76. Nivea became the leader in the skin cream class on the “gentle,” “protective” and “caring”
platform. The company further moved into classes such as deodorants, shampoos and
cosmetics. Attributes like gentle and caring were of no value unless consumers believed that
its deodorant was strong enough, its shampoo would cleanse and its cosmetics would be
colorful enough. This is an example of ______.
a. competitive points-of-parity
b. competitive points-of-presence
c. category points-of-parity
d. competitive points-of-difference
e. category points-of-difference
77. As a marketing manager, which of the following would be the best purpose for your
organization’s competitive points-of-parity?
a. to globalize competitors’ perceived points-of-difference
b. to emphasize competitors’ points-of-difference
c. to rationalize competitors’ perceived points-of-difference
d. to point out competitors’ points-of-difference
e. to negate competitors’ perceived points-of-difference
78. Tums claims to have the most acid-reducing components of any antacid. In what way is the
brand’s category membership being conveyed?
a. focusing on reliability
b. persuasion based on believability
c. announcing category benefits
d. relying on the product descriptor
e. comparing to exemplars
79. Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to
the authenticating voice, metaphors, symbols, themes, and leitmotifs?
a. context
b. narrative arc
c. setting
d. cast
e. language
80. Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh
breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate
introduced a toothpaste which did all of the above and also protected sensitive teeth. This is
an example of a(n) ______attack.
a. guerrilla
b. bypass
c. frontal
d. flank
e. encirclement
81. Appy Juices, a company that manufactures bottled water, diversified into soft drinks
before any of its opponents could launch a diversified product. This would be an example of
a(n) ______attack.
a. frontal
b. encirclement
c. guerrilla
d. flank
e. bypass
82. The key idea in successful nichemanship is specialization. Which of the following specialists
would most closely be identified with the characterization of being an organization that limits
its selling to one customer?
a. quality-price specialist
b. vertical-level specialist
c. customer-size specialist
d. end-user specialist
e. specific-customer specialist
83. Which of the following strategies should be adopted by marketers during a recession?
a. stick to the budget allocations adopted during the preceding years
b. increase investment on marketing existing products
c. focus primarily on price reductions and discounts
d. concentrate on communicating the brand value and product quality to consumers
e. focus on expanding the customer base and not on the retention of existing customers
84. Smith & Adams Poultry has recently upgraded its transactional model such that its
customers (restaurants and hotels) can communicate with its central supply system to
indicate purchase volumes, dates, and receive confirmation through their computer
terminals. This is an example of a company differentiating itself versus competition in terms
of ______.
a. installation
b. ordering ease
c. delivery ease
d. customer relationships
e. customer training
85. Using the ______level of the product hierarchy to market its soups, Campbell Soups
feature the company name first, then the soup variety on their packaging.
a. product class
b. need-family
c. product-family
d. product-type
e. product-line
86. Betty Crocker cake mixes uses Hershey’s syrup in its cake mixes, and “Lunchables” lunch
combinations with Taco Bell tacos are examples of what special type of branding?
a. generic-branding
b. individual branding
c. ingredient co-branding
d. family branding
e. co-branding
87. A new product is advertised on the “infomercials” as being “the best cleaner money can buy”
and “if not completely satisfied, return the product for a full refund, including shipping.” The
strategy of using a strong guarantee in this instance is sound because ______.
a. the product is so superior to competition that there will be no claims for refunds
b. for a product that is not too well known, it is “good advertising” because the claims will
be a small percentage of sales
c. it is just “advertising fluff” and the manufacturer has no intentions of refunding money
d. it is an example of a misleading or false advertising and is illegal
e. for a product that is not too well known, it reduces the buyer’s risk in purchasing
88. Which of the following is true for services?
a. Service providers can be both for-profit or nonprofit.
b. Service providers develop similar marketing programs for personal services and
business services.
c. The client’s presence is a hindrance during the service delivery process.
d. All service companies follow the same process to deliver their services.
e. All services are people-based, while goods are equipment-based.
89. A brand that is action-oriented and causes consumers to engage in physical actions appeals to
the ______dimension of brand experience.
a. intellectual
b. behavioral
c. sensory
d. social
e. affective
90. Brand ______refer(s) to logos, symbols, characters, and slogans that service providers use
in order to make the service and its key benefits more tangible.
a. equity
b. loyalty
c. engagement
d. elements
e. orientation
91. When consumers examine products, they often compare an observed price to an internal price
they remember. This is known as a(n) ______price.
a. reference
b. target
c. markup
d. market-skimming
e. accumulated
92. ______costs consist of the sum of the fixed and variable costs for any given level of
production.
a. Target
b. Total
c. Average
d. Learning
e. Opportunity
93. In ______, the seller charges a separate price to each customer, depending on the intensity
of his or her demand.
a. first-degree price discrimination
b. third-degree price discrimination
c. special-customer pricing
d. second-degree price discrimination
e. psychological discounting
94. When is a pull strategy appropriate?
a. when consumers are able to perceive differences between brands
b. when it is a low involvement purchase
c. when there is low brand loyalty
d. when brand choice is made in the store
e. when the product is an impulse item
95. Producers often shift some functions to intermediaries. Which of the following is the most
significant benefit of doing this?
a. It ensures greater information security.
b. It lowers the producer’s costs and prices.
c. It increases customer loyalty.
d. It provides the producer with greater control over operations.
e. It reduces the amount of direct customer interaction.
96. Which of the following refers to the add-on services such as credit, delivery, installation, and
repairs provided by a marketing channel?
a. product variety
b. service extensions
c. product accessories
d. service backup
e. external products
97. ______power can be effective, but its exercise produces resentment and can lead the
intermediaries to organize countervailing power.
a. Expert
b. Reward
c. Legitimate
d. Coercive
e. Referent
98. The ______marketing sales system works by recruiting independent businesspeople who act
as distributors.
a. catalog
b. direct-response
c. direct
d. multilevel
e. corporate
99. Telemarketing is a type of ______.
a. close-range marketing
b. network marketing
c. direct marketing
d. multilevel selling
e. direct selling
100. E&OE is trying to minimize its inventory costs, which are extremely high. The company has
realized that it can achieve this by maintaining a near-zero inventory and producing more
only once a product is ordered. Which of the following is true for E&OE?
a. Inventory costs are lower than order-processing costs.
b. Order-processing costs are lower than setup costs.
c. Order-processing costs are high.
d. Running costs are higher than inventory-carrying costs.
e. Setup costs for the products are low.