Winstar is a large scale manufacturer which has more than a hundred partners across the globe. When making decisions concerning distribution and channel optimization, the company invites members from its channel partners to be part of its advisory committee. This helps the company maintain harmony with its partners. Which of the following conflict resolution techniques is Winstar using?

Winstar is a large scale manufacturer which has more than a hundred partners across the globe. When making decisions concerning distribution and channel optimization, the company invites members from its channel partners to be part of its advisory committee. This helps the company maintain harmony with its partners. Which of the following conflict resolution techniques is Winstar using?

A) diplomatic counselling
B) mediation
C) arbitration
D) co-option
E) joint membership


Anwer: D

Co-optation is an effort by one organization to win the support of the leaders of another by ________.

Co-optation is an effort by one organization to win the support of the leaders of another by ________.

A) including them in advisory councils
B) engaging in mediation and arbitration
C) encouraging joint memberships in trade associations
D) encouraging employee exchanges
E) offering strategic justifications


Anwer: A

RX Corp. is a large manufacturer of electronic goods and sells its products through distributors and retailers. In order to keep pace with the growing use of the Internet, the company decides to start selling online. The company faces stiff opposition from its retailers as they believe that this will significantly reduce their profits. The company attempts to eliminate this resistance by offering its retailers commissions for processing and delivering orders received via the Web. This is an example of which of the following conflict resolution strategies?

RX Corp. is a large manufacturer of electronic goods and sells its products through distributors and retailers. In order to keep pace with the growing use of the Internet, the company decides to start selling online. The company faces stiff opposition from its retailers as they believe that this will significantly reduce their profits. The company attempts to eliminate this resistance by offering its retailers commissions for processing and delivering orders received via the Web. This is an example of which of the following conflict resolution strategies?

A) dual compensation
B) joint membership
C) arbitration
D) co-option
E) strategic pricing


Anwer: A

General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy.

General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy.

A) employee exchange
B) dual compensation
C) joint membership
D) co-optation
E) diplomacy


Anwer: A

A manufacturer wants to achieve rapid market penetration through a low-price policy. However, its dealers prefer to work with high margins and pursue short-run profitability. The major reason for this conflict is ________.

A manufacturer wants to achieve rapid market penetration through a low-price policy. However, its dealers prefer to work with high margins and pursue short-run profitability. The major reason for this conflict is ________.

A) goal incompatibility
B) unclear roles
C) ambiguous rights
D) differences in perception
E) dependence on the manufacturer


Anwer: A

A franchisee owner is unsatisfied because the manufacturer provides more benefits to a wholesaler. This conflict is an example of a(n) ________ conflict.

A franchisee owner is unsatisfied because the manufacturer provides more benefits to a wholesaler. This conflict is an example of a(n) ________ conflict.

A) horizontal
B) vertical
C) intermediate
D) multichannel
E) parallel


Anwer: D

Alcart Solutions is a large distributor of Aldor phones in Canada. The company distributes products to various retailers in the New Brunswick province. Recently Aldor received several complaints from its retailers that their orders are not delivered on time. They also complain that Alcart offers preferential treatment to some of the other retailers in the region. This is an example of ________ conflict.

Alcart Solutions is a large distributor of Aldor phones in Canada. The company distributes products to various retailers in the New Brunswick province. Recently Aldor received several complaints from its retailers that their orders are not delivered on time. They also complain that Alcart offers preferential treatment to some of the other retailers in the region. This is an example of ________ conflict.

A) multichannel
B) horizontal
C) vertical
D) intermediate
E) parallel


Anwer: C

______ channel conflict occurs between channel members at the same level.

______ channel conflict occurs between channel members at the same level.

A) Horizontal
B) Vertical
C) Multichannel
D) Administrative
E) Contractual


Anwer: A

Which of the following is a major advantage of adding more channels for selling?

Which of the following is a major advantage of adding more channels for selling?

A) It helps the company increase its market coverage.
B) It helps the company reduce its fixed costs.
C) It reduces the likelihood of channel conflict.
D) It is the best strategy for selling low-involvement consumer products.
E) It results in economies of scale.


Anwer: A

In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.

In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity. 

A) reverse flow
B) vertical
C) horizontal
D) lateral
E) forward flow


Anwer: C

A franchise organization is an example of a(n) ________ vertical marketing system.

A franchise organization is an example of a(n) ________ vertical marketing system.

A) corporate
B) administered
C) contractual
D) regulatory
E) controlled


Anwer: C

A group of small grocery shops forms a new business entity to buy products directly from manufacturers. The group buys products in bulk which are then distributed among members. This helps the shops obtain better profit margins. Which of the following types of vertical marketing system can be observed here?

A group of small grocery shops forms a new business entity to buy products directly from manufacturers. The group buys products in bulk which are then distributed among members. This helps the shops obtain better profit margins. Which of the following types of vertical marketing system can be observed here?

A) contractual
B) corporate
C) administered
D) controlled
E) regulatory


Anwer: A

In a retailer cooperative, ________.

In a retailer cooperative, ________.

A) profits are equally divided among members
B) members plan their advertising jointly
C) nonmembers cannot buy through the co-op
D) members rely on distribution programming
E) members standardize their selling practices


Anwer: B

A group of small sellers take the initiative and organize a new business entity to carry on wholesaling and possibly some production. This initiative is called a(n) ________.

A group of small sellers take the initiative and organize a new business entity to carry on wholesaling and possibly some production. This initiative is called a(n) ________.

A) retailer cooperative
B) franchise organization
C) area-based cartel
D) sponsored voluntary chain
E) alternate selling channel


Anwer: A

A(n) ________ VMS consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

A(n) ________ VMS consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

A) administered
B) contractual
C) corporate
D) regulated
E) referent


Anwer: B

An administered VMS coordinates successive stages of production and distribution through ________.

An administered VMS coordinates successive stages of production and distribution through ________.

A) an automated central control unit
B) single ownership
C) the combined efforts of all its members
D) the establishment of contractual obligations
E) the size and power of one of the members


Anwer: E

Rotter Garder Inc. is a large-scale paint manufacturer and is known for its wide range of decorative paint products and industrial coatings. In addition to making paints, the company also owns and operates the retail stores which sell its products. This is an example of a(n) ________ vertical marketing system.

