MGT301 Quiz 1 theme 1-6 Spring 2022 /mgt301 midterm quiz file

 

Dear Students,

This is to inform that Quiz No. 1 will be opened on June 20, 2022 and last date to attempt quiz will be June 22, 2022.

Quiz No.1 will be taken from Theme No.1 , Theme No.2 and Theme No.3 (Video Lectures Included: 1 till 46).

 In a retailer cooperative, independent retailers contract with each other to set up a central buying operation and conduct joint promotional efforts.

TRUE

Retailers first must position themselves in a market and then decide how they  will define the target customers in these markets.

FALSE

 To create the right atmosphere, some retailers control every aspect of the

consumer's store experience, including what customers hear and smell.

 TRUE

 Power centers are decreasing in number.

FALSE

 The wheel-of-retailing concept deals mainly with wholesalers rolling out

reduced service levels.

FALSE

The life cycle of new retail forms is getting longer.

FALSE

Retail convergence means greater competition for retailers and greater difficulty in differentiating offerings.

TRUE

Megaretailers have shifted the balance of power between retailers and producers, giving retailers more power.

TRUE

 Like retailers, a wholesaler must decide on segmentation and targeting,

differentiation and positioning, and the marketing mix.

 TRUE

 In an automated warehouse, orders are fed directly from the retailer's

information system to the wholesaler's, and the items are picked up by

mechanical devices and taken to a shipping platform where they are assembled.

 TRUE

Full-service retailers such as JC Penney provide more sales assistance because they carry more shopping goods about which customers need information.

FALSE

Limited-service retailers, such as specialty stores and first-class department

stores, employ salespeople who assist customers in every phase of the shopping

process.

FALSE

Factory outlets, independent off-price retailers, and warehouse clubs all buy

their merchandise in a similar fashion.

 TRUE

 Unlike mass marketers, niche marketers expect to see continued growth in their online sales.

 FALSE

 The distinction between large retailers and large wholesalers is changing because most large wholesalers are abandoning their retail operations.

FALSE

A service is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.

FALSE

 Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

 FALSE

Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

 TRUE

Style is a larger concept than design. Design describes the appearance of a product.

 FALSE

 Branding can add consumer value to a product.

 TRUE

 Because so many purchase decisions are made in stores, a product's packaging may be a seller's last and best chance to influence consumers.

 TRUE

 Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics.

 FALSE

 Cannibalization and customer confusion about product differentiation are two potential results if line filling is overdone.

 TRUE

 A company can stretch its product either upward or downward, but not both directions.

 FALSE

A company might stretch its product line upward to add prestige to its current products.

 TRUE

A company's product mix has four important dimensions: width, length, depth, and consistency.

 TRUE

 Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided.

 FALSE

 In a service business, the customer and front-line service employee interact to create the service.

 TRUE

The service-profit chain is the set of all product lines and items that a particular seller offers for sale.

FALSE

 One aspect of managing service differentiation is the company's service delivery.

 TRUE

ObjeCustomer retention is perhaps the best measure of quality?a service firm's ability to hang on to its customers depends on how consistently it delivers value to them.

 TRUE

Good service recovery can turn angry customers into loyal customers and can even win more customer purchasing and loyalty than if no problem had occurred in the first place.

 FALSE

 Attributes are the least desirable level for brand positioning because competitors can easily copy attributes and customers are more interested in what attributes will do for them than in the attributes themselves.

 TRUE

 

 When a company introduces a new brand name in the same product category, it is called line extension.

 FALSE

 Customers come to know a brand through a wide range of contacts and touch points, including word of mouth, personal interactions with company people, telephone interactions, and company Web pages.

 TRUE

Sony offers consumers more than just camcorders; it provides consumers with a complete solution to their picture-taking problems. This offering is called an augmented product. 

 TRUE

 Quaker produces a variety of cereals. This variety is called its product line.

 TRUE

An example of service variability is that within a given Marriott hotel, one registration-desk employee may be cheerful and efficient, whereas another may be unpleasant and slow. 

 TRUE

Dove marketers can go beyond the brand's cleansing cream properties and talk about the resulting benefit of softer skin. This is known as product attributes in brand positioning.

 FALSE

Retailers and wholesalers who have created their own brands?

such as Walmart's Sam's Choice beverages and food products?are participating in co-branding.

 FALSE

Companies tend to set a pricing structure, rather than a single price, that covers different items in its line.

True

Companies that set a low initial price in order to get their "foot in the door" quickly and deeply, attract a large number of buyers quickly, and win a large market share practice market-skimming pricing.

False

Pricing often plays an important role in helping to accomplish a company's multi-level objectives.

True

Melt-In-Your-Mouth Candy Stores prices its candy displays at ten different price levels, ranging from $2.00 per pound to $4.95 per pound. This is an illustration of price points.

True

Target costing reverses the usual marketing process.

True

Overhead cost is another term for variable cost.

False

 When a major moving van company sells accessory products that must be used in moving a household's furniture, it is practicing captive-product pricing. 

True

Some industries commonly use two-part pricing, where the price is broken down into a fixed fee and a fixed usage rate.

False

In industrial markets, salespeople outrank top management in determining the sales price of products.

False

In industrial markets, product managers have an influence on the company's price-setting decisions.

True

Environmental elements are categorized as external factors that affect pricing decisions. 

True

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering them, it is able to reduce the main product's price to make it more competitive.

True

In a regulated monopoly, the government permits the company to set rates that will yield a "fair" return.

True

 Nonregulated monopolies do not always charge the full price because they do not desire to attract competition.

True

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged. In normal cases, the higher the price, the higher the demand.

False

If demand changes greatly, we say the demand is inelastic.

False

The more elastic the demand, the more it pays for the seller to raise the price.

False

If Canon Camera Company follows a high-price, high-margin strategy, it may attract competition from Nikon, Minolta, and Pentax.

True

Product costs set a floor to the price; consumer perceptions of the product's value set the ceiling.

True

All companies today now realize how valuable their by-products are for resale.

False

The six major price-adjustment strategies include discount and allowance pricing, segmented pricing, psychographic pricing, promotional pricing, geographical pricing, and international pricing.

False

Value-based pricing is when costs vary directly with the level of product.

Fals

Value-based pricing is the reverse of cost-based pricing.

True

EDLP is very similar to competition-based pricing.

Fals

Competitors' prices and offers are external factors that companies have to deal with.

True

Demand and consumer value perceptions set the floor for prices.

False

The difference between a discount and an allowance is that a discount is in its simplest terms a reduction in price.

False

Cost-based pricing relies on consumer perception of value to drive pricing.

False

A break-even chart shows the total cost and total revenue expected at various sales volume levels.

True

The societal marketing concept call on marketers to balance consumer wants and desires, company profits, and society's interest.

True 

Customer value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

 True 

Demarketing is a marketing philosophy focused upon product differentiation and positioning

 True 

Your accounting department must measure revenues and costs to help the marketing department know how well it is achieving its objectives.

True 

When sellers focus on existing needs and lose sight of the underlying customer wants, they suffer from marketing myopia.

True 

Most firms follow the production concept when they face overcapacity.

False 

The significant trends in the natural environment include shortages of raw materials and increased pollution

True 

When firms take aggressive action to affect the public and forces in their marketing environment, they are taking an environmental management perspective.

True 

At times it becomes necessary to reduce demand for some products and services. When the government tries to reduce the smoking of tobacco products, it adds more tax to the products and is practicing demarketing. 

True 

Marketing management is interested in serving all customers in every way to remain competitive in today's markets.

True 

Product, Price, Place and promotion make up the elements of a firm's marketing mix.

 True 

The simplest definition of modern marketing is managing profitable customer rleationships.

True

 

Customer-perceived value depends on the product's perceived performance relative to a buyer's expectations.

True

 

When backed by buying power, needs become demands.

True 

Characteristics such as age, gender, and marital status are known as ___

Biographical characteristics

 ___ works on supposition that consumers/customers buy products which fulfill their needs.

 Marketing concept 

 

Which of the following options refers to the activities that are associated with planning, pricing, promoting and distributing the product or service?

 Marketing 

 ___ focuses on making every possible sale of the product, regardless of the need of customer.

 Selling concept 

___ focuses on making better-quality products for their customers.

Product concept 

Marketing is a process which aimed at ___

Satisfaction of consumer needs/wants 

The ___ is a marketing concept that holds that the company makes its marketing decisions by considering consumer's needs and, wants and society's long term interests.

 Societal Marketing 

 

 A transaction involves ___

 All of given 

Delivering customer satisfaction in return of profit is known as:

Marketing 

Building, keeping and growing profitable value-laden relationships with all customers of a company refers to which of the following options?

Customer relationship management 

The 4 P's of marketing are the product, price, place, and promotion. Occasionally marketers consider two more P's. These are:

People and Profits 

All of the following are the actors of micro environment EXCEPT:

Demographic environment 

All of the following are the forces of macro environment EXCEPT:

 Public 

 

All of the following are the types of public's EXCEPT:

Suppliers 

Which of the following is known as the providers of resources to produced goods and services?

Suppliers 

 

All of the following are actors of political environment EXCEPT:

 Marketing intermediaries 

All of the following are indicators of economic environment EXCEPT:

Gender ratio 

All of the following are indicators of demographic environment EXCEPT:

Per capita income 

Which of the following micro environment actors help the company to promote, sell and distribute its products to final buyers?

Marketing intermediaries 

In which of the following marketing channels no intermediaries involves to make their products available to final buyers?

Direct channel 

In macro environment, 'pressure groups' and 'government agencies' are part of:

 Political environment 

Expanding fields of health care, space, robotics, and bio-genetic industries refers to which of the following environment?

Technological environment 

Marketing stimuli consist of:

 All of given 

Which of the following is not an environmental stimulus?

Price factor 

Which of the following is the part of buyer's black box?

 Buyer's characteristics

Which of the following is NOT the part of cultural factors?

 Family 

 

Which of the following is NOT the part of personal factors?

Roles and status 

 Which of the following is NOT the part of psychological factors?

Self-concept 

Which of the following best describes Upper class?

 Social elite who live on inherited wealth 

 Which of the following best describes the group which the consumers are inspired with, compare themselves with them and want to be like them?

Reference group 

Which of the following needs does not belong to Maslow's hierarchy of needs?

Cultural needs 

Which of the following best describes the process by which people select, organize, and interpret information to form a meaningful picture of the world?

Perception

The tendency of consumers to remember good point made about a brand they favor and forget good points made about competing brands is called:

Selective retention 

Which of the following buying behavior is undertaken by buyers when they are highly involved in purchase process and there are significant perceived differences among brands?

Complex buying behavior 

Which of the following buying behavior is undertaken by buyers when they are highly involved with an expensive, risky and infrequent purchase but there are few perceived differences among brands?

Dissonance reducing buying behavior

Which of the following buying behavior is undertaken by buyers in purchase of grocery items?

Habitual buying behavior 

 

Which of the following buying behavior is undertaken by buyers in purchase of sports car?

Complex buying behavior

Which of the following buying behavior is undertaken by buyers in purchase of biscuits?

Variety seeking buying behavior 

Which of the following is NOT the part of social factors?

Family 

The group which has a direct impact on consumer's purchasing behavior is called:

Membership group 

The tendency of people to interpret information in a way that will support what they already believe is called:

Selective distortion 

Which of the following buying behavior is undertaken by buyers in purchase of carpet?

Dissonance buying behavior 

 

Examples of business markets include which one of the following options?

All of given 

Which of the following markets deal with few customers and generate more revenue?

Business markets 

The business markets have ___ buyer and seller dependency on each other as compared to consumer markets.

Strong 

The business buying process is more complex than consumer buying process because it requires:

 All of given

  

In business buying behavior model, which of the following marketing stimuli affect the buying organization which leads to generate buyer responses?

 All of given 

In which of the following buying situations, the buyer purchases a product or service for the first time?

 New task 

In which of the following buying situations, the buyer wants to amend product specifications, prices, terms, or suppliers?

Modified rebuy

In which of the following buying situations, the buyer routinely reorders something without any amendments?

Straight rebuy 

Which of the following participants are involved in the business buying decision process?

All of given

All of the following participants are involved in the business buying decision process EXCEPT:

Rack jobbers

Most marketers today believe they still lack a sufficient quantity of research data to make high-quality decisions.

FALSE

The real value of marketing research and information lies not in quantity but in the customer insights provided.

TRUE

 Customer needs and buying motives are typically obvious to marketers.

FALSE

An effective MIS assesses information needs, develops needed information, and distributes the information to help managers use it in decision making.

TRUE

Too much marketing information can be as harmful as too little.

TRUE

 When you glean information from your company's accounting and sales records stored in the computer, you are developing an internal database.

TRUE

 You have just extracted sales and cost data used by the accounting department for preparing financial statements. Most likely, this information is complete and in useable form to build an internal marketing database.

FALSE

Data age quickly, so keeping the database current requires dedicated resources.

TRUE

Major suppliers and resellers are not important sources of intelligence information for marketing decision making.

FALSE

Your manager asked you to go through three of your competitors' garbage bins to gather marketing intelligence from their discarded paperwork. One of them caught you in the act and has summoned you to court. The judge will most likely rule this to be an illegal activity and fine you and your company.

FALSE

In the last decade, Coach has ignored marketing research when designing new bags.

 True

Many analysts believe that Coach’s exhaustive market research has failed to pay off. 

True

Today, marketing managers are viewing research information not only as an input for making internal decisions but also as an input for external partners.

True

Most marketers today believe they still lack a sufficient quantity of research data to make high-quality decisions.

 False

 An effective MIS assesses information needs, develops needed information, and distributes the information to help managers use it in decision making.

 True

 

Too much information can be as harmful as too little.

 True

When you glean information from your company’s accounting and sales records stored in the computer, you are developing an internal database.

 True

 

You have just extracted sales and cost data used by the accounting department for preparing financial statements. Most likely, this information should be complete and in useable form to build an internal marketing database.

 False

 

 It is important to note that data age quickly, and keeping the database current requires a major effort.

True

 After carefully questioning your major suppliers and resellers, you ascertain they do not form important sources of intelligence information for marketing decision making.

 False

Your manager asked you to go through three of your competitors’ garbage bins to gather marketing intelligence from their discarded paperwork. One of them caught you in the act and has summoned you to court. The judge will most likely rule this to be an illegal activity and fine you and your company.

False

Good sources of marketing intelligence information include competitors’ annual reports, business publications, trade show exhibits, press releases, advertisements, and Web pages. 

True

Your firm faces determined marketing intelligence efforts by competitors. You take the typical response by “letting it ride.”

