Applied Marketing, 1st Canadian Edition , Rochelle Grayson, Daniel Padgett, Andrew Loos Test Bank by Ace Test Banks

Applied Marketing, 1st Canadian Edition By Rochelle Grayson, Daniel Padgett, Andrew Loos

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Applied Marketing, 1ce (Grayson) Chapter 1 What Is Marketing? 1) Which of the following terms or phrases would be included in a basic description of marketing? A) Sales orientation B) Common sense C) Ongoing process D) Focus on advertising Answer: C Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 2) The breadth of marketing decisions is referred to as what? A) The 4 Ps of marketing B) The marketing plan C) The marketing strategy D) The creative concept Answer: A Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 3) Which skill set is required to be a good marketer? A) Experience in professional sales B) A high degree of creativity C) Understanding algebra and calculus D) Basic math skills Answer: D Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

4) All of these are common misconceptions about what marketing is EXCEPT A) managing exchanges with customers. B) making people buy things they don't need. C) an art, and you either have the gift for it or you don't. D) it does not involve numbers. Answer: A Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 5) Which BEST describes "wants"? A) Strong desires for something B) Unfulfilled needs C) Unsupplied demands D) Untapped markets Answer: A Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 6) In addition to sales and advertising, marketing also includes which of the following? A) Product design B) Social media C) Community relations D) Customer relationships Answer: A Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 7) A critical skill that marketers must know in order to make good marketing decisions is A) marketing math. B) demographic analysis. C) customer awareness. D) interpersonal skills. Answer: A Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 2

8) Which of the following is a key idea for understanding marketing? A) It involves multiple parties who have something to exchange. B) It involves sales and advertising capable of reaching customers. C) It involves communications between companies and consumers. D) It involves satisfying customers' needs and desires. Answer: A Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 9) The scope of marketing decisions needs to include which of the following? A) Product, price, place, and promotion B) Product, placement, perception, and persuasion C) Product, price, and position D) Product, cost, communication, and convenience Answer: A Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 10) Which of the following statements is true? A) Marketers try to influence wants, but customers ultimately decide if something is worth buying or not. B) Marketers are often able to make people buy something against their will. C) Marketing is primarily based on the science of human behaviour. D) Marketing is more of an art than a science. Answer: A Diff: 1 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 11) Offering too many options can lead to which problem for some companies? A) It's difficult to keep track of inventory and re-order as certain items are sold out. B) They can't specialize, leaving them vulnerable to competition. C) Suppliers to the company can get confused and send incorrect shipments. D) Your target market, by definition, prefers limited options. Answer: B Diff: 2 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Communication Standard 2: Bloom's || Application 3

12) What is the ultimate goal of marketing? A) Selling the most product or service B) Creating product demand C) Influencing customers' needs D) Earning the greatest profit for the company Answer: D Diff: 2 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 13) Connor attends a university in Manitoba and winter is approaching. To keep warm, he must purchase a coat. While he prefers a Canada Goose coat, he cannot afford to pay the $1,000 price. Which of the following statements accurately describes Connor's situation? A) He needs a coat and wants a Canada Goose. There is no demand, since he cannot afford the coat he wants. B) He wants a coat and needs a Canada Goose. There is no demand, since he cannot afford the coat he needs. C) He needs a coat. He both wants and demands a Canada Goose. D) He wants a coat. He both needs and demands a Canada Goose. Answer: A Diff: 2 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 14) Spiro has a new job at an office with no viable public transportation options. After some research, he decides to purchase a motorcycle. A salesperson at a local dealership makes the very expensive Ducati Monster sound so appealing, Spiro eventually purchases one. Which of the following statements most accurately describes this situation? A) Spiro needed transportation, wanted a motorcycle, but had no demand for a Ducati. B) Spiro demanded transportation, wanted a Ducati, but had no need for a motorcycle. C) Spiro needed transportation. His demand for a Ducati was controlled by the salesperson at the dealership. D) Spiro needed transportation and wanted a motorcycle. The salesperson influenced his demand for a Ducati. Answer: D Diff: 2 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

15) At last year's farmer's market, Kelsi sold every one of her jars of homemade salsa. Her customers raved over her four different flavour combinations and were thrilled by her affordable prices. This year, Kelsi stocked 32 different flavour combinations and kept prices the same. Her sales slowed considerably. What is the most likely reason? A) Kelsi's customers were turned off by her low prices. B) Kelsi's customers experienced brain fatigue when confronting so many choices. C) Kelsi did not provide adequate customer service. D) Kelsi did not advertise her salsas effectively. Answer: B Diff: 2 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 16) Which of the following is a misconception about marketing? A) Marketing is equivalent to sales and advertising. B) Marketing focuses on satisfying the customer. C) Marketing involves numbers. D) Marketing focuses on relationships. Answer: A Diff: 2 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 17) When a customer has a strong desire for something and the ability to make the purchase, it is called a A) demand. B) need. C) want. D) purchase. Answer: A Diff: 2 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

18) Properly designed and executed, marketing can do which of the following? A) Influence people to do things they don't want to do. B) Make it more appealing to buy certain things over others. C) Create a need for something. D) Make people buy things they really can't afford. Answer: B Diff: 3 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 19) What is the BEST synthesis of needs and wants? A) They affect one's quality of life. B) They reflect one's status in society. C) They are unaffected by pandemics or natural disasters. D) They can be affected by quality marketing efforts. Answer: A Diff: 3 Learning Objective: 1.1 Describe some common misconceptions about marketing. Section Reference: What Marketing Is Not Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 20) Managing a marketing effort involves all of these functions EXCEPT A) control. B) planning. C) implementation. D) advertising. Answer: D Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 21) Which of the following is NOT one of the 4 Ps of marketing? A) Price B) Perception C) Promotion D) Place Answer: B Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 6

22) Simple trade and bartering involves what? A) Commodity exchanges B) The exchange of a product or service for money C) A trade agreement between two countries D) Swapping one product or service for another Answer: D Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 23) The focus of your marketing plan should be on what? A) Coordination of activities B) Assessment of effectiveness C) Target market D) Timeline and budget Answer: C Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 24) Which of the following terms is defined as managing exchanges with customers? A) Social orientation B) Marketing C) Sales D) Value proposition Answer: B Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 25) Companies need to create a marketing plan that includes which of the following? A) Goals, timelines, and budget B) Plans, pricing, and promotion C) Target market, advertising, and social media D) Social, financial, and managerial goals Answer: A Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 7

26) A marketing plan is BEST described as A) a written statement for managing exchanges with customers. B) a blueprint for how advertising and promotions will sell a product. C) coordinated actions between product managers, marketing managers, and executives. D) a strategy outlining the steps taken to persuade consumers. Answer: A Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 27) A primary responsibility of the marketing manager is to A) coordinate and monitor activities in the marketing plan. B) oversee the progress of all sales representatives. C) manage the brand portfolio of products. D) develop and maintain key client relationships. Answer: A Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 28) The basic goal of marketing managers in managing exchanges involves all of these elements EXCEPT A) promotional planning. B) value. C) price. D) cost. Answer: A Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

29) The specific group of customers that a company decides to focus on and create an exchange with is called a A) target market. B) focus group. C) niche market. D) mass market. Answer: A Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 30) Marketing is BEST described as what? A) Sales B) Advertising C) Managing exchanges D) Creating needs and wants Answer: C Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 31) High estimates suggest that what percentage of new products fail? A) 80% B) 50% C) 35% D) 10% Answer: A Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

32) Finding a group of customers who want what you have to offer and providing it better than others do so that you maximize perceived value for that group defines A) target market differentiation. B) your value proposition. C) total market value maximization. D) sales maximization. Answer: A Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 33) Demand is a combination of which two things? A) Desire for something and its availability B) Desire for something and the ability to purchase it C) Availability of something and the ability to pay for it D) Desire for something and a well-executed marketing plan Answer: B Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 34) Which of the following BEST defines a need? A) A strong desire for something B) The perceived benefit from an exchange C) A lack of means of subsistence D) Something deemed important missing that is available at a reasonable price Answer: C Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 35) In simple terms, what is a market? A) The combination of competitors and customers B) A physical location where products or services are offered for sale C) A place where a similar group of products are bartered D) A place where a company and its customer come together Answer: D Diff: 1 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 10

36) Creative advertising can do what for your products or services? A) Guarantee marketing success B) Often save a bad product C) Help create buzz D) Influence all consumers Answer: C Diff: 2 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 37) Which of the following statements most clearly defines marketing? A) Managing mutually-beneficial exchanges with customers B) Maximizing profits through the creation of needs C) The creation and development of new markets D) Identifying individuals who want an organization's products or services Answer: A Diff: 2 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 38) An indicator of good marketing includes which of the following? A) Repeating relevant risks B) Punishing failure C) Taking calculated risks D) Avoiding experimentation that simply influences perceptions of value Answer: C Diff: 2 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Communication Standard 2: Bloom's || Application

39) Which of the following statements most accurately describes marketing? A) Marketing is a glamorous, yet simple activity involving the exchange of goods and services. B) Marketing involves one-way communication with valued customers who exchange money for goods and services. C) Marketing creates products and services, communicates with the target customers, and exchanges said offerings in an appropriate market. D) Marketing is a complex, for-profit enterprise undertaken primarily by skilled professionals. Answer: C Diff: 2 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 40) Which of the following BEST describes a marketing plan? A) It focuses on primary, secondary, and tertiary customer groups. B) It details the planning, implementation, and control of customer exchanges. C) It is created by a marketing manager and monitored by sales representatives. D) It is a byproduct of marketing's production orientation. Answer: B Diff: 2 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 41) Haruko is studying art at a local university and working as a veterinarian's assistant. To make extra money, she started creating one-of-a-kind sketches of her friends' pets. Now Haruko sells her services at the veterinarian's office and in an online shop. Which of the following BEST describes Haruko's target market? A) Friends B) Pet lovers C) Online shoppers D) Veterinarian clients Answer: B Diff: 2 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

42) Insurance companies use which market orientation in order to sell insurance policies to customers? A) Sales orientation B) Marketing orientation C) Societal orientation D) Corporate orientation Answer: A Diff: 2 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 43) Elsa started an Etsy store selling custom sugar cookies at a price commensurate with other vendors. While she envisioned making cookies for birthday or holidays, her first order was for a bachelorette party. Elsa obliged, but was uncomfortable with the X-rated fare. The cookies were so well received that Elsa quickly became the go-to baker for bachelorette party cookies. What mistake did Elsa make when beginning her business? A) She did not adequately anticipate her customer's needs, wants, and demands. B) She did not create a basic marketing plan denoting her target market. C) She did not consider the perceived value of her cookies versus those of other vendors. D) She used a production orientation instead of a sales orientation for her business. Answer: B Diff: 3 Learning Objective: 1.2 Provide an accurate definition of marketing. Section Reference: Marketing Defined Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 44) The combination of a strong desire for something and the ability to purchase it defines what? A) Demand B) Supply C) Price equilibrium D) Cost Answer: A Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

45) Which of the following terms refers to a person who has an idea that something might work based on either theory or watching something in practice and then tests the idea? A) Marketing researcher B) Marketing manager C) Naïve scientist D) Value propositioner Answer: C Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 46) Which of the following terms applies to the different combinations of product or service benefits that appeal to some customer groups and not others? A) Value propositions B) Needs C) Wants D) Marketing orientations Answer: A Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 47) A marketing manager's ability to create a satisfactory feeling for the customer following the purchase of a product is called A) perceived value. B) bargain value. C) perceptual value. D) value proposition. Answer: A Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

48) The foundation for an effective marketing plan includes A) market research. B) market analysis. C) market demographics. D) target market. Answer: A Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 49) The goal of a marketing manager is to A) maximize what a customer will pay and make them feel they got more value for what they paid. B) minimize the effort a customer exerts while making a purchase decision. C) optimize the customer's experience by creating an exchange that is memorable. D) motivate customers to move from wanting a product to the level of needing to make a purchase. Answer: A Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 50) Which is identified as the foundation for the marketing plan? A) Target market segmentation B) Market research C) Value proposition development D) Market plan development Answer: B Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

51) Someone who has an idea that something might work based on theory or watching it in action and testing the idea is thought of as A) market planner. B) skilled researcher. C) naïve scientist. D) consumer behaviour theorist. Answer: C Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 52) The focus of your marketing plan should be on what? A) Timeline and budget B) Assessment of effectiveness C) Coordination of activities D) Target market Answer: D Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 53) The key to value creation is A) perception. B) cost. C) benefits. D) willingness to pay. Answer: A Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

54) Because different groups of customers want different things, marketers offer different combinations of benefits called what? A) Benefits statements B) Value propositions C) Perceptual benefits D) Target market perceptions Answer: B Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 55) Different value propositions maximize value for different A) genders. B) target customers. C) age groups. D) income groups. Answer: B Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 56) Measuring the outcomes of specific activities against goals defines what? A) Market planning B) Concept screening C) Market research D) Target market identification Answer: C Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 57) The process of testing, then measuring, then revising—sometimes repeatedly—is known as A) market research. B) target market segmentation. C) value proposition development. D) marketing plan development. Answer: A Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 17

58) Understanding your target market so well that you build a relationship with them over time defines what? A) a social orientation B) a sales orientation C) customer relationship marketing D) retention of sometimes undesirable customers Answer: C Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 59) The profit earned by a company is calculated by which method? A) Total number of units sold multiplied by the price-per-unit B) Total revenues minus costs of materials and labour C) Total number of units sold multiplied by the contribution-per-unit D) Amount remaining after all expenses are subtracted from total revenues Answer: D Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 60) Why is research critical to marketing? A) To determine what's likely to be the next hot trend in marketing B) To determine basic consumer needs C) To determine if marketing activities are effective D) To pinpoint whether an economy is production or service oriented Answer: C Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

61) What is the minimum condition for buying something? A) Supply B) Value C) Demand D) Affordability Answer: C Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 62) The Philosophy of Marketing encompasses which overriding principle? A) Managing exchanges that maximize the benefits for both the company and the customers B) Maximizing profits through the careful coordination of advertising, pricing and distribution C) Identifying your best customers through a highly-developed CRM system D) Focusing attention on new customer acquisition Answer: A Diff: 1 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 63) Which of the following statements accurately describes the philosophy of marketing? A) Marketing managers must ensure customers think they got exactly what they paid for. B) A good marketing plan is the foundation for good marketing research. C) Successful marketers understand that customer perceptions cannot be influenced. D) Conflict goals underlie each exchange. Answer: D Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

64) Peer-to-peer payment platforms like Venmo attempt to eliminate all the perceived negatives of traditional shared payments by allowing users to split bills and transfer funds between their Venmo accounts via a smartphone app. There are no fees for basic services, and personal notes can accompany each transaction. For P2P users, these benefits are referred to as A) needs. B) value propositions. C) demands. D) social responsibility. Answer: B Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 65) Gloria sells tacos for $1.29 each. Her customers tell her they are happy to patronize her business since they are used to paying $1.99 at competing food stands. Gloria is now considering raising prices to $1.49 per taco. In this scenario, what is the customers' perceived value in monetary terms? A) $1.29 B) $1.49 C) $0.20 D) $0.70 Answer: A Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 66) Which of the following statements accurately describes marketing research? A) Sales numbers are the most valuable measures of marketing performance. B) A good marketing plan is the foundation for good marketing research. C) Marketing researchers should act like naïve scientists. D) Good marketing means repeating the same risks. Answer: C Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

67) The key to creating perceived value for the customer is A) highlighting benefits relative to the costs. B) justifying the cost the customer will pay. C) reinforcing the purchase decision through relationship building. D) focusing on the attributes the product delivers to the consumer. Answer: A Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 68) Subaru's ability to highlight specific benefits that appeal to their target market helps create a strong A) value proposition. B) perceived value. C) persuasive message. D) unique marketing brand. Answer: A Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 69) A key to ensuring that a marketing idea will be successful is for the idea to A) be tested. B) be easy to implement. C) receive corporate support. D) receive proper funding. Answer: A Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 70) The combination of benefits forming a value proposition will do what? A) Maximize sales B) Appeal to some groups of customers but not all C) Maximize value for all potential customers D) Appeal to the maximum amount of customers Answer: B Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 21

71) To be successful, marketers have to understand what associated with a particular exchange for a group of customers? A) Benefits B) Influencers C) Target market D) Perceived value Answer: D Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Application 72) Testing an idea to see if it is effective requires A) a specific goal against which to measure the outcome. B) a method of separating out the effect of luck on the test. C) a series of tests with constantly changing measures. D) employing an outside, non-biased research firm. Answer: A Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 73) Measuring marketing outcomes to see if your marketing works typically uses what as a measure of performance? A) Profits B) Perceptions C) Sales D) Whatever is most relevant to the marketing goal Answer: C Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Application

74) All of the following relate to managing exchanges with customers EXCEPT A) development of a significant social media presence. B) creating offerings. C) communicating with customers. D) delivering offerings to customers. Answer: A Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 75) Which of the following is true? A) The relationship between sales and profits is not always clear. B) Having more options available will typically result in higher sales levels. C) Providing better service leads to higher profits. D) Having a lower price is always better. Answer: A Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 76) Which of the following factors is important in managing perceived value? A) Different customers have different perceptions. B) Perception sometimes doesn't reflect reality. C) Value is a nebulous concept to most people. D) Competitive pricing is a major determinant of value. Answer: A Diff: 2 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 77) Which statement is valid in managing exchanges between a company and its customers? A) The company wants to maximize customer benefits. B) Customers want to pay the least amount possible. C) Customers are the primary drivers of the purchase decisions. D) The two parties have conflicting goals. Answer: D Diff: 3 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 23

78) Hector's Tacos is a small food stand on campus. Hector recently has lost a fair number of customers to another food stand that sells similar, but cheaper tacos. Hector is concerned because he was about to launch a line of unique, fresh tacos--ones his clientele has been asking for—that would cost a bit more. Of the following, what is the best advice for Hector? A) Hector should act like a naïve scientist. He should test his ideas for new tacos and study the outcomes. With this information, Hector can create a marketing plan and set his prices. B) Hector should define his target market and then provide better tacos than his competitors. His target market will perceive value, thus paying a higher price for Hector's tacos and returning for more. C) Hector should remember that customers will be driven by their wants, needs, and demand for the product. If they want fresh ingredients, they will pay any price to get them. D) Hector should lower his prices on his current taco offerings. Then he should add fresh taco selections at his current prices. He might lose money at first, but his customers will consider these moves value propositions, which will maximize satisfaction in the long run. Answer: B Diff: 3 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 79) You have been assigned the task of developing a marketing plan for a new product your firm will soon be offering. All of these tasks would be relevant to you EXCEPT A) reaching a decision on how to price the new product. B) deciding what the best way is to persuade your customers to buy the new product. C) deciding if the new product is appropriate for your company to market. D) deciding on where you will sell the product. Answer: C Diff: 3 Learning Objective: 1.3 Discuss, with examples, the philosophy of marketing. Section Reference: Philosophy of Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 80) Which marketing orientation was prevalent when the Canadian economy was largely agricultural? A) Simple trade and bartering B) Production orientation C) Sales orientation D) Market orientation Answer: A Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

81) Which marketing orientation is focused on customer relationship marketing? A) Product B) Sales C) Market D) Social Answer: C Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 82) The key to effective market orientation is to A) satisfy the customer. B) deliver quality service. C) maintain competitive pricing. D) design creative products. Answer: A Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 83) Customer relationship marketing enables companies to A) build relationships with the target market to increase repeat sales. B) strengthen relationships with customers they're trying to recapture. C) cultivate relationships with the community where the company is located. D) gather data that provides insights into customer purchase behaviours. Answer: A Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 84) The effective use of social media to interact with customers and to help expand the presence of a company's brand is a part of which marketing orientation? A) Social B) Sales C) Market D) Digital Answer: A Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 25

85) The Canadian economy is currently dominated by which category? A) Services B) Agriculture C) Manufacturing D) Digital marketing Answer: A Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 86) Producing the most efficient and cost-effective version of a product describes what? A) Production orientation B) Sales orientation C) Market orientation D) Social orientation Answer: A Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 87) When companies primarily had a sales orientation, which of the following is true? A) It was indicative of companies not having similar products. B) Sales techniques and persuasion significantly lagged today's innovations. C) It was a reflection of lower levels of competition. D) Single transactions were favoured over repeat purchases. Answer: D Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 88) In a period of companies having a marketing orientation, which of the following was true? A) Customers became more sophisticated buyers. B) The percentage of customers in the middle class decreased. C) Manufacturing grew as the dominant sector. D) Levels of competition decreased. Answer: A Diff: 1 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 26

89) What BEST differentiates the production orientation from the sales orientation? A) The type of advertising used to promote products B) The number of competitive products available C) The availability of desirable product D) The level of social responsibility Answer: B Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 90) What is the BEST similarity between the sales orientation and the market orientation? A) The expected number of sales from a single customer B) The demand for products and services C) The customer-centered focus D) The desirability of any and all customers Answer: C Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 91) What is the BEST similarity between the market orientation and the social orientation? A) The emphasis on social responsibility B) The short-term and focused sales efforts C) The resurgence of the manufacturing sector D) The importance of the service sector of the economy Answer: D Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

92) New Belgium Brewing is a U.S.-based company that sells craft beer. It strives to be a "force for good" by focusing on sustainability. New Belgium produces a portion of its own electricity via solar panels and contributes to organizations focused on ecology. New Belgium operates under which marketing orientation? A) Production B) Sales C) Market D) Social Answer: D Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 93) The difference between a sales orientation and a production orientation is that the sales orientation A) focuses on persuading customers. B) uses analytics to reach customers. C) focuses on efficient product marketing. D) focuses on revenue production and not cost reduction. Answer: A Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 94) A company that is committed to reducing its carbon footprint by becoming more eco-friendly is engaging in which market orientation? A) Social B) Production C) Environmental D) Marketing Answer: A Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

95) The information Delta Airlines' Frequent Flyer Program gathers from their customer relationship management enables them to A) strengthen the relationship between the airline and the customer. B) enhance the customer experience of the passengers. C) develop new sales promotions. D) create an effective social media campaign. Answer: A Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 96) Warby Parker's goal of giving away one pair of glasses for each pair of glasses sold is an example of which marketing orientation? A) Social B) Production C) Sales D) All of the above Answer: A Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 97) A company's inability to keep disinfectants stocked in stores during a pandemic is an example of a weakness in which marketing orientation? A) Production B) Sales C) Market D) Management Answer: A Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

98) As the Canadian economy became more specialized in information technology, what has occurred? A) The opportunities for social interaction between consumers and businesses have increased. B) Levels of social interaction have reached their maximum level and begun to decline. C) Opportunities for future interaction have been minimized. D) Social media activities originating with businesses have begun to decline. Answer: A Diff: 2 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 99) In looking to fill her free time, Gianna took all her handwritten recipes and her cookbooks tabbed with sticky notes and keyed everything into her computer. She created a custom cookbook for herself with all of her favourite recipes. When her friends raved and asked for her services, Gianna knew she could create a small business for herself. She would especially like to target Millennials who tend to shy away from traditional cookbooks. Of the following, what is the BEST advice you can give her? A) Gianna should be mindful of her customers' demands and adjust her prices to allow everyone the ability to own a custom cookbook. B) Gianna should consider creating a social media profile for her business. She also should consider donating a portion of her proceeds to a charity that fights hunger. C) Gianna should act like a naïve scientist and test her idea before creating a marketing plan for her business. D) Gianna should consider selling copies of her own custom cookbook before creating a company that creates custom cookbooks for Millennials. Answer: B Diff: 3 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 100) Which of the following is a good example of a company having a social orientation? A) Tom's Shoes ships a free pair of shoes to a child in a third world country for each pair sold in Canada. B) A bakery uses non-GMO ingredients in its products. C) A large company practices truth-in-advertising in all its TV commercials. D) A non-profit organization raises money for a cause in which you believe. Answer: A Diff: 3 Learning Objective: 1.4 Outline the evolution of marketing thought and practice. Section Reference: How Marketing Has Changed over Time Standard 1: AACSB || Ethics Standard 2: Bloom's || Evaluation

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Applied Marketing, 1ce (Grayson) Chapter 2 Organizing and Planning for Marketing Strategy 1) ________ is the managerial process of creating and maintaining plans of action to facilitate profitable exchanges with customers. A) Project management B) Supply chain management C) Marketing strategy D) Strategy formulation Answer: C Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 2) A company must consider what present and future customers might want in an exchange by developing A) a brand name. B) a marketing strategy. C) a competitive advantage. D) a mission statement. Answer: D Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 3) Once a marketer has differentiated a product, a powerful way to communicate the value of the product to the customer is A) the brand. B) the mission statement. C) the marketing mix. D) social and digital media. Answer: A Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

4) During which one of the steps in developing a marketing strategy would the marketer collect feedback to institute modifications to the strategy? A) Strategy B) Plan C) Implement D) Evaluate Answer: D Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 5) A ________ is a subgroup within an organization that decides its own strategy and has its own customers. A) department B) strategic business unit C) functional area D) customer centre Answer: B Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 6) The increasing popularity of private label brands, like Costco's Kirkland, can be most closely related to which element of a brand's value? A) Cost B) Benefits C) Distribution D) Product differentiation Answer: A Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

7) Executing a successful marketing strategy involves which three major steps? A) Plan, implement, execute B) Develop, execute, report C) Plan, implement, evaluate D) Execute, evaluate, adjust Answer: C Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 8) Which is a sub-group within an organization that designs its own strategy and has its own customers? A) Division unit B) Brand C) Marketing unit D) Strategic business unit Answer: D Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 9) Planning involves all of the following EXCEPT A) tactics. B) goals. C) actions. D) budget. Answer: A Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

10) Evaluation provides feedback for which purpose? A) Modifying plans B) Modifying implementation C) Modifying both plans AND implementation D) Modifying neither plans NOR implementation Answer: C Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 11) Which term means a firm's business focus that provides direction for the company? A) Strategic plan B) Mission statement C) Marketing mix D) Organizational structure Answer: B Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 12) Defining your mission too narrowly and missing environmental trends defines what? A) marketing myopia B) mission statement unclarity C) unfocused strategy D) poor planning Answer: A Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

13) To identify their product in a sea of others, marketers develop A) a brand name. B) a catchy slogan. C) an advertising campaign. D) a marketing plan. Answer: A Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 14) A collection of visual, auditory, and other elements help customers to identify a specific product A) logo. B) jingle. C) unique selling proposition. D) brand. Answer: D Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 15) All of the following are key elements involved in executing a successful marketing strategy EXCEPT A) setting specific goals and determining a plan of action. B) development of a detailed marketing plan. C) implementation using specific marketing tasks and tactics. D) evaluation of plan activities. Answer: B Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

16) What does a goal-driven action plan take into account? A) Competitors want to steal your customers. B) Suppliers want you to pay more. C) Customers want to pay less. D) All of these Answer: D Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 17) A company's marketing department makes decisions relating to which of the following? A) Structuring functional support departments B) Deciding among the company's options for orientation C) Drafting the company's mission statement D) Facilitating exchanges with customers Answer: D Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 18) Companies differentiate by focusing on A) pricing. B) mission statement. C) unique selling proposition. D) advertising. Answer: C Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

