there are a few but increasing number of competitors.
A. growth
B. decline
C. maturity
D. introduction
13. ______represents the systems and equipment resources that service providers need to be able to close
the delivery gap.
A. Dynamic support
B. Instrumental support
C. Quality mechanics
D. Service infrastructure
14. Brand extension is a popular marketing strategy because it allows the firm to
A. discontinue complementary products.
B. spend less on creating brand awareness and associations.
C. avoid the problem of brand dilution.
D. separate out the cost of brand extension from brand intention.
15. ______is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.
A. National branding
B. Brand positioning
C. Brand licensing
D. Brand equity
16. Innovators are critical to new-product marketers because they
A. act as reverse engineering consultants.
B. are the major source of innovation.
C. help with test marketing.
D. help the product gain market acceptance.
17. When the management or owners of a service establishment have a different idea than the customers do about the expectations and service standards, the firm most likely has a ______gap.
A. standards
B. perspective
C. delivery
D. knowledge
18. Successful first movers create a market or a product category and benefit from being readily
recognizable to consumers and
A. using prototypes to dominate the market.
B. establishing an early market share lead.
C. not needing to do test marketing.
D. not having to pay advertising expenses.
19. Between concept testing and market testing, a firm should engage in which stage of the product development process?
A. Marketing research
B. Securing financial backing
C. Product development
D. Brainstorming
20. The ______diffusion-of-innovation group is crucial because few new products can be profitable until this large group buys them.
A. early adopter
B. innovator
C. early majority
D. late majority
21. Proactive managers and service providers know to plan for failure to meet customer expectations. The course of action that will help in the long run as well as the short run is to
A. attempt to make amends and learn from the experience.
B. assess service standards against service fairness.
C. increase the zone of tolerance.
D. reduce the communications gap.
22. A major limitation in the use of internal R&D departments for new-idea generation is that
A. the costs tend to be quite high.
B. few scientists have practical ideas.
C. the departments tend to be dissolved once sufficient ideas have been generated.
D. the departments tend to create too many blockbusters.
23. Food preparation, lawn maintenance, and house cleaning services are all examples of
A. the price elasticity effect on services demand.
B. services shifted abroad because costs are lower in developing countries.
C. household maintenance activities which people increasingly pay others to perform.
D. services for which an aging population is gradually decreasing its demand.
24. Early personal computers cost several thousand dollars, allowing competitors to
A. focus on creating demand for their brand.
B. spend less on introductory advertising.
C. introduce lower-priced alternatives.
D. focus on making improved versions.
25. During the ______stage of the product life cycle, sales are low and profits are small or negative.
A. introduction
B. growth
C. maturity
D. leveling
26. For new-product marketers, early adopters are important because they tend to be
A. specialists in reverse engineering.
B. few in number.
C. fond of prototypes.
D. opinion leaders.
27. Choosing a name for a brand
A. may be complicated by the legal restrictions in several states that require the corporate name to be included.
B. may depend on the usage and performance of the product.
C. is easy once a company does the research.
D. is serious business, and humorous names have been shown to detract from the brand.
28. Many hotels use ______to overcome the problem of inseparability of services.
A. perishability gap analysis
B. promotional discounts
C. satisfaction guarantees
D. point-of-purchase displays
29. Private-label brands like Gap and Victoria's Secret have increased in importance along with the increased power of ______in the supply chain.
A. retailers
B. supply chain specialists
C. wholesalers
D. manufacturers
30. ______means allowing employees to make decisions about how service is provided to customers.
A. Standards enforcement
B. Quality control
C. Empowerment
D. Knowledge control
31. Through research, firms can close the ______gap by matching customer expectations with actual service.
A. seniority
B. delivery
C. standards
D. knowledge
32. In a ______supply chain, none of the participants has any control over the others.
A. cooperative
B. conventional
C. corporate
D. contractual
33. As a type of retailer, category specialists are fierce competitors using
A. a wide variety of merchandise.
B. a complete assortment in a specific category at low prices.
C. highly attractive loyalty programs.
D. highly trained personnel throughout the stores.
34. A distribution center is typically operated by
A. vertically integrated consumer networks.
B. joint corporate-government ventures.
C. individual consumers.
D. retailers, manufacturers, or distribution specialists.
35. B2B quantity discounts are legal if
A. they don't exceed 25% of the regular price.
B. new customers can buy up to reach the minimum quantity.
C. the discounts are available to all customers.
D. they're not short term.
36. Naomi owns and manages a gift store that features merchandise for many holidays throughout the year. Some are novelty items that are mass produced, and some are handcrafted. Manufacture and creation of these items occur throughout the year, but in cycles different from the customers' purchases. To be successful, Naomi must pay special attention to the supply chain management goal of providing products at the right
