Marketing Management

________ is the art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer value.
A) Marketing management
B) Knowledge management
C) Operations management
D) Strategic management
E) Distribution management
Answer: A

Car rental firms, hair dressers, and management consultants provide ________.
A) goods
B) experiences
C) events
D) services
E) information
Answer: D

The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its
multicultural society in order to attract tourists is an example of ________ marketing.
A) event
B) property
C) service
D) place
E) idea
Answer: D

Janet is very upset that she can't get tickets to the Rolling Stones concert because they are sold
out. Which of the following demand states applies to Janet's situation?
A) nonexistent demand
B) latent demand
C) full demand
D) unwholesome demand
E) overfull demand
Answer: E

Consider the real estate industry. The ________ for this industry includes construction
companies, financing institutions, paint manufacturers, interior decorators, furniture
manufacturers, and plumbing industries.
A) marketspace
B) latent market
C) need market
D) metamarket
 E) geographic market
Answer: D

When companies measure the number of people who are willing and able to buy their products,
they are measuring ________.
A) demand
B) price elasticity
C) real needs
D) standard of living
E) disposable income
Answer: A

The ________ is the channel stretching from raw materials to components to final products that
are carried to final buyers.
A) communication channel
B) distribution channel
C) supply chain
D) service chain
E) marketing chain
Answer: C

Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low

costs, and mass distribution.
A) selling-oriented
B) product-oriented
C) production-oriented
D) marketing-oriented
E) consumer-oriented
Answer: C

Which of the following categories of goods and services is most likely to require an aggressive
use of the selling concept?
A) shopping goods
B) unsought goods
C) necessary goods
D) luxury goods
E) complementary goods
Answer: B

A ________ is "unpredictable, short-lived, and without social, economic, and political

significance."
A) fad
B) fashion
C) trend
D) megatrend
E) style
 Answer: A

In the modern customer-oriented organizational chart, which of the following is considered to be

at the top of the organizational pyramid?
A) sales
B) top management
C) front-line people
D) customers
E) middle management
Answer: D

When a consumer considers a product or service, he or she will choose whichever product or
service delivers the highest ________.
A) customer-perceived value
B) customer-perceived cost
C) customer profitability analysis
D) customer equity
E) customer lifetime value
Answer: A

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred

product or service in the future despite situational influences and marketing efforts having the
potential to cause switching behavior.
A) Value proposition
B) Loyalty
C) Satisfaction
D) Respect
E) Customer value
Answer: B

________ can track customer satisfaction directly, measure repurchase intention and also gauge a
consumer's willingness to recommend the company and brand to others.
A) Periodic surveys
B) Mystery shoppers
C) Customer loss rates
D) Customer focus statements
E) Sales summary reports
Answer: A

The ________ has the largest market share and usually shows the way to other firms in price
changes, new-product introductions, distribution coverage, and promotional intensity.
A) market challenger
B) market entrant
C) market follower
D) market nicher
E) market leader
 Answer: E

A customer ________ is any occasion on which a customer encounters the brand and product—
from actual experience to personal or mass communications to casual observation.
A) touch point
B) point of order
C) point of difference
D) pivot point
E) point of parity
Answer: A

Which of the following can a company do to reduce defection?

A) Attract new customers to try out the company's products.
B) Increase customer lifetime value by increasing the non-monetary costs of products.
C) Enhance the growth potential of existing customers through cross-selling and upselling.
D) Distinguish the causes of customer attrition and identify those that can be managed better.
E) Make low-profit customers more profitable or terminate the relationship.
Answer: D

Establishing and communicating the distinctive benefit(s) of the company's market offering, for
each target segment is called ________.
A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance
Answer: B

The process of selecting one or more market segments to enter is called ________.
A) market targeting
B) market dominance
C) market positioning
D) market segmentation
E) market research
Answer: A

A ________ consists of a group of customers who share a similar set of needs and wants.
A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level
Answer: D

If a marketer decides to segment a market based on neighborhoods, the marketer will have
chosen the ________ method of segmentation.
 A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral
Answer: C