 False

 

Marketing research is conducted to systematically design, collect, and report data directly relevant to a specific marketing situation facing the organization.

False

The research and development department just released a report and commented that “Defining the problem and research objectives is often the hardest step in the research process.”

 True

Once the research problems and objectives have been defined, researchers must determine the exact information needed and present it to management.

False

After conducting formal marketing research for your department, you make an oral presentation with notes to management. You are following normal marketing research steps.

 False

Marketing researchers can conduct their own searches of secondary data sources today by using commercial secondary data sources.

 True

Secondary data provide good starting points and often help to define problems and research objectives, though most companies must also collect primary data.

 True

ABC Interior Designs wants to collect research data through mechanical observation. The three typical methods are video cameras, checkout scanners, and Internet cookies. 

 False

 A single-source data system uses huge consumer panels and electronically monitors survey respondents’ purchases and exposure to various marketing activities.

 True

Focus groups use no interviewer to bias the answers, may produce more honest answers, and can be used to collect large amounts of data at a low cost per respondent.

 False

You have decided upon a method of collecting research data with flexible interviewing, whereby trained interviewers can explain difficult questions and explore issues as the situation requires. Audio-visual aids can also be used. We refer to this as focus group interviewing.

 Fals

Parley Trade Shows wants to use the latest technology in marketing research. You are told this method is online (Internet) marketing research.

 True

Ideally, a sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population.

 True

You want to calculate confidence limits for sampling error. It would be best to use nonprobability samples.

 False

Marketers all agree that questionnaires are the most common research instrument. 

True

The researcher interprets findings, draws conclusions, and reports those conclusions to management. Ideally, we should present important findings that are useful to the major decisions faced by management to prevent overwhelming them. 

True

You have just identified the “touch points” of the 400 best customers in your database. At this point, you want to manage detailed information about each of them to maximize customer loyalty. You should use customer relationship management (CRM).

True

Buy-It-Lower Stores has gained many benefits from CRM. If this company is typical, it will realize how to provide higher levels of customer service and develop deeper customer relationships. Management can also pinpoint low-value customers and begin to eliminate them while tailoring offers to specific customers. 

 False

The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others is referred to as 

business marketing

Organizational buyers include manufacturers, wholesalers, retailers, and government agencies

 That buy goods and services for their own use or resale

 

Which of the following statements represents an organizational buying decision?

The owner of a fried chicken restaurant hires a snow removal service to keep the parking lot clear.

Organizational buyers can be divided into three different markets. They are 

 industrial, reseller, and government markets.

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with finance, insurance, real estate businesses, and __________, communication and public utility firms, as well as not-for-profit organizations, these firms represent about 75 percent of all industrial firms.

 transportation

 Product, price, place and promotion make up the elements of a firm’s marketing mix.

 True 

Selling is managing profitable customer relationships.

 False 

Human needs are shaped by culture and individual personality.

 False 

 

The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

True 

When backed by buying power, needs become demands.

False 

At times it becomes necessary to reduce demand for some products and services. When the government tries to reduce the smoking of tobacco products, it adds more tax to the products and is practicing demarketing.

True

 Demarketing is a marketing philosophy focused upon product differentiation and positioning.

 False

 Marketers of products, services, and ideas only practice marketing, whereas buyers do not.

False

Marketing offers are limited to physical products.

False

Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships.

True

An exchange is the core concept of marketing, whereas a transaction is marketing’s unit of measurement.

True 

Customer-perceived value depends on the product’s perceived performance relative to a buyer’s expectations.

False 

Marketing management is interested in serving all customers in every way to remain competitive in today’s markets. 

False 

The difference between human needs and wants is that needs are states of felt deprivation.

A. True

B. False

The selling concept holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

 True  

 

Customer value is defined as the customer’s evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

True 

 The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society’s interest.

 True

  

 When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.

 False

  

 Smart marketers look beyond the attributes of the products and services they sell. They create brand experiences for consumers.

True 

When backed by buying power, wants become demands.

True 

Raheela works for the Aftab Beverage Company. She helps define product specifications and also provides information for evaluating alternatives. Raheela plays the role of gatekeeper.

False

Rachel Stein works for the LeBray Beverage Company. She helps define product specifications and also provides information for evaluating alternatives. Rachel plays the role of gatekeeper. 

 FALSE

In the proposal solicitation stage of the business buying process, the buyer invites qualified suppliers to submit proposals.

True 

Mission statements must fit the market environment, as indicated here by the Girl Scouts’ mission: “where girls grow strong.”

True 

Mission statements must fit the market environment, as indicated here by the Girl Scounts of American’s mission: “where girls grow strong.”

 True

The central question for marketers is how do consumers respond to various marketing efforts the company might use? The starting point is called the stimulusresponse of buyer behavior.

 True 

Five characteristics are especially important in influencing an innovation’s rate of adoption. Two of these are relative advantage and compatibility.

 True 

The macroenvironment consists of the factors close to the company that affect its ability to service its customers, such as suppliers, customer markets, competitors, and publics.

 False

Sarwar Incorporation wants to use the latest technology in marketing research. You are told this method is online (Internet) marketing research.

 True 

When firms take aggressive action to affect the publics and forces in their marketing environment, they are taking an environmental management perspective.

 True 

Marketing researchers can conduct their own searches of secondary data sources today by using commercial secondary data sources.

True 

In the supplier selection stage, the buyer reviews supplier performance.

False

In the supplier selection stage the buyer reviews supplier performance. 

False

The production concept and product concept are two philosophies that can both lead to marketing myopia.

 True 

Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting.

 False 

ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement.

True 

Marketing management is interested in serving all customers in every way to remain competitive in today’s markets. 

False 

Today’s marketers must be good at building relationships in order to connect effectively with customers, other in the company, and external partners.

True 

When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.

True 

The demand for many business goods tends to change more slowly than the demand for consumer goods.

False 

A company buying a product or service for the first time faces a new task situation.

True 

As an employee of Bankers Enterprises, you market wild and crazy games for teens to play at parties. You work in the business market.

False 

More and more companies are shifting their brand management focus toward customer relationship management.

True 

An exchange is the core concept of marketing, whereas a transaction is marketing’s unit of measurement.

True 

Marketing strategy is the marketing logic by which a company hopes to achieve profitable customer relationships.

True 

Most household income is used up in purchasing food, housing, and transportation.

True 

Demarketing is a marketing philosophy focused upon product differentiation and positioning.

False 

After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in post purchase behavior.

True 

Revlon has clearly defined its “mission” of selling lifestyle and self- expression. As the firm prepares to launch its strategic plan, the mission needs to be turned into a detailed set of objectives that guide the whole company.

True 

Making more sales to current customers without changing a firm’s products in market penetration.

True 

The owner of 21-store chain of bicycles, explained to the store managers at a recent sales meeting that marketers, more than any other group in the company, must be the trend trackers and opportunity seekers.

True 

Marketing research firms, advertising agencies, media firms, and marketing consulting firms are referred to as marketing services agencies.

True 

After carefully questioning your major suppliers and resellers, you ascertain they do not form important sources of intelligence information for marketing decision making.

False 

Business demand ultimately derives from the demand for consumer goods.

True 

The buying center is a fixed and formally identified unit within the buying organization.

 False 

You have just extracted sales and cost data used by the accounting department for preparing financial statements. Most likely, this information should be complete and in useable form to build an internal marketing database.

 False 

The microenvironment consists of larger societal forces that affect the microenvironment, such as demographic, economic, political, and cultural forces.

False

The difference between human needs and wants is that needs are states of felt deprivation.

True 

The collection of businesses and products that make up a company is called its marketing strategy.

False 

Too much information can be as harmful as too little.

 True 

 Within the organization, buying activity consists of two major parts: the buying center and the buying decision process.

 True 

Alternative evaluation is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

False 

According to Engel’s laws, consumers tend to spend a smaller percentage of income on food as income rises.

 False

Business buyers are subject primarily to economic influences when they make their buying decisions. Emotional or personal factors rarely are involved. 

True 

Tanveer Jafer works for a firm that is a distribution channel member that helps the company find customers or make sales to them. Tanveer works for a reseller.

True 

Selling is managing profitable customer relationships.

 False

In the Boston Consulting Group approach, relative market share serves as a measure of company strength in the market.

 False

 

Derived demand refers to the business demand that ultimately comes from the demand for consumer goods.

True 

 Strategic control involves looking at whether a company’s basic strategies are well matched to its opportunities.

a. True (Answer: True; p. 57; Moderate) b. False

47. Influencers often help define specifications and also provide information for evaluating

alternatives.

a. True (Lesson no 16 Page no 76 Old Handouts) b. False

48. In the business buying process, the buyer and seller are relatively less dependent on each

other.

a. True b. False (Lesson no 16 Page no 75 Old Handouts)

49. A person’s buying choices are further influenced by four major psychological factors:

motivation, perception, learning, and beliefs and attitudes.

a. True (Answer: True; p. 138; Easy) b. False

50. All business buying decisions follow all steps of the business buying process. (Doubtful)

a. True b. False

51. At Air Online, “we provide online services,” is a market-oriented business definition.

a. True b. False

At America Online, “we provide online services,” is a market-oriented business

definition. (Answer: False; p. 38; Moderate)

52. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

True 

 Environmental concerns have been on the decline in the past decade; government legislation and the green movement may be the cause of this trend.

 False 

54. When a consumer learns about a new product for the first time and time

makes a decision to try it, it is called the alternative evaluation process.

a. True b. False (Answer: False; p. 142; Moderate)

55. The consumer’s purchase decision will be to buy the most preferred brand, but

two factors can come between the purchase intention and purchase decision.

The first factor is need recognition.

a. True b. False (Answer: False; p. 143; Moderate)

56. Most businesses that manufacture products for the consumer market also sell

directly to consumers.

a. True b. False

57. Early adopters are guided by respect; they are opinion leaders in their

communities and adopt new ideas early but carefully.

a. True (Answer: True; p. 146; Moderate) b. False

58. Dissonance-reducing buying behavior occurs when consumers are highly

involved with an expensive, infrequent, or risky purchase but see a lot of

difference among brands.

a. True b. False (Answer: False; p. 144; Challenging)

59. Social classes are society’s relatively permanent and ordered divisions whose

members share similar values, interests, and behaviors.

a. True (Answer: True; p. 132; Easy) b. False

60. Your manager asked you to go through three of your competitors’ garbage bins

to gather marketing intelligence from their discarded paperwork. One of them

caught you in the act and has summoned you to court. The judge will most

likely rule this to be an illegal activity and fine you and your company.

a. True b. False (Answer: False; p. 101; Challenging)

61. Product, price, place and promotion make up the elements of a firm’s marketing

mix.

 a. True True (Confirm) (100% Sure) b. False

62. Strategic market planning is the task of selecting an overall company strategy

for long-run survival and growth.

 a. True (Answer: True; p. 54; Moderate) b. False

63.At times it becomes necessary to reduce demand for some products

and services. When the government tries to reduce the smoking of

tobacco products, it adds more tax to the products and is practicing

 demarketing.

 a. True (True; Easy; p. 11) b. False

64. Smart marketers look beyond the attributes of the products and services

they sell. They create brand experiences for consumers.

a. True (True; Moderate; p. 6) b. False

65. It is important to note that data becomes old/age quickly, and keeping

the database current requires a major effort.

a. True (Answer: True; p. 99; Easy) b. False

66. When your marketing manager discussed factors and forces outside

marketing that affect marketing management’s ability to build and maintain

successful relationships with target customers, you knew that she was talking

about the external marketing concept.

a. True b. False (False; Moderate; p. 107)

67. The early majority are deliberate; although they rarely are leaders, they

adopt new ideas before the average person.

a. True (Answer: True; p. 146; Moderate) b. False

68. In general, innovators tend to be relatively older, more mature, and have a

lower income than late adopters.

a. True b. False (Answer: False; p. 146; Challenging)

69. Customer-perceived value depends on the product’s perceived performance

relative to a buyer’s expectations.

 a. True True (Theme 1 page 1) (100% Sure) b. False

70. Marketing research is conducted to systematically design, collect, and

report data directly relevant to a specific marketing situation facing the

organization.

a. True b. False (Answer: False; p. 102; Moderate)

71. The first step in strategic planning is to define the company mission.

 (Answer: True; p. 37; Moderate) a. True b. False

72. Almost all major purchases result in cognitive dissonance, or discomfort

caused by post purchase conflict.

a. True (Answer: True; p. 144; Easy) b. False

73. Significant reasons for business laws to be enacted include protecting the

interests of society, protecting consumers, and protecting companies from

each other.

a. True (True; Easy; p. 125) b. False

74. The order-routine specification includes the final order with the chosen

supplier or suppliers and lists items such as technical specifications,

quantity needed, expected delivery time, return policies, and warranties.

a. True (Lesson no 16 Page no 79 Old Handouts) b. False

75. People differ greatly in their readiness to try new products. In each product

area, there are “consumption pioneers.” They are also called laggards.

a. True b. False (Answer: False; p. 146; Challenging)

76. A market segment consists of consumers who respond in different ways to a

given set of marketing efforts.

a. True b. False (Answer: False; p. 50; Moderate)

77. The selling concept holds that consumers will not buy enough of the firm’s

products unless it undertakes a large-scale selling and promotion effort.

a. True (True; Easy; p. 12) b. False

78. Marketing offers are limited to physical products.

a. True b. False (100% sure)

79. Today’s marketers recognize the importance of working with their

intermediaries as channels through which they sell their products rather

than as mere products.

a. True b. False False (Confirm) (100% Sure)

80. Your firm faces determined marketing intelligence efforts by competitors.

You take the typical response by “letting it ride.”

a. True b. False (Answer: False; p. 101; Easy)

81. In the general needs description of the buying process, the buyer describes

the characteristics and quantity of the needed item.

a. True (Page Ref: 175 TRUE 17) b. False

82. The significant trends in the natural environment includes shortages of raw

materials and increased pollution.

a. True

b. False (False; Challenging; p. 123)

83. Mission statements should both fit the market environment and be

motivating.

a. True (Answer: True; p. 39; Easy) b. False

84. The main differences between business and consumer markets are in market

structure and demand, the nature of the buying unit, and the types of

decisions and the decision process involved.

a. True (Lesson no 16 Page no 74 Old Handouts) b. False

85. The research and development department just released a report and

commented that “Defining the problem and research objectives is often the

hardest step in the research process.”

a. True (Answer: True; p. 102; Easy) b. False

86. Delivering superior customer value and customer satisfaction are the two keys

to building lasting customer relationships.

a. True b. False

87. Your accounting department must measure revenues and costs to help the

marketing department know how well it is achieving its objectives.

a. True (True; Easy; p. 108) b. False

88. After conducting formal marketing research for your department, you make

an oral presentation with notes to management. You are following normal

marketing research steps.

a. True b. False (Answer: False; p. 102; Moderate)

89. Although consumers in different countries have different values, attitudes,

and behaviors, the products they buy are very similar to each other.

a. True b. False (Answer: False; p. 148; Challenging)

90. Customer value is defined as the customer’s evaluation of the perceived

difference between all the benefits and all the costs of a marketing offer

relative to those of competing offers.

 a. True True (Theme 1 page 8) (100% Sure) b. False

91. The simplest definition of modern marketing is managing profitable customer

relationships.

 a. True (True; Easy; p. 5) b. False

92. Marketing mix is the set of uncontrollable, marketing tools that the firm can

use to influence the demand for its products.

 a. True b. False (Answer: False; p. 52; Moderate)

93. An effective MIS (Marketing Information System) assesses information

needs, develops needed information, and distributes the information to help

managers use in decision making.

a. True (Answer: True; p. 98; Moderate) b. False

94. Marketers of products, services, and ideas only practice marketing, whereas

buyers do not.

 a. True b. False

95. In a straight rebuy, the buyer wants to alter product specifications, prices,

terms, or suppliers.

 a. True b. False (Lesson no 16 Page no 76 Old Handouts)

96. Human needs are shaped by culture and individual personality.

a. True b. False (Lesson no 2 Page no 10 Old Handouts)

97. Secondary data provide good staring points and often help to define problems

and research objectives, though most companies must also collect primary data.

 a. True (Answer: True; p. 105; Moderate) b. False

98. Gatekeepers have formal or informal power to select or approve the final

suppliers.

 a. True b. False

Gatekeepers have formal or informal power to select or approve the final suppliers.