19) Companies can differentiate based on which type of differences? A) Real B) Perceived C) Competitive D) Both real and perceived Answer: D Diff: 1 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 20) Marketing strategy is the managerial process of creating plans of action that facilitate what? A) Facilitating exchanges that have value to customers and the company B) Effectively differentiating your product from competitors C) Reacting to a SWOT analysis D) Responding effectively to competitive threats Answer: A Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 21) Why is the area of marketing critical to an organization's success? A) It is the "face" of the company to outsiders. B) It deals directly with customers. C) It accounts for the largest percentage of a company's expenses. D) It is responsible for advertising and promotion. Answer: B Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis

22) Which is an example of an approach to keeping customers happy? A) Loyalty program B) Strong presence on social media C) Lower prices D) Staying open longer hours Answer: A Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 23) Marketing strategy is dependent on what? A) Staying current on trends in advertising B) Overall company objectives and mission C) Responding to competitive threats D) Developing an effective marketing mix Answer: B Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 24) What is almost always true of successful companies? A) They make customers their mission. B) They focus on what they can produce. C) They have sets of functional units. D) They maximize sales. Answer: A Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Application

25) Marketing should guide the firm's mission by making sure the organization is focused offering value to A) its best customers. B) its existing and potential future customers. C) its current customers. D) its next generation of customers. Answer: B Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 26) Generally speaking, "lower price is seldom a sustainable competitive advantage." Which company is an exception to this? A) Hudson Bay Company B) Amazon C) Walmart D) Costco Answer: C Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 27) A company's unique selling proposition is often expressed through A) its brand. B) its logo. C) its slogan. D) its packaging. Answer: C Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Communication Standard 2: Bloom's || Application

28) A true competitive advantage is one that is valuable to customers and A) can't be easily copied by competitors. B) is easy to communicate. C) can be tied to a slogan. D) is consistent with your mission statement. Answer: A Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 29) Having a competitive advantage is not enough. A company also has to be able to do what? A) Sustain it beyond the near term. B) Effectively communicate it to the target market. C) Appeal to enough customers to be profitable. D) All of the above Answer: D Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 30) Customers prefer one brand over another based on its value, which, in turn, is based on different combinations of A) needs and wants. B) benefits and perceptions. C) benefits and costs. D) perceptions and costs. Answer: C Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

31) Can only one company have a true competitive advantage in a category? A) No. There are customers in the market who want different things. B) Yes. A 2.1 competitive advantage can influence all potential customers. C) Yes. As long as the competitive advantage can be sustained. D) No. There is no such thing as a long-term competitive advantage. Answer: A Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 32) What is the primary reason firms must account for potential market forces in the future? A) They might lose their focus on customers. B) They can overlook potential competitors. C) Market forces constantly evolve. D) Because otherwise, they risk becoming obsolete. Answer: D Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 33) Paul has developed a small import business he is running from his dorm room, and after the first day in a marketing course, he starts figuring out how to use the tools he discovered by jumping ahead in the book. What should Paul be doing first? A) Using social media to reach new customers B) Setting specific marketing goals C) Expanding his business D) Dropping the course since he already got what he needs Answer: B Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

34) If a firm sets goals and creates a focused approach that is too broad, it can waste time and effort. On the other hand, if the goals and approaches are too narrow, it can lead to A) short-term profitability. B) marketing focus. C) being too successful too soon. D) marketing myopia. Answer: D Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 35) Jennifer observed that a local restaurant was successful because they were willing to deliver breakfast to customers who were unable to leave their homes due to stay-at-home orders that were enacted to prevent the spread of COVID-19. She said, "I'll start a breakfast delivery service and the customers will be just as willing to order from me." What Jennifer doesn't understand is the concept of A) product differentiation. B) mission statement development. C) value exchanges. D) brand name creation. Answer: A Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 36) Which of the following is NOT true when considering competitive advantage? A) A competitive advantage is most profitable when it can be sustained over time. B) A competitive advantage is typically offering lowering prices than competitors. C) A competitive advantage is a valuable long-term approach. D) A competitive advantage is hard for competitors to copy. Answer: B Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

37) Ethan majored in graphic arts in college. As the only graphic designer in a small marketing department, Ethan would most likely be working on which aspect of the company's marketing strategy? A) The marketing plan B) The situation analysis C) The brand D) The marketing mix Answer: C Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 38) Setting lower prices A) leads to market leadership. B) prevents a firm from making a profit. C) reduces the need for marketing in a firm. D) is not a good way to create a competitive advantage. Answer: D Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 39) As a marketing manager, you're tasked with developing and implementing a media plan that has a budget of $10 million to increase awareness of a new product such that 20% of your target market is familiar with the product. In terms of an overall marketing strategy, which component is your responsibility? A) Goal specification B) Implementation C) Evaluation D) Opportunities Answer: B Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

40) Gillette decides to utilize what's commonly referred to as razor/razor blade pricing. They sell the razor at or below cost but have a very high mark-up on their blades which are the only ones that will work in the razor. This exemplifies which step in a marketing strategy? A) Setting specific goals and determining a plan of action B) Implementing the plan using specific marketing tools and tactics C) Evaluation and adjustment of plan activities D) Developing a differentiating marketing mix using pricing as the primary tool Answer: B Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 41) The failure of large hotel chains like Marriott and Hilton to recognize the disruption that would result from the entrée of Airbnb into their market is a good example of A) marketing myopia. B) failure to differentiate. C) poor marketing strategy. D) losing control of the marketing process. Answer: A Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 42) Based on what you have learned from the chapter's example of Blackberry and Nokia, which of the following companies represents a prime example of marketing myopia? A) IBM in personal computers B) Blockbuster Video C) Marriott Hotels D) Apple Answer: B Diff: 2 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

43) Differentiation requires you to ask how you'll be different from your competitors, as well as which other question? A) How will this differentiation be perceived by your target market? B) How will this differentiation be sustained? C) How will this difference help offer more value to your target market? D) How will this difference provide protection from changing market forces? Answer: C Diff: 3 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 44) While differentiation is important, it's also important that a company offer value to whom? A) Important customer groups outside their primary target market B) A target market large enough to allow them to meet their goals C) Their main competitor's target market D) Their potential future customers Answer: B Diff: 3 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 45) In a SWOT analysis, which two considerations are internal to the organization? A) Strengths and opportunities B) Weaknesses and threats C) Strengths and weaknesses D) Opportunities and threats Answer: C Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

46) The combination of product, price, place, and promotion defines A) a marketing plan. B) a marketing mix. C) marketing activities. D) marketing objectives. Answer: B Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 47) Which is typically the first consideration in a firm's marketing mix? A) Product B) Price C) Place D) Promotion Answer: A Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 48) Non-numeric objectives are A) often not valid. B) more difficult to measure. C) not specific. D) None of these Answer: B Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 49) Typically, which element of the marketing mix is most important? A) Product B) Price C) Promotion D) A combination of all elements Answer: D Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 16

50) Communicating value to your target market is covered through what? A) Product B) Price C) Product and price D) Promotion Answer: D Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 51) ________ represents value in a very objective way for the customer and the minimum value for the company to create an exchange. A) The marketing mix combination B) Price C) Exchange rate D) Cost Answer: B Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 52) Which of the following is NOT one of the 4 Ps in a traditional marketing mix? A) Profit B) Product C) Place D) Price Answer: A Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 53) Which of the following is TRUE about marketers and social and digital media? A) The only way to reach customers today is through social and digital media. B) Promotion in the marketing mix is now dominated by social and digital media. C) If you want to reach older people, you should not use social and digital media. D) Traditional advertising remains effective in addition to social and digital media. Answer: D Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 17

54) In a marketing plan, marketing activities should relate to specific marketing objectives. Each activity should be attached to which of the following? Select all that apply. A) Budget B) Timeline C) Place D) Product E) Scope Answer: A, B Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 55) In a SWOT analysis, which two areas are external to the organization? A) Strengths and Weaknesses B) Opportunities and Threats C) Strengths and Threats D) Opportunities and Weaknesses Answer: B Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 56) When evaluating a firm's internal situation, you would consider which of the following? A) Company resources B) Potential new markets C) Market changes D) New technology options Answer: A Diff: 1 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

57) A valid marketing objective meets which of the following criteria? A) It must be specific. B) It must be measurable. C) It must be time-bound. D) All of these Answer: D Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Application 58) Marketing activities should be included in the marketing plan under which condition? A) Only if the activities relate to specific marketing objectives. B) Under all conditions; they're an integral part of the overall plan. C) Only if they are specific, realistic, measurable, and time-bound. D) Only if the plan focuses on tactics. Answer: A Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Communication Standard 2: Bloom's || Application 59) Steven has recently been hired as a marketing assistant, and his supervisor tells him to go online and research trends in the marketplace that will affect a new product being launched. Steven is likely working on A) a mission statement. B) a situation analysis. C) a unique selling proposition. D) an implementation plan. Answer: B Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

60) Generally speaking, which of the following is NOT a characteristic of a good marketing objective? A) It is neither too broad nor too narrow. B) It details something possible for the firm to achieve. C) It is clearly tied to specific groups of customers. D) It focuses primarily on profit. Answer: D Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 61) Amanda has been developing a marketing plan for her catering service and she has created specific marketing objectives. She knows she has to address specific customers' needs, create a budget, and define specific actions needed to accomplish the goals. From a marketing perspective, what element has she missed? A) What to pay herself B) Legal considerations C) Profit objectives D) A timeline Answer: D Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 62) Not all firms develop and use marketing plans. When done properly, they are a major investment in effort and resources. Which of the following is the BEST reason to create a marketing plan? A) A plan gives evidence to the rest of the firm that the marketing area is organized and on task. B) A plan is beneficial to share with financial analysts and potential funders. C) A plan is an organized effort to ensure the health and well-being of the firm. D) A plan is an essential document for a marketing audit. Answer: C Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

63) Julie graduated with a major in marketing and went into the family retail business. She convinced her family to use marketing to achieve a higher level of success. They have gone through an orderly process of setting goals and objectives and creating a marketing plan. It's time to consider implementation, and the firm should first consider A) product, as it is what the rest will be built on. B) place, as the firm is a retail business. C) price, as it will be the focus of future profitability. D) promotion, as nothing can happen until people know about the firm. Answer: A Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 64) Growing interest in organic products, especially health and beauty products, is an example of what for Lush Cosmetics? A) Strengths B) Weaknesses C) Opportunities D) Threats Answer: C Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 65) Toyota CEO Katsuaki Watanabe announced in the early 2000s that he wanted Toyota to become the largest automaker in the world. This is an example of what? A) A strategy B) A goal C) An objective D) Hubris Answer: B Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

66) Each of the four elements of a company's marketing mix is designed to create or communicate what to the consumer? A) consistency B) brand identity C) value D) differentiation Answer: C Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 67) Which element of a firm's marketing mix is most closely linked to a consumer's perception (often versus reality) of quality? A) Product B) Place C) Price D) Promotion Answer: C Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 68) A product can encompass a physical product, a service, or an idea. Which of the following slogans is an example of marketing an idea? A) Gillette, The Best a Man Can Get B) Bounty is the quicker picker upper C) You Can't Buy Love, but You Can Rescue a Dog D) GEICO, Fifteen Minutes Could Save You 15% on Car Insurance Answer: C Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

69) David's store has been selling men's business-casual shirts. It's a small firm that has depended on walk-in traffic and building a reputation. He thinks there might be an opening in the market with the new focus on working from home, and he is afraid that if he does not act quickly, competitors will meet this demand. He knows he'll need to change his marketing approach, including getting the product to the customer, building an online presence, and examining his pricing approach. If he does a situation analysis, he would likely look at the work-at-home trend as a(n) A) strength. B) weakness. C) opportunity. D) threat. Answer: C Diff: 3 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 70) Nicole got an internship working with a small chain of retail stores. She's marketing major and has been asked to look at how the firm has been getting its merchandise, getting the merchandise to the customer and handling customer return. She complained to her friends that she felt her marketing course approaches weren't being used. "This is supply chain management, not marketing." Before she graduates, she will need to expand her understanding of marketing to see that getting the right product to the right customer at the right time is a primary function of A) implementation. B) objectives. C) situation analysis. D) place. Answer: D Diff: 3 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

71) In comparing Home Depot to Lowe's, the former opens earlier in the morning, has fewer checkout lanes for customers, has narrower aisles and poorer lighting, and carries a larger assortment of lumber and other building supplies. What is the primary differentiator for Home Depot? A) Offering more value to a different primary target market B) Lower price due to offering fewer frills C) Larger product assortment of building supplies D) Having more of a warehouse look and customer experience Answer: C Diff: 3 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 72) GEICO, unlike major competitors State Farm and Allstate, does not rely on an agent network. They utilize savings from this to both offer lower rates and invest more heavily in advertising spending. Their unique selling proposition is reflected in their familiar slogan "15 Minutes Could Save You 15% on Car Insurance." Which element of their marketing mix is least impacted by their business model? A) Price B) Place C) Product D) Promotion Answer: C Diff: 3 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 73) What provides a snapshot of key marketing and performance measures? A) Marketing dashboard B) SWOT analysis C) Marketing audit D) Marketing safeguard Answer: A Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

74) What investigates all or part of the marketing mix to check for problems? A) Marketing dashboard B) SWOT analysis C) Marketing audit D) Marketing safeguard Answer: C Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 75) Which term indicates actually putting a marketing plan into effect? A) Establishing safeguards B) Evaluation and control C) Monitoring goals and objectives D) Implementation Answer: D Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 76) Anything that offers value and can be exchanged for something else is a(n) A) product. B) market. C) commodity. D) exchange. Answer: A Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

77) Rewards and incentives should be tied directly to A) implementation metrics. B) safeguards. C) control structures. D) performance expectations. Answer: D Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 78) Key measures on a marketing dashboard are tracked so that a manager can monitor progress in A) increments. B) real time. C) social media. D) mobile devices. Answer: B Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 79) The ________ is commonly used for tracking current marketing performance. A) marketing dashboard B) mission statement C) marketing plan D) marketing audit Answer: A Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

80) A succession plan, rewards and incentive planning, and establishing regular reporting formats are all part of A) implementation. B) the marketing mix. C) a competitive advantage. D) marketing tactics. Answer: A Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 81) Measurements and controls would be meaningless without A) explicit goals. B) a detailed marketing plan. C) a marketing audit. D) affordable product differentiation. Answer: A Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 82) To uncover the root causes of a marketing problem, a marketing manager will use a A) marketing dashboard. B) marketing implantation plan. C) marketing compliance report. D) marketing audit. Answer: D Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

83) A marketing audit is a comprehensive investigation to uncover A) a summary of the current state of performance of key marketing indicators. B) consumer perceptions of the brand. C) an organization's internal strengths and weaknesses. D) the root cause of a marketing problem. Answer: D Diff: 1 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 84) Which is a type of safeguard used by companies to help deal with implementation issues? A) Set up a marketing dashboard. B) Set expectation levels, where appropriate, for each activity. C) Establish goals and measure final results. D) All of these Answer: B Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 85) The component of a marketing plan that monitors performance to detect problems is the A) SWOT analysis. B) marketing audit. C) control structure. D) marketing dashboard. Answer: C Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Application

86) A good marketing plan should be A) open to modification when necessary. B) constantly modified. C) prepared by the Chief Marketing Officer. D) shared with all departments. Answer: A Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Communication Standard 2: Bloom's || Application 87) In the implementation phase, marketers will ensure action plans are assigned to specific people, set expectations for each of the action items, and develop communication and control protocols. Marketers focus on these aspects as a way to safeguard their plans. This is important because A) marketing depends on people, and these safeguards are all people-oriented. B) not everything will go accordingly, even in the most carefully executed plans. C) these are requirements in the marketing audit planning. D) these are the basis of diagnostic actions. Answer: B Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 88) Trevor was assigned the responsibility of creating an online tool to monitor marketing performance in a simple, user-friendly, and comprehensive way. He has been asked to create a marketing A) implementation plan. B) systems plan. C) dashboard. D) budgetary timeline. Answer: C Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

89) Sergio heard from the accounting department that the marketing team was right on track in terms of profitability. This success frees him up to start working on plans for next year and a new product launch. Good marketing practice suggests Sergio should be A) setting these plans as early as possible. B) thanking accounting for its help to ensure future support. C) digging into detailed measures to see if problems are lurking. D) creating new incentives for the marketing staff who have contributed to the success. Answer: C Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 90) "Pepsi has apologized for a controversial advertisement that borrowed imagery from the Black Lives Matter movement, after a day of intense criticism from people who said it trivialized the widespread protests against the killings of black people by the police." The above news posting from April 5, 2017, relates to Pepsi pulling an ad featuring reality TV star Kendall Jenner, designed to demonstrate Pepsi's commitment to social issues. How would this particular issue have surfaced? A) Through the marketing dashboard B) Through a marketing audit C) Through communication and reporting protocols D) Through implementation protocols Answer: C Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 91) Development of a flowchart detailing sequential and simultaneous tasks for a marketing plan and assigning responsibilities would be appropriate at which stage? A) Finalizing objectives B) Developing tools and tactics C) Evaluation and control D) Implementation Answer: D Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

92) Burger King introduced a new Fish Filet Sandwich, an addition to their menu. They developed a marketing plan designed to introduce the new product and generate awareness and trial. A key objective was the number of sandwiches to be sold during the introductory period. Shortly after BK's introduction, McDonald's began offering a buy-one-get-one promotion for their Filet-o-Fish Sandwich, coupled with heavy advertising spending. Burger King fell well short of its objective. At which stage of organizing and planning for marketing strategy would BK address this? A) Plan evaluation and control B) Plan implementation C) Establishing a competitive advantage D) Developing their marketing mix Answer: A Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 93) With the outbreak of the COVID-19 pandemic, which implementation safeguard suddenly became critically important? A) Assignment of action items having a succession plan B) Setting expectations C) Development and enforcement of reporting protocols D) Development of social distancing protocols Answer: A Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 94) As a marketing manager, you've launched a new social media campaign designed to drive traffic to your website. Which element on your marketing dashboard would you pay the most attention to during the early days of the campaign's launch? A) Hourly visitors B) Sales C) Tweets related to the campaign D) Conversion rates Answer: A Diff: 2 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 31

95) Corporate-level strategy results in a mission statement that guides marketing strategy in which way? A) By avoiding marketing myopia and having a future vision B) By clearly identifying a target market C) By tying higher level company goals to product-level marketing strategy D) By responding to customers' needs and wants Answer: C Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 96) Why is monitoring marketing performance relative to planning goals critical? A) Because plans and implementation may need to be modified when circumstances change. B) Because appropriate safeguards may need to be included in the plan to deal with implementation issues. C) Because communication and reporting protocols need to be enforced. D) Because rewards and incentives may need to be tied directly to performance expectations. Answer: A Diff: 3 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 97) This chapter outlines three key areas involved in organizing and planning for marketing strategy. For most organizations, which of the three was most immediately and severely impacted by the COVID-19 outbreak? A) Marketing strategy and differentiation B) Marketing planning C) Marketing implementation and control D) All of the above Answer: C Diff: 3 Learning Objective: 2.3 Outline the key issues for implementing and controlling the marketing process. Section Reference: Marketing Implementation and Control Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis

98) In conducting a SWOT analysis, which represents a potential threat to an organization? A) Perception in the market B) New technology options C) Quality of employees D) Changes to laws and regulations Answer: D Diff: 3 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 99) How would you present your argument that marketing has the most important role in an organization? Answer: Responses may vary, but may include something along the lines of: Marketing is the closest to the customer of all the departments in an organization. It is tasked with understanding what customers want and keeping track of changing wants and expectations. Diff: 3 Learning Objective: 2.1 Describe marketing strategy and marketing's role in creating a competitive advantage. Section Reference: Marketing Strategy and Differentiation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 100) When developing marketing objectives, what must you pay attention to in ensuring they're valid? Answer: Responses may vary, but include something along the lines of: They must be specific to the task at hand and be measurable to allow you to see if they're being met. They should have a specific time frame for accomplishment. Finally, they must relate directly to your target market. Diff: 2 Learning Objective: 2.2 Define the elements of marketing planning. Section Reference: Marketing Planning Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

Applied Marketing, 1ce (Grayson) Chapter 3 The Marketing Environment 1) The micro-environment is sometimes referred to as the internal environment. Answer: TRUE Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 2) The micro-environment is also referred to as the external environment. Answer: FALSE Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Comprehension 3) A company has an immediate environment. Answer: TRUE Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 4) The marketer should only be concerned about the parts of the micro- and macro-environments that are under his or her control. Answer: FALSE Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

5) Although the components of the macro-environment seem to be removed from day-to-day decision making, major threats can emerge quickly, demanding immediate attention. Answer: TRUE Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 6) Marketers need to pay careful attention to the market dynamics in their suppliers' marketplaces as threats to the marketer's firm can arise in those markets. Answer: TRUE Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 7) Consumer groups are not an essential part of the firm's micro-environment if they are not made up of customers. Answer: FALSE Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 8) Marketers are aware of all five SPENT areas of the macro-environment but focus only on those two or three that affect their products and services the most. Answer: FALSE Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 9) In the social/cultural area of the macro-environment, demographics can be obtained by many firms. One way this information is used is to predict consumer behaviour. Answer: FALSE Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

10) When looking at the macro-environment, "income" and "wealth" are synonymous. Answer: FALSE Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 11) What is the combination of controllable and uncontrollable forces that affect a marketing decision referred to? A) marketing mix B) marketing environment C) micro-environment D) macro-environment Answer: B Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 12) Which term BEST describes anything in the environment that directly affects or is directly affected by the marketing manager's decisions? A) Micro-environment B) Macro-environment C) Mature Economy D) Market Answer: A Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge

13) Which term BEST describes the combinations of controllable and uncontrollable forces that affect a marketing decision? A) Marketing Environment B) Marketing intermediaries C) Market Share D) Micro-Environment Answer: A Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge 14) The part of the marketing environment that is closely linked to the day-to-day business decisions is known as A) the business environment. B) the central environment. C) the micro-environment. D) the macro-environment. Answer: C Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 15) Which of the following statements is true as it relates to a firm's marketing environment? A) Both the micro- and macro-environments are important to marketing managers. B) Managers typically have more control over their micro-environment. C) Environmental forces may be of different levels of importance to different firms. D) All statements are true. Answer: D Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

16) The internal-related components of a SWOT analysis relate to which micro-environmental force? A) Company B) Customers C) Competitors D) Publics Answer: A Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 17) Which part of the marketing environment focuses on day-to-day business decisions? A) Micro-environment B) Macro-environment C) Mixed-environment D) Metro-environment Answer: A Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 18) People sometimes refer to the macro-environment with which of the following terms? A) Internal environment B) External environment C) Competition D) Global forces Answer: B Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

19) What forces in the marketing environment help marketing managers in their decision making? A) Controllable and uncontrollable forces B) Financial and accounting forces C) Personnel and corporate forces D) Social and environmental forces Answer: A Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 20) Which of the following has an indirect impact on marketing decisions? A) The micro-environment B) The macro-environment C) The social environment D) The financial environment Answer: B Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 21) The most controllable influence on an exchange between consumers is A) the suppliers. B) the competition. C) the company. D) the retailers. Answer: C Diff: 1 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

22) What types of decisions must marketing managers make when considering the micro-environment? A) What the companies produce and what the competition does better B) What ideas are trending and what will the future be C) What can be done through technology to enhance a better environment D) What the customer wants and what the competition can offer Answer: D Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 23) Which element would be categorized in the micro-environment for managers at Chapman's? A) Ingredients B) Population trends C) Cultural beliefs D) Legal regulations Answer: A Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 24) Which element would be categorized in the macro-environment for managers at Chapman's? A) Cultural beliefs B) Ingredients C) Prices D) Flavours Answer: A Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application

25) Controllable and uncontrollable forces that affect marketing decision make up the A) marketing environment. B) micro-environment. C) market. D) macro-environment. Answer: A Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 26) Despite the large number of elements in the marketing environment, the marketer should focus on those that affect A) facilitating an exchange. B) beating the competition. C) introducing a successful product. D) meeting laws and regulations. Answer: A Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Application 27) Given the nature of technology today, technology markets are considered to be A) disrupted markets. B) volatile markets. C) revolving markets. D) evolving markets. Answer: D Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Technology Standard 2: Bloom's || Application

28) What is the key distinction between the micro marketing environment from the macro-environment? A) The ability to affect a company's marketing decisions for a specific product B) The level of impact on a company's profit margin C) The amount of control a company or manager has over the environmental elements D) The type of impact the environmental elements have on customers Answer: C Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 29) What is the BEST similarity between the micro- and macro-environments? A) The amount of time needed to monitor the various environmental elements B) The type of impact the environmental elements have on company decision making C) The level of predictability in market trends D) The ability to influence decisions that facilitate an exchange Answer: D Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 30) You are a marketing manager for a company that manufactures infant car seats. Which of the following involves the macro-environment? A) Advertising issues about media formats and frequency B) Government regulations regarding installation and safety features C) Viability of contracts with plastic and fabric suppliers D) Shelf space issues with retail stores Answer: B Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

31) Airbnb can be viewed as what type of competitor to hotels? A) Unexpected B) Secondary C) Evolving D) Primary Answer: A Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 32) Burger King's decision to expand their menu to include the plant-based Impossible Burger is an example of which class of environmental force impact a different class? A) Micro-environment force > micro-environment force B) Micro-environment force > macro-environment force C) Macro-environment force > macro-environment force D) Macro-environment force > micro-environment force Answer: D Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Application

33) As consumers increase online purchases with home delivery, last-mile delivery expenses have become increasingly important to marketers. Over half of the total cost of shipping a product from a warehouse (such as an Amazon distribution centre) to a consumer's home occurs during the last phase (within a city to a customer's home) of the delivery cycle. Marketers are looking at the gig economy as one of a range of possible solutions. The idea is to pay individual sub-contractors (think of Uber drivers) to accomplish deliveries. This synopsis relates primarily to which environmental force? A) Customers B) Intermediaries C) Social/cultural D) Economic Answer: B Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 34) One consequence of the COVID-19 pandemic is that firms have been reluctant to have employees travel to attend business meetings. Since communications among employees remain critical to success, alternative meeting formats have flourished. Many believe that, even after the pandemic ends, these formats will remain popular due to lower cost and greater flexibility. Industries such as airlines, hotels, and conference centres suddenly view a service like Zoom as what? A) Primary competitor B) Secondary competitor C) Unexpected competitor D) Direct competitor Answer: C Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

35) Consumer habits relative to viewing content have changed from an established market to an evolving market. This is primarily a function of which environmental force? A) Economic — Increased segmentation among viewing options has resulted in smaller audiences and, hence, less money available for program production. B) Social/cultural — Younger audiences (Millennials and Generation Z) spend considerably less time watching television programs. C) Technology — Streaming services have shifted viewing patterns, Internet availability has opened more delivery options, non-linear viewing has affected advertising participation. D) Competition — Barriers to entry have come down and led to the entrée of a wide range of new content deliverers. Answer: C Diff: 3 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 36) Which term BEST describes a collection of buyers and sellers interested in making similar or related exchanges? A) Market B) Developing Economy C) Mature Economy D) Publics Answer: A Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge 37) Which term BEST describes a market having relatively stable competitors and customers? A) Established Markets B) Evolving Markets C) Micro-environment D) Macro-environment Answer: A Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge

38) Which term BEST describes a market that is changing rapidly and does not have stable competitors or customers? A) Evolving Markets B) Established Markets C) Micro-environment D) Macro-environment Answer: A Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge 39) Which term BEST describes the most important micro-environment element, the opposite partner in an exchange? A) Customer B) Company C) Competitor D) Suppliers Answer: A Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge 40) Which of the following is NOT one of the three types of competitors? A) Primary competitors B) Secondary competitors C) Insignificant competitors D) Unexpected competitors Answer: C Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

41) Which of the following terms refers to companies that perform functions that help connect the company to the customer in some way? A) Marketing intermediaries B) Secondary competitors C) Publics D) Suppliers Answer: A Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 42) Which of the following is the most directly controllable of all the potential influences on an exchange? A) Customers B) Markets C) Company D) Competitors Answer: C Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 43) Which of the following represents the various types of markets? A) Traditional and urban B) Niche and specialty C) Established and evolving D) E-commerce and digital Answer: C Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

44) The most important elements in the internal environment are the A) end customers and resellers. B) loyal and repeat customers. C) e-commerce and traditional customers. D) high-end and bargain customers. Answer: A Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 45) The primary purpose of marketing intermediaries is to A) help build relationships with the community. B) help share the cost of doing business. C) help connect the company to the customer. D) help strengthen relationships along employee lines. Answer: C Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 46) What term BEST describes the relationship of Walmart to consumer packaged goods giant Procter & Gamble? A) Supplier B) Intermediary C) Reseller D) Retailer Answer: B Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

47) A national movie theatre chain like Silver City Theatres would consider which of the following organizations an indirect competitor? A) Cineplex Theatres B) ESPN C) Netflix D) Google Answer: C Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 48) The outbreak of COVID-19 in Canada caused the closure of many wholesalers serving the restaurant industry. As more consumers stayed home and stopped visiting restaurants, demand at grocery stores for certain products increased and manufacturers scrambled to maintain adequate inventory in stores. Which micro-environmental force is reflected in this instance? A) Company B) Customers C) Intermediaries D) Publics Answer: C Diff: 1 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 49) A customer who purchases a product to use personally, such as a grocery shopper who buys Chapman's to take home for dessert, is a(n) A) end consumer. B) company. C) competitor. D) supplier. Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application

50) If Chapman's sales for 2016 were $200,000 and the entire ice cream market had sales of $2,000,000 for 2016, what is Chapman's market share? A) 10% B) 9% C) 1% D) 10 Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 51) Which is a secondary competitor for Chapman's Ice Cream? A) Frozen yogurt B) Cold Stone Creamery C) Baskin-Robbins D) Ben and Jerry's ice cream Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 52) Who is NOT an intermediary for Chapman's ice cream? A) A dairy supplier B) A marketing team that designs product labels C) A certified public accounting (CPA) firm that provides audit services D) A trucking company that transports the product Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 53) Which is an intermediary for Chapman's Ice Cream? A) A trucking company that transports the product B) A dairy supplier C) An ice cream carton supplier D) A chocolate supplier Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 17

54) Who is included in the publics of the ice cream market? A) Investors in a specific ice cream brand B) Cashier at the local grocery store selling ice cream C) Employee at the plant where the ice cream is made D) Truck driver transporting the ice cream to the stores to be sold Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 55) Who is NOT included in the publics of the ice cream market? A) Cashier at the local grocery store selling ice cream B) Investors in a specific ice cream brand C) Consumers of the product D) Government employees Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 56) Which represents an intermediary relationship? A) A private equity firm has invested in a logistics company. B) A logistics company purchases truck tires from Goodyear. C) A bank provides a loan to an individual purchasing a car. D) A small bank uses an outsourced human resources company for its HR needs. Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application

57) Now that some grocery stores offer a space for dining in, such as Whole Foods, they've partially transitioned from ________ to ________ of restaurants. A) primary competitors; secondary competitors B) suppliers; primary competitors C) suppliers; unexpected competitors D) secondary competitors; primary competitors Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 58) Which is an example of an intermediary for Nike? A) A maker of rubber that can be used in shoes B) A producer of thread that can be used for laces C) Facebook selling add space to Nike on their website D) A lobbyist group that helps Nike get tax breaks for opening up a store in a specific part of town Answer: C Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 59) What is the MOST important element of the micro-environment? A) Company B) Publics C) Suppliers D) Customers Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

60) Apple's relationship with Samsung in the cell phone space is an example of A) dual suppliers. B) joint venture. C) primary competitors. D) unexpected competitors. Answer: C Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 61) As a marketer considers the micro-environment, having strong brands that customers value fits into which component? A) Market B) Intermediaries C) Company D) Competitors Answer: C Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 62) The marketer will often seek growth in the kind of market characterized by rapid change without stable customers or markets known as A) erupting markets. B) dynamic markets. C) chaotic markets. D) evolving markets. Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

63) Market share is calculated by A) dividing the sales of the firm's brand by combined sales of its brand and competitors' similar products. B) dividing the total sales of similar products by total domestic spending. C) dividing the sales of a firm's brand by the next highest sales of competitors' products. D) dividing a consumer's annual purchase of a brand by his or her total spending on similar products. Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 64) As a marketer, you are looking at, among other things, what the firm needs to make its products and bring it to market and those who will buy the product. Which element of the micro-environment is considered most important as the exchange partner with different wants and needs? A) Competitors B) Customers C) Suppliers D) Intermediaries Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 65) The class of customers who buy products but have no intention of using the products for themselves are known as A) hoarders. B) resellers. C) opportunists. D) arbitrageurs. Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

66) You are responsible for marketing movies for a cinema chain. In addition to monitoring what other cinema chains are doing, you need to look at other forms of entertainment that are considered to be A) primary competitors. B) competitive threats. C) unexpected competitors. D) secondary competitors. Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 67) The Chief Marketing Officer (CMO) has looked at a draft of your plan for the launch of a new product. While generally satisfied, she says, "You've shown good strong reasons for new customers to buy our new product, but we can't consider this plan in a vacuum." You need more detailed analysis and planning on which element of the micro-environment to address her specific concerns? A) Competitors B) Customers C) Company D) Intermediaries Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Communication Standard 2: Bloom's || Application 68) Beth owns and operates a garden store focusing on plants native to her region. Though she knows she needs to monitor all kinds of brick-and-mortar and online companies selling plants, she feels most concerned about other garden stores within driving distance. These stores would be considered her A) retail competitors. B) primary competitors. C) secondary competitors. D) unexpected competitors. Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

69) Companies can enhance their marketing goals for strategic advantage and exercise significant control through careful selection of its A) suppliers. B) salesforce. C) competitors. D) publics. Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 70) Which of the following is NOT one of the criteria a firm would use in evaluating suppliers? A) Supplier firm ownership B) Additional benefits C) Sharing goals D) Shared values Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 71) When firms use other firms to perform tasks that could otherwise be done by the company itself, such as providing logistics or marketing research, they are demonstrating the importance of what part of the micro-environment? A) The company B) Intermediaries C) Suppliers D) Competitors Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

72) Josh is a newly hired marketing assistant, and his boss is discussing the micro-environment of his new firm. She notes that the advertising agency is an intermediary. Why would she classify the agency as an intermediary? A) "Intermediary" is the same as "supplier," and she could have used either term. B) Intermediaries help connect the company to the customer. C) The agency provides a service not a product used in the firm. D) The firm has more control over an intermediary than a supplier. Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 73) As technology has given consumers and potential consumers access to information about firms, many firms have felt increasingly vulnerable to misinformation as well as information to facilitate purchases. The micro-environment element that includes groups that have an interest in the firm but who are not directly related are known as A) third parties. B) indirect suppliers. C) publics. D) intermediaries. Answer: C Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 74) Which of the micro-environment components is LEAST under the marketer's control or direct influence? A) Intermediaries B) Suppliers C) Company D) Publics Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

75) What is the BEST similarity between established and emerging markets? A) The rate of change and the predictability of the market are similar. B) The amount of risk inherent in market competition is similar. C) Opportunity levels are extreme. D) Customers demand the product or service. Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 76) Niha goes to her local Sobey's supermarket to purchase Frosted Flakes, her favourite cereal. Niha purchases Raisin Bran instead. Which of the following statements most accurately describes the micro-environment in this scenario? A) Niha is the end customer. Sobey's is the established market. Raisin Bran is a secondary competitor. B) Niha is the end customer. Sobey's is the reseller. Raisin Bran is a primary competitor. C) Niha is a supplier. Sobey's is an intermediary. Frosted Flakes is an established market. Raisin Bran is an emerging market. D) Niha is a public. Sobey's is a reseller. Frosted Flakes and Raisin Bran are unexpected competitors. Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 77) The Truth in Advertising organization has issued several complaints about specific companies erroneously using "Made in Canada " marketing claims. In this regard, the Truth in Advertising organization is considered a(n) A) public. B) intermediary. C) market. D) unexpected competitor. Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

78) You live in Toronto and are considering a trip to Vancouver. You monitor prices on your favourite airline, Air Canada , and on WestJet. In the end you decide to rent a car from Hertz and drive to your Vancouver destination. Which of the following statements most accurately describes the micro-environment in this scenario? A) Air Canada and WestJet are primary competitors. Hertz is a secondary competitor. B) Air Canada and WestJet are primary competitors. Hertz is an unexpected competitor. C) Air Canada is a primary competitor. WestJet and Hertz are secondary competitors. D) Air Canada is a primary competitor. WestJet is a secondary competitor. Hertz is an unexpected competitor. Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 79) Which of the following statements accurately describes the micro-environment? A) Market share is the total sales in a market divided by the sales of one brand. B) Customers significantly impact an exchange because different customers want different things from the exchange. C) Companies are increasingly choosing suppliers with different marketing goals, which creates strategic advantages versus the competition. D) Investors are the most important element because they have an immediate role in the business. Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 80) Ben's Burritos advertises the benefits of clean eating. The company purchases its pork from farmers who follow strict guidelines regarding the feeding and raising of livestock. It even ceased selling pork products when one of the farms was found to be in violation of these guidelines. Which micro-environment element does the farm represent in this scenario? A) Intermediary B) Public C) Supplier D) Established market Answer: C Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

81) Educational institutions, as well as companies, face stiff competition. The University of Western Ontario and McMaster University, who target the same students, would be considered A) educational competition. B) primary competition. C) intense competition. D) secondary competition. Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 82) Which of the following is NOT a type of competition a company needs to be aware of? A) Unexpected competition B) Primary competition C) Secondary competition D) Dominant competition Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 83) TOMS Shoes' decision regarding who they will use as a supplier can have an impact on which of the following? A) Enhancing the company's marketing goal B) Reduction in the cost of operating C) Discounts received because of relationships built D) Special benefits employees receive Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

84) Which of the following would serve as an intermediary who provides marketing support for the company? A) Advertising agencies B) Media agencies C) Production managers D) Marketing managers Answer: A Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 85) Which of the following BEST describes the concept of a market? A) Companies persuading consumers to make certain purchases B) A population of consumers with a desire to buy a particular product C) Consumers willing to engage in commerce with various companies D) Buyers and sellers interested in making similar exchanges Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 86) Jeff Bezos is the largest individual stockholder of Amazon.com. He is also the owner of The Washington Post newspaper. The Washington Post has often been critical of the Trump administration. As a result, many groups that support the Trump administration transfer negative feelings about The Washington Post toward Amazon and share these feelings online and in print. Which micro-environmental force is coming into play here? A) Company B) Customers C) Intermediaries D) Publics Answer: D Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

87) You're the chief marketing officer of Bombardier. One of your primary product lines is light rail systems for municipalities. In assessing the environment, you're keenly aware of the development and diffusion of autonomous (self-driving) vehicles. You would view them as which class of competitor? A) Unexpected competitor B) Secondary competitor C) Primary competitor D) Non-competitor Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 88) Nike ran a series of commercials featuring Colin Kaepernick, whom many consider a divisive figure as a result of his kneeling in protest during the playing of the national anthem. Many outraged customers posted videos of them burning Nike gear and swearing they'd never buy from the company again. The price of Nike's stock dropped; however, soon recovered to previous levels. What was the primary environmental force that came into play relative to their stock price? A) Customers B) Social/cultural C) Publics D) Economic Answer: C Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 89) Which micro-environmental force would have the greatest likelihood of being leveraged by a marketer to yield a competitive advantage? A) Company B) Customers C) Suppliers D) Intermediaries Answer: C Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

90) During a pandemic like COVID-19 when certain categories of products such as tissues, disinfectants, cleaning supplies, and so on are in short supply, what is the most likely impact on long-term brand loyalty? A) Positive — Consumers will be worried about the quality of unknown substitutes and question their efficacy. B) Negative — Consumers will be forced to use alternative brands and recognize that they perform equally well. C) Neutral — When supply chains are no longer disrupted, consumers will return to their preferred brand. D) It's impossible to predict and none of the options above is more likely than another to occur. Answer: B Diff: 2 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 91) Which of the following is MOST correct? A) The automobile industry is an established market in Canada and an evolving market in Japan. B) The automobile industry is an established market in Germany and an evolving market in Cuba. C) The automobile industry is an established market in Canada and an evolving market in Germany. D) The automobile industry is an established market in Germany and an evolving market in Canada. Answer: B Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 92) Cell phones have evolved from a ________ to a ________ for computers. A) supplier; market B) competitor; supplier C) competitor; market D) None of the above Answer: D Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

93) Acting as a(n) ________ is a major way Facebook makes money. A) supplier B) intermediary C) reseller D) None of the above Answer: B Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 94) Market share may be difficult to determine and may not be useful at all if what kind of competitors begin attracting customers? A) Alpha competitors B) Primary competitors C) Secondary competitors D) Unexpected competitors Answer: D Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

95) You are the marketing manager for an upscale banquet and reception hall so popular that events were booked years in advance. A new reception hall has negatively affected your sales. Just as you begin to formulate a strategy to better compete, a nationwide pandemic begins. The premier mandates mask wearing and social distancing. One of your most frequent customers requests that her daughter's wedding reception continue as planned—without regard to government regulations. She threatens to move her reception to your competitor's venue if you do not comply. Which of the following represents the best course of action? A) You know that customers are the most important element of the marketing environment and you want to keep this customer's business going forward. Since you can control your company, but not government regulations, you grant the customer's request. B) You understand that the pandemic has turned the reception business into an evolving market—one with opportunities, but a great amount of risk. You hold firm in the need to follow government regulations. If the customer moves her business to another venue, you view it as an opportunity to create new uses for your venue. C) You know that you cannot control government regulations, so masks and social distancing are non-negotiable. But you can control your company, so you attempt to work out an agreeable situation with this highly valued customer. You want her to view your venue as superior to that of your competition. D) You deny your customer's request because government regulations are out of your control. You focus on what you can control—marketing your venue versus those of your competitors. You even consider potential unexpected competitors like virtual receptions. Answer: C Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

96) You work for a global consumer products firm and oversee a line of laundry detergents. Your best-selling product has come under scrutiny for its new pod design—colourful detergent wrapped in a disposable film—that can look like candy to small children. Ingestion could result in death. Recently, a national television program devoted a 20-minute segment to interviews with concerned parents. You know that your current product packaging is childproof and contains warnings about keeping it out of reach of children. What is the best way to respond to this situation? A) Since your product packaging meets federal safety guidelines and since product sales are high, you ignore the recent outcry. You can only control your product and your company, not how people use it. B) Since you value your customers, you create a series of advertisements extolling the safety features of your current product packaging and reminding customers to keep chemicals stored safely. You can only control your product and your company and influence how people use it. C) Since you value your customers and understand that consumer groups have influence, you instigate corporate discussions about discontinuing detergent pods. You can only control your product and company. D) Since you value your customers, understand that consumer groups have influence, and manage the best-selling detergent, you create new, safer product packaging. You also create a series of advertisements extolling these features and reminding customers to store all chemicals safely. You can only control your product and your company and influence how people use it. Answer: D Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 97) Under which condition is an unexpected competitor most likely to introduce a new business model that disrupts the market of a strong and established firm? A) When the established firm loses focus and no longer delivers a discernable value to its existing customers B) When environmental forces affecting the firm's customers change the primary benefits that are important to them C) When a large segment of the firm's current customers would prefer a different set of benefits but they're not available elsewhere D) When economic factors raise costs to the point where the value equation is no longer positive Answer: C Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis

98) Which term is most applicable to couples living in households as unmarried partners? A) Cohabitation B) End consumers C) Publics D) Resellers Answer: A Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge 99) Which of the following is NOT an example of Canadian Legislation affecting marketing? A) Federal Competition Act B) Canadian Anti-Spam Legislation C) PIPEDA D) Consumer Bill of Rights Answer: D Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 100) Which of the following is NOT one of the areas on which the Competition Act focuses? A) Misleading advertising B) Privacy issues C) Keeping competition fair D) Internet usage by companies Answer: D Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 101) Unless you are marketing necessities like rent, utilities and transportation, which is your major concern as a marketer? A) Gross income B) Net income C) Disposable income D) Discretionary income Answer: D Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 34

102) If you borrow money, you will have to repay more than the amount you initially borrowed due to A) inflation. B) interest. C) time-value of money. D) federal regulations. Answer: B Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 103) Potential customers can be overwhelmed at the amount of information they can get on a product even though it is easier to find the product and buy it if they choose. This is an example of what part of the macro-environment? A) Government concerns about privacy B) Changing household patterns C) The paradox of technology D) The shift in values Answer: C Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 104) Which of the following terms refers to the measurement of the sustained increase in prices for the same item over time? A) Sustainability B) Inflation C) Interest rate D) Wealth Answer: B Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

105) Which of the following is a legislation that protects consumers from the misuse of digital technology A) Federal Competition Act B) PIPEDA C) Canadian Anti-Spam Legislation D) Food and Drug Act Answer: C Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 106) What is the primary difference in the micro-environment versus the macro-environment? A) Micro-environment is impacted by shareholders. B) Macro-environment is influenced by public opinion. C) Micro-environment is not impacted by public opinion. D) Macro-environment is not controlled by the company. Answer: D Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 107) The federal law requiring government buildings to use door levers rather than circular doorknobs was driven by what part of the macro-environment? A) Regulatory and legal B) Social and cultural C) Technological D) Competition Act Answer: A Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

108) One of the most prominent issues associated with the technological environment is A) the capability to integrate and leverage technology. B) the ability to interact with customers more quickly. C) the capacity to manage data and generate critical information. D) the ability to keep a competitive distance from the competition. Answer: A Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 109) The paradox of technology offers both negative and positive benefits to whom? A) Customers and sellers B) End customers and resellers C) Primary and secondary customers D) Loyal and luxury customers Answer: A Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 110) Patek Philippe is a luxury watchmaker who offers some watches that sell for a price of over $100,000. What category of income would be most relevant to them? A) Gross income B) Net income C) Disposable income D) Discretionary income Answer: D Diff: 1 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 111) Which of the following will increase sustainability? A) Using solar power B) Burning coal for power C) NOT having recycling bins D) Using all plastic products Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Diversity Standard 2: Bloom's || Application 37

112) Many employers are trying to market the work/life balance of their work environment to potential employees; what component of the macro-environment are these employers focusing on? A) Political/regulatory/legal B) Technological C) Economic/Financial D) Social/Cultural Answer: D Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 113) Which of the following will decrease sustainability? A) Using solar power B) Burning coal for power C) Using recycling bins D) Using biodegradable products Answer: B Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Diversity Standard 2: Bloom's || Application 114) Within the Canadian culture, the changing nature of the family means marketers must A) adapt the marketing mix to focus on which changing consumer decision-making area. B) reinforce their attention on the population that is aging. C) pay less attention to the growth in Asian and other cultural groups. D) discount the importance of demographics in their analyses. Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

115) Marketers have new challenges and opportunities with new and different holidays, different promotions, and new kinds of buying behaviours as part of what component of the social/culture element in the macro-environment? A) Diversity B) The changing nature of the family unit C) Changing ethical and moral values D) The aging of the generational cohorts Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 116) In recent years, the political, regulatory and legal environment has affected every element of the marketing mix. Which of the following is NOT a consequence of this changing environment? A) Consumers' rights have expanded affecting virtually every area of marketing. B) Compliance has become more expensive. C) The market is more orderly and efficient. D) The marketer must be more attuned to conflicting regulations. Answer: C Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 117) David was given the responsibility of tracking changes in federal regulations on Ice Cream ingredients that would affect the marketing efforts in his firm. Which of these agencies should be one he'd need to track for marketing implications? A) The Competition Act B) The Food and Drug Act C) The Centers for Disease Control D) Ministry of Health Answer: B Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

118) If you are frustrated at making only enough money to pay your basic living expenses with little or no money left over to pay for fun, you are frustrated at your lack of A) fixed income. B) net income. C) disposable income. D) discretionary income. Answer: D Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 119) A firm is considering locations for a new manufacturing facility to meet market demands and has been reviewing the macro-environment as it considers how to market the newly manufactured products. The firm has found a location with a good potential workforce and good transportation access. The concern is that the new facility would require a great deal of water, which might affect farmers and others depending on a good supply of water. What element of the macro-environment do they need to address? A) Political and regulatory B) Sustainability C) Demographics D) Technology Answer: B Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 120) Why would marketers advocate for sustainability as a company approach? A) It's a good way to avoid government scrutiny and monitoring. B) It's a good tool to help in recruiting Baby Boomer talent. C) It's a good way to connect with customers. D) It's a good way to stay ahead of competitors. Answer: C Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

121) Marketers include technology in their assessment of the macro-environment because A) they depend on their smart phones for research and communications. B) they are looking for expanded opportunities for marketing. C) they see social media as replacing all other marketing efforts in the near future. D) they see their competitors using newer technologies. Answer: B Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Technology Standard 2: Bloom's || Application 122) Technology has enabled companies to collect vast amounts of data about customers and transactions. If you were a marketer, which of the following is NOT one of the reasons why you'd want that data, even purchasing the data? A) They can become data resellers. B) They can learn about consumer preferences. C) They can develop insights on how goods are purchased. D) They can use the data to design new products and services. Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 123) Marketers cannot control, and often cannot even influence, elements in the macro-environment, so why bother collecting data and analyzing the data for insights? A) Federal and provincial laws require extensive record-keeping. B) The Canadian Marketing Association mandates collection of data for professionalism in marketing. C) Marketers are looking for ways to create competitive advantages. D) Consumers expect firms to understand their problems and individual needs. Answer: C Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Communication Standard 2: Bloom's || Application

124) Which of the following statements accurately describes the macro-environment? A) Laws and restrictions on elements of the marketing mix have been decreasing slowly in recent years. B) Despite public alarm, the disparity in wealth has had little impact on basic marketing. C) The paradox of technology means that specific technologies become less valuable the more people use it. D) Trends related to customers are the most important element. Answer: D Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 125) Sarita was born in 1991. Which of the following statements most likely describes her? A) She is tech savvy and not brand loyal. B) She seeks to work long hours at her corporate job and expects little time off. C) She is frugal and only purchases things with perceived value. D) She purchases goods and services almost to excess. Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 126) Which of the following statements accurately describes the social/cultural element of the macro-environment? A) Two important trends are the aging of the population and the migration of people from urban centres to rural areas. B) The Silent Generation grew up wealthier than previous generations. C) There is increasing diversity in ethnic backgrounds in Canada. D) Couples are cohabitating longer and having children earlier than in the last decade. Answer: C Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

127) A popular video conferencing site was caught providing customers' personal and professional information to other users and to outside companies, all without the customers' consent. Which regulatory agency is tasked with monitoring issues like the one in this scenario? A) Competition Act B) PIPEDA C) Food and DrugAct D) Ministry of Education Answer: B Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 128) What is the BEST similarity between a developing economy and a mature economy? A) The availability of both products and services B) The establishment of financial institutions C) The agricultural focus D) The amount of stability and inherent risk for marketers Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 129) Nike increasingly is focused on using renewable energy to power its facilities, using recycled polyester, reducing its water and chemical usage, and prohibiting its ships from entering the Arctic Ocean. On which of the following macro-environment elements is Nike focused? A) Technological B) Natural/environmental C) Political/regulatory/legal D) Social/cultural Answer: B Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

130) Companies gather data regarding customers' age, gender, and income. Understanding these demographic trends falls under which part of the external environment? A) Social and cultural B) Economic C) Legal and political D) Technological Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 131) Understanding different cultural backgrounds can help companies determine A) customers' preferences to advertising tactics. B) customers' responses to marketing efforts. C) customers' desires to make certain purchase decisions. D) customers' appreciation of a company's societal orientation. Answer: B Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 132) Which part of the external environment do marketing decisions constantly need to be re-evaluated and adjusted to during a pandemic? A) Natural B) Technological C) Demographic D) Economic Answer: D Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

133) Consumer goods companies are working to reduce their dependency on the use of plastic in the packaging of their products. This is an example of their attempt to embrace the environmental concept of A) sustainability. B) economic responsibility. C) consumer sensitivity. D) social awareness. Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 134) UPS's and FedEx's continuous upgrades of their package tracking systems are an example of what part of the external environment? A) Economic B) Financial C) Technological D) Distribution Answer: C Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 135) Why is it important for marketers to understand the difference between income and wealth? A) It makes a difference in marketing opportunities. B) It helps determine the type of products to be sold. C) It assists in analysing the purchase behaviour of customers. D) It enables companies to better target certain individuals. Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

136) Airbnb can be viewed as what type of competitor to hotels? A) Unexpected B) Secondary C) Evolving D) Primary Answer: A Diff: 2 Learning Objective: 3.1 Discuss the two major components of the marketing environment—the micro-environment and the macro-environment—and the key distinction between the two for marketers. Section Reference: The Marketing Environment Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 137) In some cases, one environmental force directly impacts another. An example is the effect that COVID-19 had on the world economy. This is an example of what? A) Micro-environment force > micro-environment force B) Micro-environment force > macro-environment force C) Macro-environment force > macro-environment force D) Macro-environment force > micro-environment force Answer: C Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 138) The percentage of married households in Canada has declined. As a result, there has been a rise in single person households. This is primarily a reflection of which environmental force? A) Social/cultural B) Economic C) Natural/environmental D) Political/regulatory/legal Answer: A Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

139) Advances in technology have led to the creation of extensive databases containing large amounts of information on individual consumers. Consumers are becoming increasingly sensitive to this fact and concerned about privacy. Which environmental force is most likely to have an impact in this arena? A) Technology B) Social/cultural C) Company D) Political/regulatory/legal Answer: D Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 140) A recent study by McKinsey and Company estimates that up to 800 million jobs worldwide may disappear due to the continued development and adoption of artificial intelligence (AI), robotics, additive manufacturing (AM - 3D printing) and other innovations. This exemplifies what? A) An economic force B) A company-related force C) The paradox of technology D) A natural force Answer: C Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 141) Which macro-environmental force was shown, globally, to have the greatest impact on slowing the spread of the COVID-19 virus? A) Social/cultural B) Political/regulatory/legal C) Economic D) Natural/environmental Answer: B Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