________ is the science of using psychology and demographics to better understand consumers.
A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization
Answer: A

The sale of turkeys in the West is highest in mid-to late November, as people buy turkeys to
serve at Thanksgiving. Grocery stores who specifically advertise turkeys at this time of year are
segmenting on the basis of ________.
A) benefits
B) user status
C) buyer-readiness stage
D) demographics
E) occasion
Answer: E

When Amy goes shopping for clothes, she goes into every store in the mall looking for the best
deal. She is very price conscious. On the basis of loyalty status, Amy can be described as
________.
A) a switcher
B) a split loyal
C) a shifting loyal
D) a hard-core loyal
E) an antiloyal
Answer: A

A company can be said to have used ________ if the company distinguished among customers
buying on the basis of price, service, and quality.
A) global segmentation
B) microsegmentation
C) short-term segmentation
D) macrosegmentation
E) geographic segmentation
Answer: B

If your assignment was to create a value proposition and product-price positioning strategy for
each segment, based on the segment's unique customer needs and characteristics, you would be
in which of the following steps of the segmentation process?
A) needs-based segmentation
B) segment identification
C) segment attractiveness
D) segment positioning
E) segment "acid-test"
Answer: D

Volkswagen concentrates on the small-car market and Porsche on the sports car market. These
would be examples of what is called ________.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
Answer: A

With ________ as a target market strategy, the firm concentrates on serving many needs of a
particular customer group.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
Answer: D

________ is the act of designing the company's offering and image to occupy a distinctive place
in the minds of the target market.
A) Positioning
B) Valuation
C) Pricing
D) Commercialization
E) Launching
Answer: A

Which of the following terms is most closely associated with the statement: "attributes or
benefits consumers strongly associate with a brand, positively evaluate, and believe that they
could not find to the same extent with a competitive brand"?
A) points-of-inflection
B) points-of-difference
C) points-of-parity
D) points-of-value
E) points-of-presence
Answer: B

BMW positioned itself as the only automobile that offered both luxury and performance. At that
time, consumers saw U.S. luxury cars as lacking performance. It was able to achieve a point-of-
difference on performance and a point-of-parity on luxury with respect to U.S. luxury cars like
Cadillac. This is an example of ________.
A) straddle positioning
B) category-based positioning
C) need-based positioning
D) noncomparitive positioning
E) price-quality positioning
Answer: A

Brand ________ is the added value endowed to products and services.

A) loyalty
B) equity
C) preference
D) identity
E) licensing
Answer: B

When a marketer expresses his or her vision of what the brand must be and do for consumers,
they are expressing what is called ________.
A) a brand promise
B) a brand personality
C) a brand identity
D) a brand position
E) a brand revitalization
Answer: A

________ are devices that can be trademarked and serve to identify and differentiate the brand.
A) Brand elements
B) Brand value propositions
C) Brand perceptions
D) Brand images
E) Brand extensions
Answer: A

A ________ is anything that can be offered to a market to satisfy a want or need, including
physical goods, services, experiences, events, persons, places, properties, organizations,
information, and ideas.
A) function
B) product
C) benefit
D) process
E) structure
Answer: B

The five product levels constitute a ________. At each level more customer value is added.
 A) product line
B) business model
C) customer value-hierarchy
D) value grid
E) demand chain
Answer: C

The sellers of ________ goods carry a wide assortment to satisfy individual tastes and must have
well-trained salespeople to inform and advise customers.
A) unsought
B) specialty
C) convenience
D) heterogeneous shopping
E) generic
Answer: D

Marketers have traditionally classified products on the basis of three characteristics: ________,
tangibility, and use.
A) availability
B) affordability
C) aesthetics
D) durability
E) necessity
Answer: D

What types of goods are purchased frequently, immediately, and with minimum effort by the
consumers?
A) specialty goods
B) shopping goods
C) unsought goods
D) durable goods
E) convenience goods
Answer: E

Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper
products. This company has a product ________ of five lines.
A) type
B) length
C) class
D) mix
E) width
Answer: E

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.
A) consistency
 B) depth
C) width
D) length
E) composition
Answer: A

A company positioned in the "middle" market introduces a lower-priced product line. What type
of line-stretching is this?
A) home stretch
B) up-market stretch
C) down-market stretch
D) maintenance stretch
E) two-way stretch
Answer: C

A computer falls into the ________ category of service mix.

