1) The task of any business is to ________.

A) create customer needs

B) differentiate in terms of cost of production

C) deliver customer value at a profit

D) reduce competition

E) communicate similar value as provided by competitors

Answer: C

Diff: 1

LO: 2.1: How does marketing affect customer value?

AACSB: Reflective thinking

2) What is the traditional view of marketing?

A) Firms should just focus on production because if the products are good then

they will automatically sell.

B) Firms should just focus on production and selling because marketing occurs as a

part of the selling process.

C) Firms should have a proper marketing team that can increase consumers'

awareness of their products and rouse their interest in them.

D) Firms should price their products as low as possible so that marketing them

becomes easy.

E) Firms should remember that promotion is the most important of the four Ps.

Answer: B

Diff: 1

LO: 2.1: How does marketing affect customer value?

AACSB: Reflective thinking

3) The value delivery process can be divided into three phases, out of which

"choosing the value" implies ________, which is the essence of strategic

marketing.

A) segmentation, developing, and delivering

B) targeting, positioning, and communicating

C) targeting, positioning, and delivering

E) researching, developing, and delivering

Answer: D

Diff: 1

LO: 2.1: How does marketing affect customer value?

AACSB: Reflective thinking

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

company purchases competitive products for study, attends open houses and trade shows, and

reads competitors' published reports and stockholder information, the company is using

________ to improve the quality of its marketing intelligence.

A) sales-force surrogates

B) intermediaries

C) external networks

D) advisory panels

E) customer feedback systems

Answer: C

Page Ref: 72

Objective: 3

Difficulty: Difficult

14) The sites which offer positive or negative product or service reviews and are built by the

retailers of a particular product or service are called ________.

A) combo sites

B) distributor or sales agent feedback sites

C) public blogs

D) independent service review forums

E) customer complaint sites

Answer: B

Page Ref: 73

Objective: 3

AACSB: Use of IT

Difficulty: Easy
15) A ________ is "unpredictable, short-lived, and without social, economic, and political

significance."

A) fad

B) fashion

C) trend

D) megatrend

E) style

Answer: A

Page Ref: 74

Objective: 4

Difficulty: Easy

1) Which of the following statements about market segmentation is true?

A) It involves changing the identity of a product, relative to the identity of competing products,

in the collective minds of the target market.

B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.

C) It is a process of creating an image or identity of the product in the minds of the target market.

D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs

and wants.

E) It is the quality of how marketers go to market with the goal of optimizing their spending to

achieve good results.

Answer: D

Page Ref: 213

Objective: 2

Difficulty: Moderate

2) Establishing and communicating the distinctive benefit(s) of the company's market offering,

for each target segment is called ________.

A) market research

B) market positioning

C) marketing effectiveness

D) market segmentation

E) market dominance

Answer: B
Page Ref: 213

Objective: 2

Difficulty: Easy

3) The process of selecting one or more market segments to enter is called ________.

A) market targeting

B) market dominance

C) market positioning

D) market segmentation

E) market research

Answer: A

Page Ref: 213

Objective: 2

Difficulty: Easy

4) A ________ consists of a group of customers who share a similar set of needs and wants.

A) vertical marketing system

B) market basket

C) market share

D) market segment

E) market level

Answer: D

Page Ref: 214

Objective: 2

AACSB: Analytic skills

Difficulty: Easy

11) Which of the following statements about targeting customers is true?

A) It involves designing creative business ventures to positively affect both a company's cost

structure and its value proposition to consumers.

B) In blue ocean thinking, industry boundaries are defined and accepted, and the competitive

rules of the game are known.

C) It involves choosing strategic customer groups among the segmentation pool

D) It involves all the industries in existence today, the known market space and occupied market

positions.
E) In blue ocean thinking, value to consumers comes from reintroducing factors the industry has

previously offered.

Answer: C

Page Ref: 278

Objective: 1

Difficulty: Moderate

12) Which of the following terms is most closely associated with the statement: "attributes or

benefits consumers strongly associate with a brand, positively evaluate, and believe that they

could not find to the same extent with a competitive brand"?

A) points-of-inflection

B) points-of-difference

C) points-of-parity

D) points-of-value

E) points-of-presence

Answer: B

Page Ref: 280

Objective: 3

AACSB: Analytic skills

Difficulty: Easy

13) ________ are product associations that are not necessarily unique to the brand but may in

fact be shared with other brands.

A) Points-of-parity

B) Points-of-difference

C) Points-of-inflection

D) Points-of-presence

E) Points-of-divergence

Answer: A

Page Ref: 280

Objective: 3

Difficulty: Easy

14) The three criteria that determine whether a brand association can truly function as a point-of- difference
are ________.

A) comparability, authenticity, deliverability

C) deviance, peculiarity, deformity

D) desirability, deliverability, differentiability

E) differentiability, authenticity, desirability

Answer: D

Page Ref: 280

Objective: 3

Difficulty: Easy

61) Newman Inc. is a company that manufactures saddles specifically for horses that race in

derbies in the U.S. and the UK. Within this context the firm is exhibiting the role of a ________

specialist.