Rotter Garder Inc. is a large-scale paint manufacturer and is known for its wide range of decorative paint products and industrial coatings. In addition to making paints, the company also owns and operates the retail stores which sell its products. This is an example of a(n) ________ vertical marketing system.

A) administered
B) contractual
C) referent
D) corporate
E) regulated


Anwer: D

The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming.

The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming.

A) corporate
B) administered
C) contractual
D) regulatory
E) controlled


Anwer: B

A(n) ________ vertical marketing system combines successive stages of production and distribution under single ownership.

A(n) ________ vertical marketing system combines successive stages of production and distribution under single ownership.

A) corporate
B) administered
C) contractual
D) regulatory
E) controlled


Answer: A

A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system.

A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system.

A) parallel marketing channel
B) vertical marketing system
C) extensive marketing channel
D) internal marketing system
E) conventional marketing channel


Answer: B

What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?

What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?

A) Elements in a conventional marketing channel act as separate businesses whereas the elements in a VMS act as a unified system.
B) A VMS has many intermediaries whereas a conventional marketing channel has a limited number of intermediaries.
C) A VMS is characterized by an independent producer whereas a conventional marketing channel is characterized by multiple producers.
D) A conventional marketing channel has elements such as retailers and wholesalers whereas these elements are not present in a VMS.
E) Producers have complete control over the other members in a conventional marketing channel whereas this control is minimal in a VMS.


Answer: A

A producer must modify its channel design and arrangements if ________.

A producer must modify its channel design and arrangements if ________.

A) consumer buying patterns change
B) the competition in the market stabilizes
C) the product is in the growth stage of its life cycle
D) the market size remains unchanged for a particular period
E) the firm's profits stabilize


Answer: A

Who will most likely be willing to pay for high-value-added channels?

Who will most likely be willing to pay for high-value-added channels?

A) early buyers of a product
B) internal customers of a company
C) small and matured buyers of an industry
D) consumers of low involvement products
E) repeat customers of a product


Answer: A

A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.

A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.

A) finding and developing new intermediaries
B) using a few existing intermediaries
C) forming partnerships with the market leader
D) creating a special channel
E) forming partnerships with other firms


Answer: B

Which of the following types of power is objectively observable?

Which of the following types of power is objectively observable?

A) coercive power
B) legitimate power
C) group power
D) expert power
E) referent power


Answer: A

Hewlett-Packard is a highly respected brand. Many retailers want to be associated with the brand because of this reputation. What kind of power does Hewlett-Packard obtain due to this reputation?

Hewlett-Packard is a highly respected brand. Many retailers want to be associated with the brand because of this reputation. What kind of power does Hewlett-Packard obtain due to this reputation?

A) referent
B) functional
C) legitimate
D) coercive
E) reward


Answer: A

A manufacturer is using legitimate power when it ________.

A manufacturer is using legitimate power when it ________.

A) requests a behavior that is warranted under the selling contract
B) threatens to withdraw a resource or terminate a relationship
C) offers intermediaries an extra benefit for performing specific acts or functions
D) makes the intermediaries sell more of a particular product by offering rewards
E) sells more products by making use of its reputation in the market


Answer: A

A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power.

A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power.

A) reward
B) coercive
C) functional
D) expert
E) referent


Answer: A

______ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

______ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

A) Coercive
B) Reward
C) Legitimate
D) Expert
E) Referent


Answer: A

Broomer threatens to withdraw all its other products from the retailers' stores if they are unwilling to push products from the "Inducer" line. This is an example of ________ power.

Broomer threatens to withdraw all its other products from the retailers' stores if they are unwilling to push products from the "Inducer" line. This is an example of ________ power.

A) reward
B) coercive
C) legitimate
D) expert
E) referent


Answer: B

Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of ________ power.

Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of ________ power.

A) referent
B) passive
C) legitimate
D) coercive
E) reward


Answer: A

In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power.

In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power.

A) coercive
B) reward
C) passive
D) expert
E) referent


Answer: B

Which of the following problems is most likely when a sales agency is used instead of company salespeople?

Which of the following problems is most likely when a sales agency is used instead of company salespeople?

A) The company will find it difficult to control the sales process.
B) They do not take title to goods or negotiate purchases or sales.
C) The value-added per sale is the lowest for sales agencies.
D) Agencies will pay less attention to customers who buy the most or in large volumes.
E) Sales agencies are often difficult to access due to strict contractual obligations.


Answer: A

Which marketing channel is associated with the highest value added per sale?

Which marketing channel is associated with the highest value added per sale?

A) retail stores
B) sales force
C) distributors
D) Internet
E) telemarketing


Answer: B

Which of the following channels is associated with the lowest cost per transaction?

Which of the following channels is associated with the lowest cost per transaction?

A) Internet
B) telemarketing
C) retail stores
D) distributor
E) sales force


Answer: A

Electrobar, a European manufacturer of industrial kitchenware, sells to industrial canteens, restaurants, hotels, and so forth. The company provides a one-year warranty on all products and also allows customers to pay in installments-they pay fifty percent on delivery and the rest as equal installments. This refers to which element in the "trade-relations mix"?

Electrobar, a European manufacturer of industrial kitchenware, sells to industrial canteens, restaurants, hotels, and so forth. The company provides a one-year warranty on all products and also allows customers to pay in installments-they pay fifty percent on delivery and the rest as equal installments. This refers to which element in the "trade-relations mix"?

A) price policy
B) conditions of sale
C) distributors' territorial rights
D) exclusive dealings
E) mutual services and responsibilities


Answer: B

_______ call(s) for the producer to establish a schedule of discounts and allowances that intermediaries see as equitable and sufficient.

_______ call(s) for the producer to establish a schedule of discounts and allowances that intermediaries see as equitable and sufficient. 

A) Exclusive dealings
B) Mutual services
C) Territorial rights
D) Price policy
E) Tying agreements


Answer: D

Which of the following covers payment terms and producer guarantees?

