MARK Ch 13, 8, 2

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A

A service is any intangible offering that involves a deed, performance, or effort that A. cannot be physically possessed. B. is high-priced. C. is supported solely through advertising. D. can be transformed into a physical product. E. offers benefits but not costs.

B

By providing good customer service, firms __________ their products or services. A. eliminate the communication gap for B. add value to C. reduce the zone of tolerance for D. reduce the empowerment cost associated with E. increase the perishability of

C

Along the service-product continuum, which of the following would be considered the most service dominant? A. grocery store B. apparel specialty store C. doctor D. bookstore E. restaurant

A

Along the service-product continuum, which of the following would be considered the most product dominant? A. grocery store B. auto repair shop C. doctor’s office D. cell phone service provider E. restaurant

E

Many product-dominant firms use quality service A. as a way to minimize the cost of production. B. to support a standards gap. C. as a way to increase the perishability of their products. D. to install a voice of the customer program. E. to maintain a sustainable competitive advantage.

E

In countries like the United States, services A. have almost all been replaced by technology. B. are a small portion of GDP relative to manufacturing. C. are replacing property taxes as a source of government revenue. D. will decrease in demand as the population ages. E. account for an increasing share of jobs.

C

Food preparation, lawn maintenance, and house cleaning services are all examples of A. services shifted abroad because costs are lower in developing countries. B. services an aging population will decrease their demand for. C. household maintenance activities that people increasingly pay others to perform. D. the price elasticity effect on services demand. E. the ability of empowerment to create tangible service products.

B

Medical services, assisted living care, and active senior travel are all examples of A. services shifted abroad because costs are lower in developing countries. B. services an aging population will increase their demand for. C. household maintenance activities that people increasingly pay others to perform. D. the price elasticity effect on services demand. E. the ability of empowerment to create tangible service products.

D

The marketing of services differs from product marketing because services are all of these EXCEPT A. intangible. B. inseparable. C. variable. D. renewable. E. perishable.

A

When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can. A. intangible B. inseparable C. variable D. perishable E. replenishable

C

Because services are __________, it is often difficult for marketers to convey the benefits to consumers. A. variable B. inseparable C. intangible D. perishable E. substantial

D

For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on A. when to advertise versus when to use personal selling. B. which media are appropriate for promoting intangible services. C. which images create a better impression on consumers. D. how to gain clients while retaining an image of professionalism and integrity. E. who should be the spokesperson for professionals offering intangible services.

B

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time. A. intangible B. inseparable C. variable D. perishable E. peripheral

E

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services. A. promotional discounts B. zone of tolerance allowances C. perishability gap analysis D. point-of-purchase displays E. satisfaction guarantees

D

Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn’t like the one he had chosen, and he knew he’d never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as A. intangibility. B. professional competence. C. perishability. D. inseparability. E. variability.

E

Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of A. intangibility. B. part-time employees. C. perishability. D. inseparability. E. variability.

C

When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another. A. intangible B. inseparable C. heterogeneous D. perishable E. viable

C

The old restaurant saying, "You are only as good as the last meal served," reflects the fact that services are A. intangible. B. inseparable. C. variable. D. portable. E. viable.

B

Marketers can take advantage of the variable nature of services by A. merging services with products. B. customizing services to meet customers’ needs. C. offering to expedite intangibles. D. expanding the standards gap. E. strict standardization.

E

One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate. A. intangibility B. inseparability C. spendability D. perishability E. variability

A

David’s marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap. A. knowledge B. standards C. ethics D. delivery E. communications

D

The customers at Marielle’s coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle’s keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle’s shop is suffering from a A. knowledge gap. B. standards gap. C. social expectations gap. D. delivery gap. E. communications gap.

E

When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a A. knowledge gap. B. standards gap. C. social expectations gap. D. delivery gap. E. communications gap.

E

When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future. A. intangible B. inseparable C. variable D. durable E. perishable

D

Because services like airline flights and hotel beds are _________, many marketers attempt to match demand with supply using pricing strategies. A. intangible B. inseparable C. variable D. perishable E. accountable

E

Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that five to ten last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening. A. intangible B. inseparable C. variable D. durable E. perishable

A

Because services like cruises and car rentals are perishable, many marketers use A. pricing strategies to match supply with demand. B. service quality to extend the life of the product. C. incentives to encourage staff to deliver according to standards. D. training to standardize delivery. E. machines to replace people for standard transactions.

C

The Gaps model is designed to highlight those areas where A. service providers provide the best possible service. B. manufacturers are cutting corners on product quality. C. customers believe they are getting less or poorer service than they should. D. service providers know more than their customers. E. delivered service exceeds expected service.

A

When the delivery of a service fails to meet customers’ expectations, a __________ gap exists. A. service B. knowledge C. standards D. production E. communication

B

A __________ gap reflects the difference between customers’ expectations and the firm’s perception of those customer expectations. A. seniority B. knowledge C. standards D. delivery E. communication

B

Firms can close the __________ gap by matching customer expectations with actual service through use of marketing metrics. A. seniority B. knowledge C. standards D. delivery E. communication

D

A __________ gap is the difference between the firm’s service standards and the service it provides to customers. A. seniority B. knowledge C. standards D. delivery E. communication

D

A __________ gap can be closed by getting employees to meet or exceed service standards. A. seniority B. knowledge C. standards D. delivery E. communication

C

If there is a difference between the firm’s perceptions of customers’ expectations and the service standards the firm has set, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication

C

By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap. A. seniority B. knowledge C. standards D. delivery E. communication

E

If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication

E

Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations. A. seniority B. knowledge C. standards D. delivery E. communication

B

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing. A. seniority B. knowledge C. standards D. delivery E. communication

B

Jackson manages an upscale French restaurant in the Washington, D.C. area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to reduce the __________ gap in services marketing. A. seniority B. knowledge C. standards D. delivery E. communication

C

To meet or exceed customers’ expectations, marketers must A. know where customers live. B. know how often consumers buy their products. C. determine what those expectations are. D. recognize that expectations are tangible. E. empower customers to meet their own expectations.

D

Colin has been directed by his boss to determine whether their company is meeting customers’ service quality expectations. One of Colin’s problems is that services are __________, making evaluation of service quality difficult. A. quantifiable B. substantial C. unequally distributed D. intangible E. inconsequential to customers

C

Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality? A. assurance B. reliability C. acceptability D. responsiveness E. empathy

B

Cheryl will only let Martiné cut her hair. She has tried other hairdressers, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

A

Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

C

Gerald’s Tire Service provides each employee with a clean, sharp-looking uniform. It also instructs employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald’s Tire Service emphasizes __________ in the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

C

Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call A. service perceptions. B. service efforts. C. service quality. D. service aspirations. E. service feedback.