142) Which of the following examples of corporate policy BEST reflects the natural/environmental concept of sustainability? A) Amazon.com announcing plans to neutralize their carbon footprint by 2040 B) Apple providing free recycling for its products C) Starbucks eliminating plastic straws in all their outlets D) McDonald's decision to use wild-caught sustainable fish species for their Filet-O-Fish sandwiches Answer: D Diff: 2 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 143) Which of the following is NOT an example of a company reacting to changes in the micro-environment? A) Chapman's recently undertook certain cost-cutting measures due to budget constraints and have begun using lower quality ingredients. B) After completing a survey of consumer tastes, Burger King began to offer an alternative to McDonald's Big Mac. C) Relative to 30 years ago, Tide began featuring more commercials with interracial couples. D) Nike signed a contract with a new rubber supplier and was able to produce more durable shoes for the same price. Answer: C Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Diversity Standard 2: Bloom's || Evaluation 144) Which of the following would a company probably have the LEAST amount of influence over? A) A supplier raising prices B) The local government introducing new taxes C) A competitor lowering prices D) A company would likely have equal influence over all of the above. Answer: B Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

145) Your firm manufacturers small household appliances, and you see that with growing sophistication in the Canadian domestic market, you should turn to other countries to extend the life of these products with limited appeal domestically. There are large populations in subsistence economies who don't have anything like your appliances, and your senior management has asked you to explore going into these markets. You are very uncomfortable with this approach. Why? A) There are too many legal issues in international commerce. B) You don't speak the languages of any of these countries. C) There are limited opportunities beyond the agricultural and basic manufacturing in these countries. D) You know these countries have different electrical currents, and you would have to adapt your products. Answer: C Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 146) Your roommate is studying IT, and she sees you are looking at Technology in the macro-environmental analysis. She asks, "Why would marketers need to worry about technology? That's what IT is for." How can you succinctly respond in the context of the macro-environment? A) Marketers can't leave technology to IT. B) Marketing requires a comprehensive view of everything that goes on in a market, and technology is one part of that. C) Marketers need to market technology in many companies. D) Marketers must become experts in technology as it is the most important part of the marketing environment. Answer: B Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Technology Standard 2: Bloom's || Synthesis 147) What is the BEST synthesis of culture and marketing environments? A) They can be controlled by individuals or like-minded groups. B) They are quick to form and are malleable. C) They are influenced by both internal and external elements. D) They must be evaluated on a regular basis. Answer: C Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 49

148) Your friend Dobin has been hired as a donor engagement officer for his college alma mater. He tells you that he is planning to focus most of his energy on a group of alumni who work for a very prestigious law firm, are well paid, and live extravagant lifestyles—exotic vacations, expensive cars, boat purchases, and so on. What is the best advice to give him? A) Tell Dobin to move ahead with his plan soon, before his target group spends any more of their net income on luxury items that they might not be able to afford. B) Remind Dobin that his target group seems to be spending much of their discretionary income and that other, less flashy, alumni actually may be wealthier and in better positions to donate significant funds. C) Suggest that Dobin consider other alumni that have similar gross income potential, since they would fall into the same wealth category as his target group. D) Remind Dobin that interest rates and inflation play a part in one's ability to donate part of one's disposable income. He needs to time his requests when the market is most agreeable. Answer: B Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 149) Why is it important for marketers to study the age of consumers? A) There is more value found in younger generations. B) The older populations have more spending power. C) Different generations have different views based on their experiences. D) Diversity in populations offer unique marketing opportunities. Answer: C Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 150) From a marketing perspective, the concept of income helps marketing managers A) distinguish the distribution of wealth that a customer can use when making purchases. B) differentiate between money a person receives and money a person has available to spend. C) dictate the frequency of purchases that customers can make. D) designate the quality of service companies are willing to give to certain customers. Answer: B Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

151) Your textbook points out that an important cultural trend affecting marketing is the shift in diversity. The three major components are: increased diversity in ethnic backgrounds, the nature of the family unit, a shift in values to consider ethical and moral issues more important. Which of the following is most likely to be a result of this trend? A) We'll experience ever-increasing market segmentation. B) We'll experience increasing consolidation among large firms as those successful in adapting to these trends flourish. C) We'll experience cultural assimilation as consumers adapt by becoming more homogenous. D) Whites, as a group, will become increasingly less important to marketers. Answer: A Diff: 3 Learning Objective: 3.3 Identify the five main components of the macro-environment. Section Reference: The Macro-Environment (SPENT) Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 152) RadBoards is a longboard manufacturer that currently has $2 billion of revenue in a $4 billion market with dozens of competitors. However, RadBoards is losing money each year. Which piece of the marketing environment (micro or macro) should RadBoards focus on to become profitable and why? Answer: Answers will vary, but should include information such as: RadBoards currently has 50% of the market share in an established market with strong competition and likely high barriers to entry. Given the above, RadBoards profitability problem is likely at the micro level. Owning 50% of the market share in the longboard market implies RadBoards has a good handle on the macro piece of the marketing environment. Since RadBoards should focus on the micro level, there's a handful of areas they need to consider. They could do a supplier review to assess if they're getting adequate margins on their products and try to renegotiate costs. They could look at their company to assess if there are fixed costs that can be addressed. They could consider their customers and experiment with higher prices to get better margins since they have so much market share. Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment.; 3.3 Identify the five main components of the macro-environment. Section Reference: The Micro-Environment; The Macro-Environment (SPENT) Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

153) The utility of the cell phone has drastically increased in the last 20 years. Discuss three markets in which cell phones have gone from being a non-participant to being one of the three types of competitors. Answer: Answers will vary, but should include information such as: • Computers and laptops: cell phones have evolved to be become competitors with computers because they have some of the same capabilities. • Cameras: cell phones have evolved to compete with digital cameras because nearly all cell phones nowadays come with a camera feature. • Landline phones: cell phones were initially a supplement to traditional landline phones, however, more and more households are cancelling their landline service. • Personal organization: paper calendars, address books, and rolodexes have all been rendered obsolete due to the organization apps and offerings that come with cell phones. Diff: 3 Learning Objective: 3.2 Identify the seven main components of the micro-environment. Section Reference: The Micro-Environment Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

Applied Marketing, 1ce (Grayson) Chapter 4 Customer Behaviour 1) One of the results of the evolution of marketing is that the focus has changed from a specific sale to what happens before and after the purchase, and what influences customer behaviour in general. Answer: TRUE Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 2) Jeremy tried a new-flavoured energy drink and hated it. He said, "I'll know better next time." This is an example of how future internal information searches are facilitated. Answer: TRUE Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 3) An example of word of mouth might be when customers contact the manufacturer with complaints or compliments about a product by telephone. Answer: FALSE Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 4) The General Model of Customer Experience has five distinct steps, and these steps follow a logical order. There are times, however, when a customer might take these steps in a different order. Answer: TRUE Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

5) One of the important assumptions in marketing is that customers make rational decisions in the context and at the time of the purchase. Answer: TRUE Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 6) In examining motivations, customers must satisfy needs like air, food and water before they can be motivated to consider almost any other kind of need. Answer: TRUE Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 7) In consumer purchases, an individual usually decides, but in business purchases the focus is the organization, not the people. Answer: FALSE Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 8) In both B2B and B2C, the General Model of Customer Experience is similar, and both have similar Influences on the Customer Experience--individual, social, and contextual differences. Answer: TRUE Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

9) When he first heard about giving a customer a reason to come back, Marco thought he had to give the customer merchandise. He felt better when he learned A) giving them cash, such as a rebate, would be the best way. B) discounting prices on an everyday basis would be best. C) having a strong social media presence was what was needed. D) building relationships and a friendly image would work best. Answer: D Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 10) Once a customer has evaluated alternatives and made a choice, three basic issues are left: where to buy, how to pay for it, and A) how to lower risk. B) what options are available. C) when to buy it. D) what is the rationale for purchase. Answer: C Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 11) Which of the following is NOT correct when considering word of mouth feedback after the purchase of an item? A) Customers are more likely to tell more people when they are dissatisfied than when they are satisfied. B) Negative stories are often exaggerated to make the story sound more dramatic. C) As stories get repeated, it is characteristic for negative aspects to be exaggerated from what was the original story. D) Experienced marketers are able to control word of mouth, both positive and negative, to achieve campaign objectives. Answer: D Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

12) If you were to compare marketing today with marketing 25 years ago, one of the big differences would be A) the change in the consumer buying model. B) the focus on relationships. C) the refinement of Maslow's Hierarchy of Needs. D) the importance of business-to-business marketing. Answer: B Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 13) Once a customer has identified a need, two questions arise—what information is required to satisfy the need, and A) how important is the need? B) when does the need require satisfying? C) who else has the same need? D) where can I get the information? Answer: D Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 14) What MOST drives the selection of how to satisfy a need? A) Perceived value B) Friends' recommendations C) Objective comparisons of products or services D) Cost Answer: A Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

15) The three basic purchase issues related to the General Model of Customer Experience are where to make the purchase, how to pay for it, and A) why make the purchase. B) when to make the purchase. C) who should make the purchase. D) what guarantees ensure the value of the purchase. Answer: B Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 16) Which of the following is NOT true about word of mouth? A) The more often a story is told, the worse it gets. B) People complain more than when they are satisfied. C) It has become an extremely important source of information for customers. D) The phenomenon arose with the introduction of social media sites. Answer: D Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 17) The General Model of Customer Experience breaks the process down into separate steps, each with a thorough explanation. Life isn't always like that. Which of the following is NOT one of the important points needed to fully understand the model? A) The model needs to be altered for e-commerce applications. B) Some of the steps might be completed out of order. C) For many routine purchases, the steps are internalized and not always apparent. D) Differences in people's perceptions mean no two customer experiences are the same, even for the same customer. Answer: A Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

18) Which step in the General Model of Customer Experience is most closely associated with Maslow's Hierarchy of Needs? A) Need recognition B) Information search C) Evaluation of alternatives D) Post-purchase evaluation and behaviour Answer: A Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 19) Branding is most important in the evaluation of alternatives under which circumstance? A) When there is a wealth of information available relative to the purchase decision B) When perceived value is of minimal importance in the decision C) When there is little specific information available on which to make a judgment D) When there are distinct differences among available brand options Answer: C Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 20) What is one recommended change of focus for marketers selling to tourists versus selling to locals? A) Giving customers the lowest price possible due to heavy competition B) Giving customers a reason to return C) Showcasing products with signage and special offers D) Locating stores near primary transportation hubs Answer: B Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

21) Which of the following statements is false? A) Company-sponsored information is less credible than that from personal sources or third parties. B) Company-sponsored information is unnecessary when other information sources have already been explored. C) Company-sponsored information is useful when supported by other sources. D) Company-sponsored information can be used to influence personal sources. Answer: B Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 22) Post-purchase evaluation is ultimately linked primarily to which other step in the General Model of Customer Experience? A) Need recognition B) Information search C) Evaluation of alternatives D) Purchase/choice Answer: B Diff: 1 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 23) The General Model of Customer Experience cannot begin until A) the marketer has built a strong brand that is recognized by potential customers. B) the customer has a need that must be satisfied. C) information about ways to satisfy that need are readily available. D) the customer has sufficient funds to make purchases to satisfy a need. Answer: B Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

24) After Erin recognized a need to replace a ruined smart phone, she began trying to recall everything she had heard recently about smartphones and where she could get more information. Erin was at which stage of the General Model of Customer Experience? A) Need recognition B) Want development C) Internalizing searches D) Information search Answer: D Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 25) For a customer to satisfy a need, he or she will need to search for information about how to satisfy that need. Which of the following is NOT true about the information search process? A) The customer begins by searching his or her memory for information or experiences to satisfy the need. B) With the growth in information available on-line, the information search step in the model will be eliminated and the model changed. C) The information search generally begins with the general and narrows as the customer refines the search. D) If the customer does not have then information, he or she will search externally, and family and friends will be a reliable source. Answer: B Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 26) As Brett started planning to relaunch his firm's major product, he knew A) potential customers would trust an assertive and authentic information from the firm. B) customers see third party sources as being the most reliable. C) customers would depend most on opinions and attitudes of friends and family. D) customers would not need much information as the product was being relaunched, not introduced. Answer: C Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

27) As customers are completing their information search in the General Model of Customer Experience, they A) search for the objective facts as a basis for evaluation. B) rely on the most recent information demonstrating the recency effect. C) rely on personal values to determine perceived value. D) go back to need recognition to validate the information gathered. Answer: C Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 28) A friend of yours wants to buy a specialized piece of photography equipment. None of her friends knew anything about it, and her family didn't either. She said she doesn't want to rely on the company websites as she feels they are not reliable. For her information search she will likely turn to A) third-party information. B) camera-store sales associates. C) a downloadable owner's manual. D) television informercials. Answer: A Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 29) Last year, Josh felt cars made in the United States were far superior to those made in Germany or Japan, but now, when he needs a car, German cars are at the top of his list. He has been paying attention to information provided by companies. Marketers know that information and other tools can help create A) positive attitudes. B) objective reality. C) factual transformations. D) cognitive dissonance. Answer: A Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

30) Angela travels often for work. Sometimes she will do an extensive search to find a special restaurant, but when in a hurry she will fall back on a couple of favourites she knows she likes without thinking too much about it. These decision "short cuts" are known as A) decision expedients. B) heuristics. C) impulse buying. D) preference selections. Answer: B Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 31) Your friend Alexis needed a new outfit for work and began the General Model of Customer Experience with a need recognition and went through a process including the purchase. You were helping her all along the way, but now it's time to see if the need is still there by comparing performance to expectation, known as A) cost-benefit analysis. B) feedback. C) internal measurements. D) satisfaction. Answer: D Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 32) Michael went through a very detailed search process to determine and buy the best computer for both his gaming and schoolwork. Instead of being happy with his new computer, he is wondering if he made the right choice, if he examined enough alternatives and whether he should have purchased a different brand. His friends who were majoring in marketing let him vent, but didn't take his concerns seriously as they knew he was suffering from a natural phenomenon known as A) anxiety attacks. B) cognitive dissonance. C) post purchase depression. D) innate dissatisfaction. Answer: B Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 10

33) Ellen and Beth were at the same restaurant one evening, though they do not know each other. Ellen had a superb experience from service to the quality of the food. Beth, on the other hand, had to wait a long time before being seated, had inattentive service and had problems with the food, sending two items back to the kitchen. From what you know about marketing and the General Model of Customer Experience, what would you predict is likely to happen? A) Both Ellen and Beth will tell as many people as they can about the experience. B) Ellen will tell many people, including postings on social media, about her great experience, and Beth will keep to herself. C) Beth will tell many people, including postings on social media, about her bad experience, and Beth may tell a few people. D) Neither Ellen nor Beth will tell anyone about their adventures outside of a few close friends. Answer: C Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 34) Kyle and David are opening a new coffee shop, and while neither was a marketing major in school, they each took a marketing course. They are having a serious conversation about how and why customers might buy their coffee from their shop. David insists that the General Model of Customer Experience means that customers will go through the detailed process, so they need to be concerned about information searches and evaluation. Kyle disagrees. Which of the following would be a good argument that Kyle would make? A) Customers will go through a detailed information search each time they make a purchase to ensure their satisfaction. B) Customers will not seek new information but may evaluate the information differently with each purchase. C) Customers don't really care about information searches or evaluation when the need is strong. D) Customers internalize the steps in routine purchases and don't notice they are going through the process. Answer: D Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

35) A hair stylist who wants to grow her business is studying how customers will purchase her services. Which of the following is accurate about the General Model of Customer Experience? A) The General Model of Customer Experience applies to product purchases and cannot be used for services like hers. B) While the General Model described the basis process, there can be significant variations the she needs to include in her plans. C) The process steps are taken in the precise order of the Model, even for returning customers. D) As long as she maintains a high level of quality, her customers will be satisfied each time they come in, and the Model does not apply to her situation. Answer: B Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 36) For many, if not most, college students, the decision about which college or university to attend is one of relatively high risk and can be very expensive. The students likely spent a great deal of time and effort in the Information Search and Evaluation of Alternatives stages in the General Model of Customer Experiences. The name for these kinds of decisions is A) limited problem solving. B) one of a kind problem solving. C) information-rich problem solving. D) extensive problem solving. Answer: D Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage.; 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: General Model of Customer Experience; Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

37) When customers face the common situation where they might use heuristics or engage in some conscious Information Search and Evaluation of Alternatives, they are exhibiting which kind of contextual influence? A) Routine decisions B) Limited problem solving C) Extensive problem solving D) General Model decisions Answer: B Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage.; 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: General Model of Customer Experience; Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 38) Sam's stomach started grumbling around noon. This would be an example of A) external stimulus. B) time-focused behaviour. C) need recognition. D) selective attention. Answer: C Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Application 39) Zack prided himself on his command of online resources. Once he knows he must begin an external search for information, he considers how trustworthy and credible various sources might be. After research, he decides the least credible would be A) information from friends, family, and colleagues. B) organizations like Consumer Reports. C) online forums. D) company-sponsored information. Answer: D Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

40) Melissa was shopping for spring clothes with her friends Hannah and Karen. In one store, Karen said she'd never buy a particular brand, Hannah said she'd always buy that brand, and Melissa didn't have a strong feeling one way or another. What MOST likely drove the different brand perceptions? A) Culture B) Personality C) Attitude D) Social influences Answer: C Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 41) Emily was known among her friends for her way of making choices. She would set up elaborate spreadsheets, comparison charts, and research options, and she never used them. Instead, in the end, she just decided based on something simple, like colour. Marketers understand this approach and have labelled it A) decision avoidance. B) paralysis by analysis. C) heuristics. D) consumer confusion. Answer: C Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 42) Patricia owns a residential roofing company. She has instructed each of her sales representatives to follow up with customers a few days after the jobs are completed. She has learned from consumer experiences that this is the best way to avoid A) competitive pressures on performance. B) creating time-consuming relationship building. C) complaints to the Better Business Bureau. D) buyer's remorse stemming from cognitive dissonance. Answer: D Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

43) A company with a strong brand name and recognition decides to enter a new product category. There are two major competitors; one is very high priced, the other is very low priced. Their positioning, respectively, is based on status and affordability. The company that is new to the product category prices between the two major competitors. The new company spends relatively little on promotion, instead relying on what to drive consumer purchases? A) Heuristics B) Brand loyalty C) Brand recognition D) Pricing Answer: A Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 44) In which of the following scenarios might post-purchase evaluation occur before purchase in terms of the total amount paid? A) When purchasing a product with an optional extended warranty B) When deciding whether or not to use the same dealer for servicing your car as the one you purchased it from C) When purchasing a service that involves tipping the service provider D) All of the above Answer: C Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 45) You are a new homeowner and would like to hire someone to paint the interior of your house. Since you have no personal experience with this type of hire, you begin searching for information. Unfortunately, your family, friends, and coworkers were of no help. Which of the following would be considered your most credible source of information? A) Your neighbourhood Facebook group B) Information posted by local painters to social media C) A Google search for local painters D) An advertisement in a regional mailer Answer: A Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 15

46) Sandro recently purchased a new car. On the way home from the dealership, he keeps looking at other cars and wondering if they are better than the car he purchased. Which term describes Sandro's current feelings about his purchase? A) Dissatisfaction B) Cognitive dissonance C) Buyer's remorse D) Selective interpretation Answer: B Diff: 2 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 47) Why is the customer experience important to the marketer? A) If a marketer can capture the essence of a customer's experience, the marketer can avoid having negative word of mouth going viral through social media. B) Understanding the customer experience gives the marketer information that would be hard to obtain otherwise given the concerns about privacy. C) By knowing the thoughts, feelings, and behaviours of a customer, the marketer can provide a superior service, leading to more business in the future. D) Using the customer experience effectively is necessary to design retail operations. Answer: C Diff: 3 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 48) Why is it important for marketers to understand post-purchase evaluation as the product or service has already been purchased? A) With careful consideration of the post-purchase behaviour, the marketer can help avoid lawsuits from dissatisfied customers or warranty returns. B) Collecting information from the purchases and post-purchase behaviours is the most reliable way to gather data about using the General Model of Customer Behaviour. C) Feedback after purchase is the most reliable way to collect information for new product development. D) The marketer needs to understand behaviour before, during, and after purchase to build relationships for future business. Answer: D Diff: 3 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 16

49) Online shopping has grown at a rate over 10% annually for the past five years. The COVID-19 pandemic has sped up the transition from in-store to online shopping and also contributed to consumers becoming more comfortable buying an expanding list of products, such as groceries, online. Given these facts, what do you believe would be the better approach for traditional bricks-and-mortar retailers to follow in a post-pandemic market? A) Shift to a more experiential shopping model. Rather than compete on the basis of price, selection, and convenience, engage customers in the store setting to make them enjoy the overall shopping experience. B) Make your current bricks-and-mortar locations showrooms where consumers can experience select offerings and receive sales help and assistance, then purchase online. C) Focus primarily on the availability of same-day delivery for your products. D) Transition to an exclusively online sales and distribution platform while maintaining exclusivity by moving away from third-party vendor agreements with firms like Amazon. Answer: A Diff: 3 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 50) You recently opened an ice-cream shop. Your goal is to bring back the community feeling of the old-fashioned, soda shop. Unfortunately, a few days ago, you had an emergency and had to leave a new employee in charge of a small child's birthday party. Based on the mother's online review, you know it did not go well. What is your best FIRST course of action? A) Retrain your employees to provide all customers with the type of positive experiences they can share with others. B) Put the negative experience in the past and focus on providing future positive experiences for all guests. Encourage guests to post their positive feedback in an effort to bury the negative. C) Try to curtail the spread of negative feedback by immediately responding to the mother's online feedback. Offer a redo or another similar event for free to make up for the first experience. Ensure that the second event leaves her satisfied with your new company. D) Eliminate the spread of negative feedback by turning off online comments. Double down on efforts to offer future customers a positive experience. Answer: C Diff: 3 Learning Objective: 4.1 Define the stages in the general model of customer experience and describe the key concepts in each stage. Section Reference: General Model of Customer Experience Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

51) Which of the following is NOT one of the significant influence categories used by marketers? A) Contextual influences B) Cultural influences C) Social influences D) Individual influences Answer: B Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 52) The large group of people who share hobbies, education, income levels, and similar views of the world is known as a(n) A) social class. B) caste. C) intellectual cohort. D) influence stratum. Answer: A Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 53) Individual influences, by definition, will vary from person to person. Marketers recognize this, and their responses are to A) use psychology and other sciences to understand and interpret the actions of individuals. B) focus more on social and contextual influences where they can make a difference. C) scan continuously what competitors are doing and look for clues or weaknesses in their approaches. D) isolate one particular influence and leverage that to affect the other influences. Answer: A Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

54) Which of the following is NOT one of the recognized processes influencing individuals? A) Selective attention B) Selective interpretation C) Selective intention D) Selective retention Answer: C Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 55) What is the MOST important reason marketers need to study culture? A) Shared values within a given population affect purchasing decisions. B) Some cultures prefer buying specific brands. C) A child's buying behaviours differ dramatically from his or her parents. D) Some cultures are illegal in certain states. Answer: A Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 56) Which category of influences represents influences that are unique to a specific customer experience at a specific time? A) Individual B) Social C) Relational D) Contextual Answer: D Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

57) What is the most obvious category of influences on the customer experience? A) Contextual influences B) Social influences C) Individual influences D) Demographic influences Answer: C Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 58) Social influences always involve what? A) Family members B) Formal members of a group to which the consumer belongs C) Influencers and/or opinion leaders D) Other people Answer: D Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 59) According to your understanding of social classes from the text, which of the following is NOT of particular importance in terms of belonging to a certain class? A) Income B) Occupation C) Education D) Age Answer: D Diff: 1 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

60) Your friend Kevin just bought a shirt and tie that you think are ridiculous, and you need to tell him politely that they just won't work. You think back quickly to what you know from marketing about the customer experience. Which of the following would NOT be considered an individual influence of the customer experience that can help you figure out what to say? A) You know he can afford it. B) You know he is old enough to make purchases on his own. C) You know he is single and does not live with his family who might give him advice. D) You know the store where he purchased it would exchange the shirt and tie if he explained why he needs to return it. Answer: D Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 61) You can observe many different personalities amongst your family, friends, and acquaintances, but as a marketer you want to know what part of personality most affects buying decisions in a group of people. Which of the following personality aspects most obviously affects purchase behaviour the most? A) Self-image B) Thought patterns C) Feelings about buying things D) Introvert vs. extrovert Answer: A Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 62) You and a friend were watching television yesterday, and when you asked her today about an ad about retirement plans you both talked about at the time, she tells you she didn't see such an ad, let alone talk about it. Which of the perception processes is at work here? A) Selective attention B) Selective interpretation C) Selective filtering D) Selective retention Answer: D Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 21

63) One of the problems marketers have is trying to persuade a consumer to switch from their current brand to the marketer's brand. These consumers may see promotional pieces, but don't seem persuaded to change, regardless of the evidence presented. Which of the perception processes is at work here? A) Selective attention B) Selective interpretation C) Selective filtering D) Selective retention Answer: B Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 64) Maria is known by her friends as a person who won't make a purchase without checking with several of her close friends. These friends who are advising on purchases are known as: A) reference groups. B) social capital groups. C) inspirational groups. D) consultative groups. Answer: A Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 65) Paul follows a small number of professional sports teams with great devotion. He wants to know what the players wear, what they drink, what cars they drive, etc., and then he will use the information he has gathered to decide what to buy similar items for himself. What would a marketer call these teams in relationship to Paul? A) Purchase idol groups B) Aspirant groups C) Sponsored groups D) Fan-defined groups Answer: B Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

66) Eduardo observed that he and his fellow Hispanic university students shared certain values and beliefs which had a major impact on his purchasing behaviours. Eduardo was observing A) class. B) culture. C) subculture. D) cohort. Answer: C Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 67) Brianna was asked by the CMO of her firm to watch customers in a local mall to look at what was influencing customers' decisions. Brianna had to look for factors like time, motivation, and the physical environment. These influences were part of which category of influences on the customer experience? A) Contextual influences B) Cultural influences C) Social influences D) Individual influences Answer: A Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 68) As you go to a grocery store and pick up routine items, you might not recognize you have internalized much of the process. This set of decisions are known as A) limited problem solving. B) routine decisions. C) heuristics. D) habitual decision. Answer: B Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

69) Marketers study motivations--what drives people to act in a certain way, especially when examining purchasing behaviours. To organize these motivations, marketers use a theoretical model known as the A) Kotler's Motivation Framework. B) Kegan's Ranking of Needs. C) Padgett's Schedule of Wants and Needs. D) Maslow's Hierarchy of Needs. Answer: D Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 70) As customers learn more and more about specific products, they can limit their internal and external searches for information. When thinking about the level of learning and what will be required to provide the customer with the information he or she needs before purchasing, marketers use the term A) learning. B) search utility. C) expertise. D) product knowledge. Answer: C Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 71) When we are rushed or when we want convenience more than a drawn-out decision-making process, time becomes critical. Which of the following is NOT one of the results of time as an influence on the customer experience? A) We will use heuristics. B) We feel there is less value in the information search. C) We are willing to pay more. D) We minimize cognitive dissonance when we can blame time. Answer: C Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

