Archive for May 2019

Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________.

Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________. 



A) monitor its service systems
B) empower the customers
C) retain the patronage of profitable customers
D) increase consumer participation
E) standardize the service-performance process


Answer: C

Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________.

Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________. 



A) retailer convenience
B) profit tiers
C) psychographic characteristics
D) social influence
E) customer preference


Answer: B

In which of the following does a customer respond to the functional quality of a service?

In which of the following does a customer respond to the functional quality of a service?



A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill.
D) Ray's mechanic charges high prices for service, but his work is good and worth the price.
E) Alex has no interest in theater, but goes often because her best friend loves plays.


Answer: C

In which of the following does a customer respond to the technical quality of a service?

In which of the following does a customer respond to the technical quality of a service?



A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill.
D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful.
E) Alex has no interest in theater, but goes often because her best friend loves plays.


Answer: A

Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its ________.

Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its ________.



A) promotional marketing
B) functional quality
C) technical quality
D) search qualities
E) external marketing


Answer: B

Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures?

Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures?



A) giving customers exclusive primary service packages
B) redesigning processes to simplify service encounters
C) using differential pricing and shared services
D) minimizing service intangibility
E) working with more customers at the same time


Answer: B

Customers today want separate prices for each service element and they also want the right to select the elements they want. The customers are said to be pressing for ________.

Customers today want separate prices for each service element and they also want the right to select the elements they want. The customers are said to be pressing for ________.



A) complementary services
B) perishable services
C) variable services
D) unbundled services
E) shared services


Answer: D

Which of the following is an example of a complementary service?

Which of the following is an example of a complementary service?



A) Big department stores usually hire extra staff to handle the rush during the holiday season.
B) The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well.
C) More paramedics are on hand to assist physicians during times when emergency admissions are highest.
D) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
E) Chesterton College hires part-time teachers when enrollment goes up.


Answer: D

Cocktail lounges in restaurants are examples of ________.

Cocktail lounges in restaurants are examples of ________.



A) differential pricing
B) cultivating nonpeak demand
C) complementary services
D) reservation systems
E) shared services


Answer: C

The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do?

The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote minivacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do?



A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.


Answer: B

In which of the following cases is a service provider trying to increase non-peak demand?

In which of the following cases is a service provider trying to increase non-peak demand?



A) A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and dinner options.
B) An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
C) AXA Bank set up automated teller machines so that its customers could avoid standing in line.
D) Chesterton College hired part-time teachers as enrollment increased significantly.
E) Big department stores usually hire extra staff to handle the rush during the holiday season.


Answer: A

When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting?

When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting?



A) It is providing complementary services.
B) It is increasing peak-time efficiency.
C) It is using linear pricing.
D) It is using differential pricing.
E) It is sharing services.


Answer: D

Jake had an appointment at the doctor's, but couldn't make it on time because he was caught in traffic. By the time he reached the doctor's office, the doctor had already begun with the next patient. This illustrates the ________ of services.

Jake had an appointment at the doctor's, but couldn't make it on time because he was caught in traffic. By the time he reached the doctor's office, the doctor had already begun with the next patient. This illustrates the ________ of services.



A) variability
B) heterogeneity
C) perishability
D) intangibility
E) homogeneity


Answer: C

In order to map out the service process, the points of customer contact, and the evidence of service from the customer's point of view, service firms should develop a ________.

In order to map out the service process, the points of customer contact, and the evidence of service from the customer's point of view, service firms should develop a ________.



A) marketing plan
B) service floor plan
C) Gantt chart
D) business plan
E) service blueprint


Answer: E

Which of the following steps will help service firms to increase their quality control?

Which of the following steps will help service firms to increase their quality control?



A) standardizing the service-performance process
B) providing complementary services to customers
C) giving personnel authority in handling situations
D) adopting differential pricing
E) cultivating nonpeak demand


Answer: A

Which of the following is true regarding services?

Which of the following is true regarding services?



A) Services are typically produced, stored, and then consumed.
B) Services are generally low in experience and credence qualities.
C) Service providers develop similar marketing programs for personal services and business services.
D) There is less risk associated with the purchase of services than with the purchase of goods.
E) Provider-client interaction is a special feature of services marketing.


Answer: E

BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication try to give consumers a feeling of excitement and bravery. These ads appeal to the ________ dimension of brand experience.

BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication try to give consumers a feeling of excitement and bravery. These ads appeal to the ________ dimension of brand experience.



A) sensory
B) affective
C) behavioral
D) intellectual
E) social


Answer: B

Which of the following is true for services?

Which of the following is true for services?



A) All services are people-based, while goods are equipment-based.
B) Service providers can be both for-profit or nonprofit.
C) All service companies follow the same process to deliver their services.
D) The client's presence is a hindrance during the service delivery process.
E) Service providers develop similar marketing programs for personal services and business services.


Answer: B

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

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



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


Answer: A

A computer falls into the ________ category of service mix.

A computer falls into the ________ category of service mix.



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


Answer: B

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

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
C) pure service
D) pure tangible good
E) tangible good with accompanying services


Answer: E

Which of the following is a characteristic of a service?

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

Which of the following strategies should be adopted by marketers during a recession?

Which of the following strategies should be adopted by marketers during a recession?



A) increase investment on marketing existing products
B) focus on expanding the customer base and not on the retention of existing customers
C) focus primarily on price reductions and discounts
D) concentrate on communicating the brand value and product quality to consumers
E) stick to the budget allocations adopted during the preceding years


Answer: D

An alternate way to increase sales volume is to expand the number of users. This can be done by ________.

An alternate way to increase sales volume is to expand the number of users. This can be done by ________.



A) having consumers use the product on more occasions
B) having consumers use more of the product on each occasion
C) having consumers use the product in new ways
D) remaining in the current market segment
E) attracting competitors' customers


Answer: E

One of the ways to change the course of a brand is to modify the product. Under product modification, ________ adds size, weight, materials, supplements, and accessories that expand the product's performance, versatility, safety, or convenience.

One of the ways to change the course of a brand is to modify the product. Under product modification, ________ adds size, weight, materials, supplements, and accessories that expand the product's performance, versatility, safety, or convenience.
A) feature improvement
B) quality improvement
C) style improvement
D) size improvement
E) technological improvement
Answer: A

After a couple of years of successful business, an experimental theatre company based in Aurora is unable to sell tickets for its theatre shows. They have been using profits from previous shows to run the business. The company is in the ________ phase of its life cycle.

After a couple of years of successful business, an experimental theatre company based in Aurora is unable to sell tickets for its theatre shows. They have been using profits from previous shows to run the business. The company is in the ________ phase of its life cycle.
A) maturity
B) obsolescence
C) introduction
D) growth
E) decline
Answer: E

A music school in Boyles Height, LA, specializes in teaching the guitar and the violin. After a spurt in growth and a few successful years, the school is experiencing a slowdown in sales and stability in its profits due to an increase in competition. The school is in the ________ stage of its life cycle.

A music school in Boyles Height, LA, specializes in teaching the guitar and the violin. After a spurt in growth and a few successful years, the school is experiencing a slowdown in sales and stability in its profits due to an increase in competition. The school is in the ________ stage of its life cycle. 
A) introduction
B) growth
C) decline
D) maturity
E) obsolescence
Answer: D

A dance school in the Bronx teaches professional hip-hop and salsa. It is experiencing an increase in student admissions, which is leading to substantial improvement in profits. The school is going through the ________ phase of its life cycle.

A dance school in the Bronx teaches professional hip-hop and salsa. It is experiencing an increase in student admissions, which is leading to substantial improvement in profits. The school is going through the ________ phase of its life cycle.



A) decline
B) stagnancy
C) growth
D) introduction
E) maturity


Answer: C

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

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



A) stagnancy
B) introduction
C) maturity
D) decline
E) growth


Answer: B

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 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

A job-shop specialist ________.

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

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 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

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.

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

The key idea in successful nichemanship is specialization. Which of the following specialists would most closely be identified with the characterization of being an organization that limits its selling to one customer?

The key idea in successful nichemanship is specialization. Which of the following specialists would most closely be identified with the characterization of being an organization that limits its selling to one customer? 



A) end-user specialist
B) vertical-level specialist
C) customer-size specialist
D) specific-customer specialist
E) quality-price specialist


Answer: D

Which of the following is true about market-nichers?

Which of the following is true about market-nichers?