Answer: FALSE Skill:

Concept

Objective: LO 6.2: Identify the major factors that influence business buyer behavior.

Difficulty: Easy

99. Consumer organizations such as environmental and minority groups may

question a company’s marketing decisions. This type of public is called the

local public.

a. True b. False (False; Moderate; p. 110)

100. When railroad companies thought that users wanted trains rather than

transportation and overlooked the growing challenge of other modes of

transportation they were following the selling concept.

a. True

b. False False (Confirm) (Correct Product Concept) (100% Sure)

101. The reason the demographic environment is of major interest to marketers is

because it involves people, and people make up markets.

a. True True (Confirm) (100% Sure) b. False

102. Mission statements should be realistic and general in nature.

 a. True b. False (Answer: False; p. 39; Moderate)

104. The newer the buying task, and the more complex and costly the item, the

lesser the amount of time the buyer will spend searching for suppliers.

a. True b. False (Lesson no 16 Page no 79 Old Handouts)

105. Guided by marketing strategy, the company designs a marketing mix

made up of factors under its control-product, price, place, and promotion.

a. True (Answer: True; p. 52; Moderate) b. False

106. An SBU can be a company division, a product line within a division or

sometimes a single product or brand.

a. True (Answer: True; p. 40; Easy) b. False

107. A belief is the specific mix of human traits that may be attributed to a

particular brand.

a. True b. False (Answer: False; p. 141; Moderate)

108. “At Nike, we sell shoes” is a market-oriented business definition.

a. True b. False (Answer: False; p. 38; Moderate)

109. When backed by buying power, needs become demands.

a. True

b. False (Lesson no 2 Page no 11 Old Handouts and Lesson no 44 Page no 222 Old

Handouts)

110. When backed by buying power, wants become demands.

a. True (Lesson no 2 Page no 11 Old Handouts and Lesson no 44 Page no 222 Old

Handouts) b.

False

111. A dissonance reducing buying behavior is designed to probe consumers'

hidden, subconscious motivations.

a. True b. False (Answer: False; p. 145; Challenging)

112. Consumer buying behavior refers to the buying behavior of businesses.

a. True b. False (Answer: False; p. 128; Easy)

113. The researcher interprets findings, draws conclusions, and reports those

conclusions to management. Ideally, we should present important findings

that are useful to the major decisions faced by management to prevent

overwhelming them.

a. True (Answer: True; p. 113; Moderate) b. False

114. Good sources of marketing intelligence information includes competitors,

annual reports, business publications, trade show exhibits, press releases,

advertisements, and Web pages.

a. True (Answer: True; p. 101; Moderate) b. False

116. Who is our target market and what's our value proposition are two

important questions underlying marketing strategy.

a. True True (Theme 1 page 7) (100% Sure) b. False

117. The societal marketing concept calls on marketers to balance consumer

wants and desires, company profits, and society's interests.

a. True True (Theme 1 page 6) (100% Sure) b. False

118. Most firms follow the production concept when they face overcapacity.

a. True b. False False (Theme 1 page 5) (100% Sure)

119. A company with limited resources might decide to serve all segments of a

market.

a. True b. False (Answer: False; p.50; Moderate)

120. At Air Online, “we create customer connectivity, anytime, anywhere.” is a

product-oriented business definition.

a. True b. False

 At America Online, “we create customer connectivity, anytime, anywhere.”

is a product-oriented business definition. (Answer: False; p.38; Moderate)

121. The image a product reflects in the minds of consumers is called market

segmentation.

a. True (Answer: False; p. 50; Easy) b. False

122. Customer Relationship Management (CRM) is nothing more than a

customer data management activity.

a. True True (Confirm) (100% Sure) b. False

123. Major factors are changing the face of today’s marketing communications.

Mass markets have fragmented; thus, marketers are shifting away from

mass marketing.

a. True (Lesson no 32 Page no 160 Old Handouts) b. False

124. A break-even chart shows the total cost and total revenue expected at

various sales volume levels.

a. True (Lesson no 25 Page no 120 Old Handouts) b. False

125. Demand and consumer value perceptions set the floor for prices.

 a. True b. False (False; p. 263; Moderate)

126. In industrial markets, product managers have an influence on the

company’s price-setting decisions.

a. True (True; p. 269; Easy) b. False

127. Cost-based pricing relies on consumer perception of value to drive pricing.

 a. True b. False (False; p. 267; Easy)

128. Informative ads are used primarily in the growth stage of the product life

cycle.

a. True b. False Answer: FALSE

 Diff: 2.

 Page Ref: 431.

Skill: Concept Objective:15-2

129. Overhead cost is another term for variable cost.

a. True b. False (False; p. 266; Easy)

130. Slice of life, lifestyle, and personality symbol are all parts of public relations.

a. True b. False (Lesson no 33 Page no 172 Old Handouts)

131. Percentage-of-sales method wrongly views sales as the cause of promotion

rather than the result.

a. True (Lesson no 32 Page no 165 Old Handouts) b. False

132. When a manufacturer seeks a market for by-products and accepts a price

that covers more than the cost of storing and delivering them, it is able to

reduce the main product’s price to make it more competitive.

a. True (True; p. 277; Moderate) b. False

133. An example of service variability is that within a given Marriott hotel, one

registration-desk employee may be cheerful and efficient, whereas another

may be unpleasant and slow.

a. True (100% Sure) b. False

134. Developing a stronger position within several segments creates more total

sales than undifferentiated marketing across all segments.

a. True (100% Sure) b. False

135. When a company introduces a new brand name in the same product

category, it is called line extension.

a. True b. False (100% Sure)

 Answer: FALSE

 Diff: 2 Page Ref: 250

Skill: Concept

 Objective:

136. Lahore Florists segments markets into groups of nonusers, ex-users,

potential users, first-time users, and regular users of its flowers and

services. This firm uses usage rate as the segmentation approach.

a. True b. False

 Note: Name difference doubtful

137. Today, most companies have moved away from mass marketing and are

being choosier about the customers with whom they wish to build

relationships.

a. True (100% Sure) b. False

138. Shopping products are less frequently purchased consumer products and

services that customers compare carefully on suitability, quality, price and

style.

a. True (100% Sure) b. False

139. Service inseparability means that the quality of services depends on who

provides them, as well as when, where, and how they are provided.

a. True b. False (100% Sure)

140.At a recent marketing seminar, the featured speaker stated that a target

market consists of a set of buyers who share common needs or

characteristics that the company decides to serve. You believe this is a

correct definition.

 a. True b. False (100% Sure)

141.At this point your company wants to move away from mass marketing and

engage in target marketing. The three steps to take, in order, are market

segmentation, marketing positioning and target marketing.

 a. True (100% Sure) b. False

142. Commercial accounting is done through a system known as:

 a. True b. False False (Confirm) (100% Sure)

143. ABC Interior Designs wants to collect research data through mechanical

observation. The three typical methods are video cameras, checkout scanners,

and internet cookies.

a. True b. False (Answer: False; p. 111; Challenging)

144. Marketers all agree that questionnaires are the most common research

instrument.

a. True (Answer: True; p. 111; Easy) b. False

145. An increasing number of retailers and wholesalers have created their own

brands-such as Hyper Star offering variety of food products. This is called cobranding.

a. True b. False (False; p. 233; Challenging; LO3)

An increasing number of retailers and wholesalers have created their own brands—such as

WalMart offers Sam’s Choice beverages and food products. This is called co-branding. (False;

p. 233; Challenging; LO3)

146. Customer retention is perhaps the best measure of quality-a service firm’s

ability to hang on to its customers depends on how consistently it delivers value

to them.

a. True Answer: TRUE b. False

 Diff: 2 Page Ref: 242

 Skill: Concept

 Objective: 8-3

147. In international product and service marketing, it is important to know what

different colors mean to different countries.

a. True (True; p. 232; Easy; LO3) {AACSB: Global} b. False

In international product and service branding, it is important to know what different words mean

in different countries.

(True; p. 232; Easy; LO3) {AACSB: Global}

Note: Marketing and branding difference

148. Programs that include public health campaigns to reduce smoking, alcoholism,

drug abuse, and overeating are examples of the social idea known as social

marketing.

a. True (Lesson no 13 Page no 544,545 Original Book) b. False

149. In industrial markets, salespeople outrank top management in determining the

sales price of products.

a. True b. False (False; p. 269; Easy)

150. POP promotions include displays and demonstrations that take place at the point

of purchase or sale.

a. True (Lesson no 34 Page no 177 Old Handouts) b. False

151. If Canon Camera Company follows a high-price, high-margin strategy, it may

attract competition from Nikon, Minolta and Pentax.

a. True (True; p. 273; Moderate) b. False

152. The three characteristics for advertising appeals are: meaningful, believable

and distinctive.

a. True (Lesson no 33 Page no 171 Old Handouts) b. False

153. Because there is such variation among the economies of countries around the

world, it is not practical to segment international markets on the basis of

economic factors.

a. True b. False

154. Many marketers believe that behavior variables are the best starting point for

building market segments.

a. True (Lesson no 17 Page no 85 Old Handouts) b. False

155. Product costs set a floor to the price; consumer perceptions of the product’s

value set the ceiling.

a. True (True; p. 263; Easy) b. False

156. Dove marketers can go beyond the brand’s cleaning cream attributes and talk

about the resulting benefit of softer skin. This is known as product attributes in

brand positioning.

a. True b. False (False; Challenging; p. 292)

157. Internal marketers face special challenges. They must figure out what products

to introduce to other countries.

a. True b. False (False; Moderate)

158. Value-based pricing is the reverse of cost-based pricing.

a. True (True; p. 264; Challenging) b. False

159. An e-mail from a company that offers free shipping on your next purchase of

more than Rs. 3000/= is an example of sales promotion. (Doubtful)

a. True b. False

160. Co-branding is 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. Examples are banking, hotel, airline, retail, tax

preparation and home repair. (Doubtful)

a. True b. False

161. A company’s total marketing communications mix is also called its promotion

mix.

a. True (Lesson no 32 Page no 159 Old Handouts) b. False

162. Your assignment at work is to divide buyers into different groups based on

social class, lifestyle and personality characteristics. After a planning session

with the marketing and sales staff, you issue a memo to upper management

recommending psychographic segmentation. You are right on target.

a. True b. False

163. One important quality for a brand name is that it should translate easily into

foreign languages.

a. True (Lesson no 20 Page no 97 Old Handouts) b. False

164. The simplest pricing method is break-even pricing-adding a standard markup to

the cost of the product.

a. True b. False (False; p. 267; Easy)

165. If the pull strategy is effective, consumers will then demand the product from

channel members, who will in turn demand it from producers.

a. True (Lesson no 32 Page no 167 Old Handouts) b. False

166. Behavioral segmentation requires finding the major advantages or features

people look for in the product class, the kinds of people who look for each

advantage or feature and the major brands that deliver each advantage or

feature.

a. True b. False 167. The

service-profit chain means the set of all product lines and items that a particular

seller offers for sale.

a. True b. False

 Answer: FALSE

Diff: 2 Page Ref:238

Skill: Concept

Objective: 8-3

168. Competitors prices and offers are external factors that companies have to deal

with.

 a. True (True; p. 268; Easy) b. False

169. When a major moving van company sells accessory products that must be used in

moving a household’s furniture, it is practicing captive-product pricing.

a. True (True; p. 277; Easy) b. False

170. Shopping For The Rich and Famous is a buying service that helps wealthy clients

find the best buys in exclusive clothing, high-end cars, travel and financial

services. This firm would use income segmentation.

 Answer: TRUE

 Diff: 2 Page Ref: 194

 AACSB: Reflective Thinking Skills

Skill: Application

 Objective: 7-2 b. False

171. Manufacturers may offer an allowance in return for the retailer’s agreement to

feature the manufacturer’s products in some way.

a. True (From Google) b. False

Manufacturers also may offer an allowance (usually so much off per case) in return for

the retailer's agreement to feature the manufacturer's products in some way.