72) You're in the drugstore to purchase a cold remedy. You find your normal brand is sold out. You select a competitive brand because you're familiar with it and view it a viable substitute. This is an example of what? A) A routine decision using branding B) Limited problem solving using heuristics C) A routine decision using heuristics D) Limited problem solving using branding Answer: B Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 73) Leila sees herself as a fashionista, buying clothes she can find in high-fashion magazines, and she is always fashionably dressed for class. Molly dresses for comfort, not for others, and she can't imagine looking at magazines for ideas on what clothes to buy. This is not a surprise to marketers, as marketers have identified this particular individual influence as A) media habits. B) personality. C) self-image. D) selective attention. Answer: C Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 74) Paul is not very confident in his buying behaviour. He purchased a pair of soccer cleats, basing his decision on the shoes his favourite players were wearing. The shoes he bought hurt his feet when he plays for about an hour, but he won't switch brands. What factor in the customer buying experience is MOST evident here? A) Buyer's remorse B) Aspirant groups C) Personality D) Selective interpretation Answer: B Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

75) Retailers make many decisions about the store layout, merchandise, pricing, promotion, sales personnel, lighting, and more. They do this to influence A) product and store differentiation factors. B) contextual factors. C) aspirant group factors. D) consumers' self images. Answer: B Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 76) David was counseled by his marketing manager that he needed to study Maslow's Hierarchy of Needs and know how it applies to his marketing efforts if he wants to succeed in his position. David needs to learn about consumers' A) personalities. B) limited problem solving. C) buying heuristics. D) motivation. Answer: D Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 77) Consumer A, a young man, purchases a Tesla roadster (a high-priced electric vehicle) because he is environmentally conscious. Consumer B, a young woman, purchases a Tesla roadster because it's stylish and expensive. In both cases, what is the major influence in the purchase behaviour? A) Self-image B) Demographics C) Social influences D) Social class Answer: A Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

78) Which type of reference group would make a person more likely to purchase a product that they really can't afford at that point in their life or career? A) Aspirant groups B) Friends C) Co-workers D) Social media influencers Answer: A Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 79) Which of the following situations would probably result in less negative word of mouth if a consumer was disappointed with a relatively important purchase? A) The item was on sale. B) The item was not available in exactly the same colour, model, or style desired. C) There was limited time available to make the purchase decision. D) The item was a closeout and is no longer available. Answer: C Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 80) What is the biggest difference between contextual influences and social influences on decision making? A) The need for a strong self-image B) The influence of socialization C) The impact of need motivation D) The effect of the specific situation Answer: D Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

81) To celebrate his birthday, Hector chooses to dine at Ruth's Chris Steak House. He enjoyed his dinner immensely and ignores his coworkers who tell him he could have had a better, less costly meal at a different restaurant. Which term describes Hector's perception process? A) Selective interpretation B) Selective retention C) Selective influence D) Selective attention Answer: A Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 82) Priya comes from a blue-collar family, takes online classes at various universities, values the opinions of fashionistas, and is a horror-film enthusiast. Which term describes the subculture to which Priya belongs? A) Blue-collar society B) Horror-film enthusiasts C) Online student D) Fashionista Answer: B Diff: 2 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 83) One definition of culture is that it's a shared and learned set of beliefs and behaviours amongst people. Marketers can see culture as a macro-environmental factor at work when more than one individual is making a purchase decision. Marketers aren't going to change the impact of culture, but they recognize culture's importance when looking at what kind of influence on the customer experience? A) Contextual influences B) Shared influences C) Social influences D) Individual influences Answer: C Diff: 3 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

84) Marketers use the General Model of Customer Experience and Maslow's Hierarchy of needs, although both models have weak points or there are conditions where they do not apply. If they are not universally true, why would a marketer rely on them? A) Marketers use heuristics, and these models could be considered heuristics. B) Even though they are not universal, exceptions are identified, and compensation is made. C) As they are models, marketers don't need to use them if they choose not to. D) These models are based on psychology, and marketers are trained enough in psychology to be able to refute or alter the models. Answer: B Diff: 3 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 85) You're constructing a new airport and want to maximize customer satisfaction. One key dissatisfier with fliers is how long they have to wait for their luggage in the baggage claim area. The airlines have notified you that, given the human element involved in unloading baggage from their incoming flights, there is little they can do to speed up their part of the process, which is the most time consuming. Which of the following steps do you believe would be most effective in maximizing customer satisfaction? A) Invest in a team of experts to study the problem, enlisting feedback from industry professionals. B) Invest in state-of-the-art, high-speed equipment to transfer luggage from the planes' unloading area to the baggage claim areas, thereby speeding up the only part of the process under your control. C) Build the baggage claim area as far as possible from the deplaning area, making it a longer walk for passengers. Since it will take them longer to get to baggage claim, they'll have a shorter wait when they arrive. D) At each baggage claim station, place screens that constantly update with the estimated time remaining until baggage from a particular flight is due to arrive at the station. Answer: B Diff: 3 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

86) You have a pediatric dental practice and want to provide a satisfying experience to both the children you treat and their parents. Your patients range in age from 2 years to 18 years and require a myriad of services. What is the best way to influence the customer experience? A) Appeal to the patient's self-image by hanging photos of happy children showing off their clean teeth. This influences individuals to seek regular care. B) Create an online forum with a group of dental opinion leaders culled from your most satisfied parents. This creates a form of social influence. C) Provide climbing toys and video games for patients to use while waiting for their appointments. Time is a contextual influence on customer experiences. D) Fill your waiting room with only information about healthy teeth and the need for regular dental visits. This creates selective attention (an individual influence) and turns parents into dental experts (a contextual influence). Answer: C Diff: 3 Learning Objective: 4.2 List and describe the key individual, social, and contextual influences on customer experience. Section Reference: Influences on Customer Experience Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 87) Even though Ryan had worked diligently to try and meet people at the new firm in his territory, he could not get past the receptionist who kept putting him off. He was extremely disappointed when he found out the firm had decided on a purchase without even considering Ryan's firm or its products. Ryan was having difficulty with which person in the buying centre? A) Gatekeeper B) Controller C) Decider D) Influencer Answer: A Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

88) Which of the following is NOT one of the important differences between B2B and B2C marketing? A) The size of the buying company matters in B2B. B) Evaluation of alternatives is more complex in B2B. C) There is more formality, especially in the rules, for B2B. D) Marketing to a group is important in B2B but has no similar situation in B2C. Answer: D Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 89) The social differences among the Influences on the Customer Experience for B2B marketing could be A) aspirant companies. B) the personality of the CEO. C) whether the sales representative can entertain the client. D) whether the members of the buying centre share objectives. Answer: A Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 90) Which of the following is NOT one of the roles in the buying centre? A) Initiator B) Deciders C) Specifiers D) Influencers Answer: C Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

91) One of the major challenges marketers have when marketing to potential buyers in buying centres is A) the roles are not clear. B) people in the roles have different needs. C) the size of the company affects the use of the buying centre. D) buying centres are not used in many industries. Answer: B Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 92) In reviewing the need-recognition component of the Expanded Model of Customer Experience, a purchase being planned in advance is most common in which situation? A) Consumer purchase B) Family purchase C) Business purchase D) Externally prompted purchase Answer: C Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 93) Which of the following statements is true regarding the use of social media as a marketing tool? A) It is equally important in B2C and B2B markets. B) It is slightly more important in B2C markets than B2B markets. C) It is slightly more important in B2B than B2C markets. D) It is virtually nonexistent as a marketing tool in B2B markets. Answer: D Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

94) While important in both B2C and B2B markets, relationship building is often more formal in B2B markets. Why? A) Most B2C marketers do not know who their end users are. B) B2B arrangements often involve multiple aspects, such as service and interconnection of activities. C) B2C markets involve a much shorter time frame in the Model of Customer Experience. D) All of the above. Answer: B Diff: 1 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 95) Peter worked in construction before getting a degree in marketing. He was often called in from the Marketing area to help the firm consider proposals on any building or renovations in the company's stores. What function was Peter playing in the new store work? A) Gatekeeper B) Expert C) Decider D) Influencer Answer: D Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 96) Daniel was new to the B2B marketing area, and he was frustrated by the amount of time it took to go through the buying process. Which of the following in NOT one of those factors that lengthen the time it takes to go through the buying process? A) Risk tends to be greater. B) Sales tend to be larger in both quantity and dollars. C) B2B sales tend to be more complex. D) B2B sales tend to rely more on negotiation. Answer: D Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

97) Drew had worked for many years in a B2B environment, then he switched to a B2C company. Four key distinctions between the two areas became obvious almost as soon as he switched. The four distinctions were marketing to individuals instead of groups, smaller transaction sizes and amounts, the importance of building relationships, and A) the simplicity of the B2C buying experience. B) the different requirements for information searches. C) the determination of prices in the B2C buying experience. D) the place where goods are purchased. Answer: A Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 98) Peter had worked for a few years in a major consumer products firm, marketing men's deodorant. He has switched to a firm that is selling to building contractors. Which of the following approaches from his previous job is most likely to be useful in the new job? A) Promotion needs to have a strong emotional message. B) Buyers purchase products in single units but fairly frequently. C) People are buying from people. D) The purchaser will be using the product for personal consumption. Answer: C Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 99) Heather owns and operates a small accounting firm. She needs a new computer for the office and, while she is shopping, she decides to buy another one for her children to use at home. What kind of marketing is being used? A) Both purchases are B2C as Heather's business is small. B) Both purchases are B2B as Heather began the process shopping for her business. C) The first purchase would fall into the B2C category and the second in B2B. D) The first purchase would fall into the B2B category and the second in B2C. Answer: D Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

100) Courtney has just started working for a firm which sells specialized gears to manufacturers. The marketing manager has just coached her about price, and Courtney was surprised to learn that business buyers A) might not shop for the lowest-priced gears. B) would insist on lower prices for gears. C) will switch suppliers for even a small variation in price for gears. D) care more about the price than quality of the gears. Answer: A Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 101) Among the different members of a buying centre, which one is most likely to want to make the other members as satisfied as possible? A) Buyer B) Decider C) Influencer D) User Answer: B Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 102) In a B2B buying situation, which of these would be most similar in concept to brand in a B2C buying situation in terms of selecting a supplier? A) Reliability of supplier B) Perceived value of product C) Compatibility with existing equipment D) Name recognition of supplier Answer: A Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

103) Consider the example in your text of Toro selling to Home Depot and think about similar situations you've encountered. With this in mind, what can you safely say about many B2B marketers? A) B2B markets are more important to them than B2C markets. B) Negative consumer word of mouth is relatively unimportant in B2B markets. C) They're active in both B2C and B2B markets. D) Inventory management is more important in B2B markets than B2C markets. Answer: C Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 104) To improve health and wellness, your company is planning to invest in stand-up workstations. Kristoff, the facilities manager, asks Marcel, an executive assistant to research the many options, noting the costs and benefits of each option. Once Marcel's options are compiled, Kristoff asks a group of employees for feedback. Armed with this information, Kristoff chooses a specific model from a specific company. Jacqui, the finance manager, completes the order and arranges for payment. What role does Kristoff play in this scenario? A) Purchaser B) Gatekeeper C) Influencer D) Decider Answer: D Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 105) Which of the following is most similar between B2B and B2C marketing? A) The kinds of influences on buying behaviour B) The decision makers C) The types of benefits sought D) The formality of the decision-making rules Answer: A Diff: 2 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

106) Which of the following is one of the major challenges in business-to-business marketing in working with a buying centre? A) As a permanent group within the firm, if a firm is not chosen for a purchase, the firm will find it difficult to compete again. B) Each of the members of the buying centre has organizational needs, and these needs may conflict with each other. C) Negotiating with all five members of a buying centre consumes a great deal of time and effort, and the marketing firm has no guarantee they will be selected. D) As buying centres are assembled for a specific purpose and are not a regular team, decision-making is often unorganized and difficult to manage. Answer: B Diff: 3 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 107) A "traditional" family of three—husband, wife, child—are purchasing a car that will be the primary mode of transportation for the family. The wife is the primary wage earner and commutes to work. She also manages the household finances. The husband telecommutes and will use the car to take the child to and from school and to various events. The child wants something equal in style and image to the cars of his classmates. Relate the roles of the husband, wife, child in this household purchase decision to those in a buying centre, in general terms. A) Husband = User; Wife = Decider; Child = Influencer B) Husband = User; Wife = Buyer; Child = Influencer C) Husband = User; Wife = User; Child = Decider D) Husband = Buyer; Wife = Buyer; Child = Influencer Answer: A Diff: 3 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

108) Samsung produces smartphones which it markets under its brand name to consumers. Samsung acts as an original equipment manufacturer (OEM) as the producer of their own brand of smartphones, purchasing component parts from a variety of suppliers. Their suppliers are B2B marketers selling the component parts to Samsung for final assembly and marketing. Included among their suppliers are three companies that supply batteries. Their primary supplier currently charges $9.50 per battery. They've advised that, due to cost increases in their supply chain, they'll be raising their price by 20% to $11.40 per battery. Why might Samsung not switch to another supplier as their primary source and how does this relate to price inelasticity in B2B markets? A) If this supplier is raising prices, their other two suppliers probably will also raise prices, so there's no real incentive to switch. B) Due to price inelasticity at the retail level, Samsung will simply add this to the retail price of their phones and pass it along to consumers. C) For OEMs, quality and reliability are often more important than price; hence, inelasticity prevails. An additional $1.90 cost on a phone retailing for nearly $1,000 is minor compared to the importance of having a battery that has proven to be reliable. D) Their major competitors, including Apple and LG, will experience the same cost increase, creating a situation of price inelasticity for all marketers. Hence, they will maintain the same supplier relationships. Answer: C Diff: 3 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 109) A few years ago, you developed and began manufacturing a revolutionary material that keeps the human body cool and dry at very high temperatures. You have successfully sold the material to businesses making high-end clothing for adventure seekers. Now you would like to sell to more mainstream sports-clothing businesses, like Nike and Under Armour. Which of the following is the best marketing technique for your newest B2B goal? A) Using direct marketing, focus on the quality and durability of your materials compared to those of similar competitors. Then, use sales promotions by offering a rock-bottom price for first-time buyers with the understanding that prices will steadily increase to "normal" over time. B) Use personal selling to persuade businesses to use your materials. Offer sales incentives based on volume, timing, and/or frequency. C) Using testimonials, emphasize customers' perceived value of your product versus your competitors' products. D) Use what resources you have to discover the clothing company's gatekeeper and appeal to that person to get your material reviewed favourably by the company's decider(s). Answer: B Diff: 3 Learning Objective: 4.3 Identify and describe the similarities and differences between individual consumer and business buying. Section Reference: Individual Consumer Versus Business Buying Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 38

Applied Marketing, 1ce (Grayson) Chapter 5 The Role of Research in Marketing 1) Good information, used appropriately, is the key to using company resources efficiently to maximize profit. Answer: TRUE Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 2) As costs and skills needed for good research are beyond what small business can afford or use, marketing research is limited to large businesses. Answer: FALSE Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 3) The distinction between market research and marketing research includes the different processes in collection and methods that are used in each. Answer: FALSE Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 4) Ricardo was establishing the desired outcome of the research project on what flavours would be best for the new iced tea product. This is a typical decision made in the Develop the Research Plan stage of the research process. Answer: TRUE Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

5) Exploratory research goal demands a qualitative research type. Answer: TRUE Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 6) Causal research demands a qualitative research type. Answer: TRUE Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 7) Descriptive research demands a quantitative research type. Answer: FALSE Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 8) Firms will often hire outside professional researchers when analyzing qualitative data because of the technical difficulties of analyzing the data collected and ensure the firm's researchers do not overlook key insights. Answer: TRUE Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 9) Technological scanning is a promising technique, but data analytics and data mining are still useful only for small data sets. Answer: FALSE Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 2

10) The field studies approach in quantitative analysis is an ideal way to test real-time marketing approaches by testing unlimited numbers of variables at the same time. Answer: FALSE Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 11) Using qualitative approaches or quantitative approaches, but not both, allows the researcher to achieve greater depth and potential insights to address the research objectives and do so more effectively and efficiently. Answer: FALSE Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 12) When analyzing qualitative data, one major problem is interpreting what the researcher read, heard and saw. Answer: TRUE Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 13) Marketing research should not be considered a single, one-time event, so creating a useful decision support system requires an ongoing, systematic approach to research. Answer: TRUE Diff: 1 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

14) Descriptive research demands a qualitative research type. Answer: FALSE Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 15) A new small grocer in town conducts market research for the first five years to help put them on a path of which organic health foods the store will carry. The grocer stops market research after the product line is established. This is how market research should be conducted. Answer: TRUE Diff: 2 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 16) When conducting market research it is good to start with what you know, not what you want to know. Answer: FALSE Diff: 2 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 17) Which term BEST fits a systematic approach to collecting information to help managers make decisions? A) Decision support system B) Causal goals C) Focus group D) Field study Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

18) Which term BEST fits a general term that covers external research investigating one of the three components of the market- customers, competitors, or the company? A) Market research B) Decision support system C) Marketing research D) Field Study Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 19) Which term BEST fits, research focused on assessing the effectiveness of a specific marketing tool or tactic? A) Marketing research B) Market research C) Decision support system D) Field Study Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 20) How many steps are in the research process? A) 6 B) 2 C) 3 D) 4 Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

21) Which of the following is a way companies can choose to collect customer information? A) Purchase records B) Sales behaviour C) Customer decision making D) Analytic evaluation Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 22) Which of the following is NOT a characteristic of effective decision support systems? A) Information collected must be unbiased. B) Information is collected systematically. C) Information collected must be relevant. D) Information systems need to be flexible. Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 23) Market research focuses on examining which of the following? A) Competitors and company B) Company and conditions C) Consumers and conditions D) Customers and communities Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

24) The key purpose of marketing research is to A) test marketing activities to determine what works and what doesn't. B) examine trends affecting consumers and their behaviour. C) test new products. D) test the effectiveness of advertisements on audiences. Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 25) What is the final step in the marketing research process? A) Create an action plan B) Create a budget C) Create a marketing plan D) Create a timeline for implementation Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 26) Which of the following is a key decision that needs to be made when developing a research plan? A) Determine the type of search that will be conducted. B) Decide on who will conduct the survey. C) Design questionnaires that meet test validity. D) Develop analytical tools to evaluate data. Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

27) Which of the following terms is defined as the investigation of a company, its customers, or its competitors? A) Market research B) Marketing research C) Field study D) Data mining Answer: A Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 28) What is the last step in the research process? A) Analyze the data. B) Prepare and present findings. C) Outline follow up and create an action plan. D) Develop a research plan. Answer: C Diff: 1 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 29) Because his firm collected sales reports, purchase records and customer information, Steve was able to make better marketing decisions, which led to consistently better marketing plans. Steve was able to use effectively the firm's A) accounting information system. B) internal wiki. C) decision support system. D) big data protocol. Answer: C Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application

30) Julia was frustrated that she could not get the information she needed for the new marketing campaign. There was plenty of information relevant to the new campaign, but the problem she faced was that the information A) did not contain pricing history. B) could not be manipulated for the analysis she needed. C) went back too far in the company's history. D) did not have enough data on social media usage. Answer: B Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 31) Earl was able to discover several clues to the customers' purchasing behaviours by using the firm's decision support system. He was talking to the Chief Marketing Officer and described all of the system's useful characteristics EXCEPT which of the following? A) The information was wide-ranging and had been collected at a detailed level. B) The system had information that was relevant to the analyses and projections he needed. C) The system was flexible enough for him to examine the data in several different ways to discover insights. D) The systems analysts and IT areas were there to help him dig through the data. Answer: D Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 32) Joanne had to make a presentation to the senior management of her firm to get approval for an internal research area. To make the case as strongly as possible, she wanted to be precise and distinguish market research from marketing research. Which of the following would be considered marketing research instead of market research? A) Information about the success of past campaigns B) Information about former and current customers C) Information about what competitors have been doing D) Information about the firm itself Answer: A Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application

33) Robert had just received approval to develop research he could use to support the new campaign. His first task was to A) ensure his budget was large enough to do a good job. B) consider the efficient and effective ways to collect the data. C) define the problem in clear and specific terms. D) plan the most effective way to present the findings to facilitate management's decision making. Answer: C Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 34) Is a market or marketing research project applicable to short-term projects and questions? A) Yes. The first two steps--defining the problem and developing a research plan can be bypassed. B) No. The length and complexity of the process make it unsuitable for short-term projects. C) Yes. The research will still need to go through the six steps in the research process. D) No. There are better ways to find the answers to projects that are short. Answer: C Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 35) Beth, the senior marketing associate in her firm, had worked as a facilitator and was pleased at how the senior managers had worked together to define the research objective and develop the research plan. Given the success, who should be included in the next phases? A) The is time for Beth to take over and let the other people wait for the results. B) The same people who defined the problem and developed the project should stay with the project to ensure continuity all the ways through. C) The same people who defined the problem and development the project should add technical expertise to the group. D) Beth should use technical experts—internal or experts—to take over at this point. Answer: D Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application

36) Which of the following in NOT a good reason to retain outside agencies to collect data? A) Outside agencies have expertise not usually found in many corporate marketing departments. B) Outside agencies can provide objective and often more credible research. C) Outside agencies can usually provide expertise in more than one technique or approach. D) Outside agencies use considerable experience to help define the problem and plan the research project. Answer: D Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 37) Like many marketing students, Tim prefers to avoid the numbers-driven areas he feels are more appropriate for accounting and finance students. When working with the research planning process, Tim found A) his assumptions and perspectives were justified and correct. B) analyzing data in the research process is heavily dependent on numerical literacy. C) number-crunching is not as important as designing the research. D) learning how to manage people who could do the calculations was more than enough to know about math, statistics, etc. Answer: B Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application

38) Caitlin has been managing a research project for her firm, and the outside agency completed the collecting and analyzing the data, and the firm's principals asked her how she would like the findings presented. How should Caitlin respond? A) To save money, Caitlin should ask for the raw data and analyses tables, and prepare the reports and recommendations herself. B) Caitlin knows the firm has done an excellent job, and she wants them to highlight the technical details and data so senior management can appreciate the ground-breaking work that was done. C) Caitlin will direct the outside agency to the problem definition and research plan and ask the firm to draft recommendations based on them. D) Caitlin should ask the outside firm to present best-practices recommendations to her firm's management as the next and final step. Answer: C Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 39) Ideally, at the end of the process, the managers A) will see their original opinions confirmed by the research findings. B) will be able to make actions plans framed by the research findings. C) will see how the research findings can lead immediately to other research before decisions are made. D) will take the recommendations and findings into consideration if additional action is needed. Answer: B Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 40) After a carefully followed research process, Allen's senior management failed to act. They agreed that the research findings were realistic, but what they felt—and that Allen should have known—is that the suggestions in the findings: A) were not future oriented. B) were not cost effective. C) were not based on state-of-the-art research methods. D) did not address privacy concerns and other ethical issues. Answer: B Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 12

41) What kind of information do marketers need to make decisions? A) Manageable B) Timely C) Relevant D) All are correct Answer: D Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 42) Which of the following is considered a problem? A) The price of product A is too high. B) Target is selling less of product A. C) Consumers are buying product B, which is very similar to A. D) All of the above Answer: A Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application 43) Which of the following is NOT considered a problem but symptoms of a problem? A) Consumers are going to stores other than Target to buy product A. B) Target is selling less of product A. C) Consumers are buying product B, which is very similar to A. D) All of these Answer: D Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Application

44) Which of the following statements accurately describes a decision support system? A) Computers collect data from various sources, analyze the information, and generate solutions to solve specific managerial problems. B) Computers provide company-specific product and service information to high-value customers. C) Computer simulations allow companies to input customer information and assess outcomes of potential marketing decisions. D) Computers collect and analyze data, which aids decision making at managerial levels. Answer: D Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 45) What is the primary difference between market research and marketing research? A) The research process B) The research topic C) The necessary investment D) The level of managerial involvement Answer: B Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 46) Which of the following is an example of a market research issue? A) How an increase in the price of French fries affects profits for McDonald's B) Which product placement has the most impact on sales of OPI nail polish C) What image customers have of Tesla automobiles D) Where customers are most likely to purchase Tide laundry pods Answer: C Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

47) Which of the following statements most accurately describes the research process? A) Using outside specialists early in the research process can prevent managers from focusing on symptoms instead of actual problems. B) Research follow-up must involve actionable steps. C) The type of analysis required depends on the type of data collected. D) When reporting their findings, outside companies should avoid making recommendations or problem solving. Answer: C Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 48) You are a brand manager for a soft drink company performing marketing research. Luckily, you have a large budget to work with. You want to know why you are losing market share to a new competitor. You gather your team and develop your research plan. What is your next step? A) Create a decision support system to analyze data. B) Turn the research process over to an outside company who will begin collecting relevant data. C) Create an action plan. D) Prepare findings from your research plan. Answer: B Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 49) Market research and marketing research are similar because they use the same A) research process. B) research topic. C) level of investment. D) level of managerial involvement. Answer: A Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

50) Sales of a once-popular detergent have been steadily decreasing. The marketing director is convinced it is a packaging issue, so she gathers a team and hires an outside firm to research the issue. Using the outside firm's final recommendations, product packaging is revamped, but sales continue to decline. What is the most likely reason the research process failed? A) The data collection and analysis were outsourced, but should have been handled by the inside research team, who knew the product better. B) The team did not define the problem, but focused on symptoms, which biased the research. C) The marketing director did not do an adequate job of assessing the recommendations for implementation. D) The outside researchers were not adequately trained in data analysis, thereby not providing the full benefit of the research. Answer: B Diff: 2 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 51) Marie had been tasked with a new research project. The CMO had told her to find out why revenue targets weren't being met, and most importantly, keep it simple. Why was Marie troubled about using that as the definition of the problem? A) She saw missing revenue targets as a symptom not the problem to research. B) How she defined simple and how the CMO defined simple might not be the same. C) She knew the CMO could be trying to find excuses for the failure instead of looking for a fact-based solution. D) She felt a problem this broad could not be addressed by marketing research. Answer: A Diff: 3 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Communication Standard 2: Bloom's || Evaluation

52) Goal Post Brewing is a craft beer brewery located in Chicago where it has roughly 30% of the market share. Specifically, of the Chicago residents that frequent craft breweries, 30% of them are loyal to Goal Post. What kind of research would Goal Post most likely conduct and why? A) Goal Post would probably conduct market research to determine if they could capture more market share by opening another location. B) Goal Post would probably conduct Market Research to determine if there's a viable market in Chicago for opening a craft brewery. C) Goal Post would probably conduct Marketing Research to perform a competitive analysis. D) Goal Post would probably conduct Marketing Research to determine if their newest beer is generating more taproom sales. Answer: D Diff: 3 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 53) Devon manages a local hamburger restaurant. Over the years, his customers have reported that they appreciate the clean, family-oriented atmosphere, and the budget-friendly prices. Recently, business has slowed a little, which Devon thinks is due to a new nearby gourmet burger restaurant. To increase sales, Devon plans to add an upscale burger, which will be priced significantly higher than the current fare, to his menu. What is the best advice you can give Devon? A) Devon should consider his customers' input as a form of marketing research and opt for more budget-friendly items on his menu instead of the pricier burger. B) Devon should hire an outside firm to perform marketing research on local customers' dining interests. C) Devon should use marketing research to investigate his customers' interest in the new burger's ingredients and in the price. D) Devon should use marketing research in the form of a taste test of his new burger versus those of the gourmet restaurant. Answer: C Diff: 3 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