A) They are market followers in small markets.
B) They tend to have high manufacturing costs.
C) Their return on investment exceeds that in larger markets.
D) A nicher achieves high volume as against a mass marketer that achieves high margin.
E) They usually experience long-term losses.


Answer: C

Redo is a market follower in the wristwatch industry. After noticing a shortfall in the market leader's product, Redo improves its product to suit consumer needs and becomes a challenger for the market leader. This is an example of ________.

Redo is a market follower in the wristwatch industry. After noticing a shortfall in the market leader's product, Redo improves its product to suit consumer needs and becomes a challenger for the market leader. This is an example of ________.



A) counterfeiter
B) cloner
C) imitator
D) adapter
E) innovator


Answer: D

The TelePizza chain, which operates in Europe and Latin America, has copied Domino's service model but maintains differentiation in terms of location. TelePizza is an example of a(n) ________.

The TelePizza chain, which operates in Europe and Latin America, has copied Domino's service model but maintains differentiation in terms of location. TelePizza is an example of a(n) ________.



A) counterfeiter
B) adopter
C) cloner
D) imitator
E) adapter


Answer: D

As a(n) ________, BurgerJacks, a fast food chain selling low-price burgers, has differentiated on location by setting up base in the Middle East, a market which the current leader of the industry McDonalds has yet not exploited.

As a(n) ________, BurgerJacks, a fast food chain selling low-price burgers, has differentiated on location by setting up base in the Middle East, a market which the current leader of the industry McDonalds has yet not exploited.



A) cloner
B) imitator
C) counterfeiter
D) adapter
E) innovator


Answer: B

Aron, a company manufacturing snack food and soft drinks, replicates its product taste and packaging from Lay's, a market leader in snack food industry. Later, it sells these imitated products on the black market. This is an example of ________.

Aron, a company manufacturing snack food and soft drinks, replicates its product taste and packaging from Lay's, a market leader in snack food industry. Later, it sells these imitated products on the black market. This is an example of ________.



A) cloning
B) imitating
C) counterfeiting
D) adapting
E) innovating


Answer: C

In his article, "Innovative Imitation", Theodore Levitt argues that ________.

In his article, "Innovative Imitation", Theodore Levitt argues that ________. 



A) imitation is wrong and should be punished
B) product imitation might be as profitable as product innovation
C) innovation is not possible without substantial imitation
D) innovation cannot begin unless dissatisfaction with imitation occurs
E) imitation should be against the law because of the intellectual property decision involved


Answer: B

A marketing manager has decided to "leapfrog" competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as ________.

A marketing manager has decided to "leapfrog" competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as ________. 



A) flank attack
B) encirclement attack
C) bypass attack
D) guerrilla warfare
E) frontal attack


Answer: C

Appy Juices, a company that manufactures bottled water, diversified into soft drinks before any of its opponents could launch a diversified product. This would be an example of a(n) ________ attack.

Appy Juices, a company that manufactures bottled water, diversified into soft drinks before any of its opponents could launch a diversified product. This would be an example of a(n) ________ attack. 



A) flank
B) bypass
C) guerrilla
D) encirclement
E) frontal


Answer: B

Sally Seabrook is an up-and-coming marketing manager for a large department store chain. Ms. Seabrook has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances. Which of the following market challenger attack strategies is Ms. Seabrook using to attack her competition?

Sally Seabrook is an up-and-coming marketing manager for a large department store chain. Ms. Seabrook has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances. Which of the following market challenger attack strategies is Ms. Seabrook using to attack her competition? 



A) frontal attack
B) bypass attack
C) guerrilla warfare
D) flank attack
E) encirclement attack


Answer: E

A(n) ________ is another name for identifying shifts in market segments that are causing gaps to develop, then rushing in to fill the gaps and developing them into strong segments.

A(n) ________ is another name for identifying shifts in market segments that are causing gaps to develop, then rushing in to fill the gaps and developing them into strong segments. 



A) frontal attack strategy
B) flanking strategy
C) encircling strategy
D) counteroffensive strategy
E) bypass strategy


Answer: B

Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an example of a(n) ________ attack.

Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an example of a(n) ________ attack.



A) frontal
B) flank
C) guerrilla
D) encirclement
E) bypass


Answer: B

Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform the consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack.

Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform the consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack.