172. Niche marketing offers smaller companies an opportunity to compete by

focusing their limited resources on serving niches that may be unimportant to or

overlooked by larger companies.

a. True b. False

173. The demand curve shows the number of units the market will buy in a given

time period at different prices that might be charged. In normal cases, the

higher the price, the higher the demand.

a. True b. False (False; p. 272; Easy)

174. Sales promotion consists of short-term incentives to encourage purchases or

sales of a product or service.

a. True (Lesson no 34 Page no 175 Old Handouts) b. False

175. Consumers position products with or without the help of marketers.

a. True b. False

176. The widespread use of mass marketing has masked the fact that for centuries

consumers were served as individuals where businesses practiced individual

marketing.

a. True (Answer: True; p. 200; Easy; LO4) b. False

177. Karachi Gifts divides its markets into units of nations, regions, and cities.

Bombay uses geographic segmentation.

a. True Answer: TRUE b. False

 Diff: 2 Page Ref: 191

 AACSB: Analytic Skills

 Skill: Application

 Objective: 7-2

178. Unsought products are products and services that the customer usually buys

frequently, immediately, and with a minimum of comparison and buying effort.

a. True b. False (Lesson no 19 Page no 93 Old Handouts)

179. We define service as anything that can be offered to a market for attention,

acquisition, use or consumption and that might satisfy a want or need.

a. True b. False (100 % Sure)

180. Each firm should be able to find a single way to segment each market.

a. True b. False (Answer: False; p. 165; Easy)

181. In a product business, products are fairly standardized and can sit on shelves

waiting for customers. In a service business, the customer and front-line

service employee interact to create the service.

a. True (Chapter no 15 Page no 634 Original Book) b. False

182. Packaging does not include the material necessary to ship a product.

a. True b. False

183. This type of segmentation uses different marketing approaches for different

time periods of peoples lives and different family situations. This segmentation

method is called demographic.

a. True b. False (Answer: False; p. 167; Moderate)

184. Gender segmentation has long been used in clothing, cosmetics, toiletries and

magazines.

a. True (Chapter no 10 Page no 401 Original Book) b. False

185. Products support services identify the product or brand, describe several

things about the product, and promote the product through attractive graphics.

a. True b. False (Lesson no 20 Page no 99 Old Handouts)

186. A company’s product mix has four important dimensions: width, length, depth

and consistency.

a. True (Lesson no 13 Page no 570 Original Book) b. False

187. Developing a stronger position within several segments creates more total

sales than undifferentiated marketing across all segments.

a. True (Lesson no 18 Page no 87 Old Handouts) b. False

188. The brand of a product can determine its customer value.

a. True (True; p. 226; Moderate; LO2) b. False 189. Style is a larger

concept than design. Design describes the appearance of a product.

a. True b. False (Lesson no 20 Page no 96 Old Handouts)

190. Customers come to know a brand through a wide range of contacts and touch

points. These include word of mouth, personal interactions with company Web

pages. Many brands are not maintained by advertising but by brand

experience.

a. True (Chapter no 13 Page no 567 Original Book) b. False

191. A product’s position is the way the product is defined by the retailers who sell

it to target markets. It is how it is defined on important attributes the place the

product occupies in the retailers minds relative to competing products.

 (Read Lesson no 18 Page no 88 Old Handouts)

a. True b. False

192. An aspect of managing service differentiation is in the company’s service

delivery.

a. True (100% Sure) b. False

193. Research about and planning for loyalty status as a segmentation approach is

generally not useful or practical for most firms.

a. True b. False (Answer: False; p. 173)

194. Kia offers a new car model with the same features as a comparable but higher

priced Toyota or Ford and provides a longer warranty. Kia is following a morefor-less strategy.

a. True Answer: FALSE

Diff: 3 Page Ref: 213

AACSB: Analytic Skills

Skill: Application

Objective: 7-4

195. Maslow’s theory is that human needs are arranged in a hierarchy. They include

physiological needs, safety needs, social needs, esteem needs, and selfactualization needs. An unsatisfied need motivates one to take action to satisfy it.

a. True (Answer: True; p. 139; Moderate) b. False

196. A business marketer normally deals with far fewer buyers than the

consumer marketer does.

a. True (Lesson no 16 Page no 74 Old Handouts) b. False

197) The demand curve shows the number of units the market will buy in a given

time period at different prices that might be charged. In normal cases, the higher

the price, the lower the demand.

 a. True Answer: TRUE b. False

Diff: 2 Page Ref: 302

Skill: Concept

Objective: 10-3

1. The most effective consumer promotion tool is sampling.

A. True (Page no 788 original book not handouts) B. False

2. Major factors are changing the face of today’s marketing communications. Mass markets

have fragmented, thus, marketers are shifting away from mass marketing.

A. True (Page no 720 original book not handouts) B. False

3. Companies that set a low initial price in order to get their “foot in the door” quickly

and deeply, attract a large number of buyers quickly, and win a large market share

practice market-skimming pricing.

(False; p. 275; Easy)

4. When a manufacturer seeks a market for by-products and accepts a price that covers

more than the cost of storing and delivering them, it is able to reduce the main product’s

price to make it more competitive. (True; p. 277; Moderate)

5. The simplest pricing method is break-even pricing—adding a standard markup to the

cost of the product.

(False; p. 267; Easy)

6. Environmental elements are categorized as external factors that affect pricing decisions.

Answer: TRUE

Diff: 2 Page Ref: 300

Skill: Concept

Objective: 10-3

7. POP promotions include displays and demonstrations that take place at the point of

purchase or sale.

A. True (Original book page no 788 not handouts) B. False

8. If demand changes greatly with price, we say the demand is inelastic.

Answer: FALSE

Diff: 2 Page Ref: 303

Skill: Concept

Objective: 10-3

9. Pricing often plays an important role in helping to accomplish company’s multilevel objectives.

(True; p. 263; Easy)

10. Informative ads are used primarily in the growth stage of the product life cycle.

A. True B. False

11. The more elastic the demand, the more it pays for the seller to raise the price. (False;

p. 273; Challenging)

12. Slice of life, lifestyle and personality symbol are all parts of public relations. A. True

B.False (Book page no 769 original book not handouts)

13. If Canon Camera Company follows a high-price, high-margin strategy, it may attract

competition from Nikon, Minolta, and Pentax.

(True; p. 273; Moderate)

14. If the pull strategy is effective, consumers will then demand the product from channel

members, who will in turn demand it from producers.

Answer: TRUE

Diff: 2 Page Ref: 425

Skill: Concept

Objective: 14-4

15. Companies that set a low initial price in order to get their “foot in the door” quickly and

deeply, attract a large number of buyers quickly, and win a large market share practice

market-skimming pricing.

(False; p. 275; Easy)

16. Pricing often plays an important role in helping to accomplish a company’s multi-level

objectives.

(True; p. 263; Easy)

17. A specific communication task to be accomplished with a specific target audience

during a specific period of time is called an advertising objective.

A. True (Original book page no 905) B.

False

18. Demand and consumer value perceptions set the floor for prices.

(False; p. 263; Moderate)

19. Manufacturers may offer an allowance in return for the retailer's agreement to

feature the manufacturer's products in some way.

A. True (Page no 178 Old Handouts) B.

False

20. Sales promotion consists of short-term incentives to encourage the purchase or sale of

a product or service.

A. True (Page no 200 Old Handouts) B. False

21. When a major moving van company sells accessory products that must be used in

moving a household’s furniture, it is practicing captive-product pricing.

(True; p. 277; Easy)

22. Value-based pricing is the reverse of cost-based pricing.

(True; p. 264; Challenging)

23. Product costs set a floor to the price; consumer perceptions of the product's value

set the ceiling.

Answer: TRUE

Diff: 2 Page Ref: 291

Skill: Concept

Objective: 10-2

24. Competitors’ prices and offers are external factors that companies have to deal

with.

(True; p. 268; Easy)

25. The demand curve shows the number of units the market will buy in a given time

period at different prices that might be charged. In normal cases, the higher the

price, the higher the demand.

(False; p. 272; Easy)

26. Value-based pricing is when costs vary directly with the level of product.

(False; p. 264; Moderate)

27. The most expensive consumer promotion tool is sampling.

A. True (Page no 144 Old Handouts) B. False

28. Cost-based pricing relies on consumer perception of value to drive pricing. (False; p.

267; Easy)

29. Overhead cost is another term for variable cost.

 (False; p. 266; Easy)

30. In industrial markets, product managers have an influence on the company’s pricesetting decisions.

(True; p. 269; Easy)

31. The percentage-of-sales method wrongly views sales as the cause of promotion rather

than the result.

Answer: TRUE

Diff: 2 Page Ref: 423

Skill: Concept

Objective: 14-4

32. A company’s total marketing communications mix is also called its promotion mix.

A. True (Page no 160 old handouts) B. False

33. An e-mail from a company that offers free shipping on your next purchase of more

than Rs3000/= is an example of sales promotion.

A. True B. False

34. Advertisers look for media that showcase the product effectively.

Fashions are best advertised on television, and automobile performance is best in color

magazines.

A. True B. False (Page no 174 old handouts)

35. In industrial markets, salespeople outrank top management in determining the

sales price of products.

(False; p. 269; Easy)

36. Value-based pricing is when costs vary directly with the level of product.

(False; p. 264; Moderate)

37. The three characteristics for advertising appeals are: meaningful, believable

and distinctive.

A. True (Original Book page no 803,804) B. False

38. A break-even chart shows the total cost and total revenue expected at various sales

volume levels.

 (True; p. 267; Easy)

39. The media planner has to know the reach, frequency, and impact of each ad.

A. True (Original Book Page no 807) B. False

Quiz No 3 2021 MGT 301

3. The most effective consumer promotion tool is sampling.

A. True (Page no 788 original book not handouts) B. False

4. Major factors are changing the face of today’s marketing communications. Mass markets

have fragmented, thus, marketers are shifting away from mass marketing.

A. True (Page no 720 original book not handouts) B. False

3. Companies that set a low initial price in order to get their “foot in the door” quickly and

deeply, attract a large number of buyers quickly, and win a large market share practice

market-skimming pricing.

(False; p. 275; Easy)

4. When a manufacturer seeks a market for by-products and accepts a price that covers more

than the cost of storing and delivering them, it is able to reduce the main product’s price to

make it more competitive.

(True; p. 277; Moderate)

6. The simplest pricing method is break-even pricing—adding a standard markup to the cost

of the product. (False; p. 267; Easy)

6. Environmental elements are categorized as external factors that affect pricing decisions.

Answer: TRUE

Diff: 2 Page Ref: 300

Skill: Concept

Objective: 10-3

7. POP promotions include displays and demonstrations that take place at the point of purchase

or sale.

A. True (Original book page no 788 not handouts) B. False

8. If demand changes greatly with price, we say the demand is inelastic.

Answer: FALSE

Diff: 2 Page Ref: 303

Skill: Concept

Objective: 10-3

9. Pricing often plays an important role in helping to accomplish company’s multilevel

objectives.

(True; p. 263; Easy)

10. Informative ads are used primarily in the growth stage of the product life cycle.

A. True B. False

11. The more elastic the demand, the more it pays for the seller to raise the price. (False;

p. 273; Challenging)

13. Slice of life, lifestyle and personality symbol are all parts of public relations.

A. True B.False (Book page no 769 original book not handouts)

13. If Canon Camera Company follows a high-price, high-margin strategy, it may

attract competition from Nikon, Minolta, and Pentax.

(True; p. 273; Moderate)

18. If the pull strategy is effective, consumers will then demand the product from channel

members, who will in turn demand it from producers.

Answer: TRUE

Diff: 2 Page Ref: 425

Skill: Concept

Objective: 14-4

19. Companies that set a low initial price in order to get their “foot in the door” quickly

and deeply, attract a large number of buyers quickly, and win a large market share

practice market-skimming pricing.

(False; p. 275; Easy)

20. Pricing often plays an important role in helping to accomplish a company’s multilevel objectives. (True; p. 263; Easy)

21. A specific communication task to be accomplished with a specific target audience

during a specific period of time is called an advertising objective.

A. True (Original book page no 905) B. False

19. Demand and consumer value perceptions set the floor for prices.

(False; p. 263; Moderate)

20. Manufacturers may offer an allowance in return for the retailer's agreement to feature

the manufacturer's products in some way.

 A. True (Page no 178 Old Handouts) B. False

21. Sales promotion consists of short-term incentives to encourage the purchase or sale of a

product or service.

 A. True (Page no 200 Old Handouts) B. False

22. When a major moving van company sells accessory products that must be used in

moving a household’s furniture, it is practicing captive-product pricing.

(True; p. 277; Easy)

23. Value-based pricing is the reverse of cost-based pricing.

(True; p. 264; Challenging)

24. Product costs set a floor to the price; consumer perceptions of the product's value set the

ceiling.

Answer: TRUE

Diff: 2 Page Ref: 291

Skill: Concept

Objective: 10-2

25. Competitors’ prices and offers are external factors that companies have to deal with.

(True; p. 268; Easy)

26. The demand curve shows the number of units the market will buy in a given time

period at different prices that might be charged. In normal cases, the higher the

price, the higher the demand.

(False; p. 272; Easy)

27. Value-based pricing is when costs vary directly with the level of product.

(False; p. 264; Moderate)

28. The most expensive consumer promotion tool is sampling.

 A. True (Page no 144 Old Handouts) B. False

29. Cost-based pricing relies on consumer perception of value to drive pricing.

(False; p. 267; Easy)

30. Overhead cost is another term for variable cost.

 (False; p. 266; Easy)

31. In industrial markets, product managers have an influence on the company’s pricesetting decisions. (True; p. 269; Easy)

32. The percentage-of-sales method wrongly views sales as the cause of promotion rather than

the result.

Answer: TRUE

Diff: 2 Page Ref: 423

Skill: Concept

Objective: 14-4

33. A company’s total marketing communications mix is also called its promotion mix.

A. True (Page no 160 old handouts) B. False

34. An e-mail from a company that offers free shipping on your next purchase of more than

Rs3000/= is an example of sales promotion.

A. True B. False

35. Advertisers look for media that showcase the product effectively.

Fashions are best advertised on television, and automobile performance is best in color

magazines.

A. True B. False (Page no 174 old handouts)

36. In industrial markets, salespeople outrank top management in

determining the sales price of products.

(False; p. 269; Easy)

37. Value-based pricing is when costs vary directly with the level of product.

(False; p. 264; Moderate)

38. The three characteristics for advertising appeals are:

meaningful, believable and distinctive.

 A. True (Original Book page no 803,804) B. False

38. A break-even chart shows the total cost and total revenue expected at

various sales volume levels. (True; p. 267; Easy)

39. The media planner has to know the reach, frequency, and impact of each

ad.

 A. True (Original Book Page no 807) B. False

MGT301 SOLVED QUIZ 1 2021

Effort by Sarim

1. Product, price, place and promotion make up the elements of

a firm’s marketing mix.

A. True (Chapter no 1 Original Book Page no 34)

B. False

2. Selling is managing profitable customer relationships.

A. True

B. False (Lesson no 44 Page no 220 Old Handouts)

3. Human needs are shaped by culture and individual

personality.

A. True

B. False (Chapter no 1 Original Book Page no 8)

4. The twofold goal of marketing is to attract new customers by

promising superior value and to keep and grow current

customers by delivering satisfaction.

A. True (Lesson no 44 Page no 220 Old Handouts)

B. False

5. When backed by buying power, needs become demands.

A. True

B. False (Lesson no 2 Page no 11 Old Handouts and Lesson

no 44 Page no 222 Old Handouts)

6. At times it becomes necessary to reduce demand for some

products and services. When the government tries to reduce

the smoking of tobacco products, it adds more tax to the

products and is practicing demarketing.