54) Suppose you are a new marketing manager at a consumer products firm that produces the highly successful Minty! toothcare line. At your first meeting, you learn that the company had been planning to leverage the Minty! brand name on a line of microwaveable foods. Unfortunately, research revealed that customers negatively viewed the idea of toothpaste and food. Some managers argue that the company is too invested in the venture to eliminate it. What is the best response when asked your opinion on the venture? A) Remind your colleagues that learning what not to do is just as valuable as learning what you should do. Suggest that the company trust its research and abandon the venture. B) Suggest that the company perform additional marketing research by having customers taste test the food. C) Agree with the managers pushing the rollout. Suggest that the company create a decision support system to collect and analyze sales data of the new products and of its competitors. Modifications can be made later. D) Suggest changing the brand name of the product before the launch. Offer to become the brand manager. Since your company currently has no expertise in food sales, your career potential would be greatly enhanced. Answer: A Diff: 3 Learning Objective: 5.1 List and describe the six steps in the market research process, and explain why research is important to marketing managers. Section Reference: The Research Plan and Process Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 55) Which of the following is NOT a research goal? A) Experimental B) Exploratory C) Descriptive D) Causal Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

56) What two types of research are used by marketers? A) Qualitative and quantitative B) Exploratory and descriptive C) Observational and experimental D) Exploratory and analytical Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 57) Which question can be answered by combining qualitative and quantitative research? A) What is most appealing to customers? B) What advertising strategy works best for companies? C) What approach helps build customer loyalty? D) What metrics yield the best results for companies? Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 58) A company whose goal is to discover insights related to product opportunity ideally uses which type of research? A) Exploratory B) Descriptive C) Secondary D) Causal Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

59) Which type of research is used by marketers to count, classify, and measure things to answer descriptive marketing questions such as how much, how many, and how often? A) Causal B) Exploratory C) Qualitative D) Quantitative Answer: D Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 60) What type of goal does research that seeks to discover ideas and insights related to a problem or opportunity have? A) Exploratory goals B) Descriptive goals C) Causal goals D) Research goals Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 61) What type of research seeks to determine the effect of one variable on another? A) Causal research B) Descriptive research C) Exploratory research D) Market research Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

62) Which type of research is used by marketers to gain a more in-depth, (quality), understanding of a marketing problem or opportunity? A) Qualitative research B) Quantitative research C) Market research D) Causal research Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 63) What type of research answers questions about who, what, when, and where something happened? A) Descriptive research B) Exploratory research C) Causal Research D) Discovery Research Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 64) Which type of research is used by marketers to count, classify, and measure things to answer descriptive marketing questions? A) Quantitative research B) Qualitative research C) Causal research D) Market research Answer: A Diff: 1 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

65) Alicia was thinking about how to grow her greeting card store, and she wondered if adding some gift lines or maybe candles might help increase sales. Her friend, Jessica, suggested using market research to help make the decision. What kind of research would be best for Alicia in this situation? A) Retail focused B) Exploratory C) Descriptive D) Causal Answer: B Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 66) Which of the following is a major problem in causal research? A) It is by far the most expensive type of research marketers use. B) It can be difficult to identify and test all the reasons customers use to make decisions and act. C) Its nature makes it difficult to obtain accurate and reliable information. D) It is more appropriate for scientific or academic purposes that for practical marketing matters. Answer: B Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 67) Jorge just purchased a furniture store from the previous owner who was retiring. Jorge needed an in-depth understanding of why customers were purchasing some of his furniture lines but not others. Which research type is most appropriate for him to use? A) Qualitative B) Quantitative C) Intrinsic D) Extrinsic Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

68) Brenda was a marketing intern and was asked to collect information on customers and potential customers from social media sites, blogs and other online resources. She thought she was just doing busy-work, but her attitude changed when she figured out that she was really doing A) data mining. B) qualitative research. C) market scanning. D) collection research. Answer: B Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 69) Quantitative research would typically be used in which of the following situations? A) Determining how to respond to a competitor's new product B) Gathering customer preferences for a new flavoured sport drink C) Determining how purchase and price are related for a new pricing approach D) Exploring why customers buy a fast-moving consumer good but do not buy again. Answer: C Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 70) Steve was exploring complex questions about his company's products in the marketplace, and he has used qualitative research to get a sense of how important different factors might be as customers decided to which product to purchase. Now that he has narrowed the research down, he needs to why they were not buying by using which marketing research process? A) Quantitative research B) Qualitative research C) Market sensing D) In-depth interviews Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

71) If you had a successful car repair facility and needed to know more about how frequently your customers came in and whether you were meeting their servicing needs, what kind of research should you do or commission to help address this marketing issue? A) Descriptive B) Service focused C) Determinant D) Experimental Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 72) Subway handing out samples of a new sandwich prototype for their menu and asking for feedback. What kind of research is this? A) Exploratory B) Descriptive C) Causal D) All of these Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 73) Subway collecting data about when they serve the most customers in an effort to have the most staff on hand is an example of which type of research? A) Descriptive B) Exploratory C) Causal D) All of these Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis

74) Tim Horton's collecting data to see if they sell more bagels during Pink Ribbon bagel month or when bagels are offered as an add on for $1 is considered which kind of research? A) Descriptive B) Exploratory C) Causal D) All of these Answer: C Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 75) What type of data collection methods could be used for exploratory research? A) Observation B) Surveys C) Field Studies D) None Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 76) What type of data collection method could be used for descriptive research? A) Surveys B) Observations C) Personal interviews D) Focus groups Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis

77) What type of data collection methods could be used for qualitative research? A) Surveys B) Observations C) Personal interviews D) Focus groups Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 78) If a marketer is collecting data using surveys what is his/her research goal? A) Exploratory B) Descriptive C) Causal D) Descriptive/Causal Answer: D Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 79) If a marketer is collecting data using surveys and personal interviews what is his/her marketing goal? A) Exploratory B) Descriptive C) Causal D) None of these Answer: B Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis

80) The owner of Fitness4U asked clients: "Why are you willing to pay more to go to a gym that offers scheduled classes with instructors?" This is an example of what type of research? A) Qualitative B) Quantitative C) Causal D) Descriptive Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Application 81) The owner of Fitness4U asked clients: "How many classes taught by instructors do you attend each week here at the gym?" This is an example of which type of research? A) Qualitative research B) Quantitative research C) Descriptive research D) Causal research Answer: B Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Communication Standard 2: Bloom's || Application 82) Budweiser engages in what type of research when developing a new seltzer they want to introduce to the market? A) Exploratory B) Experimental C) Descriptive D) Innovative Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

83) Motel 6's use of focus groups to help determine how the company could improve their marketing is an example of A) qualitative research. B) quantitative research. C) experimental research. D) observational research. Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 84) L.L.Bean uses which type of research to determine the type of customers exploiting its legendary return policy? A) Descriptive B) Ethnographic C) Exploratory D) Analytical Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 85) Before a research plan can be completed, which critical decision must be made? A) Determine the type of research marketers will use. B) Understand the analytical tools needed for research. C) Prioritize the marketing plan objectives. D) Decide on the budget needed to complete the project. Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

86) Exploratory research is best suited for which of the following scenarios? A) Sports Illustrated wants to know how many women aged 18-35 years read its magazine. B) Doritos managers seek information regarding the effects of a price increase on sales. C) Mitchell's Salons wants to know what additional services customers would like to see offered. D) Pepsi seeks information about whether customers prefer canned or fountain soda at fast-food restaurants Answer: C Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 87) Descriptive research is best suited for which of the following scenarios? A) Google seeks information about what features users want to see included in its Maps app update. B) Google wants to know the age range of its Maps app users. C) Cheerios wants to know how surprise prizes affect purchasing choices. D) Cheerios seeks information about the effects of its new product packaging on sales. Answer: B Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 88) Causal research is best suited for which of the following scenarios? A) Breyers wants to know the effect of outdoor temperatures on ice cream purchases. B) Daniels Financial Services wants to know what additional services its customers would like. C) Jenny's Coiffures wants to know how satisfied customers are with her services. D) Cap'n Crunch wants to know whether parents or children drive cereal choices more. Answer: A Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

89) Which of the following statements most accurately describes the link between research goal and research type? A) Research with exploratory goals can be conducted with either qualitative or quantitative methods. B) Research with descriptive goals is most typically undertaken with qualitative methods. C) Research with causal goals is undertaken with quantitative methods. D) Research with causal goals can be conducted with either qualitative or quantitative methods. Answer: C Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 90) Which of the following statements most accurately describes the link between research plan and research design? A) Once the research plan is completed, managers determine the research goals, which then dictate the type of information needed. B) Once the research plan is completed, managers determine the type of information needed, which then dictates the research goals. C) Before a research plan can be completed, managers determine the type of information needed, which then dictates the research goals. D) Before a research plan can be completed, managers must determine research goals, which then dictate the type of information needed. Answer: D Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 91) Taco Bell engages in which type of research when it wants to understand the effects of its social media presence on sales of new products? A) Exploratory B) Descriptive C) Causal D) Ethnographic Answer: C Diff: 2 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

92) Why is highly-structured research and analysis preferred for causal research goals? A) Highly-structured research and analysis are the preconditions for discovery. B) As there are so many possible variables in marketing situations, a more complex and highly-structured approach yields better results. C) Less structured approaches can be used, but they end up being far more expensive. D) Causal research goals require sophisticated techniques that are beyond the capacity of all but professionals who can construct the highly structured research and analysis. Answer: B Diff: 3 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 93) You are in a small company, covering the marketing responsibilities as well as other duties. The owner has come to you asking about whether customers would like a new product that has yet to be built, and he said, "Just do a survey so we can get the results as soon as possible." What is your BEST response? A) The product hasn't even been built yet, so it's premature for marketing research. B) Marketing research should not be done by small businesses if they don't have the expertise on staff. C) The question about possibly liking a product is better addressed in qualitative research not a survey. D) Doing a marketing research survey isn't budgeted, so what additional funds could be allocated for the project. Answer: C Diff: 3 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

94) Goal Post Brewing Company asked their bartenders to talk with customers over the course of a weekend on which beers they'd like to see Goal Post offer in the future. Based on feedback from the bartenders, Goal Post introduced a new, more expensive beer in their taproom a week later. Then, Goal Post monitored the total sales once the new beer was introduced to determine if customers were willing to pay more money for the new beer relative to their existing beer. What was the sequence of research goals and types that Goal Post followed? A) Exploratory and qualitative, then, causal and quantitative B) Descriptive and qualitative, then, exploratory and quantitative C) Descriptive and quantitative, then, exploratory and qualitative D) Causal and quantitative, then, descriptive and qualitative Answer: A Diff: 3 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 95) Canada's Wonderland (an amusement park) noticed a decline in food sales while overall park attendance remained steady. Canada's Wonderland initially reacted by lowering food prices. The result of lower prices was even lower total food sales, a lower average food order, but the same amount of food orders. Which of the following is most correct? A) Canada's Wonderland had a causal research goal and used an experiment to collect data. As a result, the price of food does not appear to be the cause of the decline in total food sales. B) Canada's Wonderland had a descriptive research goal and used observation to collect data. As a result, the price of food does appear to be the cause of the decline in total food sales. C) Canada's Wonderland had an exploratory research goal and used a field study to collect data. As a result, the price of food does appear to be the cause of the decline in total food sales. D) None of the answers are correct. Answer: A Diff: 3 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing.; 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Design; Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

96) Based on your reading, which of the following statements most accurately describes a conclusion that can be drawn about exploratory research? A) It is often used as a precursor to additional research studies. B) It is used most often by small, upstart companies to replace more time-consuming methodology. C) It is the most critical and valuable of all research goals. D) It is the least critical and valuable of all research goals. Answer: A Diff: 3 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 97) You are a brand manager at a multinational consumer products firm. There is a potential new product in your shampoo line, called Suds & Suds, that contains beer, which studies show repairs damaged hair and adds volume and shine. Prior marketing research has shown that customers are interested in organic products. What is your BEST course of action? A) Use marketing research to investigate how customers react to beer ingredients in their shampoo. Further research should test the beer association in the product name. B) Use marketing research to test the validity of the product claims--that beer benefits hair. Detail the findings in future Suds & Suds advertisements. C) Use marketing research to determine how many people use beer as part of their haircare regimen. Conduct additional research to determine the number who are aware of the benefits of beer in haircare. D) Use the prior marketing research as secondary data and launch the product as part of a new organic line of shampoos. Answer: A Diff: 3 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

98) Which term BEST describes data that already exists, collected for another purpose that can be used to address a research problem? A) Secondary data B) Primary data C) Causal data D) Market data Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 99) Which term BEST describes methods used to watch what customers do and record patterns of interest? A) Observation B) Ethnography C) Data Collection D) Research Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 100) Which term BEST describes information newly collected specifically for research purposes? A) Primary data B) Secondary data C) Casual data D) Market data Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

101) Which term BEST fits a qualitative data collection method that is borrowed from anthropology, studies behaviour in a natural context? A) Ethnography B) Observation C) Data Collection D) Research Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 102) A major advantage of primary data is that it provides A) relevance. B) accuracy. C) reliability. D) objectivity. Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 103) Companies might choose to not use secondary data because it is A) outdated. B) expensive. C) biased. D) not credible. Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

104) The most interpersonal way for marketers to capture information is A) ethnography. B) focus groups. C) one-on-one meetings. D) private surveys. Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 105) What is a major advantage of using personal interviews to gather qualitative data? A) Modifying questions throughout the interview B) Detecting signs of deception C) Gathering information not available in surveys D) Pre-determining interview questions to be asked Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 106) An effective alternative to the personal interview is A) online customer feedback. B) telephone interviews. C) open-ended survey questions. D) cultivated customer relationship. Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

107) RFID tags are an example of which type of data collection method? A) Field studies B) Technological scanning C) Ethnography D) Focus groups Answer: B Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 108) Which of the following is a qualitative research method? A) Surveys B) Experiments C) Field studies D) Observation Answer: D Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 109) Which of the following is a disadvantage of collecting primary data? A) Length of time to collect information B) Unreliable method of validating respondents C) Cost required for collecting data D) Validating the final statistical results Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

110) Which type of research provides non-numerical data? A) Qualitative B) Experimental C) Exploratory D) Observational Answer: A Diff: 1 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 111) Carly has discovered that getting customers and potential customers to talk with each other about their impression of the new products is invaluable. She tried developing individual responses, but they seemed one-sided and not very interesting. Carly favours which qualitative marketing research technique at this point? A) Observation B) Focus groups C) Ethnography D) Personal interviews Answer: B Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 112) Patrick was the head of the operations area, and he was working with the marketing area on developing new products and processes. He complained to the marketing team about the time needed and cost of their marketing research proposal, and said he preferred to look online for the answers he needed. Even though he was correct that he could use secondary data because it already existed and might cost less, what key point was he missing? A) The content may not be as relevant as it needs to be. B) Secondary data can be expensive in acquiring the rights to use the data. C) Online research is notoriously unreliable. D) Data collected three years ago or more cannot be considered accurate with the changes in the market. Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

113) Thomas was puzzled about how to collect the qualitative data he needed. He had been assigned to uncover the product trends that will emerge over the next five to seven years, so his company could be seen as the innovator that could fill customers' needs before anyone else. He was considering personal interviews, even though they are time-consuming and expensive because personal interviews A) are the most flexible of qualitative techniques and he could follow-up immediately on the respondent's comments. B) allowed him to identify and meet the thought leaders in his industry to help build the firm's reputation. C) could be analyzed without a great deal of effort once the data collection was completed. D) required anonymity so he could ask questions he might not be able to ask in other techniques. Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 114) Amber is not sure that she is getting the right data about her customers. There seems to be a disconnect between what they say they will do and what they do. She is convinced she must try observation to see what customers do and discover the real patterns of their actions. She can use several new techniques to investigate her customers' behaviour. Which of the following is NOT an emerging observation technique she should consider? A) Using cookies to track what customers do on the firm's website B) Using facial recognition to see who the customers are and how to link purchase behaviours C) Using shopping carts equipped with GPS to track customers' movements through stores D) Building a new, flexible, real-time data collection and reporting system to track customer inquiries Answer: D Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

115) Eddie has been assigned a marketing research project to find out how customers feel about both his company and the company's competitors. He knows he needs to define the question and plan the research before doing anything before deciding on the specific research tools. At that point, which of the following tools would NOT be considered by Eddie? A) Observation B) Ethnography C) Focus groups D) Experiment Answer: D Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 116) Rebecca was meeting with a number of colleagues from other firms at a marketing research conference, and she noticed they all had similar complaints about surveys. They all used them, but they all recognized their many shortfalls. If surveys are such a problem, why do firms use them? A) Surveys help to build goodwill with potential customers, which leads to increased sales. B) Surveys are fast, quick and easy, which provides limited results. C) Surveys can be machine coded, which yields better results. D) Surveys are well understood by respondents, which leads to more reliable results. Answer: B Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 117) Sergio was the marketing researcher who seemed to have the best rapport with senior executives, and they found his research reports especially useful. The way Sergio built credibility and the secret to Sergio's success was A) describing the whole research problem and the total data collected. B) using the appropriate technical language. C) demonstrating the software he used to analyze the data. D) translating key concepts into simple charts and graphs. Answer: D Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

118) Tricia was trying to make sense of the mountain of data in her data base. She had been talking about the analysis with a senior researcher who had been in the business for about three decades, and she realized she had which advantage in dealing with the data? A) Advances in fields of logic have generated practical ways to approach large amounts of data. B) The portability and synchronization of her laptop and smart phone allowed her to work at her own pace. C) Software has been developed to help researchers find meaningful information with less effort. D) Data collection has emerged as a frontier area of innovation to give her more robust options. Answer: C Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 119) If data does not exists on the research topic, which type of data source should be used? A) First B) Second C) Primary D) Secondary Answer: C Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 120) If data does exist on the research topic, which type of data source should be used? A) First B) Second C) Primary D) Secondary Answer: D Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Application

121) Which is both a pro of primary data and a con of secondary data? A) Relevance B) Time C) Cost D) Process Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 122) When customer patterns throughout a store are tracked and products are placed strategically based on high traffic areas, which data collect method is being used? A) Observation B) Ethnography C) Personal interview D) Focus group Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 123) When a new baby product company wants to collect information quickly on the baby shampoo that was just launched what is the best data collection method? A) Observation B) Focus group C) Ethnography D) Personal interview Answer: B Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis

124) Which data collection method is being used when grocery stores track your regular purchases and send you coupons for those sales? A) Data mining B) Ethnography C) Focus groups D) Experiment Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 125) A company sends sales/promotions out via a mailer for one month straight and data is collected, the next month the company sends sales/promotions out via an email flyer and data is collected. During this time no other changes were made to the store. This is an example of a(n) A) experiment. B) field study. C) study. D) survey. Answer: B Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 126) A science teacher demonstrates for children the difference amount of water can make on the growth of a plant. The teacher sets up three plants all of the same type planted in the same type of soil but gives each plant a different amount of water each day. This is an example of a(n) A) experiment. B) field study. C) study. D) survey. Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis

127) What are the advantages of a company using secondary data? A) Speed and cost B) Accuracy and reliability C) Clarity and simplicity D) Relevance and reliability Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 128) An advantage of observational research is A) identifying behaviour patterns of the consumer. B) acquiring authentic feedback. C) gathering factual consumer demographic information. D) reducing the cost and time required to gather information. Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 129) What is a disadvantage of survey sites, such as Survey Monkey and PollDaddy? A) They can capture inaccurate data. B) There is no customer privacy. C) Data can be easily manipulated. D) They are expensive to operate. Answer: A Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

130) Which of the following statements most accurately describes data sources? A) A key advantage of primary data is its low cost and speed of collection. B) Secondary data is valued for its relevance. C) Secondary data can come from within the company. D) Companies tend to collect primary data first and supplement with secondary data. Answer: C Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 131) You plan to purchase a bicycle and research different models on the company's website. Later, when you navigate to your favourite sports website, you find ads for the same bicycles. Which research method did the retailer use to determine which ads to send you? A) Ethnography B) Observation C) Focus group D) Technological scanning Answer: B Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 132) Which of the following statements most accurately describes data collection for qualitative sources? A) Focus groups are the most expensive research method. B) Personal interviews tend toward inflexibility as the list of questions tends to be set. C) Customer feedback online is a form of personal interview. D) Data analysis can easily be performed by a marketing manager utilizing proper technology. Answer: C Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

133) With My Starbucks Rewards, customers earn loyalty points by ordering and paying via the Starbucks app. Which of the following terms BEST describes this type of data collection? A) Survey B) Experiment C) Field study D) Technological scanning Answer: D Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 134) Which of the following statements most accurately describes data collection for quantitative sources? A) Surveys provide the cheapest and most useful results of all methods. B) Field studies require the effective isolation of one variable. C) The use of quantitative analysis in marketing research is declining. D) The increase in data analytics companies has decreased the need for marketers with quantitative research skills. Answer: B Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 135) To understand a customer's behaviours in a natural context, a technology firm asks a select group of customers to record short videos of themselves talking through their first interactions with a company product. Which of the following terms BEST describes this type of data collection? A) Observation B) Focus group C) Ethnography D) Personal interview Answer: C Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

136) When Levi's uses information gathered from RFID tags to determine how denim colours affect product sales, it is using which type of research? A) Exploratory B) Descriptive C) Qualitative D) Quantitative Answer: D Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 137) You were tasked with researching a problem within your company and found the answers you needed in the monthly reports from your sales representatives. Which term BEST describes your data source? A) Qualitative B) Quantitative C) Primary D) Secondary Answer: D Diff: 2 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 138) Goal Post Brewing Company asked their bartenders to talk with customers over the course of a weekend on which beers they'd like to see Goal Post offer in the future. Based on feedback from the bartenders, Goal Post introduced a new, more expensive beer in their taproom a week later. Then, Goal Post monitored the total sales by glass once the new beer was introduced to determine if customers were willing to pay more money for the new beer relative to their existing beer. What was the sequence of data sources and data collection methods that Goal Post followed? Choose the BEST answer. A) Primary and personal interviews, then, primary and technological scanning B) Secondary and survey, then, primary and observation C) Secondary and observation, then, primary and personal interview D) Primary and focus group, then, secondary and personal interview Answer: A Diff: 3 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 47

139) Goal Post Brewing Company asked their bartenders to talk with customers over the course of a weekend on which beers they'd like to see Goal Post offer in the future, and jot down their notes at the end of their shift. Based on feedback from the bartenders, Goal Post introduced a new, more expensive beer in their taproom a week later. Goal Post's approach to collecting market data was somewhat unique in that A) they were able to utilize the personal interview collection method inexpensively. B) they were able to utilize the personal interview collection method, which typically isn't done in the craft brewing industry. C) they used a focus group collection method to collect secondary data. D) they used a focus group collection method to collect primary data. Answer: A Diff: 3 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 140) University X seeks information regarding the quality of its accounting curriculum. To collect data, Tomas, the department chair, has chosen 10 accounting majors from his morning senior seminar to participate in a focus group. Tomas reports very positive findings at the next University X meeting of department chairs. As the marketing chair, you suggest Tomas begin his research again. What is your best advice? A) Tomas should consult secondary sources of data from university archives first and then supplement his findings with more primary, qualitative research. B) Tomas should choose another 10 members for his focus group, being sure to include nontraditional students, nonaccounting majors, and those at lower grade levels. Further, Tomas should be replaced as moderator by someone experienced. C) Tomas should create an online survey to be completed by all business majors at University X. Any additional information needed can be obtained with a few well-conducted personal interviews. D) Tomas should double the size of his focus group to include nontraditional students, nonaccounting majors, and those at lower grade levels. Answer: B Diff: 3 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

141) It seems like Megan's boss is never satisfied. Every time Megan produces the requested marketing research, he comes back with a research question that requires more research. He has said, "You can't be too careful. This is an important decision!" Which of the following is the most significant problem in overdoing research? A) Megan's team can run out of both primary and secondary data by constantly using them. B) Megan's team would rather leave this research and get on with the other marketing tasks ahead of them. C) Having Megan's team overdo the research gets to be expensive and produces marginal results. D) This is a common problem in marketing research, and Megan's boss is not out of line with modern business practice. Answer: C Diff: 2 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 142) Marketing research should be viewed as A) an investment. B) a financial risk. C) an opportunity to promote a brand. D) a point of differentiation. Answer: A Diff: 2 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 143) Which of the following statements most accurately details a practical consideration for conducting marketing research? A) Due to tremendous requirements of time and money, companies should undertake marketing research only when warranted and guided by goals. B) It is best to begin a research project with goals, but remain adaptable and follow the research where it leads. C) Call reports from outside sales representatives have been replaced by decision support systems. D) Researchers must be careful to avoid respondent fatigue, which could reduce accurate and useful information. Answer: D Diff: 2 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 49

144) You are working in the marketing area of a large firm, and the CEO has just expressed her anger at the marketing research done by your area. She said, "This doesn't help me at all. How much money and time have we wasted? And, how did this happen? Aren't you supposed to be marketing professionals?" You and your team are trying to understand just what went wrong before going back to the CEO. Which of the following is NOT a possibility your team should consider? A) The team could have started at the end and worked backwards to the beginning. B) The team could have gotten a better definition of what the CEO wanted to know before beginning the research. C) The team could have designed the research better in order to get better qualitative and quantitative information. D) The team could have hired an outside agency to do the research instead of doing it themselves. Answer: D Diff: 3 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 145) Why would a company consider marketing research an investment instead of an expense? A) Considering marketing research as an investment instead of an expense would mean more reported revenue. B) Completed marketing research can be considered an asset that will help produce revenue in the future. C) Marketing research, like all other marketing efforts, are valuable and should be measured and calculated. D) Modern business practice values a return on investment (ROI) as a measure of effectiveness, and marketing research results must be considered as an investment to calculate ROI. Answer: B Diff: 3 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

146) An automobile company hired a marketing research firm to help determine why sales have been steadily declining over the last three years. The outside firm made use of readily available demographic statistics, conducted focus groups and personal interviews with car buyers, and conducted various surveys. Their findings revealed that customers view their car brand as stuffy, and old fashioned--something only their parents' generation would drive. As the brand marketing manager, what is your best response to this scenario? A) The research firm performed market research instead of marketing research. Hire a new firm and have the study completed again. B) The research firm performed market research instead of marketing research. Use the same data, but hire a new company to analyze it and present recommendations. C) Realize that this is a key lesson to be learned and develop an action plan to address your brand image and its effect on sales. D) Request more quantitative studies to gather information on sales responses to various features and promotions. Answer: C Diff: 3 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 147) You are the marketing manager for a fitness center with two locations in a small city. The owners would like to expand into a neighbouring area, but want to perform some marketing research beforehand to better understand customers in that current market. You create an online survey covering everything you want to know, which ends up being 20 screens long and takes about 30 minutes to complete. Unfortunately, you are overwhelmed by the information you gather and are unsure how to proceed. What mistake did you make? A) You performed quantitative research when qualitative research would have garnered better results. B) You performed qualitative research when a combination of qualitative and quantitative research would have garnered the information needed. C) Your opportunity was not well defined at the beginning of your marketing research process, which meant you collected data that did not meet your needs. D) You designed the survey to ask for information you wanted, but did not necessarily need for the decision at hand. Customer fatigue may make your information suspect. Answer: D Diff: 3 Learning Objective: 5.4 Identify and describe the practical considerations when conducting research in marketing. Section Reference: Practical Considerations for Conducting Marketing Research Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