A) guerilla
B) frontal
C) encirclement
D) bypass
E) flank


Answer: B

In 2006, Sara Lee spun off products that accounted for a large percentage of the company's revenues, including its strong Hanes hosiery brand, so it could concentrate on its well-known food brands. In this example, Sara Lee is employing a ________ strategy.

In 2006, Sara Lee spun off products that accounted for a large percentage of the company's revenues, including its strong Hanes hosiery brand, so it could concentrate on its well-known food brands. In this example, Sara Lee is employing a ________ strategy. 



A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense


Answer: E

When "petroleum" companies such as BP sought to recast themselves as "energy" companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical industries, these companies were employing a ________ strategy.

When "petroleum" companies such as BP sought to recast themselves as "energy" companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical industries, these companies were employing a ________ strategy. 



A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense


Answer: C

After Olay entered and took over the Indian market with its anti-aging lotion, Ponds decided to defend its home turf by investing heavily in a similar product, but that which used only natural ingredients. This is an example of a ________.

After Olay entered and took over the Indian market with its anti-aging lotion, Ponds decided to defend its home turf by investing heavily in a similar product, but that which used only natural ingredients. This is an example of a ________. 



A) position defense
B) flank defense
C) counteroffensive defense
D) contraction defense
E) mobile defense


Answer: C

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy. 



A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense


Answer: A

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy. 



A) position
B) flank
C) preemptive
D) counteroffensive
E) mobile


Answer: B

Which of the following is true about proactive marketing?

Which of the following is true about proactive marketing?



A) A company needs creative anticipation to see the writing on the wall.
B) Proactive companies create new offers to serve unmet and unknown consumer needs.
C) Proactive companies refrain from practicing uncertainty management.
D) A company needs responsive anticipation to devise innovative solutions.
E) Companies are winners when they are extremely risk-averse.


Answer: B

Sony is an unusual market leader. It gives its customers new products that they have never asked for (e.g., Walkmans, VCRs, video cameras, CDs). This makes Sony a(n) ________ firm.

Sony is an unusual market leader. It gives its customers new products that they have never asked for (e.g., Walkmans, VCRs, video cameras, CDs). This makes Sony a(n) ________ firm. 



A) market-driven
B) market-driving
C) operations-driven
D) vision-driven
E) virtually-driven


Answer: B

Clorox runs ads stressing the many benefits of its bleach, such as how it eliminates kitchen odors, in order to generate additional opportunities to use the brand in the same basic way. This is an attempt to ________.

Clorox runs ads stressing the many benefits of its bleach, such as how it eliminates kitchen odors, in order to generate additional opportunities to use the brand in the same basic way. This is an attempt to ________. 



A) increase the amount of consumption
B) increase the level of consumption
C) increase the perception of consumption
D) increase the frequency of consumption
E) increase the emotional implications of consumption


Answer: D

Oliver, a company that produces different types of olive oil, launched a promotional campaign focusing on the alternative uses of olive oil. What strategy is the company implementing to expand its total market demand?

Oliver, a company that produces different types of olive oil, launched a promotional campaign focusing on the alternative uses of olive oil. What strategy is the company implementing to expand its total market demand?



A) using the new-market segment strategy to attract new customers
B) improving the current level of product performance
C) advertising new and different applications of the brand
D) protecting its market share
E) using the market-penetration strategy to attract new customers


Answer: C

Which of the following marketing strategies requires either identifying additional opportunities to use the brand in the same basic way or identifying completely new and different ways to use the brand?

Which of the following marketing strategies requires either identifying additional opportunities to use the brand in the same basic way or identifying completely new and different ways to use the brand?



A) increasing the amount of consumption
B) decreasing the level of consumption
C) increasing dedication to consumption
D) increasing product innovation
E) increasing frequency of consumption


Answer: E

Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the U.S., the company wants to foray into foreign markets. The management at Trends knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using?

Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the U.S., the company wants to foray into foreign markets. The management at Trends knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using?



A) market-penetration strategy
B) outsourcing strategy
C) geographic-expansion strategy
D) product differentiation strategy
E) ethnocentric strategy


Answer: C

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy.

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy.