A. True

B. False

7. Demarketing is a marketing philosophy focused upon

product differentiation and positioning.

A. True

B. False

9. Marketing offers are limited to physical products.

A. True

B. False

10.Delivering superior customer value and customer satisfaction

are the two keys to building lasting customer relationships.

A. True

B. False

9. An exchange is the core concept of marketing, whereas a

transaction is marketing’s unit of measurement.

A. True (Lesson no 2 Page no 11 Old Handouts)

B. False

10. Customer-perceived value depends on the product’s

perceived performance relative to a buyer’s expectations.

A. True

B. False (Lesson no 2 Page no 11 Old Handouts)

11. Marketing management is interested in serving all

customers in every way to remain competitive in today’s

markets.

A. True

B. False (Not sure)

12. The difference between human needs and wants is that

needs are states of felt deprivation.

A. True

B. False

13. When backed by buying power, needs become demands.

A. True

B. False (Lesson no 2 Page no 11 Old Handouts)

14. The selling concept holds that consumers will not buy

enough of the firm’s products unless it undertakes a largescale selling and promotion effort.

A. True (Lesson no 4 Page no 20 Old Handouts)

B. False

15. Customer value is defined as the customer’s evaluation of

the perceived difference between all the benefits and all

the costs of a marketing offer relative to those of competing

offers.

A. True (Lesson no 2 Page no 12 Old Handouts)

B. False

16. The societal marketing concept calls on marketers to

balance consumer wants and desires, company profits, and

society’s interest.

A. True (Lesson no 4 Page no 21 Old Handouts)

B. False

17. When sellers focus on existing needs and lose sight of

underlying customer wants, they suffer from marketing

myopia.

A. True

B. False (Lesson no 2 Page no 11 Old Handouts)

18. Smart marketers look beyond the attributes of the products

and services they sell. They create brand experiences for

consumers.

A. True (Lesson no 44 Page no 222 Old Handouts)

B. False

19. When backed by buying power, wants become demands.

A. True (Lesson no 2 Page no 11 Old Handouts and

Lesson no 44 Page no 222 Old Handouts)

B. False

 MGT301 Solved Grand Quiz 2020

Question No 1

Revlon has clearly defined its “mission” of selling

lifestyle and self-expression. As the firm prepares to

launch its strategic plan, the mission needs to be

turned into a detailed set of objectives that guide

the whole company.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 2

During proposal solicitation, the buying center often

will draw up a list of desired supplier attributes and

their relative importance.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 3

Customer-perceived value depends on the product’s

perceived performance relative to a buyer’s

experience.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 4

When a consumer learns about a new product for the

first time and makes a decision to try it, it is called the

alternative evaluation process.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 5

The elements of the marketing mix commonly

known as the “four Ps” include: product, price, place,

and promotion.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 6

Most businesses that manufacture products for the

consumer market also sell directly to consumers.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 7

Holiday inn has divided the total customer market into

smaller segments and selected the most promising

segments. Deciding what position it wants to occupy

in these segments is called targeting.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 8

The owner of the 21-store chain of bicycles, explained

to the store managers at a recent sales meeting that

marketers, more than any group in the company, must

be the trend trackers and opportunity seekers.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 9

ABC Fortunes has just developed a formal statement of

its purpose. This firm has put together a mission

statement.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 10

Environmental concerns have been on the decline in

the past decade; more government legislation and the

green movement may be the cause of this trend.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 11

Today’s marketers recognize the importance of

working with their intermediaries as channel through

which they sell their products rather than as mere

partner.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 12

More and mor companies are shifting their brand

management focus toward customer relationship

management.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 13

Today’s marketers must be a good at building

relationships in order to connect effectively with

customers, others in the company, and external

partners.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 14

Mission statement must fit the market environment,

as indicated here by the Girl Scouts. “where girls

grow strong”.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 15

Your firm faces determined marketing intelligence

efforts by competitors. You take the typical response

by “letting it ride.” Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 16

Smart marketers look beyond the attributes of the

products and services they sell. They create brand

experiences for consumers.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 17

The main differences between business and consumer

markets are in market structure and demand, the nature

of the buying unit, and the types of decisions and the

decision process involved.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 18

Customer value is defined as the customer’s

evaluation of the perceived difference between all the

benefits and all the cost of a marketing offer relative to

those of competing offers.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 19

When you collect information from your company’s

accounting and sales stored in the computer, you are

developing an internal database.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 20

When sellers focus on existing needs and lost sight of

underlying customer wants, they suffer from marketing

myopia.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 21

The buying center is a fixed and formally identified unit

within the buying organization.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 22

Social classes are society’s relatively permanent and

ordered whose members share similar values,

interests, and behaviors.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 23

Who is out target market and what’s our proposition

are two important questions underlying marketing

strategy.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 24

ABC interior Designs wants to collect research data

through obtention. The three typical methods are video

cameras, checkout scanners, and internet cookies.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 25

The simplest definition of modern marketing is

managing profitable customer relationships.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 26

“At Nike, we sell shoes” is a market-oriented business

definition.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 27

The order-routine specification includes the final order

with the chosen supplier or suppliers and lists items

such as technical specifications, quality needed,

expected delivery time, return policies, and warranties.

Select Correct Option

? True

? False ........................... (For More Visit VUStudents.pk)

Question No 28

The newer the buying task, and the complex and costly

the item, the lesser the amount of time the buyer will

spend searching for suppliers.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 29

The twofold of marketing is to attract new customers

by promising superior value and to keep and grow

current customers by delivering satisfaction.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

Question No 30

No single competitive marketing strategy is best for all

companies.

Select Correct Option

? True ............................. (For More Visit VUStudents.pk)

? False

76. Harley-Davidson customers are mainly the Hell's Angels/Muscle Heads crowd.

(Answer: False; p. 128; Easy)

77. The Harley-Davidson Company found out that buying behavior is simple and

understanding it is the essential task of marketing management.

(Answer: False; p. 128; Moderate)

78. Consumer buying behavior refers to the buying behavior of businesses.

(Answer: False; p. 128; Easy)

79. The central question for marketers is: How do consumers respond to various

marketing efforts the company might use? The starting point is called the

stimulusresponse of buyer behavior. (Answer: True; p. 129; Moderate)

80. A dissonance-reducing buying behavior is designed to probe consumers' hidden,

subconscious motivations.

(Answer: False; p. 145; Challenging)

81. Each culture contains groups of people with shared value systems based on

common life experiences and situations.

(Answer: True; p. 129; Moderate)

82. Asian Americans, the fastest growing and most affluent U.S. demographic

segment, include Chinese Americans, Japanese Americans, Asian Indians, Korean

Americans, and Filipino Americans.

(Answer: True; p. 132; Easy)

83. Younger consumers are better off financially than mature consumers. They are the

ideal market for exotic travel, restaurants, high-tech home entertainment products,

and leisure goods and services. (Answer: False; p. 132; Easy)

84. Social classes are society's relatively permanent and ordered divisions whose

members share similar values, interests, and behaviors.

(Answer: True; p. 132; Easy)

85. Social classes are now taking to the streets, as well as cafes, nightclubs, and the

Internet, in record numbers. Their goal: to seek out the trendsetters in each

community and subtly push them into talking up a specific brand to their friends

and admirers.

(Answer: False; p. 132; Moderate)

86. Lifestyle is a person's pattern of living as expressed in his or her psychographics.

(Answer: True; p. 136; Easy)

87. A belief is the specific mix of human traits that may be attributed to a particular

brand.

(Answer: False; p. 141; Moderate)

88. A person's buying choices are further influenced by four major psychological

factors: motivation, perception, learning, and beliefs and attitudes.

(Answer: True; p. 138; Easy)

89. A motive exists when consumers are highly involved with an expensive,

infrequent, or risky purchase but see little difference among brands.

(Answer: False; p. 138; Easy)

90. Maslow's theory is that human needs are arranged in a hierarchy. They include

physiological needs, safety needs, social needs, esteem needs, and

selfactualization needs. An unsatisfied need motivates one to take action to satisfy

it. (Answer: True; p. 139; Moderate)

91. Alternative evaluation is the process by which people select, organize, and

interpret information to form a meaningful picture of the world.

(Answer: False; p. 142; Challenging)

92. The consumer's purchase decision will be to buy the most preferred brand, but two

factors can come between the purchase intention and purchase decision. The first

factor is need recognition. (Answer: False; p. 143; Moderate)

93. After purchasing the product, the consumer will be satisfied or dissatisfied and

will engage in postpurchase behavior.

(Answer: True; p. 144; Easy)

94. Almost all major purchases result in cognitive dissonance, or discomfort caused

by postpurchase conflict. (Answer: True; p. 144; Easy)

95. When a consumer learns about a new product for the first time and makes a

decision to try it, it is called the alternative evaluation process.

(Answer: False; p. 142; Moderate)

96. People differ greatly in their readiness to try new products. In each product area,

there are "consumption pioneers." They are also called laggards. (Answer: False;

p. 146; Challenging)

97. Early adopters are guided by respect; they are opinion leaders in their

communities and adopt new ideas early but carefully.

(Answer: True; p. 146; Moderate)

98. The early majority are deliberate; although they rarely are leaders, they adopt new

ideas before the average person. (Answer: True; p. 146; Moderate)

99. The late majorities are skeptical; they adopt an innovation only after their friends

have tried it.

(Answer: False; p. 146; Challenging)

100. In general, innovators tend to be relatively older, more mature, and have a

lower income than late adopters.

(Answer: False; p. 146; Challenging)

101. Five characteristics are especially important in influencing an innovation's rate

of adoption. Two of these are relative advantage and compatibility.

(Answer: True; p. 147; Moderate)

102. Although consumers in different countries have different values, attitudes, and

behaviors, the products they buy are very similar to each other.

(Answer: False; p. 148; Challenging)

103. Dissonance-reducing buying behavior occurs when consumers are highly

involved with an expensive, infrequent, or risky purchase but see a lot of

difference among brands.

(Answer: False; p. 144; Challenging)

104. Alternative evaluation is how the consumer processes information to arrive at

brand choices. Consumers do not use a simple and single evaluation process in all

buying situations.

(Answer: True; p. 143; Moderate)

105. The consumer's purchase decision will be to buy the most preferred brand, but

two factors can come between the purchase intention and purchase decision. The

first factor is need recognition. (Answer: False; p. 143; Moderate)

1.

2. Customer value is defined as the customer's evaluation of the perceived

difference between all the benefits and all the costs of a marketing offer relative to

those of competing offers.

1. True

2. False

3. Marketing offers are limited to physical products.

1. True

2. False

4. Human needs are shaped by culture and individual personality.

1. True

2. False

5. Selling is managing profitable customer relationships.

1. True

2. False

6. When railroad companies thought that users wanted trains rather than

transportation and overlooked the growing challenge of other modes of transportation

they were following the selling concept.

1. True

2. False

7. Delivering superior customer value and customer satisfaction are the two keys

to building lasting customer relationships.

1. True

2. False

8. The production concept and product concept are two philosophies that can

both lead to marketing myopia.

1. True

2. False

9. When backed by buying power, needs become demands.

1. True

2. False

10. Customer-perceived value depends on the product's perceived performance

relative to a buyer's expectations.

1. True

2. False

11. Mission statements should be realistic and general in nature.

1. True

2. False

12. Strategic control involves looking at whether a company's basic strategies are

well matched to its opportunities.

1. True

2. False

13. After carefully questioning your msjor suppliers and resellers, you ascertain

they do not form important sources of intelligence information for marketing decision

making.

1. True

2. False

14. Marketing strategy is the marketing logic by which a company hopes to

achieve profitable customer relationships.

1. True

2. False

15. Making more sales to current customers without changing a firm's products is

market penetration.

1. True

2. False

16. Your manager asked you to go through three of your competitors' garbage bins

to gather marketing intelligence from their discarded paperwork. One of them caught

you in the act and has summoned you to court. The judge will most likely rule this to

be an illegal activity and fine you and your company.

1. True

2. False

17. Strategic market planning is the task of selecting an overall company strategy for

long-run survival and growth.

1. True

2. False

18. When you collect informationfrom your company's accounting and sales

records stored in the computer. You are developing an internal database.

1. True 2.

False

19. "At Nike, we sell shoes" is a market-oriented business definition.

1. True

2. False

20. Derived demand refers to the business demand that ultimately comes from the

demand for consumer goods.

1. True

2. False

21. The twofold goal of marketing is to attract new customers by promising

superior value and to keep and grow current customers by delivering satisfaction.

1. True

2. False

22. The late majorities are skeptical; they adopt an innovation only after their

friends have tried it.

1. True

2. False

23. The buying center is a fixed and formally identified unit within the buying

organization.

1. True

2. False

24. Strategic market planning is the task of selecting an overall company strategy for

long-run survival and growth.

1. True

2. False

25. Dissonance-reducing buying behaviour occurs when consumers are highly

involved with an expensive, infrequent, or risky purchase but see a lot of difference

among brands.

1. True

2. False

26. Demarketing is a marketing philosophy focused upon product differentiation

and positioning.

1. True

2. False

27. At Air Online, "we provide online services." is a market-oriented business

definition.

1. True

2. False

28. When your marketing manager discussed factors and forces outside marketing

that affect marketing management's ability to build and maintain successful

relationships with target customers, you knew that she was talking about the external

marketing concept.

1. True

2. False

29. Customer Relationship Management (CRM) is nothing more than a customer

data management activity.

1. True

2. False

30. Alternative evaluation is how the consumer processes information to arrive at

brand choices. Consumers do not use a simple and single evaluation process in all

buying situations.

1. True

2. False

31. Product, price, place, and promotion make up the elements of a firm's marketing

mix.

1. True

2. False

32. Smart marketers look beyond the attributes of the products and services they

sell. They create brand experiences for consumers.

1. True

2. False

33. Most firms follow the production concept when they face overcapacity.

1. True

2. False

34. The simplest definition of modern marketing is managing profitable customer

relationships.

1. True

2. False

35. The societal marketing concept calls on marketers to balance consumer wants

and desires, company profits, and society's interest.

1. True

2. False

36. The selling concept holds that consumers will not buy enough of the firm's

products unless it undertakes a large-scale selling and promotion effort.

1. True

2. False

37. Marketers of products, services, and ideas only practice marketing, whereas

buyers do not.

1. True

2. False

38. At times it becomes necessary to reduce demand for some products and

services. When the government tries to reduce smoking of tobacco products, it adds

more tax to the products and is practicing demarketing.