A) pure tangible good
B) tangible good with accompanying services
C) hybrid
D) major service with accompanying minor goods
E) pure service
Answer: B

________ 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) Brand engagement
B) Brand orientation
C) Brand elements
D) Brand loyalty
E) Brand equity
Answer: C

When consumers examine products, they often compare an observed price to an internal price
they remember. This is known as a(n) ________ price.
A) markup
B) reference
C) market-skimming
D) accumulated
E) target
Answer: B

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because
the perfume is from a well-known brand. What kind of a pricing is the company depending on?
A) going-rate pricing
B) image pricing
C) market-skimming pricing
 D) target pricing
E) markup pricing
Answer: B

A company that is looking to maximize its market share would do well to follow ________
pricing.
A) markup
B) market-penetration
C) market-skimming
D) survival
E) target-return
Answer: B

When a company introduces a product at a very high price and then gradually drops the price
over time, it is pursuing a ________ strategy.
A) market-penetration pricing
B) market-skimming pricing
C) value-pricing
D) switching cost
E) loss-leader pricing
Answer: B

________ are sets of interdependent organizations participating in the process of making a

product or service available for use or consumption.
A) Marketing channels
B) Interstitials
C) Communication channels
D) Sales territories
E) Marketing terrains
Answer: A

A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-
sized accounts. The firm is using ________ marketing.
A) hybrid
B) pull
C) personalized
D) vertical
E) internal
Answer: A

Which of the following entities is present in a zero-level marketing channel?

A) consumers
B) retailers
C) brokers
D) jobbers
E) wholesalers
 Answer: A

________ includes all the activities in selling goods or services directly to final consumers for
personal, non-business use.
A) Wholesaling
B) Retailing
C) Procurement
D) Promoting
E) Warehousing
Answer: B

Companies who sell products door-to-door or at home sales parties are engaging in ________.
A) franchising
B) network marketing
C) direct-response marketing
D) corporate selling
E) direct marketing
Answer: B

Which of the following elements of the marketing communications mix involves a variety of
short-term incentives to encourage trial or purchase of a product or service?
A) advertising
B) direct marketing
C) public relations
D) personal selling
E) sales promotion
Answer: E

According to the hierarchy-of-effects model, which of the following corresponds to the affective
stage that a buyer passes through?
A) attention
B) exposure
C) reception
D) adoption
E) conviction
Answer: E

________ aims to create liking, preference, conviction, and purchase of a product or service.
A) Corporate advertising
B) Reminder advertising
C) Persuasive advertising
D) Reinforcement advertising
E) Informational advertising
Answer: C

Which of the following advertising practices involves advertisers paying filmmakers to have
their products make cameo appearances in movies and television shows?
A) brand extension
B) flyposting
C) co-branding
D) product placement
E) ambush marketing
Answer: D

A salesperson sends e-mails to persuade prospects to buy the products of his company. This is a
type of ________ marketing.
A) buzz
B) virtual
C) word of mouth
D) direct
E) viral
Answer: D

Which of the following channels is best suited for interactive marketing?

A) television
B) news papers
C) Internet
D) hoardings
E) magazines
Answer: C

You are searching for the details of a refrigerator in Google. When you perform the search,
advertisements by home appliance manufacturers appear above the organic search results
displayed by Google. These advertisements link you to the online appliance store of the
companies. Which of the following terms refer to these advertisements?
A) pay-per-click ads
B) floating ads
C) interstitials
D) superstitials
E) banner ads
Answer: A

A marketer's only concern is how best to create demand for a new product produced by his
company. Improving product design is not his responsibility.
Answer: FALSE

When consumers share a strong need that cannot be satisfied by an existing product, they are
exhibiting latent demand.
Answer: TRUE

The marketing concept stresses on finding the right customers for the company's products.
 Answer: FALSE

A fad is more predictable and durable than a trend.