E

A systematic ____________ program collects customer inputs and integrates them into managerial decisions. A. quality gap analysis B. empowerment C. zone of tolerance D. standards analysis E. voice-of-customer

E

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers’ responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings. A. quality gap analysis B. empowerment C. zone of tolerance D. standards analysis E. voice-of-customer

D

When choosing where to eat lunch, Veronica’s major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, __________ is the most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

C

The concept of __________ refers to the area between customers’ expectations regarding desired service and their minimum levels of acceptable service. A. voice-of-customer programs B. empowerment C. the zone of tolerance D. standards analysis E. quality gap analysis

D

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers’ __________, the difference between what her customers want and what they will accept before going elsewhere. A. voice-of-customer quotient B. empowerment standard C. tangibles gap D. zone of tolerance E. quality gap

D

Customers have a defined __________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store. A. voice-of-customer quotient B. empowerment standard C. tangibles gap D. zone of tolerance E. quality gap

A

An excellent, inexpensive, and readily accessible method for assessing customers’ service expectations is A. customer complaints. B. syndicated data services. C. employee empowerment programs. D. distributive fairness analysis. E. management by objective programs.

D

Training service providers to know exactly what a good job entails is setting service A. knowledge. B. quality. C. delivery. D. standards. E. empowerment.

E

Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers’ expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will A. empower customers to meet their own service needs. B. establish a broad zone of intolerance to reduce customer complaints. C. narrowly define a knowledge gap. D. separate intangibles from tangibles. E. set specific, measurable goals based on customers’ expectations.

A

Services marketing managers have learned that more employees will support a quality-oriented process if A. they are involved in setting the goals. B. perishable services are replaced with tangible services. C. they are required to diverge from existing standards. D. customers are responsible for setting service quality standards. E. the process involves both part-time and full-time employees.

A

When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees’ support because A. they were not involved in setting the goals. B. perishable services were being replaced with tangible services. C. they were not allowed to diverge from existing standards. D. customers were required to create service quality standards. E. the process involved both part-time and full-time employees.

B

What is the problem associated with service quality standards such as "be nice" or "do what the customers want"? A. They create low expectations. B. They are not specific. C. They do not allow for the voice-of-customer process. D. Most employees are unwilling to do what customers want. E. They create a delivery gap.

D

By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) __________ goal. A. insurmountable B. invisible C. empowerment D. measurable E. inseparable

C

In services marketing, the saying, "where the rubber meets the road" refers to whether a(n) __________ gap exists. A. knowledge B. quality C. delivery D. standards E. empowerment

D

Saltdust Grill is known as the premier restaurant in town. With their elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing a(n) __________ gap in service quality. A. knowledge B. communication C. standards D. delivery E. empowerment

E

A(n) __________ gap exists when a firm knows what it needs to do to meet customers’ service expectations but sometimes fails to do it. A. knowledge B. communication C. standards D. empowerment E. delivery

D

_________ means allowing employees to make decisions about how service is provided to customers. A. Endorsement B. Quality control C. Standardization D. Empowerment E. Authorization

E

When __________ are authorized to make decisions to help their customers, service quality generally improves. A. consultants B. middle managers C. corporate executives D. production control managers E. frontline employees

A

Using technology and __________ are two ways a delivery gap can be reduced in size. A. empowering employees B. variability analysis C. voice-of-customer analysis D. zone of tolerance analysis E. public relations

A

Empowerment of employees helps to address the delivery gap because A. employees directly involved with the customer can respond effectively at the moment the problem occurs. B. customers appreciate feeling empowered. C. management then doesn’t need to devote time and energy to resolving service delivery problems. D. employees spend less time resolving problems than managers would. E. it ultimately contributes to employee knowledge and retention.

B

When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over twelve hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen’s actions are an example of A. the variability associated with service quality performance. B. empowering employees to meet customers’ needs. C. procedural fairness. D. specific service standards. E. public relations to increase puffery.

C

Empowerment becomes more important when the service is A. institutionalized. B. repetitive. C. individualized. D. routine. E. standardized.

A

The old cliché, "Service with a smile," recognizes the fact that A. service providers need to be pleasant even if the customer is not. B. smiling is contagious. C. service providers should smile and not think. D. life is too short to be ugly. E. services are perishable but a smile is forever.

B

Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by A. empowering consumers. B. providing support and incentives for their employees. C. directing zone of tolerance limits for employees. D. effective customer screening. E. forcing rude customers to use technology.

C

After observing a customer verbally abuse a waiter, the first thing a manager can do to ensure quality service is to A. throw the customer out of the restaurant. B. assume the waiter provoked the attack and respond accordingly. C. provide emotional support to the waiter. D. review the delivery support system. E. make sure services delivery expectations are consistent and coherent throughout the organization.

C

Managers of fast food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to A. ban abusive customers from their restaurants. B. reward service providers based solely on the speed of service. C. provide emotional support and concern for their employees. D. review the delivery support system. E. make sure services delivery expectations are consistent and coherent throughout the organization.

C

__________ represents the systems and equipment resources that service providers need to be able to close the delivery gap. A. Service infrastructure B. Quality mechanics C. Instrumental support D. Dynamic support E. Customer interface architecture

B

Rob was complaining to another member of the lawn crew, "I don’t know how they expect me to do an adequate job. The mower doesn’t work right, the trimmers are so dull they don’t cut anything, and the rest of the equipment is so old we can’t get parts." Rob’s company lacks the __________ workers need to be able to do a good job. A. maintenance schedule B. instrumental support C. equipment inventory D. service infrastructure E. customer expectation mechanisms

D

Today, almost every sales rep can immediately check the company’s inventory and production scheduling electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through A. access to a wide variety of services. B. greater control by customers over service delivery. C. increased zone of tolerance. D. greater ability to obtain information. E. saving customers time.

A

Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over A. how they communicate the services they promise. B. the price of ingredients. C. the attitudes of customers. D. the way customers view them compared to competitors. E. the knowledge gap consumers create.

C

If a firm promises more than it can deliver, A. it has created an empowerment gap. B. consumers will have a knowledge gap. C. it creates a communication gap. D. it needs to enact a voice-of-customer program. E. perishability becomes a problem.

B

The __________ gap can be reduced by managing consumers’ expectations. A. knowledge B. communication C. delivery D. standards E. empowerment

E

Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients’ expectations will reduce the __________ gap associated with their service. A. knowledge B. empowerment C. delivery D. standards E. communication

C

Dopson’s Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on backorder and would be in stock next week. When the customer returned, the item was still unavailable. The owner’s policy created a(n) __________ gap. A. knowledge B. empowerment C. communication D. standards E. tangibility

B

Effective service recovery entails all of the following EXCEPT A. listening to the customer. B. estimating the damage. C. providing a fair solution. D. resolving the problem quickly. E. all of these are effective service recovery techniques.

E

Effective service recovery efforts can lead to all of the following EXCEPT A. increased purchase intentions. B. increased positive word of mouth. C. increased customer satisfaction. D. lower levels of satisfaction than prior to the service failures. E. increased dependence on technology to prevent future service failures.