1. True

2. False

39. Marketing management is interested in serving all customers in every way to

remain competitive in today's markets.

1. True

2. False

40. An exchange is the core concept of marketing, whereas a transaction is

marketing's unit of measurement.

1. True

2. False

41. The difference between human needs and wants is that needs are states of felt

deprivation.

1. True

2. False

42. When sellers focus on existing needs and lose sight of underlying customer

wants, they suffer from marketing myopia.

1. True

2. False

43. Most firms follow the production concept when they face overcapacity.

1. True

2. False

44. Who is our target market and what's our value proposition are two important

questions underlying marketing strategy.

1. True

2. False

76. In the last decade, Coach has ignored marketing research when designing new

bags.

(Answer: True; p. 96; Easy)

77. Many analysts believe that Coach's exhaustive market research has failed to pay

off.

(Answer: True; p. 96; Easy)

78. Today, marketing managers are viewing research information not only as an input

for making internal decisions but also as an input for external partners.

(Answer: True; p. 97; Moderate)

79. Most marketers today believe they still lack a sufficient quantity of research data

to make high-quality decisions.

(Answer: False; p. 97; Easy)

80. An effective MIS assesses information needs, develops needed information, and

distributes the information to help managers use it in decision making.

(Answer: True; p. 98; Moderate)

81. Too much information can be as harmful as too little.

(Answer: True; p. 98; Easy)

82. When you glean information from your company's accounting and sales records

stored in the computer, you are developing an internal database.

(Answer: True; p. 99; Moderate)

83. You have just extracted sales and cost data used by the accounting department for

preparing financial statements. Most likely, this information should be complete

and in useable form to build an internal marketing database.

(Answer: False; p. 99; Challenging)

84. It is important to note that data age quickly, and keeping the database current

requires a major effort. (Answer: True; p. 99; Easy)

85. After carefully questioning your major suppliers and resellers, you ascertain they

do not form important sources of intelligence information for marketing decision

making.

(Answer: False; p. 101; Challenging)

86. Your manager asked you to go through three of your competitors' garbage bins to

gather marketing intelligence from their discarded paperwork. One of them caught

you in the act and has summoned you to court. The judge will most likely rule this

to be an illegal activity and fine you and your company.

(Answer: False; p. 101; Challenging)

87. Good sources of marketing intelligence information include competitors' annual

reports, business publications, trade show exhibits, press releases, advertisements,

and Web pages.

(Answer: True; p. 101; Moderate)

88. Your firm faces determined marketing intelligence efforts by competitors. You

take the typical response by "letting it ride."

(Answer: False; p. 101; Easy)

89. Marketing research is conducted to systematically design, collect, and report data

directly relevant to a specific marketing situation facing the organization.

(Answer: False; p. 102; Moderate)

90. The research and development department just released a report and commented

that "Defining the problem and research objectives is often the hardest step in the

research process."

(Answer: True; p. 102; Easy)

91. Once the research problems and objectives have been defined, researchers must

determine the exact information needed and present it to management.

(Answer: False; p. 102; Challenging)

92. After conducting formal marketing research for your department, you make an

oral presentation with notes to management. You are following normal marketing

research steps.

(Answer: False; p. 102; Moderate)

93. Marketing researchers can conduct their own searches of secondary data sources

today by using commercial secondary data sources.

(Answer: True; p. 103; Easy)

94. Secondary data provide good starting points and often help to define problems and

research objectives, though most companies must also collect primary data.

(Answer: True; p. 105; Moderate)

95. ABC Interior Designs wants to collect research data through mechanical

observation. The three typical methods are video cameras, checkout scanners, and

Internet cookies.

(Answer: False; p. 111; Challenging)

96. A single-source data system uses huge consumer panels and electronically

monitors survey respondents' purchases and exposure to various marketing

activities.

(Answer: True; p. 107; Moderate)

97. Focus groups use no interviewer to bias the answers, may produce more honest

answers, and can be used to collect large amounts of data at a low cost per

respondent.

(Answer: False; p. 108; Moderate)

98. You have decided upon a method of collecting research data with flexible

interviewing, whereby trained interviewers can explain difficult questions and

explore issues as the situation requires. Audio-visual aids can also be used. We

refer to this as focus group interviewing. (Answer: False; p. 108; Moderate)

99. Parley Trade Shows wants to use the latest technology in marketing research. You

are told this method is online (Internet) marketing research.

(Answer: True; p. 109; Easy)

100. Ideally, a sample should be representative so that the researcher can make

accurate estimates of the thoughts and behaviors of the larger population.

(Answer: True; p. 110; Easy)

101. You want to calculate confidence limits for sampling error. It would be best to

use nonprobability samples. (Answer: False; p. 110; Challenging)

102. Marketers all agree that questionnaires are the most common research

instrument.

(Answer: True; p. 111; Easy)

103. The researcher interprets findings, draws conclusions, and reports those

conclusions to management. Ideally, we should present important findings that are

useful to the major decisions faced by management to prevent overwhelming

them. (Answer: True; p. 113; Moderate)

104. You have just identified the "touch points" of the 400 best customers in your

database. At this point, you want to manage detailed information about each of

them to maximize customer loyalty. You should use customer relationship

management (CRM).

(Answer: True; p. 113; Challenging)

105. Buy-It-Lower Stores has gained many benefits from CRM. If this company is

typical, it will realize how to provide higher levels of customer service and

develop deeper customer relationships. Management can also pinpoint low-value

customers and begin to eliminate them while tailoring offers to specific customers.

(Answer: False; p. 114; Challenging)

121) Bombay Gifts divides its markets into units of nations, regions, and cities.

Bombay uses geographic segmentation.

Answer: TRUE

Diff: 2 Page Ref: 191

AACSB: Analytic Skills

Skill: Application

Objective: 7-2

122) Shopping for the Rich and Famous is a buying service that helps wealthy clients

find the best buys in exclusive clothing, high-end cars, travel, and financial

services. This firm most likely uses income segmentation.

Answer: TRUE

Diff: 2 Page Ref: 194

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 7-2

123) LaGrange Florists segments markets into groups of nonusers, ex-users, potential

users, first-time users, and regular users of its flowers and services. This firm

uses usage rate as its segmentation approach. Answer: FALSE

Diff: 2 Page Ref: 197

AACSB: Analytic Skills

Skill: Application

Objective: 7-2

124) Because Cruise Ships International currently has limited financial and personnel

resources, it should avoid concentrated or niche marketing until its resources are

again substantial.

Answer: FALSE

Diff: 2 Page Ref: 203

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 7-3

125) Kia offers a new car model with the same features as a comparable but higher

priced Toyota or Ford and provides a longer warranty. Kia is following a

moreforless strategy.

Answer: FALSE

Diff: 3 Page Ref: 213

AACSB: Analytic Skills

Skill: Application

Objective: 7-4

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.

A) private brand

B) service variability

C) service

D) product

E) service encounter Answer: D

Diff: 1 Page Ref: 224

Skill: Concept

Objective: 8-1

101) Today, most companies have moved back toward mass marketing and are being

choosier about the customers with whom they wish to build relationships.

Answer: FALSE

Diff: 2 Page Ref: 190

Skill: Concept

Objective: 7-1

102) Your company wants to move away from mass marketing and engage in

customer-driven marketing. The four steps to take, in order, are market

segmentation, marketing positioning, differentiation, and targeting.

Answer: FALSE

Diff: 2 Page Ref: 190

Skill: Concept

Objective: 7-1

103) Demographic segmentation can be used to divide the market by different time

periods of people's lives and different family situations.

Answer: TRUE

Diff: 2 Page Ref: 191

Skill: Concept

Objective: 7-2

104) Gender segmentation has long been used in clothing, cosmetics, toiletries, and

magazines.

Answer: TRUE

Diff: 2 Page Ref: 193

AACSB: Multicultural and Diversity Understanding

Skill: Concept

Objective: 7-2

105) Your assignment at work is to divide buyers into different groups based on social

class, lifestyle, and personality characteristics. After a planning session with the

marketing and sales staff, you issue a memo to upper management

recommending psychographic segmentation. You are right on target.

Answer: TRUE

Diff: 2 Page Ref: 194

Skill: Concept

Objective: 7-2

106) Research about and planning for loyalty status as a segmentation approach is

generally not useful or practical for most firms.

Answer: FALSE

Diff: 2 Page Ref: 197

Skill: Concept

Objective: 7-2

107) For simplicity's sake, most marketers generally limit their segmentation analysis

to one or a few variables.

Answer: FALSE

Diff: 2 Page Ref: 198

Skill: Concept

Objective: 7-2

108) Clusters of marketable groups of customers with similar likes, dislikes, lifestyles,

and purchase behaviors can be identified by multivariable segmentation systems

that merge and analyze geographic, demographic, lifestyle, and behavioral data.

Answer: TRUE

Diff: 2 Page Ref: 198

AACSB: Use of Information Technology

Skill: Concept

Objective: 7-2

109) There are many exceptions to the geographic segmentation assumption that

consumers in nations close to one another will have many common behaviors

and traits.

Answer: TRUE

Diff: 2 Page Ref: 199

AACSB: Dynamics of the Global Economy

Skill: Concept

Objective: 7-2

110) Because there is such variation among the economies of countries around the

world, it is not practical to segment international markets on the basis of

economic factors.

Answer: FALSE

Diff: 2 Page Ref: 199

AACSB: Dynamics of the Global Economy

Skill: Concept

Objective: 7-2

111) In evaluating different market segments, a firm should look at three factors:

segment size and growth, segment structural attractiveness, and company

objectives and resources.

Answer: TRUE

Diff: 2 Page Ref: 201

Skill: Concept

Objective: 7-3

112) At a recent marketing seminar, the featured speaker stated that a target market

consists of a set of buyers who share common needs or characteristics that the

company decides to serve. This is a correct definition.

Answer: TRUE

Diff: 1 Page Ref: 201

Skill: Concept

Objective: 7-3

113) Developing a stronger position within several segments creates more total sales

than undifferentiated marketing across all segments.

Answer: TRUE

Diff: 2 Page Ref: 202

Skill: Concept

Objective: 7-3

114) Niche marketing offers smaller companies an opportunity to compete by

focusing their limited resources on serving niches that may be unimportant to or

overlooked by larger companies.

Answer: TRUE

Diff: 1 Page Ref: 203

Skill: Concept

Objective: 7-3

115) Though the use of mass marketing has been widespread in the past 100 years, for

centuries consumers were served as individuals as businesses practiced

individual marketing.

Answer: TRUE

Diff: 3 Page Ref: 205

Skill: Concept

Objective: 7-3

116) Mass marketing is becoming a marketing principle for the 21st century.

Answer: FALSE

Diff: 2 Page Ref: 205

Skill: Concept

Objective: 7-3

117) When a company chooses a target marketing strategy, its choices are influenced

by factors related to company resources, the degree of product variability, and

the product's life-cycle stage.

Answer: TRUE

Diff: 3 Page Ref: 206

Skill: Concept

Objective: 7-3

118) A product's position is the way the product is defined by the retailers who sell it

to target markets. It is how it is defined on important attributes?the place the

product occupies in the retailers' minds relative to competing products.

Answer: FALSE

Diff: 2 Page Ref: 207

AACSB: Communication Abilities

Skill: Concept

Objective: 7-4

119) Consumers position products in their minds in order to simplify the buying

process.

Answer: TRUE

Diff: 3 Page Ref: 207

Skill: Concept

Objective: 7-4

120) A market rarely exists for products that offer less and therefore cost less.

Answer: FALSE

Diff: 3 Page Ref: 214

Skill: Concept

Objective: 7-4

101) Wholesaling includes all the activities involved in selling products or services

directly to final consumers for their personal, nonbusiness use.

Answer: FALSE

Diff: 1 Page Ref: 374

Skill: Concept

Objective: 13-1

102) Marketers who use shopper marketing use the retail store itself as an important

marketing medium. Answer: TRUE

Diff: 2 Page Ref: 377

Skill: Concept

Objective: 13-1

103) Department stores carry narrow product lines with deep assortments within those

lines.

Answer: FALSE

Diff: 1 Page Ref: 376

Skill: Concept

Objective: 13-1

104) In recent years, convenience stores have redesigned their stores to closely focus

on serving their primary target market made up of young, blue-collar men.

Answer: FALSE

Diff: 3 Page Ref: 377

Skill: Concept

Objective: 13-1

105) Category killers carry a deep assortment of a particular product line and have a

knowledgeable staff. Answer: TRUE

Diff: 2 Page Ref: 378

Skill: Concept

-

Objective: 13 1

106) Off-price retailers pay regular wholesale prices for their merchandise but

maintain low prices by accepting lower margins and selling higher volume.

Answer: FALSE

Diff: 2 Page Ref: 378

Skill: Concept

Objective: 13-1

107) A discount store buys at less-than-regular wholesale prices and charges

consumers less than retail.

Answer: FALSE

Diff: 2 Page Ref: 378

Skill: Concept

Objective: 13-1

108) Independent off-price retailers may in fact be divisions of larger retail

corporations.

Answer: TRUE

Diff: 2 Page Ref: 378

Skill: Concept

Objective: 13-1

109) Warehouse clubs appeal almost exclusively to low-income consumers seeking

bargains.

Answer: FALSE

Diff: 2 Page Ref: 381

Skill: Concept

Objective: 13-1

110) Chain stores are located near residential areas and are open long hours, seven

days a week; they carry a limited line of high-turnover goods.

Answer: FALSE

Diff: 2 Page Ref: 377

Skill: Concept

Objective: 13-1

111) In a retailer cooperative, independent retailers contract with each other to set up

a central buying operation and conduct joint promotional efforts.

Answer: TRUE

Diff: 2 Page Ref: 381

Skill: Concept

Objective: 13-1

112) Retailers first must position themselves in a market and then decide how they

will define the target customers in these markets. Answer: FALSE

Diff: 2 Page Ref: 383

Skill: Concept

Objective: 13-2

113) To create the right atmosphere, some retailers control every aspect of the

consumer's store experience, including what customers hear and smell.

Answer: TRUE

Diff: 1 Page Ref: 386

Skill: Concept

Objective: 13-2

114) Power centers are decreasing in number.

Answer: FALSE

Diff: 2 Page Ref: 388

Skill: Concept

Objective: 13-2

115) The wheel-of-retailing concept deals mainly with wholesalers rolling out

reduced service levels.

Answer: FALSE

Diff: 2 Page Ref: 390

Skill: Concept

Objective: 13-3

116) The life cycle of new retail forms is getting longer.

Answer: FALSE

Diff: 2 Page Ref: 390

Skill: Concept

Objective: 13-3

117) Retail convergence means greater competition for retailers and greater difficulty

in differentiating offerings.

