4) Apex Corporation is one of the best in its industry in terms of costs and

performance. Many companies in its industry will probably consider Apex as a

________.

A) pioneer

B) benchmark

C) target for acquisition

D) future supplier

E) sounding board for ideas

Answer: B

Diff: 1

LO: 2.1: How does marketing affect customer value?

AACSB: Application of knowledge

5) James Frank has been put in charge of gathering marketing intelligence,

disseminating it within his organization, and eventually directing action on the

information. Mr. Frank's task is best described as part of the ________ process.

A) market-sensing

B) new-offering realization

C) customer acquisition

D) customer relationship management

E) fulfillment management

Answer: A

Diff: 3

LO: 2.1: How does marketing affect customer value?

AACSB: Analytical thinking; Application of knowledge

6) When a customer places an order at BookBox.com, the company processes the

customer's payment information, sends the order to the nearest warehouse, and

ships the order via FedEx. This is best described as the ________ process.

A) market-sensing

B) customer acquisition

C) customer relationship management

D) fulfillment management
E) new-offering realization

Answer: D

Diff: 2

LO: 2.1: How does marketing affect customer value?

AACSB: Analytical thinking; Application of knowledge

7) The internal records system supplies results data, but the marketing intelligence system

supplies ________ data.

A) internal

B) revenue

C) thematic

D) happenings

E) process

Answer: D

Page Ref: 71

Objective: 3

Difficulty: Easy

8) A ________ is a set of procedures and sources managers use to obtain everyday information

about developments in the marketing environment.

A) data warehousing system

B) viral marketing campaign

C) product management system

D) marketing intelligence system

E) sales information system

Answer: D

Page Ref: 71

Objective: 3

Difficulty: Moderate

9) A company can take several steps to improve the quality of its marketing intelligence. Which

of the following best describes the practice used by McDonald's when it sent pseudo customers

to assess stores' internal speed standards?

A) training and motivating the sales force to spot and report new developments
B) motivating intermediaries to pass along important intelligence

C) networking externally

D) purchasing information from outside research firms and vendors

E) using the sales information system to get accurate sales reports

Answer: B

Page Ref: 72

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

5) Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are

sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of

________ segmentation.

A) demographic

B) behavioral

C) psychographic

D) geographic

E) cultural

Answer: D

Page Ref: 214

Objective: 2

AACSB: Analytic skills

Difficulty: Moderate

6) When Nike attempts to get close to its customers at the local level by sponsoring local school

teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the

following marketing formats?

A) differentiated marketing

B) affiliate marketing

C) guerrilla marketing

D) affinity marketing

E) grassroots marketing

Answer: E

Page Ref: 214

Objective: 2

AACSB: Analytic skills

Difficulty: Moderate

7) Regardless of the type of segmentation scheme used, the key is adjusting the marketing

program to recognize ________.

A) the level of disposable income earned by the target group

B) customer differences

C) the cost-benefit relationship of narrowing the target market

D) customer complaints

E) saturated markets

Answer: B

Page Ref: 214

Objective: 2

Difficulty: Easy

8) 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

Page Ref: 214

Objective: 2

AACSB: Analytic skills

Difficulty: Easy

7) The ________ defines which other brands a brand competes with and therefore which brands

should be the focus of competitive analysis.

A) consumer profitability analysis

B) competitor indexing

C) service blueprint

D) competitive frame of reference

E) cluster analysis

Answer: D

Page Ref: 276

Objective: 1

Difficulty: Easy

8) ________ refers to the products or sets of products with which a brand competes and which

function as close substitutes.

A) Consumer profitability analysis

B) Competitive frame of reference

C) Category membership

D) Value membership

E) Demand field

Answer: C

Page Ref: 277

Objective: 2

AACSB: Analytic skills

Difficulty: Easy

9) ________ are defined as companies that satisfy the same customer need.

A) Communities

B) Competitors

C) Trendsetters

D) Industries

E) Task groups

Answer: B

Page Ref: 278

Objective: 1

Difficulty: Easy

10) A(n) ________ is a group of firms offering a product or class of products that are close

substitutes for one another.

A) community

B) task force

C) industry
D) focus group

E) umbrella brand

Answer: C

Page Ref: 278

Objective: 1

Difficulty: Easy

66) ________ is the period of slow sales growth and nonexistent profits.