B

Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia commented, "Even more importantly, working the way you did to correct the error could result in __________." A. a smaller empowerment gap B. increased customer purchases and positive word of mouth C. a full refund for the customer D. a larger service gap E. less instrumental support

D

When confronted with an angry and emotional customer, the best first step toward service recovery is to A. call security in case it is necessary to escort the person from the building. B. match the person’s voice in intensity and volume to gain control of the confrontation. C. gently but firmly tell the person you will not tolerate being addressed in that tone of voice and turn away until he or she calms down. D. listen carefully and with empathy until the customer feels he or she has been heard. E. ask a coworker to take over handling the complaint to get a neutral perspective.

A

Service employees at the airlines’ flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights. The first thing these employees should do is to A. listen to the customer. B. contact a supervisor. C. estimate the damage. D. provide a fair solution. E. resolve the problem quickly.

B

When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline’s estimate of A. perishable value. B. distributive fairness. C. empowerment. D. procedural justice. E. the size of the knowledge gap.

A

Because customers have different needs and expectations, the key to distributive fairness in service recovery is to A. listen to the customer. B. contact a supervisor quickly. C. estimate the damage. D. provide a fair solution. E. resolve the problem quickly.

B

Randall arrived at the hotel to find that, although he had a guaranteed reservation, the hotel had no rooms available. He became angry when the hotel made him a reservation at a more expensive hotel but refused to pay the difference in room rates. Randall was upset because, in his opinion, the hotel’s solution did not incorporate A. intangible fairness. B. distributive fairness. C. procedural fairness. D. service fairness. E. empowerment fairness.

C

Most customers want to achieve a fair solution following a service failure. Which of the following is NOT a factor that affects a person’s perceptions of fairness in these kinds of situations? A. The nature or severity of the service failure. B. The customer’s experience with other firms. C. The firm’s policy on service recovery. D. Observed treatment of other customers. E. Stories of service recovery told by friends and family.

A

__________ refers to the perceived fairness of the process with which a firm handles customer complaints. A. Procedural fairness B. Intangible fairness C. Distributive fairness D. Service fairness E. Empowerment fairness

C

Because of __________, many companies have altered their "no questions asked" return policies to include time limits, restocking fees, and store-credit-only refunds. A. government regulations B. Better Business Bureau guidelines C. high costs D. accounting concerns E. well-publicized liability cases

C

One of the reasons service failures need to be addressed quickly is to A. minimize the zone of tolerance. B. increase empowerment zones. C. avoid negative word-of-mouth from upset customers. D. avoid a situational ethics conflict. E. keep management from finding out what happened.

A

The service dimension called __________ refers to the ability of the firm’s employees to convey trust and confidence. A. assurance B. reliability C. responsiveness D. empathy E. tangibles

A

The new hotel manager asked the chef, "Are you sure you know how to cook a beef Wellington?" Which of the service dimensions was the hotel manager expressing concern about? A. reliability B. responsiveness C. assurance D. empathy E. tangibles

A

Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue? A. tangibles B. reliability C. responsiveness D. assurance E. empathy

A

When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another twenty minutes. John decided he didn’t mind waiting, because he had arrived well ahead of the standard check-in time. John didn’t mind waiting twenty minutes because this wait fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept. A. zone of tolerance B. delivery gap C. zone of intolerance D. service gap E. patience zone

A

When Jaime arrived at her hotel room and saw that the bed sheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, bug-infested room was not in Jaime’s __________, which is the difference between what she really wants and what she will accept before looking for another hotel. A. zone of tolerance B. delivery gap C. zone of intolerance D. service gap E. patience zone

D

Which of the following is NOT a recommended strategy for service recovery? A. listening to the customer B. finding a fair solution C. resolving problems quickly D. silencing an irate customer before the individual makes any angry outbursts E. following procedural fairness when solving problems

A

Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of A. instrumental support. B. employee incentives. C. emotional support. D. line extensions. E. the delivery gap.

A

One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store’s handling of returns lacked A. procedural fairness. B. variability. C. organizational fairness. D. intangibility. E. explanatory fairness.

A

Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee? A. standards gap B. knowledge gap C. performance gap D. communication gap E. recovery gap

B

Globalization refers to the process by which goods, services, capital, people, and ideas A. are onshored and offshored. B. flow across national borders. C. are integrated through IMF facilitation. D. form joint ventures. E. affect corporate culture.

A

The components of global market assessment include all of the following EXCEPT A. ethnic analysis. B. infrastructure and technology analysis. C. analysis of government actions. D. sociocultural analysis. E. economic analysis.

B

Chris is gathering information about the general economic environment in Nepal. He will look for information about the general economic environment, market size and population growth rate, and A. culture. B. real income. C. airport capabilities. D. political status. E. religious institutions.

E

To determine the market potential for its particular product or service, a firm should use A. GDP data. B. unemployment data. C. purchasing power parity data. D. inflation data. E. as many metrics as it can obtain.

A

Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets. A. surplus B. deficit C. culture D. bonus E. balance

B

The most common measure of market potential of an economy is a country’s A. GNI. B. GDP. C. PPP. D. CPI. E. APR.

C

GDP is defined as A. the value of a country’s exports minus its imports. B. great domestic product. C. the market value of goods and services produced in a country in a year. D. national income minus national taxes. E. the gross purchasing power of domestic goods and services plus international income.

D

Gross national income equals GDP A. minus net consumer spending. B. plus government spending on international trade. C. minus purchasing power parity. D. plus the net investment income earned from abroad. E. plus gross domestic international investment.

B

The Big Mac Index is a novel measure of A. GDP. B. purchasing power parity. C. per capita GNI. D. economic growth. E. international trade surplus.

E

According to purchasing power parity theory, if __________ is/are in equilibrium, products will cost the same in each country. A. imports and exports B. consumer spending C. interest rates D. domestic products E. exchange rates

A

Economic measures like GDP and GNI do not fully account for a country’s economic health because they only measure A. material output. B. international trade. C. global expectations. D. purchasing power parity. E. poverty potential.

B

Many developed countries are experiencing __________ population growth. A. slight B. zero or negative C. infinite D. moderate E. significant

A

Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that A. countries with high purchasing power today may not continue to show the same growth in the future. B. the United States and Western Europe will have dramatic increases in population growth leading to overcrowding. C. the middle class in India will continue to shrink as the rich get richer and the poor get poorer. D. urban population centers will become increasing unattractive and the rural areas will experience major growth in population. E. the global population is expected to grow at staggering rates indefinitely.

B

The shift of population from rural to urban areas in countries such as India helps global marketers by A. decreasing pollution. B. simplifying the supply chain needed to make goods and services available. C. increasing the human development index. D. decreasing competition for intellectual capital. E. increasing nonmaterial GDP output.

D

When considering global marketing opportunities in Bangladesh, Tom asked the question, "How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh. A. production capacity B. pricing C. advertising D. infrastructure E. cultural

B

As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized problems in __________ exist in many African markets. A. transportation B. communication C. distribution D. commerce E. population

B

When Ben evaluated the commercial infrastructure in Mauritius, he considered the island’s A. population control measures. B. legal, banking, and regulatory systems. C. retailing capabilities. D. per capita income estimates. E. climate and culture.