Answer: TRUE

Diff: 2 Page Ref: 390

Skill: Concept

Objective: 13-3

118) Megaretailers have shifted the balance of power between retailers and producers,

giving retailers more power.

Answer: TRUE

Diff: 2 Page Ref: 390

Skill: Concept

Objective: 13-3

119) Like retailers, a wholesaler must decide on segmentation and targeting,

differentiation and positioning, and the marketing mix.

Answer: TRUE

Diff: 1 Page Ref: 396

Skill: Concept

-

Objective: 13 4

120) In an automated warehouse, orders are fed directly from the retailer's

information system to the wholesaler's, and the items are picked up by

mechanical devices and taken to a shipping platform where they are assembled.

Answer: TRUE

Diff: 2 Page Ref: 398

AACSB: Use of Information Technology

Skill: Concept

Objective: 13-4

121) Full-service retailers such as JC Penney provide more sales assistance because

they carry more shopping goods about which customers need information.

Answer: FALSE

Diff: 3 Page Ref: 376

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 13-1

122) Limited-service retailers, such as specialty stores and first-class department

stores, employ salespeople who assist customers in every phase of the shopping

process.

Answer: FALSE

Diff: 2 Page Ref: 376

AACSB: Reflective Thinking Skills

Skill: Synthesis

Objective: 13-1

123) Factory outlets, independent off-price retailers, and warehouse clubs all buy

their merchandise in a similar fashion.

Answer: TRUE

Diff: 3 Page Ref: 378

AACSB: Reflective Thinking Skills

Skill: Critical Thinking

Objective: 13-1

124) Unlike mass marketers, niche marketers expect to see continued growth in their

online sales.

Answer: FALSE

Diff: 3 Page Ref: 391

AACSB: Use of Information Technology

Skill: Application

Objective: 13-3

125) The distinction between large retailers and large wholesalers is changing

because most large wholesalers are abandoning their retail operations.

Answer: FALSE

Diff: 2 Page Ref: 400

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 13-4

101) Prices have a direct impact on a company's bottom line.

Answer: TRUE

Diff: 1 Page Ref: 290

Skill: Concept

Objective: 10-1

102) Demand and consumer value perceptions set the floor for prices.

Answer: FALSE

Diff: 2 Page Ref: 291

Skill: Concept

Objective: 10-2

103) Product costs set a floor to the price; consumer perceptions of the product's

value set the ceiling. Answer: TRUE

Diff: 2 Page Ref: 291

Skill: Concept

Objective: 10-2

104) Value-based pricing is being used when costs vary directly with the level of

product.

Answer: FALSE

Diff: 3 Page Ref: 291

Skill: Concept

Objective: 10-2

105) Value-based pricing uses the company's perception of value.

Answer: FALSE

Diff: 2 Page Ref: 291

Skill: Concept

Objective: 10-2

106) Value-based pricing is the reverse of cost-based pricing.

Answer: TRUE

Diff: 2 Page Ref: 291

Objective: 10 2

Skill: Concept

-

107) EDLP is very similar to high-low pricing.

Answer: FALSE

Diff: 2 Page Ref: 293

Skill: Concept

Objective: 10-2

108) Overhead cost is another term for fixed cost.

Answer: TRUE

Diff: 1 Page Ref: 296

Skill: Concept

Objective: 10-2

109) Cost-based pricing relies on consumer perception of value to drive pricing.

Answer: FALSE

Diff: 2 Page Ref: 295

Skill: Concept

Objective: 10-2

110) Average unit cost increases with accumulated production experience.

Answer: FALSE

Diff: 1 Page Ref: 297

Skill: Concept

Objective: 10-2

111) An upward-sloping experience curve is beneficial for a company.

Answer: FALSE

Diff: 3 Page Ref: 297

Skill: Concept

Objective: 10-2

112) The simplest pricing method is cost-plus pricing, which involves adding a

standard markup to the cost of the product.

Answer: TRUE

Diff: 1 Page Ref: 297

Skill: Concept

Objective: 10-2

113) Markup pricing is popular because prices tend to be similar and price

competition is thus minimized.

Answer: TRUE

Diff: 2 Page Ref: 298

Skill: Concept

Objective: 10-2

114) Target return pricing is used when a firm tries to determine the price at which it

will break even or make the profit it is seeking.

Answer: TRUE

Diff: 3 Page Ref: 298

Skill: Concept

Objective: 10-2

115) A break-even chart shows the total cost and total revenue expected at various

sales volume levels.

Answer: TRUE

Diff: 2 Page Ref: 298

Skill: Concept

Objective: 10-2

116) Environmental elements are categorized as external factors that affect pricing

decisions.

Answer: TRUE

Diff: 2 Page Ref: 300

Skill: Concept

Objective: 10-3

117) In a pure monopoly, the market consists of one seller.

Answer: TRUE

Diff: 2 Page Ref: 302

Skill: Concept

Objective: 10-3

118) The demand curve shows the number of units the market will buy in a given

time period at different prices that might be charged. In normal cases, the higher

the price, the lower the demand.

Answer: TRUE

Diff: 2 Page Ref: 302

Skill: Concept

Objective: 10-3

119) If demand changes greatly with price, we say the demand is inelastic.

Answer: FALSE

Diff: 2 Page Ref: 303

Skill: Concept

Objective: 10-3

120) Once a company cuts prices, it's difficulty to raise prices again when the

economy recovers. Answer: TRUE

Diff: 2 Page Ref: 304

Skill: Concept

Objective: 10-3

121) When faced with price competition, cutting prices is often not the best answer.

Answer: TRUE

Diff: 2 Page Ref: 290

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 10-1

122) Using value-based pricing, a marketer would not design a product and marketing

program before setting the price.

Answer: TRUE

Diff: 3 Page Ref: 291

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 10-2

123) Monopolies charge the full price because they do not fear attracting competition

or regulation.

Answer: FALSE

Diff: 2 Page Ref: 302

AACSB: Reflective Thinking Skills

Skill: Synthesis

Objective: 10-3

124) Marketers may learn a few simple rules that apply equally to all price-demand

relationships.

Answer: FALSE

Diff: 2 Page Ref: 302

AACSB: Reflective Thinking Skills

Skill: Critical Thinking

Objective: 10-3

125) The more elastic the demand, the more it pays for the seller to raise the price.

Answer: FALSE

Diff: 2 Page Ref: 303

AACSB: Reflective Thinking Skills

Skill: Critical Thinking

Objective: 10-3

101) A company's marketing communications mix is also called its promotion mix.

Answer: TRUE

Diff: 1 Page Ref: 408

AACSB: Communication Abilities

Skill: Concept

Objective: 14-1

102) Sales promotion makes use of press releases and special events.

Answer: FALSE

Diff: 2 Page Ref: 408

AACSB: Communication Abilities

Skill: Concept

Objective: 14-1

103) Mass markets have fragmented; thus, marketers are shifting away from mass

marketing.

Answer: TRUE

Diff: 2 Page Ref: 409

AACSB: Communication Abilities

Skill: Concept

Objective: 14-2

104) Though mass marketing was effective in past decades, large companies no

longer routinely invest large chunks of their advertising budgets in mass media

outlets such as television and magazines.

Answer: FALSE

Diff: 2 Page Ref: 410

AACSB: Communication Abilities

Skill: Concept

Objective: 14-2

105) New communications technologies such as cell phones and the Internet give

companies new media for interacting with targeted consumers, but these new

technologies also give consumers more control over the advertising messages

they receive.

Answer: TRUE

Diff: 2 Page Ref: 409

AACSB: Use of Information Technology

Skill: Concept

Objective: 14-2

106) Mass marketers can expect consumers to distinguish between commercial

message sources to maintain a clear image of a company and its brands.

Answer: FALSE

Diff: 2 Page Ref: 410

AACSB: Communication Abilities

Skill: Concept

Objective: 14-2

107) The integrated marketing concept ties together all of the company's messages

and images.

Answer: TRUE

Diff: 1 Page Ref: 412

AACSB: Communication Abilities

Skill: Concept

Objective: 14-2

108) Integrated marketing communications allows different brand messages to be

developed by different departments within an organization.

Answer: FALSE

Diff: 2 Page Ref: 412

AACSB: Communication Abilities

Skill: Concept

Objective: 14-2

109) A marketing communications director has overall responsibility for the

company's communications efforts.

Answer: TRUE

Diff: 2 Page Ref: 414

AACSB: Communication Abilities

Skill: Concept

Objective: 14-2

110) The communications process should start with mass media advertising to reach

many consumers.

Answer: FALSE

Diff: 2 Page Ref: 414

AACSB: Communication Abilities

Skill: Concept

Objective: 14-3

111) The four major communication functions are encoding, decoding, response, and

noise.

Answer: FALSE

Diff: 2 Page Ref: 414

AACSB: Communication Abilities

Skill: Concept

Objective: 14-3

112) Encoding is the process by which the receiver assigns meaning to symbols.

Answer: FALSE

Diff: 2 Page Ref: 415

AACSB: Communication Abilities

Skill: Concept

Objective: 14-3

113) Decoding is the process of putting thought into symbolic form.

Answer: FALSE

Diff: 2 Page Ref: 415

AACSB: Communication Abilities

Skill: Concept

Objective: 14-3

114) Awareness, knowledge, and preference are buyer-readiness stages.

Answer: TRUE

Diff: 2 Page Ref: 416

Skill: Concept

Objective: 14-3

115) There are three types of appeal from which marketers may choose as they design

their message content. These types are rational, emotional, and moral appeals.

Answer: TRUE

Diff: 2 Page Ref: 417

AACSB: Communication Abilities

Skill: Concept

Objective: 14-3

116) Buzz marketing involves cultivating opinion leaders and getting them to spread

information about a product or service to others in their communities.

Answer: TRUE

Diff: 1 Page Ref: 419

AACSB: Communication Abilities

Skill: Concept

Objective: 14-3

117) The percentage-of-sales method wrongly views sales as the cause of promotion

rather than the result.

Answer: TRUE

Diff: 2 Page Ref: 423

Skill: Concept

Objective: 14-4

118) The affordable method sets promotion budgets to match competitors' outlays.

Answer: FALSE

Diff: 2 Page Ref: 423

Skill: Concept

Objective: 14-4

119) Large-scale advertising conveys a positive message about the seller's size,

popularity, and success. Answer: TRUE

Diff: 2 Page Ref: 424

Skill: Concept

Objective: 14-4

120) If the pull strategy is effective, consumers will then demand the product from

channel members, who will in turn demand it from producers.

Answer: TRUE

Diff: 2 Page Ref: 425

Skill: Concept

Objective: 14-4

121) Vast improvements in information technology are speeding the movement

toward segmented marketing. Answer: TRUE

Diff: 3 Page Ref: 409

AACSB: Use of Information Technology

Skill: Synthesis

Objective: 14-2

122) "Teaser" advertising is most closely associated with the buyer-readiness stage of

liking a product.

Answer: FALSE

Diff: 3 Page Ref: 416

AACSB: Analytic Skills

Skill: Application

Objective: 14-3

123) The "Stop. Think. Tylenol." ad is an example of a moral appeal.

Answer: FALSE

Diff: 2 Page Ref: 417

AACSB: Analytic Skills

Skill: Application

Objective: 14-3

124) Advertisements for prescription drugs often feature potential benefits and

negative side effects that consumers may experience with use of the medication.

These ads present two-sided arguments.

Answer: TRUE

Diff: 2 Page Ref: 418

AACSB: Analytic Skills

Skill: Application

Objective: 14-3

125) A recent trend toward more push than pull in the mixes of consumer-goods

companies may achieve short-run sales at the expense of brand equity.

Answer: TRUE

Diff: 3 Page Ref: 426

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 14-4

101) A firm can obtain new products in two ways: acquisition or new-product

development. Answer: TRUE

Diff: 2 Page Ref: 260

Skill: Concept

Objective: 9-1

102) Up to 80 percent of all new consumer products fail or seriously underperform.

Answer: TRUE

Diff: 2 Page Ref: 260

Skill: Concept

Objective: 9-1

103) New-product development begins with a systematic search for new product

ideas through idea generation.

Answer: TRUE

Diff: 1 Page Ref: 261

Skill: Concept

Objective: 9-2

104) Companies rarely solicit ideas from customers during the idea generation stage

of product development.

Answer: FALSE

Diff: 1 Page Ref: 262

Skill: Concept

Objective: 9-2

105) A product idea is an idea for a possible product a company can offer the market,

while a product concept is a detailed version of the idea stated in meaningful

consumer terms.

Answer: TRUE

Diff: 3 Page Ref: 264

Skill: Concept

Objective: 9-2

106) Concept testing works best with people who are familiar with the new idea and

the new product's purpose. This generally includes top management, the sales

force, and research and development. Answer: FALSE

Diff: 3 Page Ref: 265

Skill: Concept

Objective: 9-2

107) The business analysis stage represents the first large jump in financial

investment in the new-product development process.

Answer: FALSE

Diff: 2 Page Ref: 266

Skill: Concept

Objective: 9-2

108) The stage at which new product and marketing programs are introduced into

realistic market settings is called concept testing.

Answer: FALSE

Diff: 1 Page Ref: 267

Skill: Concept

Objective: 9-2

109) A company launching a new product into the market must first decide on when

to launch the product.

Answer: TRUE

Diff: 2 Page Ref: 268

Skill: Concept

Objective: 9-2

110) JumBo Games is launching a new set of game toys in the commercialization

stage. The first decision to make is introduction timing and the second is where

to launch the new product. Answer: TRUE

Diff: 2 Page Ref: 268

Skill: Concept

Objective: 9-2

111) Sequential product development has the advantage of not only being a

teamoriented approach, but also of being faster in bringing products to market.

Answer: FALSE

Diff: 2 Page Ref: 270

Skill: Concept

Objective: 9-2

112) To avoid too few new-product ideas and the failure of many good ideas,

management should install an innovation management system that collects,

reviews, evaluates, and manages new-product ideas.

Answer: TRUE

Diff: 2 Page Ref: 270

Skill: Concept

Objective: 9-2

113) Using the PLC concept to develop marketing strategy can be problematic

because strategy is both a cause and a result of the product's life cycle.

Answer: TRUE

Diff: 3 Page Ref: 275

Skill: Concept

Objective: 9-3

114) Profits rise during the growth stage of the PLC because promotion costs are

spread over a large volume and unit manufacturing costs fall.

Answer: TRUE

Diff: 2 Page Ref: 275

Skill: Concept

Objective: 9-3

115) Although products that remain in the maturity stage of the PLC seem unchanged,

the most successful ones actually evolve to meet changing consumer needs.