A) vertical-level

B) customer-size

C) product-line

D) job-shop

E) service

Answer: C

Page Ref: 309

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

62) A market nicher is considered to be a(n) ________ specialist if the firm specializes in

producing a certain type of product or product feature such as, Rent-a-Wreck, that rents only

"beat-up" cars.

A) end-user

B) vertical-level

C) customer-size

D) channel

E) product-feature

Answer: E

Page Ref: 309

Objective: 3
Difficulty: Easy

63) A job-shop specialist ________.

A) sells only in a certain locality, region, or area of the world

B) customizes its products for individual customers

C) operates at the low- or high-quality ends of the market

D) offers one or more services not available from other firms

E) specializes in serving only one channel of distribution

Answer: B

Page Ref: 309

Objective: 3

Difficulty: Easy

64) A firm that is based in France designs jewelry and takes custom orders from around the

world. They do not design more than 15 pieces of jewelry in a year and ensure that each design

uses unique stones and is different from the other. Such nichemanship is an example of

________ specialist role.

A) customer-size

B) product

C) product-feature

D) job-shop

E) quality-price

Answer: D

Page Ref: 309

Objective: 3

AACSB: Analytic skills

13) It was sunny when Jenny went to class, but by the time class was over it was raining heavily,

so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In

this case, the umbrella is an example of a(n) ________.

A) impulse good

B) specialty good

C) homogeneous shopping good

D) emergency good

E) heterogeneous shopping good

Page Ref: 327

Objective: 1

AACSB: Analytic skills

Difficulty: Moderate

14) What goods are similar in quality but different enough in price to justify shopping

comparisons?

A) emergency goods

B) homogeneous shopping goods

C) heterogeneous shopping goods

D) specialty goods

E) convenience goods

Answer: B

Page Ref: 327

Objective: 1

Difficulty: Moderate

15) Products such as insurance, cemetery plots, and smoke detectors are examples of ________

that are products that the consumer does not know about or does not normally think of buying.

A) specialty goods

B) unsought goods

C) heterogeneous shopping goods

D) homogeneous shopping goods

E) convenience goods

Answer: B

Page Ref: 327

Objective: 1

Difficulty: Easy

21) Most products are established at one of four performance levels: low, average, high, or

superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a

consumer purchases a mountain bike costing $1,000, she/he expects the bike to perform to

specifications and to have a high ________ meeting the promised specifications.

A) features
B) conformance quality

C) durability

D) performance quality

E) reliability

Answer: D

Page Ref: 329

Objective: 2

AACSB: Analytic skills

Difficulty: Difficult

1) Which of the following is a characteristic of a service?

A) It is essentially tangible.

B) It does not result in the ownership of anything.

C) Its production is majorly tied to a physical product.

D) Services are typically produced and consumed at different times.

E) A client's presence is not required for rendering a service.

Answer: B

Page Ref: 356

Objective: 1

Difficulty: Easy

2) Which of the following is an example of a pure tangible good?

A) massage

B) shampoo

C) e-mail

D) restaurant meal

E) air travel

Answer: B

Page Ref: 356

Objective: 1

Difficulty: Easy

3) To which of the following categories of services does a cell phone belong?

A) major service with accompanying minor services

B) major service with accompanying minor goods

D) pure tangible good

E) tangible good with accompanying services

Answer: E

Page Ref: 356

Objective: 1

Difficulty: Easy

4) A computer falls into the ________ category of service mix.

A) pure tangible good

B) none of above

C) hybrid

D) major service with accompanying minor goods

E) pure service

Answer: B

Page Ref: 356

Objective: 1

Difficulty: Easy

14) Companies who believe that a higher sales volume leads to lower unit costs and higher long-

run profits are attempting to ________.

A) maximize their market share

B) skim the market

C) become a product-quality leader

D) merely survive in the market

E) maximize their current profits

Answer: A

Page Ref: 389

Objective: 2

Difficulty: Easy

18) When Apple introduced its iPhone, it was priced at $599. This allowed Apple to earn the

maximum amount of revenue from the various segments of the market. Two months after the

introduction, the price has come down to $399. What kind of a pricing did Apple adopt?

A) loss-leader pricing
B) market-penetration pricing

C) market-skimming pricing

D) target-return pricing

E) value pricing

Answer: C

Page Ref: 390

Objective: 2

AACSB: Analytic skills

Difficulty: Moderate

21) Starbucks, Aveda, and BMW have been able to position themselves within their categories

by combining quality, luxury, and premium prices with an intensely loyal customer base. These

companies are employing a ________ strategy.

A) market-skimming

B) market-penetration

C) survival

D) market share maximization

E) product-quality leadership

Answer: E

Page Ref: 390

Objective: 2

Difficulty: Easy

25) If demand hardly changes with a small change in price, the demand is said to be ________.

A) strained

B) marginal

C) inelastic

D) flexible

E) unit elastic

Answer: C

Page Ref: 392

Objective: 2

Difficulty: Easy