148) John comes from a small town in Ohio where there are very few, if any, casual dining options. He believes there's demand for more casual dining options and is considering opening a restaurant. What research goal John should consider, why it might be a good fit for his situation, and how he might implement it in a cost-effective way? Answer: Responses will vary, but students should identify exploratory research as the goal to consider. Rationale might include the following: John should have an exploratory research goal and confirm his belief that more casual dining options are a need. He could start by asking his friends, family members, and neighbours in his hometown if they'd like more casual dining options. He could also discuss with them what options/types of restaurants they'd like to see. This is a good research goal for John because it's cheap, addresses his core business idea (i.e., Is another dining option needed and if so, what kind?), and is easy to implement. Exploratory in this situation is the most practical research goal given that its most suited for discovering ideas and insights related to a problem or an opportunity. Diff: 3 Learning Objective: 5.2 List and describe the different primary research objectives and research types in marketing. Section Reference: Research Design Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 149) Tide is conducting market research to assess a new detergent they're considering. As part of their research, Tide assembled focus groups and conducted personal interviews to collect data. Based on feedback and analysis from the focus groups and interviews, Tide brought the new detergent to market. Unfortunately, the new detergent was a failure and had to be pulled from shelves because it didn't generate enough sales. What are some issues in the data collection process the could've led to the product's failure? Answer: Responses will vary. There's a number/combination of things that could've went wrong, including the following points: It's possible the focus groups and individuals selected for personal interviews didn't represent the new detergent's target demographic. It's possible the moderator of the focus groups was ineffective and interpreted the results of the groups incorrectly. Since personal interviews take considerable time, its possible consumer preferences have changed and the data is no longer valid. Diff: 3 Learning Objective: 5.3 List and describe the common options for data collection and analysis and the relationships between the two. Section Reference: Research Implementation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

Applied Marketing, 1ce (Grayson) Chapter 6 Using Segmentation Targeting and Positioning to Distinguish a Brand Within the Market 1) Both segmentation and mass marketing are essential if a company is to succeed in its marketing efforts. Answer: FALSE Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 2) Demographics is an important part of looking at the environment. That same kind of information can be used to segment markets. Answer: TRUE Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 3) Demographic information can be used in many ways. Marketers can even select music to accompany ads or play in stores based demographics. Answer: TRUE Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 4) Marketers have a number of segmentation approaches they can use with customers that rely on where they live, what they have accomplished, what they want to do, and what they actually do. As businesses are not people, it is virtually impossible to segment businesses and they don't behave as people do. Answer: FALSE Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

5) To use demographic segmentation effectively marketers search for a unique, defining consumer characteristic. Answer: FALSE Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 6) Despite the obvious difference in purchasing behaviours, uses, and sizes of transactions in marketing to businesses and marketing to consumers, segmentation can be used for B2B and B2C. Answer: TRUE Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 7) It is important to identify which consumers are NOT interested in your product when segmenting a market. Answer: TRUE Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 8) Once the segments have been identified using all of the selected variables, it is important to describe each one in detail to understand the market. Answer: FALSE Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

9) The segments a firm develops will be the same as other competitors as the firms are operating in the same market with the same customers. Answer: FALSE Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 10) Determining accurate and meaningful categories requires using a large number of segmentation variables. Answer: FALSE Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 11) A firm creates a number of segments based on research and applies the five criteria to determine the segments are viable. Then, it will not use some of them. Answer: TRUE Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 12) Positioning statements are essential for communications plans but operate independently of the other elements of the marketing mix. Answer: FALSE Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

13) Perceptual maps are particularly useful as they establish positions relevant to all the markets in which the company is operating. Answer: FALSE Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 14) When a firm is selecting target markets, it is important to consider ethical and moral reasons to choose the target. Answer: TRUE Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 15) If the market is not responding to a firm's positioning statement, the best and least risky marketing option would be to reposition the brand to turn the situation around. Answer: FALSE Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 16) Geographic segmentation is A) the process of categorizing different groups of customers in a market, based on customer differences. B) the process of separating customer groups based on location. C) the process of separating customer groups based on lifestyle. D) the process of separating customers based on what they do. Answer: B Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

17) Psychographic segmentation is A) the process of categorizing different groups of customers in a market, based on customer differences. B) the process of separating customer groups based on location. C) the process of separating customer groups based on lifestyle. D) the process of separating customers based on what they do. Answer: C Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 18) Behavioural segmentation is A) the process of categorizing different groups of customers in a market, based on customer differences. B) the process of separating customer groups based on location. C) the process of separating customer groups based on lifestyle. D) the process of separating customers based on what they do. Answer: D Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 19) Demographic segmentation is A) the process of categorizing different groups of customers in a market based personal characteristics such as age, race, and so on. B) the process of separating customer groups based on location. C) the process of separating customer groups based on lifestyle. D) the process of separating customers based on what they do. Answer: A Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

20) A key variable to demographic segmentation is A) gender. B) social class. C) brand loyalty. D) usage rate. Answer: A Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 21) Which of the following is NOT one of the variables used in behavioural segmentation? A) Education attained B) Brand loyalty C) Benefits sought D) Buyer readiness Answer: A Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 22) Which variable is considered most accurate for segmenting customer groups? A) Geographic B) Demographic C) Psychographic D) Behavioural Answer: D Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

23) Which variable is least useful when segmenting business markets? A) Geographic B) Demographic C) Psychographic D) Behavioural Answer: C Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 24) What is the primary purpose of market segmentation? A) To denote the differences between your company's offerings versus those of close competitors B) To create focused marketing mixes that effectively meet the needs of specific customers C) To research customer perceptions of products and services in an effort to develop marketing opportunities D) To understand the various categories of customer groups, which aids companies in targeting an entire mass market Answer: B Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 25) The process of putting customers or potential customers into groups based on customer differences is A) market categorization. B) market segmentation. C) market division. D) market assessment. Answer: B Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

26) Once a marketer begins the process of market segmentation, he or she knows this will require developing A) individual profitability analyses. B) separate products and brands. C) different marketing mixes. D) mass personalization. Answer: C Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 27) Which broad category of segments is easy to apply and where relevant information is readily available? A) Geographic B) Demographic C) Psychographic D) Behavioural Answer: B Diff: 1 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 28) Vance, a marketing major, was helping his sister develop her retail shop. Her business was not thriving, and Vance quickly determined that trying to please everyone was pleasing no one. Together they worked out an approach where she would identify groups of customers who had similar needs, and then work with each group to meet their needs. This basic process in marketing is called A) demographics. B) needs response. C) marketing segmentation. D) market optimization. Answer: C Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

29) Bragg Company is going through the market segmentation process. They divide customers into two groups: 1) those over 50, and 2) those under 50. This is an example of A) geographic segmentation. B) demographic segmentation. C) psychographic segmentation. D) behavioural segmentation. Answer: B Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 30) Riley Surf Company is going through the market segmentation process. They divide customers into two groups: 1) those who live in California, and 2) those who don't. This is an example of A) geographic segmentation. B) demographic segmentation. C) psychographic segmentation. D) behavioural segmentation. Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 31) Shredville Company is going through the market segmentation process. They divide customers into two groups: 1) those who prefer snow skiing, and 2) those who prefer snowboarding. This is an example of A) geographic segmentation. B) demographic segmentation. C) psychographic segmentation. D) behavioural segmentation. Answer: C Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application

32) Brag Company is going through the market segmentation process. They divide customers into two groups: 1) those who snow ski 0-4 times a year, and 2) those who snow ski more than 4 times a year. This is an example of A) geographic segmentation. B) demographic segmentation. C) psychographic segmentation. D) behavioural segmentation. Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 33) Gnarly Company makes shoes designed for skateboarding. What is the most likely demographic variable Gnarly will segment the market on? A) Climate B) Physical location C) Lifestyle D) Age Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 34) Ryder Company segmented the market based on the brand loyalty variable; what type of segmentation are they performing? A) Psychographic B) Lifestyle C) Demographic D) Behavioural Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application

35) Tide segmented the market based on customer lifestyles; what type of segmentation are they performing? A) Psychographic B) Lifestyle C) Demographic D) Behavioural Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 36) Apple segmented the market based on whether customers were Millennials; what type of segmentation are they performing? A) Psychographic B) Lifestyle C) Demographic D) Behavioural Answer: C Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 37) Nike segmented the market based on whether customers considered themselves pessimistic; what type of segmentation are they performing? A) Psychographic B) Lifestyle C) Demographic D) Behavioural Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application

38) Vineyard Vines segmented the market by dividing customers between those who make over $100,000 and those who don't; what type of segmentation are they performing? A) Psychographic B) Lifestyle C) Demographic D) Behavioural Answer: C Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 39) Angela and Steve were expanding their business selling scooters that were ideal for an urban environment. This was their first attempt at segmentation, and they tried to look at the market in several ways. Which of the following is NOT one of the usual methods of geographic segmentation? A) Density B) Region C) Size D) Province Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 40) Mario had two kitchen appliance stores in a mid-sized town, and he used geographic segmentation, particularly focusing on the location of the stores. The results were disappointing. Why do you think this geographic segmentation didn't work? A) The stores were likely too close to each other to enable geographic segmentation. B) The business was too small to be able to use segmentation effectively. C) Geographic segmentation does not account for the key variables in decision making. D) There are so many factors such as competition and weather that it would be impossible to analyze the failure definitively. Answer: C Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

41) Characteristics such as gender, race, religion and national origin may be effective in segmentation if A) local laws and regulations permit profiling. B) the marketer does not explicitly mention or show the characteristics in promotions. C) alternatives would be too expensive to pursue. D) the characteristics can be used to identify purchasing behaviours. Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 42) Stephanie could not find a significant pattern in looking at the demographic characteristic of her current customers. She had tried age, gender, income, national origin, and more but was not satisfied. She knew she needed to segment her market and was considering whether it might be possible to use another characteristic such as personality. What kind of segmentation approach would you recommend to her? A) Psychographics B) Complex demographics C) Geo demographics D) Insight segmentation Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 43) Lawrence was monitoring the results of his demographic segmentation campaign for his mid-sized firm, and while it was doing okay, it felt it could be better. He was reluctant to go to psychographics as a basis for his segmentation effort because A) he felt customers would feel this was an invasion of their privacy. B) no one in the marketing area had a degree in psychology to support the segmentation. C) psychographics works well with services but is not generally applicable to products. D) he knew psychographics required sophisticated research to develop, which was beyond the capacity of his firm. Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

44) Marketers have many choices on how to segment markets. What is the main advantage to using the behavioural segmentation approach? Behavioural segmentation A) relies on external census data as in demographics. B) accounts for people might be moving in and out of a geographic area. C) focuses on the lifestyles of customers and potential customers. D) is based on what customers do, not what they say they would do. Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 45) Assume you are in the marketing area of a small firm selling office equipment to a range of business. You know segmentation would be better than mass marketing, and with limited resources, you want to use demographic segmentation. For consumers you might use family life cycle stage, and the equivalent demographic approach for business segmentation would be A) number of employees. B) stages in business partnership cycle. C) depth of product lines. D) years in business. Answer: B Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 46) Emily was beginning her first assignment as an assistant marketer when she examined the segments being used by her new employer. While she had learned the four distinct, broad categories used in segmentation, she found that in practice A) the four categories overlap. B) modern marketers used only three of the four categories. C) these categories are not used in online marketing. D) standard categories are used within industry groups. Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

47) What common factor can be found in firms marketing food products, real estate, and sports equipment? A) Marketers must change marketing objectives as customers tastes change. B) Marketers should consider geographic segmentation at a minimum. C) Marketers have found that segmentation is not cost effective. D) Marketers should develop detailed segments within only one of the four broad categories. Answer: B Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 48) Which of the following is the BEST example of behavioural market segmentation? A) Xiomara's Nail Salons are all located in upscale, urban areas. B) Nycole's Spas advertise with stylish, female customers in mind. C) Silver Fitness Centres cater to an older clientele. D) Jenny's Hair Salons offer a specially priced hair-care package to their best customers. Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 49) Which of the following is the BEST example of geographic market segmentation? A) Stores focus lawn mower sales in rural and suburban areas. B) Advertisements for lawn equipment are targeted to married couples and families. C) Lawn mowers are sold online. D) Televised commercials for lawn mowers are aimed at people who value order and beauty. Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

50) Which statement BEST describes demographic segmentation? A) It is often the first approach companies use. B) Individual traits are more often effective than combinations of traits. C) It includes customers in different stages of the buying process. D) It is often difficult for marketers to measure and assign. Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 51) Which of the following is the BEST example of psychographic market segmentation? A) Old Spice targets those customers who have been loyal to the brand for decades. B) Old Spice commercials target the "manly" man. C) Old Spice primarily sells product in southern U.S. states. D) Old Spice, once targeted toward men, now targets anyone. Answer: B Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 52) Which statement BEST describes behavioural segmentation? A) Frequent shopper cards provide insight to marketers. B) Marketers take this approach when using music to appeal to different age groups. C) Variables include lifestyle and occupation. D) It is often the first approach companies use. Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

53) Which of the following describes the BEST similarity between segmentation tools PRIZM and Tapestry? A) Each categorizes customers into more than 100 different segments. B) Each is owned by Nielsen. C) Each suggests that similar people live in close proximity. D) Each creates segments primarily using behavioural data. Answer: C Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 54) When firms are producing affordable goods that people buy because the goods increase their sense of self-esteem, they will most likely use what segmentation approach? A) Identity segmentation B) Income segmentation C) Social segmentation D) Psychographic segmentation Answer: D Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 55) A manufacturer making high-quality speakers knows some younger consumers buy the speakers for gaming, some older consumers for music reproduction, and some other consumers, both older and younger, for movie viewing. The manufacturer will most likely use what kind of segmentation? A) Behavioural segmentation B) Income segmentation C) Age-based segmentation D) Psychographic segmentation Answer: A Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

56) Which of the following is the BEST example of demographic market segmentation? A) Personal razors are sold in mass merchandise stores across Canada. B) Most brands sell a line of personal razors that are pink or purple. C) Advertisements for personal razors often tout safety features. D) Televised commercials for personal razors are aimed at people who value cleanliness and beauty. Answer: B Diff: 2 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 57) Cover Co. is a new company with two employees: the husband and wife that founded the company. Cover makes trash can covers that help keep outdoor trash cans secure. Which segmentation method would Cover be least likely to use and why? A) Demographic segmentation because nearly every household utilizes trash cans. B) Behavioural segmentation because behavioural variables have little effect on the use and need for a trash can cover. C) Psychographic segmentation because the variables are difficult for marketers to measure D) Geographic segmentation because the use of trash cans isn't dependent upon geography. Answer: C Diff: 3 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 58) Jesse discovered a wealth of demographic information by looking at the Census data, and he wanted to use the information for demographic segmentation. What would be your best advice to him about demographic segmentation? A) Find the one characteristic that makes the most sense and focus on that with laser-like precision. B) Use no more than two variables to make segmentation more reliable and testable. C) Use multiple segments to accommodate the purchasing behaviours of his customers. D) Use as many characteristics as he could manipulate in his computer programs. Answer: C Diff: 3 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

59) A mass market approach A) assumes the market is just one big segment. B) assumes every customer is their own segment. C) is the process of separating customer groups based on location. D) is the process of separating customer groups based on lifestyle. Answer: A Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 60) A micromarketing approach A) assumes the market is just one big segment. B) assumes every customer is their own segment. C) is the process of separating customer groups based on location. D) is the process of separating customer groups based on lifestyle. Answer: B Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 61) Generally speaking, how many steps are there in the segmentation process? A) 5 B) 6 C) 7 D) 8 Answer: B Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

62) Which of the following is NOT a criterion needed for a market segmentation approach to be effective? A) Measurable B) Substantial C) Responsive D) Marketable Answer: D Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 63) Which of the following is NOT one of the steps in the Segmentation Process? A) Research the market dimensions B) Narrow the market C) Select general variables within a selected category D) Develop a profile for each segment Answer: A Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 64) Differentiated marketing is also known as A) micromarketing. B) variable marketing. C) multi-segment marketing. D) niche marketing. Answer: C Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

65) Which of the following is NOT one of the criteria for effective marketing segmentation? A) Identifiable B) Measurable C) Accessible D) Affordable Answer: D Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 66) What is the sixth and final step in the segmentation process? A) Define the broad market. B) Narrow the market. C) Choose specific segmentation variables. D) Develop a profile for each segment. Answer: D Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 67) Which term refers to the customization of the marketing mix for each customer? A) Micromarketing B) Differentiated marketing C) Multi-segmented marketing D) Niche marketing Answer: A Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

68) The process of segmentation goes from narrowing down from the very broad market definition to A) selecting general variable segments to be used. B) identifying categories within each variable. C) developing a profile for each segment. D) identifying the individual consumers within the segment. Answer: C Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 69) As micromarketing is expensive and not often necessary, the firms that tend to use it are those firms that: A) Have few products or services to offer. B) Have many, intense competitors. C) Have excess financial resources. D) Have products that are customized products and services. Answer: D Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 70) Which of the following is NOT one of the five criteria used to evaluate a segment? A) Identifiable B) Realistic C) Substantial D) Responsive Answer: B Diff: 1 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

71) In which step of the segmentation process would a SWOT analysis be most useful? A) Define the broad market B) Narrow the market C) Select general variable category(ies) for segmentation D) Choose specific segmentation variables within a selected category Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 72) Adidas is currently trying to decide if segmentation based on demographics or psychographics makes the most sense. In which step of the segmentation process are they? A) Define the broad market B) Narrow the market C) Select general variable category(ies) for segmentation D) Choose specific segmentation variables within a selected category Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 73) Microsoft has decided to that behavioural segmentation makes the most sense. Which step of the segmentation process is next? A) Narrow the market B) Select general variable category(ies) for segmentation C) Define the broad market D) Choose specific segmentation variables within a selected category Answer: D Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application

74) Able Co. is a brand-new clothing company. They've decided they want to make clothes. Specifically, they want to make clothes for outdoor recreation. Which steps of the segmentation process have they completed? A) 1) Define the broad market B) 1) Define the broad market, 2) Narrow the market C) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation D) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation, 4) Choose specific segmentation variables within a selected category Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 75) Able Co. is a brand-new clothing company. They've decided they want to make clothes and divide the market between individuals who make more than $80,000 a year and those who make less. Which steps of the segmentation process have they completed? A) 1) Define the broad market B) 1) Define the broad market, 2) Narrow the market C) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation D) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation, 4) Choose specific segmentation variables within a selected category Answer: D Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 76) There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables BEST meets the "identifiable" criterion? A) Customers who live somewhere with an average temperature of at least 60 degrees B) Customers who typically vote conservative C) Customers who are socially responsible D) Customers who are pessimistic Answer: A Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 24

77) There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables BEST meets the "substantial" criterion? A) Members of the segment typically vote Liberal. B) The segment represents $100 million in potential revenue and requires a roughly $10 million investment into the marketing mix. C) All members of the segment are active on popular social media. D) The segment represents approximately 200 million people. Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 78) There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables BEST meets the "measurable" criterion? A) Members of the segment typically vote Liberal. B) All members of the segment use cell phones. C) All members of the segment are active on popular social media. D) The segment represents approximately 200 million people. Answer: D Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 79) There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables BEST meets the "accessible" criterion? A) Members of the segment typically vote Liberal. B) The segment represents $100 million in potential revenue and requires a roughly $10 million investment into the marketing mix. C) All members of the segment are active on popular social media and the Company primarily advertises on social media. D) The segment represents approximately 200 million people. Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 25

80) Marketing segments should be internally ________ and externally ________. A) diverse; fragmented B) accessible; consistent C) fragmented; different D) consistent; different Answer: D Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Communication Standard 2: Bloom's || Application 81) Judith has invented a cell phone battery that lasts for two weeks without needing to be recharged. Some of her friends think she should just announce it to the world, and marketing isn't necessary. Other friends are recommending Judith look at segmenting the market which would help her to A) keep within a reasonable marketing budget. B) develop protection from competitive pressures. C) ensure she will be able to patent the battery without letting the entire market know. D) focus on those potential customers with the greatest need. Answer: D Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 82) Matt had a passion for antique tools and decided to turn that passion into a brick and mortar store. He defined the broad market then narrowed it, but then he was stuck. He discussed his problem with his aunt what had years of experience in marketing positions in a large retailing firm. How could his aunt help him to take the next steps as he did know what to do next? A) To be successful, an entrepreneur should get advice from someone of the opposite gender. B) To make tough decisions about which kind of segmentation to use is often a judgment by someone with extensive experience. C) To be able to determine the next steps, it's best for a small business to discuss segmentation only with people one can trust. D) To help start-up firms, larger companies will develop mentorship programs to help the entrepreneur. Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 26

83) Alicia had taken a marketing position in a small company which had never had a marketing function or individual before. She explained segmentation to the owner of the firm, and the owner asked Alicia to come up with as many segment variables as possible using behavioural segmentation. Alicia argued for fewer segment variable as it makes the process less complicated and is generally preferred as long as the fewer variables allow for accurate and meaningful categorization and A) no other segmentation approaches are used. B) competitors and industry standards use fewer variables. C) there are clear distinctions among different customer groups. D) adequate research can support the choices. Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 84) Justin has a bookstore, both online and a physical store. He had not been using any sort of segmentation, but you have worked with him to identify the market for his book selections, and after brainstorming the two of you have decided on a behavioural approach to maximize his marketing efforts. What is your next move? A) Narrow the market further. B) Decide which behavioural variables are significant for customer distinctions. C) Examine his merchandise to see if there are sufficient books and merchandise to meet the demands of the segments. D) Rank order the segmentation approaches within the behavioural approach. Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

85) Alejandro has created a line of small and intense chocolates. He has found a way to give the user the satisfaction of a regular chocolate candy but with its small size, there are far fewer calories. He feels there are many potential customers. Would micromarketing would work well for his business? Why or why not? A) Yes. Micromarketing is ideal for miniaturized products. B) No. Micromarketing is for highly customized products with small segments. C) Yes. Until the business can grow, micromarketing works until large scale is required. D) No. Micromarketing is no longer practiced for consumer goods. Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 86) Carly and Diane had worked out a thoughtful behavioural segmentation approach for their consulting business, and when they were looking at the specific individuals in the segments, they found a significant group of customers that appeared in more than one segment. They should A) concentrate on these potential customers as their needs are highly relevant in several areas. B) revise the segment variables to eliminate the overlap. C) ignore the overlap unless it represents more than 20% of a segment. D) go back to the data to ensure the segments were done accurately. Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 87) Stuart is the owner of a small furniture refinishing and rebuilding firm. He has been skeptical but agreed to hear your proposal for behavioural segmentation. When you described a segment, he asked, "How am I supposed to know who these people are?" Intuitively he has addressed which of the criteria for marketing segmentation? A) Responsive B) Accessible C) Measurable D) Differentiable Answer: D Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

88) You and a friend are studying for a Marketing midterm, and she says, "I don't get why measurable is a separate criterion for marketing segments. I don't see any difference between "measurable" and "substantial." How should you explain the difference so she that can respond if this is a question asked in the exam? A) They are related concepts, but since each of the five criteria correspond to the 5 Ps, the criteria are phrased differently. B) Measurable is concerned with size of segments, and substantial deals with issues such as how many customers are in a segment. C) Measurable is more objective, counting things for example, and substantial is variable, such as size of the company which would be different for small and large firms. D) Measurable is active, derived from the verb measure, but substantial is a more passive description. Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 89) Why is it important to define the broad market during the segmentation process? A) To determine how many segmentation variables are needed B) To determine the markets in which you will and will not participate C) To determine the uniqueness of your market segment D) To set parameters for segmentation Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 90) Whole Foods sells organic foods to affluent, health-conscious customers in what is often considered a "luxurious" environment. This is an example of A) micromarketing. B) differentiated marketing. C) multi-segmented marketing. D) niche marketing. Answer: D Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

91) Which of the following statements accurately describes the segmentation process? A) Companies generally try to use the smallest segments possible to limit their financial exposure. B) The more segmentation variables, the more specific the group and the easier the segmentation becomes. C) Companies rely on market research to determine appropriate variables to use. D) Segments should be externally homogeneous, but internally heterogeneous. Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 92) Which of the following statements accurately describes one of the five criteria of effective market segmentation? A) A segment requires a large number of customers to be considered substantial. B) Responsiveness is a function of reaching out to customers or bringing them to your business. C) Knowing the number of customers in each segment is critical to determining marketing potential. D) Effective marketing strategies often blur boundaries between market segments. Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 93) Tom was working on developing segments for a new product his firm was launching. He commissioned research to discover what customers really wanted so he could match what his firm could provide. In what stage of the segmentation process was he? A) Marketing research and analysis B) Product differentiation C) Defining the broad market D) Market planning Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

94) Mike's firm is a manufacturer of sealing tapes. The firm recognizes that there are several large groups of businesses that could use these products, and the firm has a reasonable but not unlimited budget for segmentation. What marketing segmentation strategy would most likely be appropriate? A) Multi-segment marketing B) Cost-effective marketing C) High-impact marketing D) Niche marketing Answer: A Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 95) Kim has been developing a segmentation approach for her catering service. She has identified a group of potential customers who seem to be good candidates, except they are far away from where her kitchens and prep areas are. She is not sure she can effectively service these customers. What segmentation criterion is this potential segment failing? A) Identifiable B) Substantial C) Accessible D) Responsive Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 96) Logan is a personal trainer specializing in work with professional athletes. Since athletes' needs vary and their travel schedules are hectic, Logan customizes his marketing mix for each athlete with whom he hopes to work. This is an example of A) micromarketing. B) undifferentiated marketing. C) multi-segmented marketing. D) niche marketing. Answer: A Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

97) Blue Buffalo is a pet-food company that uses only natural ingredients in its products. It targets pet owners who want only high-quality foods for their pets, which is a significantly large and distinct group. This is an example of A) micromarketing. B) undifferentiated marketing. C) multi-segmented marketing. D) niche marketing. Answer: C Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 98) Akemi is a product manager tasked with launching a new line of canned, spiked iced tea. After studying the market research, she decided that customers in her market will differ based on their behaviour with product benefits—the most important variable. Which step in the segmentation process has Akemi most recently completed? A) Select variables for segmentation. B) Select variables within each category. C) Narrow the market. D) Identify categories within each variable. Answer: B Diff: 2 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 99) Which of the following scenarios represents a market segment that likely does NOT meet the "substantial" criterion? A) Members of the segment have agreeable personalities and the Company makes shoes. B) Members of the segment generally don't use cell phones and the Company makes a cell phone app. C) Members of the segment are below the poverty line and the Company makes jewelry. D) Members of the segment buy grain and the Company sells grain. Answer: C Diff: 3 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