A) market-penetration
B) new-market segment
C) geographical-expansion
D) niche identification
E) blue-ocean


Answer: B

As the marketing manager of a company that manufactures floor tiles, Evans Smith is given a target to achieve 500 new customers by the end of summer. He decides to search the market for probable customers who might use the product but do not at present. Which of the following strategies is Evans pursuing to increase the market demand for his product?

As the marketing manager of a company that manufactures floor tiles, Evans Smith is given a target to achieve 500 new customers by the end of summer. He decides to search the market for probable customers who might use the product but do not at present. Which of the following strategies is Evans pursuing to increase the market demand for his product?



A) market-penetration strategy
B) new-market segment strategy
C) geographical-expansion strategy
D) needs-assessment strategy
E) consolidation strategy


Answer: A

The ________ has the largest market share and usually shows the way to other firms in price changes, new-product introductions, distribution coverage, and promotional intensity.

The ________ has the largest market share and usually shows the way to other firms in price changes, new-product introductions, distribution coverage, and promotional intensity.



A) market challenger
B) market entrant
C) market follower
D) market nicher
E) market leader


Answer: E

Which of the following statements about the branding guidelines for a small business is true?

Which of the following statements about the branding guidelines for a small business is true? 



A) A small business must creatively conduct low-cost marketing research.
B) A small business must avoid leveraging secondary brand associations.
C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image.
D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers.
E) A small business must focus on building more than two strong brands based on a number of associations.


Answer: A

Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany?

Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany?



A) language
B) pitch
C) cast
D) setting
E) narrative arc


Answer: E

Which of the following traits of a brand's ability to become a lovemark keeps the five senses of sight, hearing, smell, touch, and taste on constant alert for new textures, intriguing scents and tastes, music, and other such stimuli?

Which of the following traits of a brand's ability to become a lovemark keeps the five senses of sight, hearing, smell, touch, and taste on constant alert for new textures, intriguing scents and tastes, music, and other such stimuli?



A) sensuality
B) intimacy
C) mystery
D) practicality
E) sensitivity


Answer: A

A supplier creates better information systems, and introduces bar coding, mixed pallets, and other methods of helping the consumer. The supplier is most likely to be differentiated on its ________.

A supplier creates better information systems, and introduces bar coding, mixed pallets, and other methods of helping the consumer. The supplier is most likely to be differentiated on its ________.



A) innovativeness
B) reliability
C) insensitivity
D) resilience
E) accuracy


Answer: A

A company which can differentiate itself by designing a better and faster delivery system that provides more effective and efficient solutions to consumers is most likely using ________ differentiation.

A company which can differentiate itself by designing a better and faster delivery system that provides more effective and efficient solutions to consumers is most likely using ________ differentiation.



A) services
B) channel
C) image
D) product
E) employee


Answer: A

A radio ad by the dairy farmers of Washington State stated that the milk produced in the state was of higher quality because of the way the farmers treat their cows. They said that the difference comes from how comfortable they make their cows. Among others, this differentiation could certainly appeal to animal lovers and those moving toward organic products. This is an example of ________.

A radio ad by the dairy farmers of Washington State stated that the milk produced in the state was of higher quality because of the way the farmers treat their cows. They said that the difference comes from how comfortable they make their cows. Among others, this differentiation could certainly appeal to animal lovers and those moving toward organic products. This is an example of ________. 



A) personnel differentiation
B) channel differentiation
C) service differentiation
D) product differentiation
E) image differentiation


Answer: E

Which of the following is an example of services differentiation?

Which of the following is an example of services differentiation?



A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.


Answer: C

Which of the following is an example of image differentiation?

Which of the following is an example of image differentiation?



A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.


Answer: B

Which of the following is an example of channel differentiation?

Which of the following is an example of channel differentiation?



A) Berry's has an intensive training program for its customer-facing employees, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.


Answer: D

Which of the following types of differentiation refers to companies effectively designing their distribution medium's coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding?

Which of the following types of differentiation refers to companies effectively designing their distribution medium's coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding?



A) service differentiation
B) channel differentiation
C) image differentiation
D) product differentiation
E) employee differentiation


Answer: B

One common difficulty in creating a strong, competitive brand positioning is that many of the attributes or benefits that make up the points-of-parity and points-of-difference are ________.

One common difficulty in creating a strong, competitive brand positioning is that many of the attributes or benefits that make up the points-of-parity and points-of-difference are ________. 