A. time.
B. quantities.
C. service levels.
D. locations.
37. As the logistics manager, Priscilla should focus on the movement and control of the company's physicalproducts, while her boss, the supply chain manager, should focus on
A. oversight and coordination of supply chain promotional considerations.
B. awareness of and coordination of the relationships among supply chain members.
C. the interplay between pricing and product allocation decisions.
D. maximizing efficiency by constantly reducing production costs.
38. Manufacturers use wholesalers and retailers because
A. the wholesalers control the retailers.
B. the manufacturers have no other choice, due to the legal environment.
C. wholesalers and retailers are traditionally accepted by frequent, loyal shoppers.
D. wholesalers and retailers create value through convenience and lower prices.
39. Retailers with strong brand names of their own might operate outlet stores to
A. compete with category specialist stores.
B. keep manufacturers from selling similar items in their own factory stores.
C. sell excess inventory that might have to be sold at markdown prices in regular stores.
D. extend the useful life of mature products.
40. Supply chain management adds value for customers by
A. getting products to customers efficiently.
B. maximizing total distribution costs.
C. incorporating universal product codes.
D. use of exclusive geographic territories.
41. Themost significant potential benefit of the Internet channel is its
A. capacity for a touch-and-feel customer experience.
B. capacity for providing location options for maintaining inventory.
C. ability to personalize information for each customer on a cost=effective basis.
D. potential to provide customers with instant gratification.
42. The break-even point is estimated by
A. dividing fixed contribution per unit by variable costs.
B. multiplying fixed costs by contribution per unit.
C. multiplying revenue per unit times the quantity sold.
D. dividing fixed costs by contribution per unit.
43. ______measures consumers' sensitivity to changes in how much is charged for an item.
A. Price elasticity of demand
B. Income elasticity
C. Cross-price elasticity of demand
D. Competitive price demand
44. Which of the following is most likely to be characterized by oligopolistic competition in the United States?
A. Stationary
B. Men's clothing
C. Soft drinks
D. Soybeans
45. The Internet has compelled all retailers to expect more price-sensitive customers, but because customers can purchase electronics at highly discounted prices, those stores that sell the same electronic prices must adjust their prices and
A. add services and advice to change the customer's focus away from price competition.
B. take the Internet retailers to court if they feel they're being harmed.
C. try to block access to the sites that are deeply discounting the prices.
D. seek lower prices from the manufacturers to at least equal the prices paid for the merchandise by the Internet retailers.
46. At the break-even point, ______are zero.
A. contributions per unit
B. price
C. costs
D. profits
47. ______are combating competitive pressures by increasing the amount of exclusive and private label merchandise, strengthening customer loyalty programs, and expanding their online presence.
A. Convenience stores
B. Limited assortment supermarkets
C. Full-line discount stores
D. Department stores
48. Coupons, rebates, and online discounts are types of
A. specialty product displays.
B. in-store promotions.
C. off-price wholesaling.
D. pricing promotions.
49. When a customer purchases a DVD at a Best Buy Electronics store, three of the following information
flows are started. Which one is not started?
A. The sales associate scans the UPC recording the sale.
B. The sale is transmitted to Best Buy's distribution center to adjust inventory data.
C. The purchase is added to the customer's personal and confidential purchasing habit records.
D. Best Buy's buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer.
50. ______communities are networks of social shoppers who see an enhanced emotional connection with other participants during an Internet shopping experience.
A. Gen-Y
B. Electronic loyalty program
C. Virtual
D. Self-actualizing
51. Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $15. His fixed costs are $100,000, and his profit last year was $20,000. For Jacob, the contribution per unit is
A. $100.
B. $20,000.
C. $1000.
D. $85.
52. Some companies want to get their products into as many outlets as possible. These companies understand that the more exposure they get, the more of their products they'll sell. If this idea is consistent with the company's overall strategy, it will most likely choose ______distribution.
A. collectively exhaustive
B. intensive
C. selective
D. exclusive
53. Because of the way ______buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store.
A. department stores
B. discount stores
C. downstream value stores
D. off-price retailers
54. Knowing how customers arrive at their ______is critical to developing successful pricing strategies.
A. perceptions of value
B. amounts of disposable income
C. cultural attitudes about shopping
D. social network
55. Benton manages a building supply company. He wants to invite 20 of his most valuable customers, who are building contractors, to a golf outing and party. Benton will most likely use the firm's ______to identify these customers.
A. CRM database
B. specialty-store sales
C. Internet
D. annual sales report
56. In ______competition, there are many firms providing differentiated products.
A. oligopolistic
B. conventional
C. monopolistic
D. pure