C

Changes in tariffs and quotas are A. business actions stimulating imports. B. corporate strategies designed to maximize profits. C. government actions that reduce competition from international firms. D. efforts to stimulate choices among government agencies. E. a means of slowing outsourcing.

A

Tariffs protect domestic producers by A. making imported products more expensive. B. increasing brand recognition. C. reducing the cost of production. D. offering subsidies to exports. E. avoiding regulation.

B

In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used A. to shorten supply chains. B. as a response to perceived unfair trade practices. C. to offer domestic discounts. D. to stimulate consumer demand. E. as a way to equalize quotas.

E

A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products. A. tariff B. duty C. trading bloc D. trade agreement E. quota

E

Exchange control refers to the regulation of a country’s A. comparative inflation rate. B. countertrade exchange. C. quota rate of exchange. D. exchange tariffs. E. currency exchange rate.

A

When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who A. export goods to other countries. B. import goods from other countries. C. engage in countertrade. D. enforce import quotas. E. outsource labor.

C

Which of the following is NOT one of the major trade agreements affecting global marketing? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA

A

Marketers considering operations and trade with a specific country must consider whether the country belongs to a trading bloc. A trading bloc is a group of countries A. that have established a formal agreement to manage trade activities. B. using the same currency. C. with similar cultural shopping patterns. D. located next to each other. E. with similar political views.

B

Which of these trade agreements represents the highest level of integration among participating nations? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA

B

Global businesses often find it particularly difficult to understand the __________ of a country’s culture. A. symbols B. underlying values C. ceremonies D. dress E. visible artifacts

D

Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company’s product, and it didn’t seem quite as amusing. He narrowed the issues down to sociocultural factors. He was looking at both __________ and __________. A. product uses; currency rates B. language; trading blocs and social structure C. potential tariffs; symbols D. visible artifacts; underlying values E. verbal communication; logistics

B

Geert Hofstede’s cultural dimensions concept focuses on five dimensions of __________ in a country. A. symbols B. underlying values C. ceremonies D. dress E. visible artifacts

B

Which of the following is NOT one of Hofstede’s cultural dimensions? A. power distance B. certainty assurance C. masculinity D. individualism E. time orientation

D

Marketers sometimes use Hofstede’s cultural dimensions to design marketing campaigns A. with low individualism symbolism when confronted with a time oriented culture. B. using uncertainty avoidance to reduce power distance. C. with significant power distance. D. consistent with underlying cultural values in a country. E. with more consistent time orientation.

E

Culture affects A. how consumers decide to make their purchases. B. what consumers decide to purchase. C. when consumers decide to make their purchases. D. where consumers decide to make their purchases. E. every aspect of consumers’ purchase decisions.

A

Generally, firms entering foreign markets begin with A. less risky strategies first. B. direct investment. C. importing. D. decentralized production. E. cultural output.

B

When entering a foreign market, the least risky strategy is A. franchising. B. exporting. C. joint venture. D. direct investment. E. strategic alliance.

B

Global expansion often begins with A. franchising. B. an order from another country. C. joint ventures. D. direct investment. E. strategic alliances.

A

Many of the best-known American retailers, like Starbucks and McDonalds, have expanded globally using A. franchising. B. exporting. C. joint ventures. D. direct investment. E. strategic alliances.

A

Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will likely use a(n) __________ strategy. A. franchising B. exporting C. joint venture D. direct investment E. strategic alliance

D

Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is NOT a disadvantage of franchising? A. The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically. B. The franchisor might end up becoming a competitor. C. Franchising limits profit potential, since profits will have to be split with the franchisee. D. Franchising is the riskiest way to enter a foreign market. E. All of these are disadvantages a firm must consider.

C

When firms pool their resources to enter a new market, they create a(n) A. franchise. B. export promotion. C. joint venture. D. direct investment. E. strategic alliance.

C

China, like many other countries, usually requires entering firms to create _________ when expanding into their markets, limiting outsiders’ control of businesses. A. franchises B. export promotions C. joint ventures D. direct investments E. strategic alliances

B

Of the five strategies for entering new markets, direct investment creates the A. least investment cost. B. greatest potential risk. C. most franchisee control. D. best opportunity for strong strategic alliances. E. greatest coordination of efforts of global and local partners.

D

NCD company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market. A. franchising B. exporting C. a joint venture D. direct investment E. a strategic alliance

A

Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because A. consumers may view their roles differently in different countries. B. there are fewer franchising opportunities in global markets. C. global consumer markets are almost totally homogeneous, making segmentation difficult. D. most governments have rules against targeting consumers. E. positioning almost always fails when attempted in a foreign country.

C

Global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and A. currency differences. B. anti-discrimination regulations prohibiting segmentation and targeting in developing countries. C. differences in the way consumers see themselves and in the way they see products and services. D. complications due to franchising issues. E. the taxes imposed by some foreign countries on marketing activities.

B

Cultural nuances, subcultures, and consumers’ different views of their roles in different countries can make __________ complicated. A. purchasing power parity B. segmentation, targeting, and positioning C. trading bloc coordination D. exchange control planning E. reducing trade surpluses

A

During the early stages of globalization, in the 1950s and 1960s, _______________ were uniquely positioned in the global marketplace because they had the skills necessary to develop, promote, and market brand name consumer products. A. large U.S. firms B. Japanese electronics companies C. low-cost Chinese manufacturers D. European service companies E. Mideast oil producers

B

In the 1970s and 1980s, __________ dominated the global marketplace because they could exploit their skills in production, materials management, and new product development. A. large U.S. firms B. Japanese firms C. low-cost Chinese manufacturers D. European service companies E. Mideast oil producers

C

The most important consideration when a firm chooses a global product strategy should be A. opportunities for countertrade. B. the effectiveness of the marketing team. C. the needs of the target market. D. the provisions of GATT. E. WTO regulations.

B

Tariffs, quotas, and currency exchange policies affect global A. offshore product design. B. pricing strategies. C. advertising. D. logistics. E. promotion.

C

Global pricing strategies should be consistent with A. offshore distribution facilities. B. cost of materials. C. positioning strategies. D. domestic pricing. E. trade surplus guidelines.

E

Global marketers are under constant pressure to shorten distribution channels to A. improve promotion efficiency. B. reduce trade deficits. C. afford tariffs. D. meet trade agreement guidelines. E. reduce costs.

A

Global marketers typically find distribution in developing countries is more complex because A. they must go through many types of distribution channels. B. distribution is more heavily regulated in developing countries. C. most consumers in developing countries live in densely populated cities. D. the infrastructure is more advanced in most developing countries. E. consumers in developing countries have very specific preferences.

A

Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because A. differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets. B. copyright and intellectual property concerns prevented him from wanting to share his good ideas outside of the U.S. market. C. he had not applied for or received international certification that was required for working outside the United States. D. he was unfamiliar with the code of ethics for advertising in other countries. E. he did not have the budget for a global rollout.