Which of the following covers payment terms and producer guarantees?

A) conditions of sale
B) pricing policies
C) exclusive dealings
D) mutual services
E) territorial rights


Answer: A

Which of the following products is most likely to be sold using an exclusive distribution strategy?

Which of the following products is most likely to be sold using an exclusive distribution strategy?

A) designer luggage
B) cigarettes
C) alcoholic beverages
D) car fuel
E) medicine


Answer: A

An intensive distribution strategy serves well for ________.

An intensive distribution strategy serves well for ________.

A) premium cars
B) commercial trucks
C) private label products
D) industrial equipment
E) newspapers


Answer: E

Exclusive dealing arrangements are mainly used by companies looking for an edge in markets increasingly driven by ________.

Exclusive dealing arrangements are mainly used by companies looking for an edge in markets increasingly driven by ________.

A) price
B) efficiency
C) product variety
D) add-on services
E) spatial convenience


Answer: A

Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through other channels. This is an example of ________ distribution.

Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through other channels. This is an example of ________ distribution.

A) selective
B) intensive
C) exclusive
D) internal
E) passive


Answer: A

Which of the following is a major disadvantage of using the Internet as a marketing channel?

Which of the following is a major disadvantage of using the Internet as a marketing channel?

A) It is less effective for complex products.
B) It lacks convenience and practicality.
C) It cannot be used to reach a wide audience.
D) It is considered expensive.
E) It causes the company to lose direct contact with customers.


Answer: A

Which of the following channel alternatives is most suited to handle complex products and transactions?

Which of the following channel alternatives is most suited to handle complex products and transactions?

A) sales forces
B) the Internet
C) dealers
D) telemarketers
E) direct mails


Answer: A

Which of the following allows a firm to maintain control over the service level and obtain more dedicated and knowledgeable selling?

Which of the following allows a firm to maintain control over the service level and obtain more dedicated and knowledgeable selling?

A) selective distribution
B) intensive distribution
C) push strategy
D) exclusive distribution
E) pull strategy


Answer: D

Which of the following types of distribution involves severely limiting the number of channel intermediaries?

Which of the following types of distribution involves severely limiting the number of channel intermediaries?

A) exclusive
B) selective
C) intensive
D) aggressive
E) retail


Answer: A

Atburex is a furniture manufacturing company in the United States. The company provides a sixty day credit period and EMI options to customers and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs?

Atburex is a furniture manufacturing company in the United States. The company provides a sixty day credit period and EMI options to customers and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs?

A) good service backup
B) large product variety
C) spatial convenience
D) large lot size
E) short waiting time


Answer: A

Which of the following terms refers to the add-on services, such as credit, delivery, installation, and repairs, provided by a marketing channel?

Which of the following terms refers to the add-on services, such as credit, delivery, installation, and repairs, provided by a marketing channel?

A) service backup
B) product accessories
C) external products
D) product variety
E) service extensions


Answer: A

As a service output produced by marketing channels, product variety refers to the ________.

As a service output produced by marketing channels, product variety refers to the ________.

A) units the channel permits a customer to purchase at once
B) assortment provided by the marketing channel
C) add-on services provided by the channel
D) ability of a product to provide incremental value
E) degree to which the channel makes it easy for customers to purchase a product


Answer: B

Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage?

Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage?

A) spatial convenience
B) service backup
C) lot size
D) waiting time
E) delivery time


Answer: A

Which of the following activities is a reverse-flow channel of marketing?

Which of the following activities is a reverse-flow channel of marketing?

A) raw materials movement
B) product recycling
C) materials ordering
D) finished goods storage
E) customer order placement


Answer: B

A jobber in a three-level marketing channel is a(n) ________.

A jobber in a three-level marketing channel is a(n) ________.

A) small-scale wholesaler
B) external broker
C) advertising agent
D) independent evaluator
E) communication channel


Answer: A

A direct marketing channel is a ________.

A direct marketing channel is a ________.

A) one-level channel
B) two-level channel
C) zero-level channel
D) three-level channel
E) reverse-flow channel


Answer: C

Which of the following entities is present in a zero-level marketing channel?

Which of the following entities is present in a zero-level marketing channel?

A) consumers
B) retailers
C) brokers
D) jobbers
E) wholesalers


Answer: A

Which of the following is an example of a zero-level channel?

Which of the following is an example of a zero-level channel?

A) A company takes online orders from customers and ships the products to them.
B) An organization uses a combination of direct salespeople and sales agencies to increase sales.
C) A company sells its products through wholesalers and retailers.
D) A company sells its products through chains of supermarkets and other large sellers.
E) A large company forms alliances with smaller companies to increase sales coverage.


Answer: A

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

A) It increases customer loyalty.
B) It provides the producer with greater control over operations.
C) It reduces the amount of direct customer interaction.
D) It lowers the producer's costs and prices.
E) It ensures greater information security.


Answer: D

Identify the channel function that constitutes both backward and forward flow.

Identify the channel function that constitutes both backward and forward flow.

A) obtaining funds for financing
B) storage of physical goods
C) persuasive communication
D) movement of physical goods
E) overseeing actual transfer of ownership


Answer: A

Which of the following channel functions constitute only a backward flow?

Which of the following channel functions constitute only a backward flow?

A) movement of physical goods
B) placing orders with manufacturers
C) persuasive communication
D) storage of physical goods
E) overseeing actual transfer of ownership


Answer: B

Companies should first think of the target market and then design the supply chain backward from that point. This strategy is called ________.

Companies should first think of the target market and then design the supply chain backward from that point. This strategy is called ________.

A) demand chain planning
B) resource planning
C) external channel planning
D) materials planning
E) strategic business planning


Answer: A

Which of the following is the most accurate description of a value network?

Which of the following is the most accurate description of a value network?

A) A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings.
B) A system of organizations and resources involved in moving a product from supplier to customer.
C) An arrangement whereby an organization transforms inputs into finished goods.
D) A network that allows an organization take the finished products to the end-users.
E) A communication network that allows an organization to transfer information to end-customers.