A) negatively correlated
B) always correlated
C) directly proportional
D) never correlated
E) positively correlated


Answer: A

Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the X-Trainer, which combined the attributes of an SUV, a minivan, and a station wagon. To communicate its unique position—and to avoid association with its Explorer and Country Squire models—the vehicle, eventually called Freestyle, was designated a "sports wagon". According to the given scenario, Ford Motor Co. conveyed their brand's category membership by ________.

Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the X-Trainer, which combined the attributes of an SUV, a minivan, and a station wagon. To communicate its unique position—and to avoid association with its Explorer and Country Squire models—the vehicle, eventually called Freestyle, was designated a "sports wagon". According to the given scenario, Ford Motor Co. conveyed their brand's category membership by ________. 



A) announcing category benefits
B) identifying counter examples
C) relying on the product descriptor
D) focusing on reliability
E) comparing to exemplars


Answer: C

When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great U.S. designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand's category membership by ________.

When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great U.S. designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand's category membership by ________.



A) relying on the product descriptor
B) focusing on reliability
C) comparing to exemplars
D) announcing category benefits
E) identifying counter examples


Answer: C

SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment?

SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment?



A) announcing category benefits
B) comparing to exemplars
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes


Answer: B

Which of the following ways to conveying a brand's category membership relates to well-known, noteworthy brands in a category helping a brand specify its category membership?

Which of the following ways to conveying a brand's category membership relates to well-known, noteworthy brands in a category helping a brand specify its category membership?



A) comparing to exemplars
B) communicating deliverability variables
C) identifying counter examples
D) announcing category benefits
E) relying on the product descriptor


Answer: A

A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment?

A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment?



A) announcing category benefits
B) comparing to exemplars
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes


Answer: A

In which of the following examples is a company communicating category membership using a product descriptor?

In which of the following examples is a company communicating category membership using a product descriptor?



A) Use Zipex for quick and thorough cleaning.
B) Barry's Oats, when you want nutrition and flavor.
C) Clarity offers you the best prices for the best quality.
D) Choose Grissom's for an unparalleled shopping experience.
E) Chloe: All you need for a beautiful you.


Answer: B

For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on ________.

For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on ________.



A) points-of-difference
B) points-of-presence
C) points-of-inflection
D) points-of-parity
E) points-of-conflict


Answer: A

A brand mantra should be ________.

A brand mantra should be ________.



A) original, ambiguous, and straightforward
B) unique, complex, and inspirational
C) communicative, simple, and inspirational
D) competitive, sensitive, and simple
E) unique, sensitive, and explanatory


Answer: C

BMW's "The ultimate driving machine," American Express' "Don't leave home without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of ________.

BMW's "The ultimate driving machine," American Express' "Don't leave home without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of ________.



A) brand slogan
B) brand personality
C) brand mission
D) brand architecture
E) brand vision


Answer: A

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

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



A) Brand mantras
B) Brand symbols
C) Brand logos
D) Brand alliances
E) Brand extensions


Answer: A

American Express'- "World Class Service, Personal Recognition," Mary Kay's - "Enriching women's lives," Hallmark's- "Caring Shared," and Starbucks'-"Rewarding Everyday Moments" are examples of ________.

American Express'- "World Class Service, Personal Recognition," Mary Kay's - "Enriching women's lives," Hallmark's- "Caring Shared," and Starbucks'-"Rewarding Everyday Moments" are examples of ________.



A) brand mantras
B) brand parity
C) brand identity
D) brand architecture
E) brand extension


Answer: A

Which of the following statements about brand mantras is true?

Which of the following statements about brand mantras is true?



A) They guide only major decisions, they have no influence on mundane decisions.
B) Their influence does not extend beyond tactical concerns.
C) They must economically communicate what the brand is and avoid communicating what it is not.
D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.
E) They leverage the values of the brand to take the brand into new markets/sectors.


Answer: D

A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following?

A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following?



A) the soap is one-quarter cleansing cream
B) Dove products include bar soaps and shampoos
C) Dove soap helps users have softer skin
D) the soap brand has global presence
E) the brand has recently launched soap for men


Answer: C

As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity?

As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity?