A

Celia’s firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because A. advertising regulations differ in other countries, including advertising to children. B. print media are different in Europe, and it would be difficult to create a global campaign. C. literacy rates are significantly lower in Europe, and print ads would be ineffective. D. research indicates that European children do not eat breakfast as often as American children. E. domestic advertising agencies cannot earn commissions on advertising they place overseas.

D

Brands can be extremely valuable domestically, but challenging internationally. Companies can help to overcome language difficulties in using brands by A. keeping the brand name the same in all languages, regardless of meanings, as long as the brand logo and symbol are displayed prominently. B. avoiding the use of the brand name in advertising and focusing on feature and benefits. C. translating advertising copy for the entire ad except the brand name. D. developing brand names that are meaningless in known languages. E. adhering to the UN Convention on Naming Rights.

A

Which of the following is one of the global entry strategies? A. direct investment B. countertrade C. offshoring D. infrastructure development E. trade agreements

A

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as A. exporting. B. franchising. C. a strategic alliance. D. a joint venture. E. direct investment.

A

Which of the following best describes the direct investment global entry strategy? A. With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country. B. Direct investment occurs when a firm enters a new market by pooling its resources with those of a local firm to form a new company in which ownership, control, and profits are shared. C. Direct investment refers to depositing payroll funds in a foreign bank. D. Direct investment designates the maximum quantity of a product that may be brought into a country during a specified time period. E. Direct investment occurs when a producer sells its offering in a foreign market at a price less than its production cost.

E

The term "trade deficit" refers to A. a country that exports more goods than it imports. B. an indicator of the quality of life in a country. C. a level of population growth that affects exports. D. the sum of all goods and services handled in a country. E. higher levels of imports than exports.

A

When shopping for a car, you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of A. a tariff. B. a boycott. C. overseas consolidation. D. globalization. E. franchising.

A

When entering into a franchise agreement, what term is used to refer to the firm that is granted the right to operate a business using the franchise name and business concept? A. franchisee B. franchisor C. franchise agent D. franchise partner E. franchised owner

B

Which of the following statements best describes global expansion through a strategic alliance? A. In a strategic alliance, a firm enters a new market and forms a new company with shared ownership, profits, and controls. B. A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other. C. In a strategic alliance, two firms enter into a franchise agreement. D. In a strategic alliance, a firm in one country sends products to a firm in another country. E. In a strategic alliance, a firm signs a trade agreement with a firm in another country.

C

Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other? A. franchising B. joint venture C. strategic alliance D. direct investment E. equity partnership

D

The United States imports more goods from China than it exports to China. This is known as A. gross national income (GNI). B. a trade surplus. C. gross domestic product (GDP). D. a trade deficit. E. an import imbalance.

E

When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford’s global ________ strategy. A. communication B. pricing C. distribution D. exchange E. product

A

Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico? A. NAFTA B. EU C. CAFTA D. Mercosur E. ASEAN

C

Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of glocalization of the Fiesta? A. The same product design and features, and the same basic promotional campaign, used in all countries. B. Variations in the product design country by country, with the same basic promotional campaign used in all countries. C. The same product design and features in all countries, with variations in the promotional campaigns country by country. D. Variations in the product design and the promotional campaign country by country. E. The same marketing mix for all of the four Ps used in all countries.

B

One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world to help them learn skills, with the goal of helping them to learn skills needed in today’s workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of A. glocalization. B. reverse innovation. C. franchising. D. a strategic alliance. E. purchasing power parity.

A

Which of these is NOT one of the BRIC countries? A. Bulgaria B. Russia C. India D. China E. These are all BRIC countries.

E

What do the BRIC countries have in common? A. They participate together in a trading bloc. B. They have suffered more than most other countries in the recent recession. C. They are Asian countries experiencing explosive population growth. D. They are the four countries known for the highest levels of bribery in business and government. E. They are experiencing significant levels of economic growth.

C

Which of the following is currently a negative factor for foreign investment in Russia? A. The Russian population is poorly educated. B. Russian consumers have little interest in online shopping. C. Russia is known for corruption, creating ethical dilemmas for firms. D. Russian consumer markets are saturated, offering few opportunities for goods from U.S. companies to sell well. E. Few Russians have access to the Internet due to heavy regulation.

B

Which of the following is currently a negative factor for foreign investment in India? A. India’s population is fairly old and aging fast. B. India’s infrastructure for supply chain management is not up to date. C. India prevents foreign investors from entering into joint ventures. D. India has no shopping malls or other large commercial centers. E. India lacks a skilled workforce.

A

Which of the following is a potential negative factor for foreign investment in China? A. China’s population is aging rapidly. B. China drastically restricts the goods it allows U.S. companies to export to China. C. China’s standard of living has dropped over the past 30 years. D. China has imported fewer goods from the U.S. each year for the past decade. E. Chinese consumers are not interested in purchasing products from the U.S.

C

Which of the BRIC countries has the highest illiteracy rate? A. Russia B. Brazil C. India D. Italy E. China

C

Why should marketers be aware of the BRIC countries? A. They are a microcosm of the rest of the world. B. They represent almost half the the world’s population. C. They are likely to be the source of most market growth. D. They have had the most dramatic changes in culture and consumer buying patterns. E. They have stable population growth, which makes them easier to study.

C

Which statement about India’s population is TRUE? A. With a median age of 61, India has one of the oldest populations in the world. B. India’s young people mostly live in rural areas in large families. C. India’s workforce is highly skilled, particularly in technology. D. India claims more than 25% of the world’s population. E. Most Indian citizens shop in large retail outlets.

B

With a median age of 34.1 years, ________ is one of the most rapidly aging countries in the world. A. Russia B. China C. Brazil D. India E. Chile

D

Changes in _________ have been a driving force for growth in global markets for decades. A. infrastructure B. demographics C. population D. technology E. ethical standards

C

Which country has a large literate population, which has helped it move up to become the world’s seventh largest economy? A. Russia B. China C. Brazil D. India E. United States

E

Which country is projected to become Europe’s largest online market in the next few years, with Internet users growing at a rate of 15 percent annually? A. Great Britain B. Spain C. France D. Germany E. Russia

C

Which country’s government has recently made significant changes that will modernize the retail environment, such as allowing joint ventures and direct ownership in some cases? A. Brazil B. Russia C. India D. China E. Mexico

D

Which country has embraced market-oriented economic development in spite of maintaining communist political ideals? A. Brazil B. Russia C. Iran D. China E. Afghanistan

D

Which country has a rapidly aging population due to its one-child policy? A. Brazil B. Russia C. India D. China E. Japan

B

Once a firm has done an analysis of the most viable markets for its products, then it must next A. determine the competition and develop strategies to overcome it. B. conduct an internal assessment of its capabilities. C. conduct an external analysis of the target market’s economy, culture, and regulatory barriers. D. develop a product to meet the needs of those markets. E. achieve success with the product in its home market.

B

Mary wants to sell her products in Europe, since they are doing well in the U.S. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with A. opening a franchise. B. exporting her products. C. a strategic alliance with another company. D. a joint venture with a local firm. E. direct investment in another country.