Answer: A

A computer manufacturing company allows customers to place orders online, which they can later pick up from a convenient retail location. Which of the following terms best represents this practice?

A computer manufacturing company allows customers to place orders online, which they can later pick up from a convenient retail location. Which of the following terms best represents this practice?

A) channel integration
B) mass customization
C) online personalization
D) push strategy
E) internal marketing


Answer: A

A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-sized accounts. The firm is using ________ marketing.

A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-sized accounts. The firm is using ________ marketing.

A) hybrid
B) pull
C) personalized
D) vertical
E) internal


Answer: A

Using the push strategy is most appropriate when ________.

Using the push strategy is most appropriate when ________.

A) consumers are able to perceive differences between brands
B) the product being sold is an impulse item
C) there is high brand loyalty for the product
D) the product is a high involvement purchase
E) consumers choose the brand before they go to the store


Answer: B

When is a pull strategy appropriate?

When is a pull strategy appropriate?

A) when there is low brand loyalty
B) when consumers are able to perceive differences between brands
C) when brand choice is made in the store
D) when it is a low involvement purchase
E) when the product is an impulse item


Answer: B

Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and also ropes in a famous athlete to endorse the product. This is an example of a ________.

Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and also ropes in a famous athlete to endorse the product. This is an example of a ________.

A) trade promotion
B) reverse flow
C) push strategy
D) pull strategy
E) backward flow


Answer: D

Total Beverages, a maker of fruit juices and health drinks, recently launched a new brand of packaged drinking water called AquaPure. In order to induce distributors to carry the product, Total offers all its intermediaries a free refrigerator to store bottles of AquaPure. This is an example of a ________.

Total Beverages, a maker of fruit juices and health drinks, recently launched a new brand of packaged drinking water called AquaPure. In order to induce distributors to carry the product, Total offers all its intermediaries a free refrigerator to store bottles of AquaPure. This is an example of a ________.

A) consumer promotion
B) push strategy
C) backward flow
D) reverse flow
E) pull strategy


Answer: B

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?

A) personalization strategy
B) tailoring strategy
C) push strategy
D) pull strategy
E) consumer promotion strategy


Answer: C

A(n) ________ is a facilitator who assists in the distribution process.

A(n) ________ is a facilitator who assists in the distribution process.

A) advertising agency
B) sales agent
C) manufacturer's representative
D) broker
E) wholesaler


Answer: A

Which of the following entities in the marketing channel is a merchant?

Which of the following entities in the marketing channel is a merchant?

A) wholesalers
B) brokers
C) sales agents
D) warehouses
E) advertising agencies


Answer: A

____ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

____ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

A) Marketing channels
B) Interstitials
C) Communication channels
D) Sales territories
E) Marketing terrains


Answer: A

Luke is considering the various options available to him to promote an energy-drink, Turbozade, that is seeing decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up?

Luke is considering the various options available to him to promote an energy-drink, Turbozade, that is seeing decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up?

A) advertising
B) direct marketing
C) events and experiences
D) sales promotions
E) publicity


Answer: D

Which of the following marketing communications tools is most influential at the maturity stage of a product's life cycle?

Which of the following marketing communications tools is most influential at the maturity stage of a product's life cycle?

A) sales promotions
B) direct marketing
C) advertising
D) publicity
E) interactive marketing


Answer: C

Which of the following marketing communications tools has the highest cost-effectiveness in the introduction stage of the product life cycle?

Which of the following marketing communications tools has the highest cost-effectiveness in the introduction stage of the product life cycle?

A) personal selling
B) sales promotion
C) interactive marketing
D) direct marketing
E) events and experiences


Answer: E

Which of the following tools or combinations of tools is most influential at the comprehension stage of buyer readiness?

Which of the following tools or combinations of tools is most influential at the comprehension stage of buyer readiness?

A) sales promotion and advertising
B) advertising and personal selling
C) publicity and personal selling
D) reminder advertising and publicity
E) sales promotion and personal selling


Answer: B

Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness.

Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness.

A) comprehension
B) conviction
C) ordering
D) reordering
E) awareness-building


Answer: E

Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness?

Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness?

A) advertising
B) publicity
C) sales promotion
D) personal selling
E) events and experiences


Answer: D

Which of the following circumstances are best suited for the use of personal selling?

Which of the following circumstances are best suited for the use of personal selling?

A) when the products used are simple and easy-to-use
B) when there is minimal risk involved in buying or using the products
C) when the market has fewer and larger sellers
D) when the products being marketed are inexpensive and easily available
E) when prospective customers are spread across a wide geographic area


Answer: C

Which of the following statements is true of the role of advertising in business markets?

Which of the following statements is true of the role of advertising in business markets?

A) Advertising is unsuitable for explaining any new features that a product might have.
B) Sales calls are more economical than reminder advertisements.
C) Sales calls are more effective than advertisements at reminding customers how to use a product and reassure them about their purchase.
D) Sales representatives can use copies of the company's ads to legitimize their company and products.
E) Advertisements are the least preferred tools when intended to generate leads for sales representatives.


Answer: D

Which of the following marketing communications tools is most effective at the later stages of the buying process?

Which of the following marketing communications tools is most effective at the later stages of the buying process?

A) personal selling
B) public relations
C) advertising
D) sales promotions
E) direct marketing


Answer: A

Janet is a marketing manager with a Injoos, a company that manufactures packaged fruit juices. Knowing that there exist several other companies in the market that offer similar products, Janet decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers?

Janet is a marketing manager with a Injoos, a company that manufactures packaged fruit juices. Knowing that there exist several other companies in the market that offer similar products, Janet decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers?

A) advertising
B) personal selling
C) sales promotions
D) direct marketing
E) public relations


Answer: E

Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool?

Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool?

A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions.
B) They incorporate some concession, inducement, or contribution that gives value to the consumer.
C) Given their live, real-time quality, public relations tools are more actively engaging for consumers.
D) Public relations communications can be prepared to appeal to the addressed individual.
E) Public relations tools create an immediate and interactive episode between two or more persons.


Answer: A

Which of the following benefits is offered by sales promotion tools?