A) Growth

B) Decline

C) Maturity

D) Introduction

E) Stagnancy

Answer: D

Page Ref: 310

Objective: 4

Difficulty: Easy

67) Campbell Soups is a newly established company that specializes in preparing healthy but tasty food for
children under the age of 5 in South California. It is incurring huge productions costs, but earning big profits,
and fast sales growth. The company is in the ________ phase of its life cycle.

A) stagnancy

B) introduction

C) maturity

D) decline

E) growth

Answer: E

Page Ref: 310

Objective: 4

AACSB: Analytic skills

Difficulty: Moderate

68) ________ is a period of getting sustainable profit.

A) Stagnancy

B) Introduction

C) Maturity
D) Decline

E) Growth

Answer: C

Page Ref: 310

Objective: 4

Difficulty: Easy

69) A dance school in the Bronx teaches hip-hop and salsa. It is experiencing an

decrease in student admissions, which its profit is going down. The school is going through the ________
phase of its life cycle.

A) decline

B) stagnancy

C) growth

D) introduction

E) maturity

Answer: A

Page Ref: 310

Objective: 4

AACSB: Analytic skills

Difficulty: Moderate

39) Realizing that although household products is a huge category, taking up an entire

supermarket aisle or more, it is an incredibly boring one, the founders of Method Products

designed a sleek, uncluttered dish soap container that also carried functional advantages, such as

ease of dispensing soap and cleaning. Method is competing in the crowded market for household

products on the basis of superior ________.

A) design

B) durability

C) conformance

D) reliability

E) performance quality

Answer: A

Page Ref: 332

Objective: 3

AACSB: Analytic skills

Difficulty: Difficult

10) Which of the following are tangible goods that normally survive many uses?

A) generic goods

B) durable goods

C) core benefits

D) convenience goods

E) unsought goods

Answer: B

Page Ref: 327

Objective: 1

AACSB: Analytic skills

Difficulty: Easy

11) Because ________ are purchased frequently, marketers should make them available in many

locations, charge only a small markup, and advertise heavily to induce trial and build preference.

A) nondurable goods

B) durable goods

C) services

D) unsought goods

E) specialty goods

Answer: A

Page Ref: 327

Objective: 1

Difficulty: Easy

12) 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

Page Ref: 327

Objective: 1

Difficulty: Moderate

5) Which of the following is an example of a hybrid service?

A) teaching

B) car

C) restaurant meal

D) soap

E) air travel

Answer: C

Page Ref: 357

Objective: 1

Difficulty: Easy

6) A flight with complementary drinks is an example of a ________.

A) major service with accompanying minor goods and services

B) pure service

C) pure tangible good

D) tangible good with accompanying services

E) hybrid

Answer: A

Page Ref: 357

Objective: 1

Difficulty: Easy

7) Which of the following is an example of a pure service?

A) air travel

B) psychotherapy

C) baby oil

D) a laptop

E) a restaurant meal

Answer: B

Page Ref: 357

Objective: 1

Difficulty: Easy
8) Which of the following is true for services?

A) All services are people-based, while goods are equipment-based.

B) Service providers can be both for-profit or nonprofit.

C) All service companies follow the same process to deliver their services.

D) The client's presence is a hindrance during the service delivery process.

E) Service providers develop similar marketing programs for personal services and business

services.

Answer: B

Page Ref: 357

Objective: 1

Difficulty: Easy

8) 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

Page Ref: 388

Objective: 1

Difficulty: Easy

11) After determining its pricing objectives, what is the next logical step a firm should take in

setting its pricing policy?

A) It should analyze its competitors' costs, prices, and offers.

B) It should select its pricing method.

C) It should select its final price.

D) It should determine the demand for its product.

E) It should estimate the cost of its product.

Answer: D

Page Ref: 389

Objective: 2

Difficulty: Easy

12) A firm that is plagued with overcapacity, intense competition, or changing wants would do

better if it pursues ________ as its major objective.

A) market skimming

B) product-quality leadership

C) survival

D) profit maximization

E) market penetration

Answer: C

Page Ref: 389

Objective: 2

Difficulty: Easy

13) After estimating the demand and costs associated with alternative prices, a company has

chosen to price its product in such a way that it gains the highest rate of return on its investment.

The company is looking to ________.

A) maximize its market share

B) skim the market

C) become a product-quality leader

D) survive in the market

E) maximize its current profit

Answer: E

Page Ref: 389

Objective: 2

Difficulty: Easy