A

Franco, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a product, and he doesn’t have a lot of capital, but since he loves McDonald’s food, he decides to A. open a McDonald’s franchise. B. directly invest in McDonald’s. C. export McDonald’s products to other countries. D. form a strategic alliance with McDonald’s. E. form a joint venture with McDonald’s.

D

Sydney’s Emporium has 59 stores in the U.S. and wants to expand globally. Sydney’s wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney’s is most likely A. exporting. B. a strategic alliance. C. a joint venture. D. direct investment. E. franchising.

C

When Ford introduced its Figo in India, it was responding to A. increased competition in the small car market. B. India’s movement away from small cars. C. the economic and social trends in India toward small cars. D. the new middle class in India who prefer status cars. E. an increased need for large trucks to accommodate the burgeoning construction trade in India.

E

If you visit a Kentucky Fried Chicken restaurant in China, you will find congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy? A. Sell the same products in both the home country market and the host country. B. Sell only products native to the home country. C. Sell a product similar to that sold in the home country, but include minor adaptations. D. Sell only products native to the various global markets. E. Sell totally new products or services.

B

Franz lives in a country where he and his friends have disposable income, in spite of the fact that their average income is $650 per month, because they have no debt and don’t save money. Franz most likely lives in A. Brazil. B. Russia. C. India. D. China. E. Japan.

B

Gandolph’s Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of A. cultural shift. B. glocalization. C. ethnic sensitivity. D. promotional flex. E. unethical marketing practices.

A

Unilever discovered that people in emerging economies could not afford to buy standard sizes of toothpaste or shampoo, so Unilever started selling single-serve packets at very low prices. Later, Unilever discovered that the same approach worked in the U.S. and started also selling them there. This is an example of A. reverse innovation. B. glocalization. C. ethnic sensitivity. D. promotional flex. E. unethical marketing practices.

D

Core Publishing Company learned that when selling overseas, local fulfillment can be more cost effective, and it can decrease delivery time and improve customer service. This is an example of a global _________ strategy. A. communication B. product C. promotion D. distribution E. pricing

A

In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy. A. communication B. product C. cultural D. distribution E. pricing

A

China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy. A. communication B. product C. cultural D. distribution E. pricing

C

If a firm wants to develop a sustainable competitive advantage, it should A. begin an aggressive campaign to buy up competitors. B. copy the innovative features of other firms that are attractive to customers. C. examine its operations and customer relations to identify significant things competitors cannot easily copy. D. increase its marketing budget so that it outspends its competitors. E. arrange to meet with competitors to discuss how to avoid direct competition.

E

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages? A. locational excellence B. customer excellence C. operational excellence D. product excellence E. planning excellence

A

When Ramona, the keynote speaker at a major business leaders’ conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her ten-hour plane trip. The night clerk found someone to dry clean Ramona’s suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of A. customer excellence. B. operational excellence. C. product excellence. D. promotional excellence. E. global excellence.

C

Taking steps to encourage customer loyalty is one way to A. test new products. B. promote efficiency. C. sustain an advantage over competitors. D. develop new pricing strategies. E. improve supply chain effectiveness.

B

Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize A. that operational excellence is an important macro strategy. B. the lifetime value of customers. C. that product excellence leads to loyal customers. D. the importance of making decisions based on short-term results. E. that as long as customers bring in some revenue, costs do not matter.

D

Nordstrom’s, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service has probably resulted in A. product design excellence. B. mission statement satisfaction. C. sustainable price decreases. D. a sustainable competitive advantage. E. producer excellence.

E

Firms achieve ___________ through efficient procedures and excellent supply chain management. A. customer excellence B. locational excellence C. customer loyalty D. value-based pricing E. operational excellence

D

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can A. persuade stores to refuse to carry competitors’ products. B. use their power within the supply chain to force weaker firms to accept less favorable pricing. C. control prices and lock in margins. D. create a sustainable competitive advantage. E. justify charging higher prices than competitors do.

A

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that A. no single strategy is likely to be sufficient to build a sustainable competitive advantage. B. situation analysis is a continuous process. C. customers rarely remain loyal to companies. D. product excellence is the only true source of a sustainable competitive advantage. E. innovation is pointless because competitors will develop copycat offerings.

C

Effective marketing doesn’t just happen. It is A. promoted through STP analysis. B. possible only for seasoned marketing executives to achieve. C. planned. D. introduced through control phase SBUs. E. the result of competitors’ failures.

D

Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

A

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged? A. planning B. implementation C. control D. segmentation E. metrics

D

The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a(n) __________ for these companies. A. strategic marketing plan B. clear mission statement C. operational advantage D. sustainable competitive advantage E. diversification strategy

A

Which of the following is LEAST likely to provide a sustainable competitive advantage? A. lowering prices B. having a well-known brand name C. achieving high levels of customer satisfaction D. using patented technology E. creating an efficient supply chain

C

Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a(n) ________ that allows them to survive. A. advertising campaign B. plan to evaluate results C. sustainable competitive advantage D. set of performance metrics E. SWOT analysis

C

As part of her company’s SWOT analysis, Valerie is assessing the company’s internal environment, including A. competition. B. the economy. C. strengths and weaknesses. D. demographics. E. opportunities and threats.

E

Samantha is charged with assessing her company’s external environment as part of a SWOT analysis. Samantha will study her company’s A. strengths and weaknesses. B. sales history. C. pension plan. D. product specifications. E. opportunities and threats.

A

Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis. A. weakness B. opportunity C. threat D. strength E. business mission

B

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates A. weaknesses. B. opportunities. C. strengths. D. threats. E. strategic plans.

D

In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor, this represented a(n) A. weakness. B. opportunity. C. strength. D. threat. E. strategic plan.

D

Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to A. develop a business mission statement. B. choose the best target markets. C. reposition existing segments. D. divide the marketplace into subgroups. E. conduct a SWOT analysis.

B

In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was probably trying to A. gain government subsidies. B. attract a different market segment. C. reduce its costs. D. save the environment. E. offset cost-based pricing pressure.

D

For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50-year-old, educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial’s primary A. demographic segment. B. positioning. C. SBU. D. target market segment. E. sustainable competitive advantage.

E

Many of today’s college graduates will make their living providing goods and services to baby boomers, the large group of Americans born in the period after World War II. Baby boomers are a _________________ market segment. A. psychological B. behavioral C. social D. product-based E. demographic

A

After identifying various market segments that her company could pursue, Lisa evaluated each segment’s attractiveness based on size, income, and accessibility. Lisa was involved in A. target marketing. B. situation analysis. C. diversification. D. positioning. E. market penetration estimation.

C

LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies’ products in comparison to competing products, they can help with the firm’s ________________ strategy. A. product excellence B. targeting C. positioning D. segmentation E. customer excellence

D

__________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products. A. Targeting B. Market segmentation C. A sustainable competitive advantage D. Positioning E. A customer excellence strategy

C

Imagine that you are in a convenience store choosing your favorite comfort food instead of being in a classroom taking this test. You might notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer’s A. value-based promotions. B. market segmentation. C. positioning strategy. D. customer excellence strategy. E. target market.