Which of the following benefits is offered by sales promotion tools?

A) Sales promotion tools are more authentic and credible to buyers than others such as advertising, public relations, and personal selling.
B) Sales promotion tools can reach prospects who prefer to avoid mass media and targeted promotions.
C) Sales promotion tools are typically an indirect form of "soft-sell" and hence, better received by customers.
D) Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer.
E) Sales promotion tools allow buyers personal choices and encourage them to respond directly.


Answer: D

Marketing communications budgets tend to be higher when ________.

Marketing communications budgets tend to be higher when ________.

A) there is high channel support
B) there exists hardly any change in the marketing program over time
C) there are infrequent product purchases in large quantities
D) there are differentiated products and nonhomogeneous customer needs
E) there are many easily-reachable customer spread over small geographic territories


Answer: D

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to instigate a communications war, settle on spending only as much as their nearest market rival does on marketing communications. What method did Kelly and Trent use to arrive at the marketing communications budget?

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to instigate a communications war, settle on spending only as much as their nearest market rival does on marketing communications. What method did Kelly and Trent use to arrive at the marketing communications budget?

A) objective-and-task method
B) affordable method
C) competitive-parity method
D) activity-based method
E) percentage-of-sales method


Answer: C

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They pore over the sales reports and other financial records and determine the amount of resources they can spare for marketing communications, after resources have been allocated to other functions, such as R&D, logistics, etc. What method did Kelly and Trent use to arrive at the marketing communications budget?

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They pore over the sales reports and other financial records and determine the amount of resources they can spare for marketing communications, after resources have been allocated to other functions, such as R&D, logistics, etc. What method did Kelly and Trent use to arrive at the marketing communications budget?

A) objective-and-task method
B) affordable method
C) competitive-parity method
D) activity-based method
E) percentage-of-sales method


Answer: B

Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget?

Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget?

A) It discourages stability when competing firms spend approximately the same percentage of their sales on communications.
B) By using a percentage-of-sales method, communication expenditures tend to be extremely high irrespective of what a company can afford.
C) It discourages management from thinking of the relationship among communication cost, selling price, and profit per unit.
D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning.
E) The percentage-of-sales method views sales as the result in itself rather than the determiner of communications.


Answer: D

Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget?

Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget?

A) The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications.
B) The percentage-of-sales method views sales as the determiner of communications rather than as the result.
C) The percentage-of-sales method leads to a budget set by market opportunities rather than the availability of funds.
D) The percentage-of-sales method encourages experimentation with countercyclical communication or aggressive spending.
E) The percentage-of-sales method encourages building the communication budget by determining what each product and territory deserves.


Answer: A

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Kelly and Trent use to arrive at the marketing communications budget?

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Kelly and Trent use to arrive at the marketing communications budget?

A) affordable method
B) objective-and-task method
C) competitive-parity method
D) activity-based method
E) percentage-of-sales method


Answer: E

Which of the following is a characteristic of the affordable method of establishing a marketing communications budget?

Which of the following is a characteristic of the affordable method of establishing a marketing communications budget?

A) fixed annual budget
B) suitable for long-range planning
C) priority given to role of promotion as an investment
D) calculated to reflect what the company can spare for marketing communications
E) based on the immediate impact of promotion on sales volume


Answer: D

Which of the following statements is true of the two-step approach to mass communications?

Which of the following statements is true of the two-step approach to mass communications?

A) The influence of mass media on public opinion is more direct, powerful, and automatic than marketers have supposed.
B) Communications through mass media bypasses opinion leaders and reaches the individual buyers.
C) The two-step flow supports the notion that consumption styles are primarily influenced by a "trickle-down" or "trickle-up" effect from mass media.
D) According to the two-step flow, people interact primarily within their own social groups and acquire ideas from opinion leaders in their groups.
E) Two-step communication suggests that mass communicators should direct messages to groups of buyers who interpret the message and act accordingly.


Answer: D

Which of the following is a form of mass communications channel?

Which of the following is a form of mass communications channel?

A) interactive marketing
B) personal selling
C) public relations
D) word-of-mouth marketing
E) sales presentations


Answer: C

Personal influence in marketing communications carries great weight when ________.

Personal influence in marketing communications carries great weight when ________.

A) the product being marketed is a convenience item
B) the purchase of the product is considered to be safe and risk-free
C) the product suggests something about the user's status or taste
D) the product being marketed is purchased on a frequent basis
E) the product or service in questions is used without being recommended by others


Answer: C

Which of the following is a form of earned media for marketing communication messages?

Which of the following is a form of earned media for marketing communication messages?

A) experts providing product reviews
B) celebrities endorsing products
C) social network discussions about products
D) company salespeople contacting target buyers
E) sponsored advertisements promoting products


Answer: C

Top Gear is an award-winning British television series about motor vehicles, mainly cars. It is presented by a set of hosts who test drive new cars and provide reviews on the cars' performance, their prices, and other factors. Which of the following personal communications channels is Top Gear closest to in description?

Top Gear is an award-winning British television series about motor vehicles, mainly cars. It is presented by a set of hosts who test drive new cars and provide reviews on the cars' performance, their prices, and other factors. Which of the following personal communications channels is Top Gear closest to in description?

A) expert channel
B) formal channel
C) social channel
D) sponsored channel
E) advocate channel


Answer: A

Which of the following personal communications channels consist of family members, neighbors, friends, and associates talking to target buyers?

Which of the following personal communications channels consist of family members, neighbors, friends, and associates talking to target buyers?

A) expert channels
B) advocate channels
C) social channels
D) formal channels
E) sponsored channels


Answer: C

Which of the following personal communication channels consist of company salespeople contacting buyers in the target market?

Which of the following personal communication channels consist of company salespeople contacting buyers in the target market?

A) expert channels
B) social channels
C) advocate channels
D) independent channels
E) informal channels


Answer: C

Which of the following is an example of a personal communications channel?

Which of the following is an example of a personal communications channel?

A) public relations
B) events and experiences
C) interactive marketing
D) sales promotions
E) advertising


Answer: C

Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience?

Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience?