A) to point out competitors' points-of-difference
B) to emphasize competitors' points-of-difference
C) to rationalize competitors' perceived points-of-difference
D) to globalize competitors' perceived points-of-difference
E) to negate competitors' perceived points-of-difference


Answer: E

Nivea became the leader in the skin cream class on the "gentle", "protective" and "caring" platform. The company further moved into classes such as deodorants, shampoos and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse and its cosmetics would be colorful enough. This is an example of ________.

Nivea became the leader in the skin cream class on the "gentle", "protective" and "caring" platform. The company further moved into classes such as deodorants, shampoos and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse and its cosmetics would be colorful enough. This is an example of ________.



A) competitive points-of-parity
B) competitive points-of-difference
C) category points-of-parity
D) category points-of-difference
E) competitive points-of-presence


Answer: C

Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels designed to apply topically, contain alcohol that kills the germs present on the skin, and developed for use after washing hands or for those times when soap and water are not available. These service elements are considered ________.

Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels designed to apply topically, contain alcohol that kills the germs present on the skin, and developed for use after washing hands or for those times when soap and water are not available. These service elements are considered ________.



A) competitive points-of-difference
B) competitive points-of-parity
C) category points-of-difference
D) category points-of-parity
E) conceptual points-of-parity


Answer: D

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling?

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling?



A) points-of-difference
B) points-of-conflict
C) points-of-parity
D) points-of-presence
E) points-of-inflection


Answer: A

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What does the company assure by stating that the beer tastes good?

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What does the company assure by stating that the beer tastes good? 



A) points-of-difference
B) points-of-presence
C) points-of-parity
D) points-of-conflict
E) points-of-inflection


Answer: C

_______ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class.

_______ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class.



A) Category points-of-difference
B) Conceptual points-of-parity
C) Competitive points-of-parity
D) Category points-of-parity
E) Competitive points-of-difference


Answer: D

The two basic forms of points-of-parity are ________ and ________.

The two basic forms of points-of-parity are ________ and ________.



A) conceptual points-of-parity; competitive points-of-parity
B) strategic points-of-parity; conceptual points-of-parity
C) category points-of-parity; deliverable points-of-parity
D) competitive points-of-parity; peculiar points-of-parity
E) category points-of parity; competitive points-of-parity


Answer: E

The brand must demonstrate ________, for it to function as a true point-of-difference.

The brand must demonstrate ________, for it to function as a true point-of-difference.



A) clear superiority on an attribute or benefit
B) clear profitability to the company
C) clear similarity to the attributes of other brands
D) technological advances for an attribute or benefit
E) exploitation of competitors' weakness


Answer: A

Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers?

Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers?



A) differentiability
B) peculiarity
C) desirability
D) believability
E) deliverability


Answer: E

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

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



A) comparability, authenticity, deliverability
B) desirability, peculiarity, deliverability
C) deviance, peculiarity, deformity
D) desirability, deliverability, differentiability
E) differentiability, authenticity, desirability


Answer: D

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"?

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

Which of the following best describes BR Chicken's value proposition?

Which of the following best describes BR Chicken's value proposition?



A) We sell chicken at most major malls.
B) We undertake home delivery services.
C) We target quality-conscious consumers of chicken.
D) We sell tender golden chicken at a moderate price.
E) We charge a 10% premium on our chicken.


Answer: D

Which of the following best describes a car company's value proposition?

Which of the following best describes a car company's value proposition?



A) We charge a 20% premium on our cars.
B) We target safety-conscious upscale families.
C) We sell the safest, most durable wagon.
D) We are the market leader in the small car category.
E) We focus on expanding in faster-growing markets.


Answer: C

The goal of positioning is ________.

The goal of positioning is ________.



A) to locate the brand in the minds of consumers to maximize the potential benefit to the firm
B) to discover the different needs and groups existing in the marketplace
C) to target those customers marketers can satisfy in a superior way
D) to collect information about competitors that will directly influence the firms' strategy
E) to help the firm anticipate what the actions of its competitors will be


Answer: A

The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________.

The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________. 



A) no synergy exists
B) logistics can become a nightmare
C) the product may be supplanted by an entirely new technology
D) competitors can easily copy any new product introductions
E) e-commerce becomes difficult for the company


Answer: C

When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting ________.

When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting ________. 



A) market mavens
B) strategic segments
C) super segments
D) occasion segments
E) socio demographic segments


Answer: C

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion. 



A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage


Answer: A
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