A

When positioning products relative to competitors’ offerings, firms typically are most successful when they focus on opportunities A. that build on their strengths relative to those of their competitors. B. for diversification. C. in international markets. D. where value-based pricing can be ignored. E. where customer excellence can be substituted for product excellence.

C

Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms’ A. business mission. B. market segmentation strategy. C. positioning strategy. D. customer excellence strategy. E. target market.

C

When discussing the marketing planning process, STP stands for A. strategies, tactics, and plans. B. strategize, target, and promote. C. segmentation, targeting, and positioning. D. situation analysis, trend spotting, and planning. E. sustaining, trending, and positioning.

E

Suppose your university made a sizable investment in its career services–additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students to find jobs. This investment would enhance the university’s _____________ in an attempt to create value for students and recent graduates. A. segmentation strategy B. place strategy C. locational excellence strategy D. diversification strategy E. product value

C

The idea of value-based marketing requires firms to charge a price that A. covers costs and generates a modest profit. B. includes the value of the effort the firm put into the product or service. C. captures the value customers perceive that they are receiving. D. prioritizes customer excellence above operational excellence. E. matches competitors’ prices.

B

E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when and where they are needed. A. product B. place C. promotion D. price E. primary

C

In value-based marketing, promotion communicates the ________ to customers through a variety of media. A. targeted solution B. operational excellence strategy C. value proposition D. relative market value E. target market definition

C

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm’s products. These marketers are attempting to create value through A. product. B. price. C. promotion. D. place. E. cost-based measures.

A

Craig sees that his company’s quarterly sales and profits are significantly above projections and says, "That’s great. Let’s keep doing what we’ve been doing." Craig is ignoring the __________ step of the marketing planning process. A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

D

The first objective in the evaluate performance phase of the marketing planning process is to A. determine whether to raise or lower prices. B. adjust advertising allocations. C. find ways to cut costs. D. review implementation programs and results using metrics. E. consider changing the target market.

E

Kathy reviews her division’s quarterly results and sees that some units exceeded goals while others did not. Next, she will attempt to determine why performance of the different units varied, and whether the variation A. created a net benefit or loss. B. should be reported to senior executives. C. was consistent with the company’s mission statement. D. offers opportunities for diversification. E. was due to factors within or outside the firm’s control.

A

Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm’s goals A. enables firms to make appropriate adjustments. B. allows managers to demonstrate their effectiveness. C. offers insights into value-based pricing. D. should be followed by eliminating underperforming SBUs. E. allows firms to better assess customer loyalty.

C

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. The manager will probably next review the company’s A. financial statements, to investigate current and past profits. B. brand awareness study, to assess national levels of awareness. C. implementation programs, to see if the promotion was handled consistently in the different stores. D. results for other product lines, to see how important diet products are to the firm. E. analysis of national trends in vitamins and herbal supplements, to help predict future sales.

B

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions. A. competitive response B. resource allocation C. product line D. market growth E. mission statement

C

Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will likely involve determining A. how Disney World crowds will affect his business. B. which employees to promote or fire. C. how to allocate resources among his four stores. D. what new government regulations might create opportunities or threats. E. when to shift from a customer excellence to an operational excellence strategy.

B

In most companies, portfolio management is typically done at the SBU or ___________ level of the firm. A. corporate B. product line C. customer care D. sales representative E. accounting

C

A(n) ___________ is a group of products that consumers may use together or perceive as similar in some way. A. SBU B. STP C. product line D. market segment E. promotional service

A

Heather has been assessing a number of her firm’s products using, the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine: A. the product’s relative market share. B. the market growth rate. C. a source of competitive advantage. D. the impact of population shifts on future demand. E. cash equivalent values for each product.

D

To determine how attractive a particular market is, using the BCG portfolio analysis, __________________ is established as one axis. A. competitive intensity B. sales dollars C. market size D. market growth rate E. market profit potential

B

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.

A

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n) A. star. B. cash cow. C. question mark. D. dog. E. anchor.

C

Using the BCG portfolio analysis, a dog should be phased out unless A. its marketing manager is a champion of the product. B. additional resources could increase its relative market share slightly. C. it complements or boosts the sales of another product. D. the market has a small chance of rebounding. E. none of these. Dogs should be phased out.

D

The strategic marketing planning process A. is a five-step process that should always be completed in order. B. is frequently used in reverse. C. begins with establishing specific, measurable outcomes. D. is not always sequential. E. forces marketing managers to think rationally.

C

Which of the following is NOT one of the four major growth strategies marketers typically use? A. market penetration B. market development C. segment development D. diversification E. product development

E

For many years, because of the size of the U.S. economy, domestic companies ignored international markets, preferring instead to develop new product offerings for existing customers. These companies were pursuing a ________________ strategy. A. market penetration B. market development C. segment development D. diversification E. product development

C

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy. A. segment development B. market development C. market penetration D. diversification E. product development

B

A __________ growth strategy employs the existing marketing offering to reach new market segments. A. product proliferation B. market development C. market penetration D. diversification E. product development

B

Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a __________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

A

When pursuing a market development strategy, expanding into international markets is generally A. more risky than expansion in domestic markets. B. impossible due to negative attitudes about American products. C. executed with the help of international trade subsidies. D. simplified by creating new products for export markets. E. the only option offering substantial opportunities for growth.

B

H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies. A. product proliferation B. market development C. market penetration D. diversification E. product development

E

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

C

Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

A

Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available–to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

D

Introducing newly developed products or services to a market segment the company is not currently serving is called A. product development. B. market development. C. market penetration. D. diversification. E. product proliferation.

D

Zara is a women’s clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a quick-response system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara’s operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established A. customer loyalty. B. locational excellence. C. a diversification growth strategy. D. a sustainable competitive advantage. E. a related diversification opportunity.

E

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National’s superior service, the bank creates and delivers value through A. promotional excellence. B. product excellence. C. operational excellence. D. global excellence. E. customer excellence.

D

Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita’s home, some offering more plush facilities or lower prices, but she isn’t tempted to switch. Anita’s attitude toward the salon is an example of A. a sustainable competitive advantage. B. a customer retention program. C. an opportunity, in SWOT analysis. D. customer loyalty. E. the benefits of a locational excellence strategy.

B

Customer retention programs are based on what concept? A. Customer excellence is the easiest macro strategy to follow. B. Customer relationships should be viewed from a lifetime value perspective. C. It is important to maximize profits in the first few months of a customer relationship. D. Segmentation, targeting, and positioning analysis should not be rushed. E. Firms must spend large amounts of money to retain customers.

D

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in A. a product development growth strategy. B. an operational advantage. C. opportunities for diversification. D. increased long term profits. E. more clearly defined market segments.