A) principle of closure
B) principle of duality
C) principle of delegation
D) principle of congruity
E) principle of neutrality


Answer: D

Which of the following sources of a spokesperson's credibility describes his or her attractiveness?

Which of the following sources of a spokesperson's credibility describes his or her attractiveness?

A) expertise
B) trustworthiness
C) likability
D) integrity
E) experience


Answer: C

______ is a source of a spokesperson's credibility that describes how objective and honest the spokesperson is perceived to be.

______ is a source of a spokesperson's credibility that describes how objective and honest the spokesperson is perceived to be.

A) Likability
B) Expertise
C) Experience
D) Trustworthiness
E) Compassion


Answer: D

_______ is one of the sources of a spokesperson's credibility that refers to the specialized knowledge that he or she possesses to claim.

_______ is one of the sources of a spokesperson's credibility that refers to the specialized knowledge that he or she possesses to claim.

A) Trustworthiness
B) Expertise
C) Acquaintance
D) Likability
E) Professionalism


Answer: B

Which of the following ads depict an informational appeal?

Which of the following ads depict an informational appeal?

A) Thompson Water Seal can withstand intense rain, snow, and heat
B) The California Milk Processor Board ran the successful "Got Milk?" ad to boost declining sales
C) VW advertised to active, youthful people with its famed "Drivers Wanted" campaign
D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years
E) KFC has marketed its fast-food products under the slogan, "Finger Lickin' Good"


Answer: A

Which of the following ads depict a transformational appeal?

Which of the following ads depict a transformational appeal?

A) Thompson Water Seal can withstand intense rain, snow, and heat
B) DIRECTV offers better HD options than cable or other satellite operators
C) NBA phenomenon LeBron James pitching Nike, Sprite, and McDonald's
D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years
E) Excedrin stops the toughest headache pain


Answer: D

A(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or image.

A(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or image.

A) logical
B) transformational
C) reasonable
D) informational
E) rational


Answer: B

A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits.

A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits.

A) aesthetic
B) informational
C) bandwagon
D) emotional
E) transformational


Answer: B

Creative strategies refer to _______.

Creative strategies refer to _______.

A) the way marketers translate their messages into a specific communication
B) the amount of creative content in a communications message
C) the degree of innovation involved in the marketing of a product
D) the novelty of a marketing communication
E) the type of medium used to deliver a marketing communication


Answer: A

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car?

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car?

A) problem removal
B) sensory gratification
C) normal depletion
D) intellectual stimulation
E) problem avoidance


Answer: B

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is emphasized by an advertisement for dish-washing gloves?

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is emphasized by an advertisement for dish-washing gloves?

A) social approval
B) intellectual stimulation
C) problem removal
D) normal depletion
E) sensory gratification


Answer: C

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need?

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need?

A) problem removal
B) social approval
C) normal depletion
D) problem avoidance
E) incomplete satisfaction


Answer: B

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need?

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need?

A) normal depletion
B) sensory gratification
C) social approval
D) intellectual stimulation
E) value enhancement


Answer: A

When Apple introduced the iPod in October, 2001, it was the first-of-its-kind product that offered sizable storage capacity for songs and a portable device that was not seen before in the market. Which of the following is most likely to have been the marketing communications objective for the iPod at the time of its introduction?

When Apple introduced the iPod in October, 2001, it was the first-of-its-kind product that offered sizable storage capacity for songs and a portable device that was not seen before in the market. Which of the following is most likely to have been the marketing communications objective for the iPod at the time of its introduction?

A) developing brand awareness
B) building customer traffic
C) enhancing purchase actions
D) establishing product category
E) enhancing firm image


Answer: D

Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars?

Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars?

A) enhancing brand awareness
B) developing brand attitude
C) increasing brand purchase intention
D) encouraging repeat purchases
E) establishing category need


Answer: E

Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________.

Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________.

A) brand knowledge
B) purchase patterns
C) demographic characteristics
D) income levels
E) psychographic characteristics


Answer: A

Which is the first step to be performed by a marketer in developing effective marketing communications?

Which is the first step to be performed by a marketer in developing effective marketing communications?

A) identifying a target audience
B) determining the objectives
C) establishing the budget
D) deciding on the media mix
E) selecting the communication channels


Answer: A

Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications?

Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications?

A) attention-interest-desire-action
B) awareness-interest-evaluation-trial-adoption
C) awareness-knowledge-liking-preference-conviction-purchase
D) exposure-reception-cognitive response-attitude-intention-behavior
E) knowledge-persuasion-decision-implementation-confirmation


Answer: C

According to the hierarchy-of-effects model, which of the following corresponds to the affective stage that a buyer passes through?

According to the hierarchy-of-effects model, which of the following corresponds to the affective stage that a buyer passes through?

A) attention
B) exposure
C) reception
D) adoption
E) conviction


Answer: E

According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through?

According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through?

A) awareness
B) knowledge
C) purchase
D) preference
E) conviction


Answer: C

Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through?

Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through?

A) interest
B) evaluation
C) trial
D) awareness
E) adoption


Answer: D

When planning communications for a detergent brand, which of the following sequences of buyer responses should the marketer choose on which to base the communications model?

When planning communications for a detergent brand, which of the following sequences of buyer responses should the marketer choose on which to base the communications model?

A) feel-do-learn
B) do-feel-learn
C) feel-learn-do
D) learn-do-feel
E) learn-feel-do


Answer: D

All response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence?

All response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence?

A) clothes
B) dish-washers
C) real estate
D) personal computer
E) air tickets


Answer: C

LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH's products?

LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH's products?

A) learn-do-feel
B) feel-learn-do
C) do-feel-learn
D) feel-do-learn
E) do-learn-feel


Answer: C

Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models?

Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models?

A) cognitive stage-affective stage-behavioral stage
B) affective stage-cognitive stage-behavioral stage
C) behavioral stage-affective stage-cognitive stage
D) cognitive stage-behavioral stage-affective stage
E) affective stage-behavioral stage-cognitive stage


Answer: A

Which of the following represents one of the major tools for effective communication in the macromodel of the communications process?

Which of the following represents one of the major tools for effective communication in the macromodel of the communications process?