Answer: FALSE

Customer-perceived value is based on the difference between benefits the customer gets and
costs he or she assumes for different choices.
Answer: TRUE

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a

product's perceived performance to expectations.
Answer: FALSE

People in the same demographic group generally exhibit similar psychographic profiles.
Answer: FALSE

The most constructive response to protecting market share is continuous innovation.

Answer: TRUE

Positioning requires that marketers define and communicate only the differences between
their brand and its competitors.
Answer: FALSE

Points-of-parity are attributes or benefits consumers strongly associate with a brand and
believe that they could not find to the same extent with a competitive brand.
Answer: FALSE

Concept testing means validating the product concept by discussing within the design group.
Answer: FALSE

Viral and buzz campaigns are performed with minimal involvement of consumers and
prospects.
Answer: FALSE

Advertising is the only way companies can tap social networks to their benefit.
Answer: FALSE

Interstitials are advertisements that pop up between changes on a Web site.

Answer: TRUE

Sales promotion consists of a collection of incentive tools designed to mainly stimulate long-
term brand associations of products or services with consumers or the trade.
Answer: FALSE

In the growth stage of a product's life cycle, demand has its own momentum through word of
mouth and interactive marketing.
 Answer: TRUE

The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty
payments.
Answer: TRUE

Cost inflation provokes price increases.

Answer: TRUE

In planning its market offering, the marketer needs to address five product levels, each of
which reduces customer value.
Answer: FALSE

The most attractive segment is one in which entry barriers are low and exit barriers are high.
Answer: FALSE

The process of selecting one or more market segments to enter is called ________.
Answer: market targeting

In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a
haunted house. Disney is marketing a(n) ________.
Answer: experience

All marketing strategy is built on segmentation, targeting, and ________.

Answer: positioning

________ are visual representations of consumer perceptions and preferences.

Answer: Perceptual maps

________ are short, three- to five-word phrases that capture the irrefutable essence or spirit of
the brand positioning and ensure that the company's own employees understand what the brand
represents.
Answer: Brand mantras

Brand ________ is the added value endowed to products and services.

Answer: equity

A ________ is the set of all products and items a particular seller offers for sale.
Answer: product mix

The ________ of the product mix refers to the total number of items in the mix.
Answer: length

Companies design ________ to embody or express their purpose, history, products, and vision
and that are attractive on first viewing and interesting enough to encourage repeat visits.
Answer: Web sites
Apple created a lot of publicity before the release of its tablet computer, i-pad. The product was
discussed in online communities and social networks. Many booked the product in advance,
ensuring good initial revenues for Apple. The company published periodic updates of the product
creating huge expectation in the minds of customers. This pre-launch publicity can be viewed as
________ marketing.
Answer: buzz

Marketers often cut the cost of advertising dramatically by using consumers as their creative
team. This strategy is known as ________.
Answer: crowdsourcing

Companies who sell products door-to-door or at home sales parties are engaging in ________.
Answer: network marketing

Telemarketing is a type of ________.

Answer: direct marketing

In supermarkets and other retail outlets, ________ is used to monitor inventory and track goods.
Answer: RFID

Most retailers will put low prices on some items in order to increase traffic to the store. These
low-priced products are known as ________.
Answer: loss leaders

If demand hardly changes with a small change in price, the demand is said to be ________.
Answer: inelastic

________goods are purchased frequently, immediately, and with minimum effort by the
consumers
Answer: convenience goods

The American Marketing Association defines a ________ as "a name, term, sign, symbol, or
design, or a combination of them, intended to identify the goods or services of one seller or
group of sellers and to differentiate them from those of competitors."
Answer: brand

________ is the differential effect that brand knowledge has on consumer response to the
marketing of that brand.
Answer: Customer-based brand equity
The two basic forms of points-of-parity are ________ and ________.
Answer: category points-of parity; competitive points-of-parity