Answer: TRUE

Diff: 2 Page Ref: 277

Skill: Concept

Objective: 9-3

116) When sales of a product falter during the PLC, a company can take several

approaches. The more common ones are to modify the marketing mix, modify

the product, or modify the market.

Answer: TRUE

Diff: 2 Page Ref: 277

Skill: Concept

Objective: 9-3

117) Companies need to pay attention to their aging products. Management should

regularly review sales, market shares, costs, and profit trends, and then decide

whether to maintain, harvest, or drop these declining products.

Answer: TRUE

Diff: 2 Page Ref: 279

Skill: Concept

Objective: 9-3

118) When a company decides to maintain a product in the decline stage, it will

reduce costs and hope that sales hold up to increase the profits in the short run.

Answer: FALSE

Diff: 2 Page Ref: 279

Skill: Concept

Objective: 9-3

119) The federal government may prevent a company from adding products through

acquisitions if acquisition threatens to lessen competition.

Answer: TRUE

Diff: 2 Page Ref: 280

AACSB: Ethical Understanding and Reasoning Abilities

Skill: Concept

Objective: 9-4

120) The international growth of many professional and business services such as

accounting, consulting, and advertising led to the globalization of the client

companies they serve. Answer: FALSE

Diff: 3 Page Ref: 282

AACSB: Multicultural and Diversity Understanding

Skill: Concept

Objective: 9-4

121) Malibu Beach Parties finds that the tastes and preferences of its customers

change more rapidly than in the past. The manager should constantly look for

external ideas from customers, suppliers, and the competition.

Answer: TRUE

Diff: 2 Page Ref: 262

AACSB: Reflective Thinking Skills

Skill: Critical Thinking

Objective: 9-2

122) Blair Housewares wants to add new lines of products to its 46-store chain.

Managers are correct in believing that the purpose of idea generation is to create

a few ideas and the purpose of succeeding stages is to increase that number.

Answer: FALSE

Diff: 2 Page Ref: 264

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 9-2

123) GreenTree Lawn and Garden Products is engaged in marketing strategy

development. Management should first create a statement outlining the product's

planned price, distribution, and marketing budget for the first year.

Answer: FALSE

Diff: 3 Page Ref: 265

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 9-2

124) GreenTree Lawn and Garden Products is engaged in a review of the sales, costs,

and profit projections for some new products to find out whether they satisfy the

company's objectives. This activity is called business product development.

Answer: FALSE

Diff: 2 Page Ref: 266

AACSB: Analytic Skills

Skill: Application

Objective: 9-2

125) Sales for the time-tried household cleansers made by Brite and New, Inc. have

been declining for some time. If these products are typical, sales are declining

because of technological advances, shifts in consumer tastes, and lack of raw

materials from foreign suppliers.

Answer: FALSE

Diff: 3 Page Ref: 278

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 9-3

101) A service is anything that can be offered to a market for attention, acquisition,

use, or consumption and that might satisfy a want or need.

Answer: FALSE

Diff: 1 Page Ref: 224

Skill: Concept

Objective: 8-1

102) Unsought products are products that the customer usually buys frequently,

immediately, and with a minimum of comparison and buying effort.

Answer: FALSE

Diff: 1 Page Ref: 227

Skill: Concept

Objective: 8-1

103) Shopping products are less frequently purchased consumer products and services

that customers compare carefully on suitability, quality, price, and style.

Answer: TRUE

Diff: 1 Page Ref: 226

Skill: Concept

Objective: 8-1

104) Style is a larger concept than design. Design describes the appearance of a

product.

Answer: FALSE

Diff: 3 Page Ref: 230

Skill: Concept

Objective: 8-2

105) Branding can add consumer value to a product.

Answer: TRUE

Diff: 2 Page Ref: 231

AACSB: Communication Abilities

Skill: Concept

Objective: 8-2

106) Because so many purchase decisions are made in stores, a product's packaging

may be a seller's last and best chance to influence consumers.

Answer: TRUE

Diff: 2 Page Ref: 232

AACSB: Communication Abilities

Skill: Concept

Objective: 8-2

107) Product support services identify the product or brand, describe several things

about the product, and promote the product through attractive graphics.

Answer: FALSE

Diff: 2 Page Ref: 233

AACSB: Communication Abilities

Skill: Concept

Objective: 8-2

108) Cannibalization and customer confusion about product differentiation are two

potential results if line filling is overdone.

Answer: TRUE

Diff: 3 Page Ref: 235

Skill: Concept

Objective: 8-2

109) A company can stretch its product either upward or downward, but not both

directions.

Answer: FALSE

Diff: 2 Page Ref: 235

Skill: Concept

Objective: 8-2

110) A company might stretch its product line upward to add prestige to its current

products.

Answer: TRUE

Diff: 2 Page Ref: 235

Skill: Concept

Objective: 8-2

111) A company's product mix has four important dimensions: width, length, depth,

and consistency.

Answer: TRUE

Diff: 2 Page Ref: 235

Skill: Concept

Objective: 8-2

112) Service inseparability means that the quality of services depends on who

provides them, as well as when, where, and how they are provided.

Answer: FALSE

Diff: 2 Page Ref: 237

Skill: Concept

Objective: 8-3

113) In a service business, the customer and front-line service employee interact to

create the service.

Answer: TRUE

Diff: 2 Page Ref: 238

Skill: Concept

Objective: 8-3

114) The service-profit chain is the set of all product lines and items that a particular

seller offers for sale.

Answer: FALSE

Diff: 2 Page Ref: 238

Skill: Concept

Objective: 8-3

115) One aspect of managing service differentiation is the company's service delivery.

Answer: TRUE

Diff: 2 Page Ref: 241

Skill: Concept

Objective: 8-3

116) Customer retention is perhaps the best measure of quality?a service firm's ability

to hang on to its customers depends on how consistently it delivers value to

them.

Answer: TRUE

Diff: 2 Page Ref: 242

Skill: Concept

Objective: 8-3

117) Good service recovery can turn angry customers into loyal customers and can

even win more customer purchasing and loyalty than if no problem had occurred

in the first place.

Answer: FALSE

Diff: 2 Page Ref: 242

Skill: Concept

Objective: 8-3

118) Attributes are the least desirable level for brand positioning because competitors

can easily copy attributes and customers are more interested in what attributes

will do for them than in the attributes themselves.

Answer: TRUE

Diff: 2 Page Ref: 244

Skill: Concept

Objective: 8-4

119) When a company introduces a new brand name in the same product category, it

is called line extension.

Answer: FALSE

Diff: 2 Page Ref: 250

Skill: Concept

Objective: 8-4

120) Customers come to know a brand through a wide range of contacts and touch

points, including word of mouth, personal interactions with company people,

telephone interactions, and company Web pages.

Answer: TRUE

Diff: 1 Page Ref: 251

AACSB: Communication Abilities

Skill: Concept

Objective: 8-4

121) Sony offers consumers more than just camcorders; it provides consumers with a

complete solution to their picture-taking problems. This offering is called an

augmented product. Answer: TRUE

Diff: 3 Page Ref: 226

AACSB: Analytic Skills

Skill: Application

Objective: 8-1

122) Quaker produces a variety of cereals. This variety is called its product line.

Answer: TRUE

Diff: 2 Page Ref: 234

AACSB: Analytic Skills

Skill: Application

Objective: 8-2

123) An example of service variability is that within a given Marriott hotel, one

registration-desk employee may be cheerful and efficient, whereas another may

be unpleasant and slow. Answer: TRUE

Diff: 2 Page Ref: 238

AACSB: Analytic Skills

Skill: Application

Objective: 8-3

124) Dove marketers can go beyond the brand's cleansing cream properties and talk

about the resulting benefit of softer skin. This is known as product attributes in

brand positioning.

Answer: FALSE

Diff: 3 Page Ref: 244

AACSB: Analytic Skills

Skill: Application

Objective: 8-4

125) Retailers and wholesalers who have created their own brands?such as Walmart's

Sam's Choice beverages and food products?are participating in co-branding.

Answer: FALSE

Diff: 3 Page Ref: 246

AACSB: Reflective Thinking Skills

Skill: Application

Objective: 8-4

101) Today, most companies have moved back toward mass marketing and are being

choosier about the customers with whom they wish to build relationships.

Answer: FALSE

Diff: 2 Page Ref: 190

Skill: Concept

Objective: 7-1

102) Your company wants to move away from mass marketing and engage in

customer-driven marketing. The four steps to take, in order, are market

segmentation, marketing positioning, differentiation, and targeting.

Answer: FALSE

Diff: 2 Page Ref: 190

Skill: Concept

Objective: 7-1

103) Demographic segmentation can be used to divide the market by different time

periods of people's lives and different family situations.

Answer: TRUE

Diff: 2 Page Ref: 191

Skill: Concept

Objective: 7-2

104) Gender segmentation has long been used in clothing, cosmetics, toiletries, and

magazines.

Answer: TRUE

Diff: 2 Page Ref: 193

AACSB: Multicultural and Diversity Understanding

Skill: Concept

Objective: 7-2

105) Your assignment at work is to divide buyers into different groups based on

social class, lifestyle, and personality characteristics. After a planning session

with the marketing and sales staff, you issue a memo to upper management

recommending psychographic segmentation. You are right on target.

Answer: TRUE

Diff: 2 Page Ref: 194

Skill: Concept

Objective: 7-2

106) Research about and planning for loyalty status as a segmentation approach is

generally not useful or practical for most firms.

Answer: FALSE

Diff: 2 Page Ref: 197

Skill: Concept

Objective: 7-2

107) For simplicity's sake, most marketers generally limit their segmentation analysis

to one or a few variables.

Answer: FALSE

Diff: 2 Page Ref: 198

Skill: Concept

Objective: 7-2

108) Clusters of marketable groups of customers with similar likes, dislikes,

lifestyles, and purchase behaviors can be identified by multivariable

segmentation systems that merge and analyze geographic, demographic,

lifestyle, and behavioral data.

Answer: TRUE

Diff: 2 Page Ref: 198

AACSB: Use of Information Technology

Skill: Concept

Objective: 7-2

109) There are many exceptions to the geographic segmentation assumption that

consumers in nations close to one another will have many common behaviors

and traits.

Answer: TRUE

Diff: 2 Page Ref: 199

AACSB: Dynamics of the Global Economy

Skill: Concept

Objective: 7-2

110) Because there is such variation among the economies of countries around the

world, it is not practical to segment international markets on the basis of

economic factors.

Answer: FALSE

Diff: 2 Page Ref: 199

AACSB: Dynamics of the Global Economy

Skill: Concept

Objective: 7-2

111) In evaluating different market segments, a firm should look at three factors:

segment size and growth, segment structural attractiveness, and company

objectives and resources.

Answer: TRUE

Diff: 2 Page Ref: 201

Skill: Concept

Objective: 7-3

112) At a recent marketing seminar, the featured speaker stated that a target market

consists of a set of buyers who share common needs or characteristics that the

company decides to serve. This is a correct definition.

Answer: TRUE

Diff: 1 Page Ref: 201

Skill: Concept

Objective: 7-3

113) Developing a stronger position within several segments creates more total sales

than undifferentiated marketing across all segments.

Answer: TRUE

Diff: 2 Page Ref: 202

Skill: Concept

Objective: 7-3

114) Niche marketing offers smaller companies an opportunity to compete by

focusing their limited resources on serving niches that may be unimportant to or

overlooked by larger companies.

Answer: TRUE

Diff: 1 Page Ref: 203

Skill: Concept

Objective: 7-3

115) Though the use of mass marketing has been widespread in the past 100 years, for

centuries consumers were served as individuals as businesses practiced

individual marketing.

Answer: TRUE

Diff: 3 Page Ref: 205

Skill: Concept

Objective: 7-3

116) Mass marketing is becoming a marketing principle for the 21st century.

Answer: FALSE

Diff: 2 Page Ref: 205

Skill: Concept

Objective: 7-3

117) When a company chooses a target marketing strategy, its choices are influenced

by factors related to company resources, the degree of product variability, and

the product's life-cycle stage.

Answer: TRUE

Diff: 3 Page Ref: 206

Skill: Concept

Objective: 7-3

118) A product's position is the way the product is defined by the retailers who sell it

to target markets. It is how it is defined on important attributes?the place the

product occupies in the retailers' minds relative to competing products.

Answer: FALSE

Diff: 2 Page Ref: 207

AACSB: Communication Abilities

Skill: Concept

Objective: 7-4

119) Consumers position products in their minds in order to simplify the buying

process.

Answer: TRUE

Diff: 3 Page Ref: 207

Skill: Concept

Objective: 7-4

120) A market rarely exists for products that offer less and therefore cost less.

Answer: FALSE

Diff: 3 Page Ref: 214

Skill: Concept

Objective: 7-4

101) Wholesaling includes all the activities involved in selling products or services

directly to final consumers for their personal, nonbusiness use.

Answer: FALSE

Diff: 1 Page Ref: 374

Skill: Concept

Objective: 13-1

102) Marketers who use shopper marketing use the retail store itself as an important

marketing medium. Answer: TRUE

Diff: 2 Page Ref: 377

Skill: Concept

Objective: 13-1

103) Department stores carry narrow product lines with deep assortments within those

lines.

Answer: FALSE

Diff: 1 Page Ref: 376

Skill: Concept

Objective: 13-1

104) In recent years, convenience stores have redesigned their stores to closely focus

on serving their primary target market made up of young, blue-collar men.

Answer: FALSE

Diff: 3 Page Ref: 377

Skill: Concept

Objective: 13-1

105) Category killers carry a deep assortment of a particular product line and have a

knowledgeable staff. Answer: TRUE

Diff: 2 Page Ref: 378

Skill: Concept

Objective: 13-1

106) Off-price retailers pay regular wholesale prices for their merchandise but

maintain low prices by accepting lower margins and selling higher volume.

Answer: FALSE

Diff: 2 Page Ref: 378

Skill: Concept

Objective: 13-1

107) A discount store buys at less-than-regular wholesale prices and charges

consumers less than retail.

Answer: FALSE

Diff: 2 Page Ref: 378

Skill: Concept

Objective: 13-1

108) Independent off-price retailers may in fact be divisions of larger retail

corporations.

Answer: TRUE

Diff: 2 Page Ref: 378

Skill: Concept

Objective: 13-1

109) Warehouse clubs appeal almost exclusively to low-income consumers seeking

bargains.

Answer: FALSE

Diff: 2 Page Ref: 381

Skill: Concept

Objective: 13-1

110) Chain stores are located near residential areas and are open long hours, seven

days a week; they carry a limited line of high-turnover goods.

Answer: FALSE