A) feedback
B) noise
C) receiver
D) message
E) sender


Answer: D

Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication?

Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication?

A) negative feedback
B) noise
C) attenuation
D) phase lag
E) selective distortion


Answer: B

Along which of the following parameters should marketers evaluate communication options when building brand equity?

Along which of the following parameters should marketers evaluate communication options when building brand equity?

A) popularity
B) innovativeness
C) technological sophistication
D) efficiency
E) novelty


Answer: D

The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services.

The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services.

A) marketing budget
B) communications audit
C) market research program
D) publicity campaign
E) product launch


Answer: B

Which of the following is an example of a personal selling communication platform?

Which of the following is an example of a personal selling communication platform?

A) sales presentations
B) company blogs
C) telemarketing
D) TV shopping
E) press kits


Answer: A

Which of the following is an example of a word-of-mouth marketing communication platform?

Which of the following is an example of a word-of-mouth marketing communication platform?

A) chat rooms
B) billboards
C) factory tours
D) incentive programs
E) trade shows


Answer: A

Which of the following is an example of an interactive marketing communication platform?

Which of the following is an example of an interactive marketing communication platform?

A) product demonstrations
B) factory tours
C) company museums
D) TV shopping
E) community relations


Answer: D

Which of the following is an example of a public relations and publicity communication platform?

Which of the following is an example of a public relations and publicity communication platform?

A) lobbying
B) company museums
C) street activities
D) company blogs
E) incentive programs


Answer: A

Which of the following is an example of an events and experiences platform?

Which of the following is an example of an events and experiences platform?

A) fairs and trade shows
B) continuity programs
C) factory tours
D) sales presentations
E) community relations


Answer: C

Which of the following is an example of an advertising platform?

Which of the following is an example of an advertising platform?

A) posters and leaflets
B) company magazines
C) fairs and trade shows
D) sales presentations
E) continuity programs


Answer: A

Which of the following elements of the marketing communications mix involves face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders?

Which of the following elements of the marketing communications mix involves face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders?

A) advertising
B) sales promotion
C) word-of-mouth marketing
D) public relations
E) personal selling


Answer: E

_____ is an element of the marketing communications mix that involves people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.

_____ is an element of the marketing communications mix that involves people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.

A) Personal selling
B) Sales promotion
C) Word-of-mouth marketing
D) Public relations
E) Advertising


Answer: C

_____ is an element of the marketing communications mix that involves online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services.

_____ is an element of the marketing communications mix that involves online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services.

A) Personal selling
B) Direct marketing
C) Sales promotion
D) Interactive marketing
E) Public relations


Answer: D

Which of the following elements of the marketing communication mix involves use of mail, telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from specific customers and prospects?

Which of the following elements of the marketing communication mix involves use of mail, telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from specific customers and prospects?

A) advertising
B) personal selling
C) direct marketing
D) public relations
E) sales promotion


Answer: C

Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications?

Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications?

A) direct marketing
B) public relations and publicity
C) personal selling
D) advertising
E) sales promotion


Answer: B

______ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers.

______ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers.

A) Publicity campaigns
B) Trade promotions
C) Advertisements
D) Public relations
E) Events and experiences


Answer: E

Which of the following is an example of a business and sales force promotion?

Which of the following is an example of a business and sales force promotion?

A) advertising allowance
B) free samples
C) contests for sales reps
D) display allowance
E) discount coupons


Answer: C

Which of the following is an example of a trade promotion?

Which of the following is an example of a trade promotion?

A) free samples
B) discount coupons
C) display allowances
D) contests for sales reps
E) premiums


Answer: C

Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service?

Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service?

A) advertising
B) direct marketing
C) public relations
D) personal selling
E) sales promotion


Answer: E

Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media?

Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media?

A) advertising
B) personal selling
C) sales promotion
D) direct marketing
E) public relations


Answer: A

_____ refers to the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell.

_____ refers to the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell.

A) Human resource development
B) Marketing communications
C) Financial management
D) Operations management
E) Planning


Answer: B

When Johnson Controls reached beyond its climate control equipment and components business to manage integrated facilities by offering products and services that optimize energy use, it was said to be providing ________.

When Johnson Controls reached beyond its climate control equipment and components business to manage integrated facilities by offering products and services that optimize energy use, it was said to be providing ________.

A) facilitating services
B) a primary service package
C) value-augmenting services
D) service contracts
E) service warranties


Answer: C

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________.

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________.

A) payment equity
B) value-augmenting services
C) differential pricing
D) facilitating services
E) a primary service package


Answer: D

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.

The product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________.

A) service warranty cost
B) out-of-pocket cost
C) life-cycle cost
D) facilitating services cost
E) value-augmentation cost


Answer: C

Regular maintenance and repair costs are known as ________.

Regular maintenance and repair costs are known as ________.

A) service contract costs
B) out-of-pocket costs
C) fixed costs
D) facilitating services costs
E) value-augmentation costs


Answer: B

A ________ refers to any place at which a company seeks to manage a relationship with a customer, whether through people, technology, or some combination of the two.

A ________ refers to any place at which a company seeks to manage a relationship with a customer, whether through people, technology, or some combination of the two.

A) customer-service interface
B) product-customer interface
C) tangible user interface
D) attentive user interface
E) crossing-based interface


Answer: A

When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the ________.

When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the ________.

A) private equity
B) brand equity
C) payment equity
D) customer-service equity
E) product-service equity


Answer: C

According to the dynamic process model, two different types of expectations have opposite effects on perceptions of service quality. One of these is that ________.

According to the dynamic process model, two different types of expectations have opposite effects on perceptions of service quality. One of these is that ________.

A) increasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
B) increasing customer expectations of what the firm will deliver decrease the perceptions of overall service quality
C) decreasing customer expectations of what the firm should deliver decrease the perceptions of overall service quality
D) decreasing customer expectations of what the firm will deliver improve the perceptions of overall service quality
E) increasing customer expectations of what the firm should deliver improve the perceptions of overall service quality


Answer: A

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered.

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered. 