B

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are pursuing which macro strategy? A. Customer excellence B. Locational excellence C. Operational excellence D. Product excellence E. Purchase excellence

C

When a pharmaceutical company develops a new medication, it typically applies for a patent to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish A. an operational excellence macro strategy. B. a market penetration growth strategy. C. a sustainable competitive advantage. D. an efficient supply chain. E. product efficiency.

A

One example of a customer loyalty program is A. a frequent diner card at a restaurant, offering a free appetizer for every $100 in food purchases. B. a quantity discount offered for large purchases at an office supply store. C. seasonal sales on top selling items. D. an everyday low price policy on all products at a grocery store. E. an extensive customer service training program for new employees at a hair salon.

B

Which of the following is the third step in the marketing planning process? A. define the business mission B. identify opportunities C. evaluate using a matrix D. implement marketing mix and allocate resources E. situation analysis

E

In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing, Inc., a manufacturer of personal devices and smart phones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would fit together, and how the acquisition might change HP’s core goals and objectives. The strategic planners were engaged in the ____________ step of the marketing planning process. A. situation analysis B. implement marketing mix and allocate resources C. identify and evaluate opportunities D. evaluate performance E. define the business mission

B

After defining the business mission, what should a firm do next to develop a marketing plan? A. Conduct an STP analysis. B. Perform a situation analysis. C. Develop a positioning strategy. D. Select a target market. E. Implement the four Ps.

C

In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars. A. weakness B. threat C. opportunity D. operational advantage E. locational advantage

E

A former advertising campaign for GEICO Insurance used the slogan, "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO’s website. This campaign was part of GEICO’s A. mission statement. B. market segmentation plan. C. product strategy. D. customer excellence strategy. E. positioning strategy.

C

Abercrombie & Fitch, a clothing retailer, includes a SHARE link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer’s friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

D

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

E

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) __________ macro strategy. A. customer excellence B. global excellence C. locational excellence D. operational excellence E. product excellence

D

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers’ insights and develop new products that will meet these customers’ needs. 3M is pursuing a __________ growth strategy. A. diversification B. market development C. market penetration D. product development E. product penetration

D

Over the past few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm’s personal care products. Finally, they developed the products, prices, distribution and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing A. a business mission statement. B. a strategic vision. C. team-building exercises. D. a marketing strategy. E. competitive assessments.

E

Gerald’s Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a clean, professional-looking environment. Gerald’s has used this strategy for over 40 years, expanding to 15 outlets. Gerald’s Tire Store has created a ___________________ to create and deliver value and to develop a sustainable competitive advantage. A. segmentation strategy B. set of metrics C. market development strategy D. diversification strategy E. macro, or overarching, strategy

B

Which of the following is the best way to build a sustainable competitive advantage using product excellence? A. being the first to offer customers desired features, even if competitors can copy them easily B. positioning the product using a clear, distinctive brand image C. having the most features on each model D. focusing on being cutting edge and continually eliminating older features that are still in use by customers E. copying the market leader’s features, but at a lower cost

D

A competitive advantage based on location is often sustainable because A. mobile marketing has not yet proven its value for most customers. B. real estate prices have been dropping. C. few marketers are aware of its importance yet. D. it is not easily duplicated. E. the Internet has diminished the importance of brick and mortar stores.

C

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through slotting allowances, which are payments to retailers in return for shelf space. Combined, these four firms have A. identical marketing mixes. B. customer excellence. C. a sustainable competitive advantage. D. achieved product excellence. E. violated laws governing competition.

D

Value creation through place decisions for a consumer product involves A. putting the product in the front of the store. B. designing creative displays to capture consumers’ attention. C. pricing products differently at different stores. D. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to. E. focusing exclusively on Internet sales to reduce supply chain costs.

D

In recent years, cellular (mobile) service providers have worked hard to eliminate dead zones, providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on __________ value creation. A. product B. price C. promotion D. place E. financial

B

When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to A. generate cost-based performance ratios. B. evaluate performance and make adjustments. C. increase product excellence without reducing customer excellence. D. develop segmentation strategies. E. choose a business mission.

E

In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy. A. market development B. market penetration C. operational excellence D. customer excellence E. product development

E

Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all of the following EXCEPT A. customers appreciate the kind of service that knowledgeable employees provide. B. employees play a major role in the success of the firm. C. it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing. D. building customer loyalty depends on a committed workforce. E. the company provides products with a high perceived value.

B

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy? A. Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes. B. 3M Corporation, implementing new software to improve communication with its suppliers. C. adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes. D. Nike, opening hundreds of new company stores in high-traffic shopping areas. E. McDonald’s, lowering prices on its coffee drinks.

C

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company’s cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

B

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company’s cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

D

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent? A. market penetration B. product penetration C. market development D. product development E. diversification

E

In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike’s acquisition of Umbro be categorized? A. Strength B. Opportunity C. Weakness D. Segment E. Threat

D

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business? A. Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities. B. Nike should consider exiting the athletic shoe market. C. Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive. D. Nike’s athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company. E. Nike should invest in the athletic shoe market only if it helps to boost the sales of other products in fast-growing markets.

E

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year’s sales at Stores 1 and 2 but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers? A. She should give bonuses to the managers of Stores 1 and 2 and put the Store 3 manager on probation. B. She should ignore the sales data; this is not an appropriate marketing metric. C. She should give each manager a raise, tied to the store results. D. She should review at least ten years of sales data about her stores’ performance before making a decision. E. She should seek more information about why the stores had different results before making a decision.

A

Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of A. positioning. B. targeting. C. segmentation. D. a market segment. E. market penetration.

C

Delta Airlines is among the companies experimenting with selling products and services on its Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta’s website–users can book a trip in Delta’s Ticket Agent application without ever leaving Facebook. Which element of the marketing mix does this represent? A. product and value creation B. price and value capture C. place and value delivery D. promotion and value communication E. positioning and value promotion

D

A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage. A. customer value B. a mission statement C. marketing metrics D. a firm’s target markets E. a product plan

D

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe’s Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe’s demonstrates ________ excellence. A. product B. place C. customer D. operational E. locational

B

During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning? A. planning phase B. implementation phase C. evaluation phase D. control phase E. strategy phase

A

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is NOT one of these factors? A. ethical B. cultural C. political D. technological E. demographic

B

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called A. target marketing. B. market segmentation. C. positioning. D. allocation. E. value capture.

C

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. A. Target marketing B. Market segmentation C. Market positioning D. Allocation E. Value capture

B

If a price is set too high, it will not generate much ________; if it is set too low, it may result in ________. A. interest; less value to the customer B. volume; lower margins and profits C. promotional value; less customer value D. operational opportunity; less product value E. place value; more customer defections

C

The metrics used to evaluate a firm vary depending on the level of the organization at which the decision is made, and A. the corporate consciousness of the firm. B. the profit realized on the merchandise. C. the resources the manager controls. D. the internal structure of the company. E. external factors, such as the economy and the cost of materials.

E

A product that is in a high-growth market but has a low market share would be classified as ________ on the BCG matrix. A. latent B. dog C. cash cow D. star E. question mark

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