A) immunity
B) tolerance
C) reliability
D) assurance
E) flexibility


Answer: B

Gloria goes to the same bagel shop every morning because the workers there remember her name and know her order. They always make her feel welcome. The employees of this bagel shop excel at which of the following determinants of service quality?

Gloria goes to the same bagel shop every morning because the workers there remember her name and know her order. They always make her feel welcome. The employees of this bagel shop excel at which of the following determinants of service quality? 

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles


Answer: D

Leo's manager has asked him and his teammates to demonstrate caring towards customers. They are instructed to learn the customers' names, and use the customers' names while interacting with them. Repeat customers should get special attention, and the team members should remember their preferences and habits. The manager is asking the team to be ________.

Leo's manager has asked him and his teammates to demonstrate caring towards customers. They are instructed to learn the customers' names, and use the customers' names while interacting with them. Repeat customers should get special attention, and the team members should remember their preferences and habits. The manager is asking the team to be ________.

A) assuring
B) candid
C) empathetic
D) reliable
E) responsive


Answer: C

The ________ determinant of service quality refers to the knowledge and courtesy of employees and their ability to convey trust and confidence in the service they provide.

The ________ determinant of service quality refers to the knowledge and courtesy of employees and their ability to convey trust and confidence in the service they provide.

A) conscientious
B) assurance
C) empathy
D) reliability
E) responsiveness


Answer: B

Josh gets his bike serviced at Dean's Garage even though there's another garage much closer to home. He prefers Dean's because the work is usually done quickly and the staff try to solve the issues with the bike as soon as possible. Dean's Garage excels at which of the following five determinants of service quality?

Josh gets his bike serviced at Dean's Garage even though there's another garage much closer to home. He prefers Dean's because the work is usually done quickly and the staff try to solve the issues with the bike as soon as possible. Dean's Garage excels at which of the following five determinants of service quality? 

A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles


Answer: B

The customer service representatives at G.K.'s customer service center must know as much about the products as possible so that they can help the customers solve their difficulties without sounding hesitant or unsure of themselves. Which of the following determinants of service quality are they being asked to demonstrate?

The customer service representatives at G.K.'s customer service center must know as much about the products as possible so that they can help the customers solve their difficulties without sounding hesitant or unsure of themselves. Which of the following determinants of service quality are they being asked to demonstrate?

A) responsiveness
B) assurance
C) empathy
D) reliability
E) tangibility


Answer: B

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately.

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately.

A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles


Answer: D

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of gap is apparent here?

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception


Answer: A

Ellen came across an ad for a new restaurant which promised authentic French cuisine. When she ate there, however, she was disappointed to find that the food was mediocre and not very authentic. Which of the following gaps of service performance does this demonstrate?

Ellen came across an ad for a new restaurant which promised authentic French cuisine. When she ate there, however, she was disappointed to find that the food was mediocre and not very authentic. Which of the following gaps of service performance does this demonstrate? 

A) gap between service-quality specifications and service delivery
B) gap between perceived service and expected service
C) gap between service delivery and external communications
D) gap between consumer expectation and management perception
E) gap between management perception and service-quality specification


Answer: C

Which of the following is an example of a gap between service delivery and external communications?

Which of the following is an example of a gap between service delivery and external communications?

A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well.
B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.
C) Customers at LUX appreciate the personalized services the salespeople offer but do not like the store design.
D) Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service.
E) When sales dropped, Styx modernized its stores in order to retain customers but didn't realize that the product quality was the main problem.


Answer: B

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here?

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception


Answer: C

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. A recent customer survey by the company revealed that customers appreciate it when employees take the time to answer their questions fully and listen to their grievances. What kind of service gap is apparent here?

The customer service representatives at a call center have been asked to handle each call in not more than five minutes. A recent customer survey by the company revealed that customers appreciate it when employees take the time to answer their questions fully and listen to their grievances. What kind of service gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception


Answer: D

Which of the following is an example of a gap between management perception and the service-quality specifications?

Which of the following is an example of a gap between management perception and the service-quality specifications?

A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting.
B) A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong.
C) The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters.
D) A service center manager has asked his subordinates to provide fast service but has not specified a time for the service to be performed.
E) Customer service representatives are asked to give ample time to each customer but must serve a minimum of 50 customers a day.


Answer: D

MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best possible menu thinking that food would be a priority, but the staff was disappointed because the activities were very poorly planned. What kind of gap is apparent here?

MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best possible menu thinking that food would be a priority, but the staff was disappointed because the activities were very poorly planned. What kind of gap is apparent here?

A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception


Answer: E

Dean recently had a BRZ broadband connection installed. However, the connection was bad and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior?

Dean recently had a BRZ broadband connection installed. However, the connection was bad and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior? 

A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures
E) inconvenience


Answer: C

Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. This is an example of which of the following factors leading to customer switching behavior?

Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. This is an example of which of the following factors leading to customer switching behavior? 

A) service encounter failure
B) core service failure
C) response to service failure
D) involuntary switching
E) competition


Answer: B

Although Brenda previously used the U.S. Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx Kinkos location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior?

Although Brenda previously used the U.S. Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx Kinkos location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior? 

A) inconvenience
B) pricing
C) response to service failure
D) ethical problems
E) involuntary switching


Answer: A

Belling Hotels provides complimentary breakfast buffets to all its guests. This is an example of a ________.

Belling Hotels provides complimentary breakfast buffets to all its guests. This is an example of a ________.

A) primary service package
B) service interface
C) service support
D) service frequency
E) secondary service feature


Answer: E

Customers who view a service as homogeneous ________.

Customers who view a service as homogeneous ________.

A) only patronize a preferred service provider
B) judge services on the basis of the providers
C) care less about the provider than about the price
D) pick a service provider based on functional attributes
E) opt for the service with the highest price, irrespective of quality


Answer: C

The ________ rates the various elements of the service bundle and identifies required actions.

The ________ rates the various elements of the service bundle and identifies required actions.

A) company performance analysis
B) voice of customer measurement
C) customer factor measurement
D) importance-performance analysis
E) customer importance analysis


Answer: D