100) Which of the following scenarios represents a market segment that likely does NOT meet the "responsive" criterion? A) Members of the segment have agreeable personalities and the Company makes shoes. B) Members of the segment generally don't use cell phones and the Company makes a cell phone app. C) Members of the segment are below the poverty line and the Company makes jewelry. D) Members of the segment buy grain and the Company sells grain. Answer: D Diff: 3 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 101) Stephanie has been segmenting the market to help her grow her catering business. She is now at final stage in the segmentation process, and she will develop profiles for the customer groups. Why is this important? A) Profiles will indicate why the group is unique, so a marketing mix can address that group specifically. B) Profiles are the key to developing a customer relationship management system that will help in future data collection and monitoring. C) Profiles help marketers develop communications and promotion plans to reach that specific customer group. D) Profiles will help limit the number of groups being considered as each profile will tell a clear story. Answer: A Diff: 3 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

102) With a degree in pastry arts, you now are opening a cupcake bakery in your hometown. While performing marketing research, you discover that there is a strong market for craft cocktails in the area. To be successful, what is the best next step? A) Move forward with market segmentation research to find the best target market for your cupcake bakery. Keep the idea of adding craft cocktails to your business for the future. B) Abandon the cupcake bakery idea and perform market segmentation research to find the best target market for a craft cocktail business. C) Seek a partner who has expertise in bartending. Then perform market segmentation research to find the best target market for your combined businesses. D) Ignore the craft cocktail information since it does not pertain to your business model. Answer: A Diff: 3 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 103) You are a new marketing manager at a consumer products company. During a meeting on your first day, you learn that the company is contemplating the creation of a line of personal products for people with red hair. When someone asks if you think this an effective segmentation approach, what is your best response? A) Yes, redheadedness meets three of the five criteria for effective segmentation. B) No, while redheadedness is identifiable, measurable, and responsive, it is neither substantial nor accessible. C) No, while redheadedness is identifiable, measurable, and substantial, it is neither accessible nor responsive. D) Yes, redheadedness is identifiable, measurable, and substantial. While accessing redheads is only slightly different from reaching other customers, redheads likely will prove responsive to consumer products—shampoos, makeup, etc.—targeted to their specific needs. Answer: D Diff: 3 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

104) You are the marketing manager for a company that creates content for online coursework. An employee approaches you with an idea for a course targeted to parents who home school their children. Subsequent research shows that this market is small, but passionate, and that there are no competitive products on the market. There are, however, plenty of products targeted to the homeschooled children. What is the best way to proceed with this suggestion? A) Since homeschoolers meet all five criteria for effective market segmentation, you should proceed using a niche marketing approach. B) Since homeschoolers meet all five criteria for effective market segmentation, but the market size is so small, you should consider a micromarketing approach. C) Since homeschoolers are identifiable, measurable, and responsive, they meet only three of the five criteria. The idea should be abandoned. D) Since homeschoolers are identifiable, measurable, accessible, and responsive, they only meet four of the five criteria. But, because there are no competitors in the market, you can ignore their small size and proceed with a differentiated strategy. Answer: A Diff: 3 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 105) A target market is A) the group of customers a company decides to focus its marketing efforts on. B) the group of companies a given company must take customers away from. C) a group of customers loyal to another company. D) a group of customers a company doesn't want to market to because those customers are the least profitable. Answer: A Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

106) Positioning is A) the act of categorizing different groups of customers in a market, based on customer differences. B) used externally to give customers a sense of the company's brand. C) the act of creating a specific perception in the customer's mind relative to other options. D) the act of strategically locating products with a given geographic area. Answer: B Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 107) How many steps are typically involved in developing a target market? A) 5 B) 4 C) 2 D) 3 Answer: D Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 108) What is the first step in developing a target market? A) Select a variable within the base. B) Narrow the market. C) Rank the segments in order of attractiveness. D) Decide which segments to target. Answer: C Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

109) What is the third step in developing a target market? A) Select a variable within the base. B) Narrow the market. C) Rank the segments in order of attractiveness. D) Decide which segments to target. Answer: D Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 110) Which of the following terms refers to the efforts to discourage customers to decrease product or service demand? A) Demarketing B) Positioning C) Repositioning D) Micromarketing Answer: A Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 111) To what component of a positioning statement does the unique selling proposition refer? A) Company brand B) Target customer C) Key benefit D) Competitive reference Answer: C Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

112) The key benefit is also known as the A) differentiation point. B) customer preference. C) unique selling proposition. D) product strength. Answer: C Diff: 1 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 113) What is the general rule for how many segments to focus on at a time? A) Companies should focus on all segments for which the required return on investment can be made. B) Companies should focus on the most attractive segment. C) Companies should focus on the three most attractive segments. D) Companies should eliminate half of the segments by focusing on the most attractive 50%. Answer: B Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 114) When a company is deciding on a target market, their first step is to rank the segments in order of ________ based on attributes such as ________ and ________. A) attractiveness; size; growth B) size; growth; attractiveness. C) competition; size; ethics D) growth; size; competition Answer: A Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

115) Carrie's Convenience offers the Calgary community premium groceries at discount prices with more convenience and friendlier service than large chain grocery stores. This is an example of A) a targeting statement. B) a value proposition. C) a positioning statement. D) a target market proposition. Answer: C Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 116) How many positioning statements does a company typically have? A) None, since a "positioning statement" isn't a real thing. B) Companies only have one positioning statement since its essentially a mission statement. C) Companies typically have a positioning statement for each target market. D) Companies usually have a positioning statement for their 3 primary sustainable markets. Answer: C Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 117) Alison had developed a dozen segments for her firm's new product, but she felt she needed to check the company's code of ethics before targeting one of the segments. Alison's action was A) inconsistent with good marketing practice in identifying segments with strong potential. B) consistent with good marketing practice that suggests all actions must be reviewed to ensure they are consistent with the firm's code of ethics. C) inappropriate as she was reflecting her own biases. D) appropriate as some firms may want to exclude some segments on moral or ethical grounds. Answer: D Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

118) Jim needed to reduce the number of segments he had identified as his firm had limited resources and wanted to concentrate its efforts. In addition to looking at how attractive a segment appeared to be, he also needed to consider whether the segment was A) consistent with the firm's goals and objectives. B) supported by quantitative research. C) consistent with the firm's communications plan to reach them. D) being dominated by a competitor. Answer: A Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 119) Kim had launched her new enterprise—a health maintenance service for pets. Working with a marketing consultant, she identified five segments of pet owners who would be thrilled to subscribe to her new service. Her marketing consultant cautioned against tackling all five at once, suggesting that focusing on one would allow her to develop her expertise and A) capture the next four as soon as possible. B) concentrate her marketing resources. C) become a strong niche player. D) avoid attracting competitors. Answer: B Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 120) Some segments are so attractive that many competitors are also pursuing those customers. A firm is considering whether to include this segment in its targets and should A) invest resources heavily before trying to capture this segment. B) select the segment as it's an obvious target. C) revise its segmentation approach to come up with similar segments. D) ignore this segment to avoid competitive pressures. Answer: D Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

121) After selecting the target segments, a firm needs to create a positioning statement. Which of the following is NOT one of the four components of a positioning statement? A) The customers being sought B) The benefit customers of interest to customers C) The value the customer will receive D) The comparable competitor's products Answer: C Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 122) The Chief Marketing Officer of a consumer electronics firm wanted to bring out a line of less expensive, simpler appliances to reach new markets. Which of the following would you recommend as her BEST alternative? A) Repositioning her current lines B) Launching a new brand C) Abandoning the idea D) Testing the products overseas to determine the best approach Answer: B Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 123) Which of the following statements most accurately describes targeting? A) Effective marketing strategies often place individual customers in two or more market segments at one time. B) Focusing on two or more market segments at once allows companies to use resources efficiently and effectively. C) Target marketing is best used to determine viable and attractive customer bases. D) The attractiveness of specific market segments depends upon potential competitive pressures. Answer: D Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

124) Some consumer electronic stores charge high restocking fees to discourage a targeted customer group from repeatedly purchasing, trying, and returning merchandise. What term refers to this marketing effort? A) Niche marketing B) Positioning C) Repositioning D) Demarketing Answer: D Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 125) Chuck Financial Services helps retirement-ready individuals take control of their finances without the exorbitant fees associated with traditional brokerage firms. This is an example of A) a positioning statement. B) a repositioning statement. C) demarketing. D) a perceptual map. Answer: A Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 126) Which of the following is an example of repositioning? A) Nordstrom created Nordstrom Rack to appeal to discount-savvy shoppers. B) Hallmark is seeking younger audiences with its movie streaming services. C) Cellular phone companies created simple phones with large buttons for the senior market. D) Netflix increased its monthly fees to remain in line with other streaming services. Answer: B Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

127) Which of the following statements most accurately describes positioning? A) A positioning statement must include three of the four WXYZ components. B) Marketing information is provided via market research and customer perceptions. C) Effective marketers position the company in the same way while targeting different segments in different markets. D) One positioning statement is created for the company and should guide marketing efforts throughout. Answer: B Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 128) Roberto has been working on segmenting the market for his firm's new ergonomic bicycle. He has narrowed the number of segments by eliminating those that failed to satisfy the five segmentation criteria. He has several segments left, and to get to the target market segments, he needs to identify the attractiveness of the segment and A) the potential competitors in the market. B) the firm's goals and resources. C) the profitability of the segmentation efforts. D) the strength of the marketing mix. Answer: B Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 129) Sometimes a company will choose a less attractive target market instead of a more attractive one, even if all segmentation criteria are successfully met. Why? A) The company has created a reputation for being an underdog. B) The company has too many target markets to develop effectively. C) The company has determined one target market is B2B and the others are B2C. D) The level of competitive pressure is already intense. Answer: D Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

130) You were recently hired as a brand manager for a new body wash and are tasked with evaluating market segments and choosing a target market. Your supervisor tells you to use the 80/20 rule, which means A) 80% of sales of your body wash come from 20% of the mass soap market. B) 80% of sales of your body wash come from 20% of your target market. C) 20% of sales of your body wash should come from 80% of your target market. D) 20% of your marketing efforts should focus on 80% of your target market. Answer: A Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 131) A beautiful island has become such a popular travel destination that it has become overcrowded. The local travel bureau decides to position the island as a luxury destination by offering only high-priced hotels and restaurants. This makes the island less attractive to middle-income tourists. This is an example of A) demarketing. B) perceptualizing. C) repositioning. D) micromarketing. Answer: A Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 132) Which of the following statements uses the most unique selling proposition? A) Our coffee has a rich, smooth taste. B) Wake up to a wonderful aroma. C) We make the world's strongest coffee. D) Try something new in your cup. Answer: C Diff: 2 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

133) Which response describes the problem with the following positioning statement? "Road Dog gas stations are committed to offering competitive prices and a unique customer experience at our locations." A) The statement lacks the competitive component. B) The statement lacks the key benefit. C) The statement lacks the competitive component and the key benefit. D) The statement lacks the competitive component and the target customer. Answer: D Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 134) What is the BEST synthesis of a market segmentation and a target market? A) They represent a subset of a mass market in which the company might operate. B) They represent a particular group of customers on which a company should focus marketing efforts. C) They represent classification systems for various types of customers. D) They represent categories of best and worst customer groups. Answer: A Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 135) You and some college friends are finally opening the cupcake bakery you've always dreamed about. After a great deal of research, you have chosen a target market and are now busy crafting your marketing strategy. To be successful, what should be your next step? A) You should now differentiate your product offerings from those of your competitors in ways that are meaningful to your target market. B) You should use technological tools like PRIZM or Tapestry to segment your target market to find a grouping of customers that is meaningful to your business. C) You should move forward with creating your marketing mix for the target market you have selected. D) You should begin to study what your target market really wants and why it wants it. Answer: A Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

136) Rebecca has evaluated the potential segments for her travel advisory service, and she has about 10 to 12 possible segments. What general advice would you offer as she considers the next steps? A) Focus on a single segment, get it right, and move on from there. B) Determine five or six segments that have the highest potential return on marketing investment and use successes from that effort to fund pursuing the rest. C) Implement a pilot test or conduct market research on samples within each segment to get a better idea of each segment's potential. D) Pursue all of the segments knowing that some will not be as successful as others and eliminate those in future efforts. Answer: A Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 137) JX Manufacturing has created a positioning statement: "JX will cheerfully offer the fastest, highest-quality parts of any company in the tri-state area." What essential part is missing? A) What are the three states? B) Who are the target customers? C) What specific parts are being offered? D) What level of profitability is required? Answer: B Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

138) As the marketing team was finishing the STP process, one of the senior members reminded the team that they had not created a perceptual map. Another senior member bluntly added the project was already way over budget. The team needed to decide whether or not to proceed with a map. Which of the following represents the kind of information that would NOT be revealed in the mapping process? A) Whether the product has the competitive features it needs to succeed. B) How the company can find the ideal location to ensure project success. C) If there is some space that competitors have not already occupied, and the company could move into that area. D) How strong the brand is compared to close competitors. Answer: B Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 139) Cover Co. is a new company with two employees: the husband and wife that founded the company. Cover makes trash can covers that help keep outdoor trash cans secure. You've been hired as a marketing consultant for the new company. Using your choice of two out of the four segmentation categories, pick a variable from each category that could be used to segment Cover Co.'s market, and explain why it could be used. Answer: Responses will vary, but may include the following: • Geographic segmentation o Within geographic, one variable to pick would be consumers live in rural areas or any area with trees. The reason is that these areas would be more likely to have animals that could get in the trash cans. Thus, making the cover more useful. o Another variable within geographic is to focus on areas that are typically windier and where trash cans getting blown over is a risk. • Demographic segmentation o Age — older consumers may appreciate the convenience that comes with more secure trash cans and thus be more willing to spend the money. • Behavioural segmentation o Usage rate — in an indirect manner, consumers that don't take their trash out may find the cover an inconvenience since an overflowing trash can is difficult to cover. Diff: 3 Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market. Section Reference: Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

140) Selecting a segmentation approach is a tough decision, but that's not the last of the tough decisions. Assume you've chosen a geographic segmentation approach for pickup trucks. What are some of the variables you might select? Answer: Student responses can vary a great deal, but key variables could include density of population, road conditions, traffic conditions, fuel prices that can vary by region, whether there are significant regulations that might vary by jurisdiction, climate conditions, rural versus urban or suburban, etc. Student responses should not include demographic, psychographic or behavioural variables. Diff: 3 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 141) If a market segment meets only four of the five criteria, would it be a good idea to go ahead? Why? Make sure your response demonstrates your understanding of the five criteria. Answer: A segment must satisfy each of the five criteria, and if it fails to meet one of them, it is not acceptable to go forward. Student answers should include some acknowledgement of the purposes of the five criteria. Diff: 3 Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market. Section Reference: Applied Segmentation Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 142) If you were the Chief Marketing Officer of Apple, what might your positioning statement be or contain? Answer: Responses will vary, but an example of an acceptable response is as follows: • We: Apple • Target Customers: Provide Students, Professionals, and Consumers • Key Benefit: With produce trendy Devices, advanced device technologies, cool mobile devices, that are enhancing everyday convenience and life through handheld technologies, etc. • Competitive Reference: that outperform, that are cooler than, our competitors such as Microsoft and Samsung. Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

143) Provide two real examples of a company repositioning a brand. Answer: Responses will vary. Some examples include: • Netflix. Netflix went from being a mail order DVD subscription service to essentially becoming its own streaming TV network. • McDonald's. In recent years, McDonald's has made efforts to appear healthier and more upscale between its McCafé offerings and new salads appearing on the menu • Olive Garden. Olive Garden repositioned downward in luxury by emphasizing value and price. Their logo was also simplified to denote something a little less fancy. Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 144) What is your dream laptop computer? Assume that there are others with similar needs and means. Suggest a positioning statement the company might use to appeal to you and others like you in your target segment? Answer: Student responses will vary, but each statement should include the four components: the company/brand, the target customer, the key benefit and the competitive reference. Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 145) If a marketer has examined the competitive landscape and has accurate and comprehensive data, why is a perceptual map useful? Answer: Answers may vary and should reflect an understanding of the integrity of the process and the value of evidence-based research in developing plans and strategies. An example may include the following: a perceptual map is a graphic representation using key customer data and preferences. While useful for the marketer, it is useful in presenting the information to others not intimately involved in the process (e.g., decision makers), and it is useful in generating insights based on the relative positions of customers. Diff: 3 Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy. Section Reference: Using Segmentation as a Foundation for Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

Applied Marketing, 1ce (Grayson) Chapter 7 Applying the Marketing Mix 1) The need for a stronger and clearer customer perspective was the reason for the evolution from the 4 Ps to the 4 Cs is changing the customer perspective. Answer: TRUE Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 2) From the perspective of the marketer, the value exchange is considered Price in the 4 Ps, while from the customer's perspective using the 4 Cs, it is considered cash. Answer: FALSE Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 3) Two trends are shaping current marketing practice: experiential marketing and increased use of mass marketing. Answer: FALSE Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 4) Any of 5 Ps can affect any of the 5 Cs, and decisions in one area can affect any of the others, even if it is not one of the linked Ps and Cs. Answer: TRUE Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

5) The traditional marketing mix includes the 4 Ps: A) purpose, place, price, and plan. B) product, place, plan, and promotion. C) product, place, price, and promotion. D) priority, promotion, price, and purpose. Answer: C Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 6) Rather than being part of the marketing mix, the ________ is the target of marketing decisions, or the "target market" as described throughout the text. A) price B) customer C) product D) place Answer: B Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 7) How the product will be promoted and what messages customers will see is referred to as A) product. B) planning. C) promotion. D) participation. Answer: C Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

8) While ________ make product decisions, customers buy products for the benefits they receive from buying and using the product. A) influencers B) marketers C) customers D) owners Answer: B Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 9) Product decisions affect customer A) loyalty. B) benefits. C) cost. D) convenience. Answer: B Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 10) Valuable insights are gained by understanding the marketing mix from the perspective of A) the customer. B) the supplier. C) the distributor. D) the employees. Answer: A Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

11) Which is NOT a part of the marketing mix? A) Corporation B) Customer benefits C) Cost D) Convenience Answer: A Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 12) Which of the following can be a disadvantage to the firm when deciding on the place a business will operate from? A) Inconvenience B) Cost of land C) Consumer population D) Traffic flow Answer: A Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 13) Which of the following should a marketing manager consider when determining how price will be used in marketing a product? A) The perceived cost B) The numerous benefits C) The value creation D) The image it creates Answer: A Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

14) A key to establishing effective promotions with the customers is A) coordinating promotion decisions that are tied to communication goals. B) aligning communication goals with the target market. C) developing loyalty programing that resonates with the consumer. D) incorporating a memorable customer experience. Answer: A Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 15) Which of the 4 Cs is directly related to the marketing of the product? A) Customer benefits B) Community involvement C) Cost production D) Convenience Answer: A Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 16) Which of the following marketing mix Ps has the most effect on convenience? A) Product B) Price C) Place D) Promotion Answer: C Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

17) Which of the customer mix Cs is most affected by product? A) Communication B) Customer benefits C) Cost D) Convenience Answer: B Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 18) When the 4 Ps framework is represented as a target, what is at the centre or "bull's eye"? A) Customer B) Producer C) Marketer D) Connection Answer: A Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 19) Product decisions affect customer A) loyalty. B) benefits. C) cost. D) convenience. Answer: B Diff: 1 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

20) A classic example of what can go wrong if a firm does not focus on the benefits a customer receives instead of the product itself was the railroad industry. That industry focused on improvements in trains and the rails themselves instead of A) including the stations and parking facilities in the modernization efforts. B) focusing on the comfort of the riders. C) expanding the number of trains to accommodate growth. D) focusing on the transportation, not trains. Answer: D Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 21) Retail operations, traditionally thought of as "place" in the marketing mix, are under increasing pressure from consumers to accommodate the consumers' busy lifestyles and lack of time to go shopping. While some customers still like the old ways of shopping, retailers need to think about shopping from the customers' perspectives, which falls under which of the 4 Cs approach to the marketing mix? A) Customer benefits B) Convenience C) Cost D) Communications Answer: B Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 22) Stephanie was complaining to her friends about how hard it was to find parking and deal with traffic on the way to the store. She was even more upset when she got to the store, and they didn't have what she needed. She said, I'm taking my business elsewhere." To prevent defection of customers like Stephanie, retailers need to focus on A) concentrating on convenience. B) better inventory control. C) improving traffic flows. D) adding parking facilities. Answer: A Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 7

23) Jason would drive about 20 kilometres out of his way to the gas station whose price was about 4¢ a litre cheaper than the local stations. His friend Paul, who was a marketing student, tried to explain to Jason this wasn't such a great deal because A) brand name gas stations that were local had a better product, which is why brands are important. B) cost means more than the price at the pump, including the fuel he used to get there and his time. C) whenever a price is that far off, it is a good sign that the product has been altered, maybe even watered down. D) As Jason had to cross over a county line to avoid taxes he was technically smuggling gasoline. Answer: B Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 24) What is the significance of the change from Promotion in the 4 Ps to Communication in the 4 Cs? A) Promotion is seen primarily as advertising, and Communication includes a wider range, such as public relations, personal selling, and publicity. B) Promotion focuses on the product features, and Communications focuses on product benefits. C) Promotion focused on the messages the company sends, and Communications includes any contact with the firm. D) Promotion is an active interaction, and Communications is a passive interaction. Answer: C Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

25) Kate has been watching her firm switch from the 4 Ps in the marketing mix to the 4 Cs over the past few years. This switch is more than semantics for the use of the 4 Cs means the marketers will A) practice a more state-of-the-art approach. B) create more value in an exchange. C) control more of the customer's total spending. D) be more efficient in their use of marketing tools. Answer: B Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 26) A television advertisement being shown during the Academy Awards is an example of what part of the marketing mix, as seen from the customer's perspective? A) Communication B) Perception C) Advertising D) Public relations Answer: A Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 27) The use of promotions can effectively reach consumers if A) there is a proper format, and it is correctly timed. B) there is definitive strategy and efficient execution. C) there is good coordination between social media and traditional advertising. D) the content resonates with consumers and creates customer value. Answer: A Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

28) Companies that focus on the customer mix are more likely to benefit from which of the following? A) Discovering the one best approach to sales and profits B) Controlling all product and service variables C) Solving internal challenges and problems D) Creating value in exchanges Answer: D Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 29) Sweta is willing to drive past three popular nail salons to patronize her favourite one. She says she likes the relaxing atmosphere and the long-lasting manicures. Which of the four Cs does Sweta value most in this scenario? A) Customer benefits B) Convenience C) Cost D) Communication Answer: A Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 30) While buying a case of beer at the corner mom-and-pop shop, Ryan adds a bottle of laundry detergent to his order. He knows it will cost a few dollars more, but buying now will save him a trip to Target later. Upon which of the 4 Ps do Ryan's actions have the most influence? A) Product B) Price C) Place D) Promotion Answer: C Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

31) Which of the following statements accurately describes price and its effect on cost? A) Customers are more likely to purchase when they receive about as much as they give up in an exchange. B) For marketing purposes, the words cost and price are interchangeable. C) When product benefits exceed price, customers will ignore all other costs. D) From a customer's perspective, costs can include psychological distress or wasting time. Answer: D Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 32) Which of the following statements most accurately describes promotion and its effect on communication? A) Efficient communications are the most effective. B) All customer interactions with a company communicate messages. C) Effective messages are tied to specific company goals. D) A properly defined target market will interpret company communications properly. Answer: B Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 33) Which of the following statements accurately describes the application of the 4 Ps and 4 Cs? A) The Ps and Cs are interrelated—decisions in one area frequently impact other areas. B) The Ps and Cs have remained relatively unchanged since the mid-1980s. C) Successful companies find the one best P and C approach and apply it throughout their product or service line. D) The Ps encourage producers to think like customers while the Cs encourage customers to think like producers. Answer: A Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

34) Dobin studies music in college. Though it is the most expensive of all parking garages, he purchases a pass for the garage closest to the rehearsal hall. He knows the air-conditioned environment is best for his cello and provides the shortest walk to campus. Upon which of the 4 Ps do Dobin's actions have the most influence? A) Product B) Price C) Place D) Promotion Answer: B Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 35) Lynnette is an avid online shopper. She purchases most of her clothing from The Bay because they send her emails with sale notifications and information targeted to her specific clothing preferences. Which of the four Cs does Lynnette value most in this scenario? A) Customer benefits B) Convenience C) Cost D) Communication Answer: D Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 36) At least once a month, Jalen drives four hours to Canada's Wonderland because he loves the thrill of riding roller coasters. Upon which of the 4 Ps do Jalen's actions have the most influence? A) Product B) Price C) Place D) Promotion Answer: A Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

37) For her birthday, Harper received a Nintendo Switch with two game cartridges to go with it. Having to quarantine during a national pandemic, Harper prefers to buy all future games online so she does not have to leave her house. Which of the four Cs does Harper value most in this scenario? A) Customer benefits B) Convenience C) Cost D) Communication Answer: B Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 38) Yuri needs to replace his smartphone. He dreads going out to purchase one because the salespeople tend to make him feel clueless about current technology. With which of the four Cs is Yuri most concerned in this scenario? A) Customer benefits B) Convenience C) Cost D) Communication Answer: D Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 39) Kai needs to return a pair of shoes she purchased online. After chatting with a helpful customer service representative, Kai decides to purchase a different pair of shoes from the company. Upon which of the 4 Ps do Kai's actions have the most influence? A) Product B) Price C) Place D) Promotion Answer: D Diff: 2 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

40) Why would a firm develop an advantage in switching from Promotion to Communication in the marketing mix? A) The Communication approach enhances effectiveness of the message instead of efficiency of delivery and execution. B) The Communications approach gives the marketer more control over the message content and delivery. C) The Communications approach means fewer messages delivered more frequently. D) The Communications approach favours social media and online messaging instead of using traditional promotion vehicles. Answer: A Diff: 3 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 41) Rodrigo has begun selling tacos from a cart on his college campus. He promotes his products as the "cheapest around." His business is good, but Rodrigo needs to make more money to keep the venture viable. What is the best advice you can give him? A) If this is what the target market wants, then Rodrigo's customers are finding value in the exchange. He should continue his business as is and focus on long-term results. B) A lowest-price strategy is difficult to maintain and may not influence the entire target market. Rodrigo would be better served by taking multiple approaches to his marketing strategy, which will increase customer loyalty and, ultimately, company profits. C) Low-price strategies likely work well with cash-strapped college students, but might not influence others. Rodrigo should begin to slowly raise his prices to see what the market will bear and at what price point others find value in the exchange. D) Low-price strategies are difficult to maintain. Rodrigo should consider taking a different approach to marketing his business, like the convenience of purchasing a taco while on the go between classes. Answer: B Diff: 3 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

42) Using a pole barn in your backyard, you run a business sharpening knives and scissors. Your best customers are large restaurants and hair salons who value your expertise and care with their expensive equipment. Your attempts to secure business from smaller operations have failed. These customers say they sharpen tools themselves because they cannot afford to be long without them. Which of the following represents the best way to grow your business? A) Create a mobile service that brings sharpening equipment directly to the restaurant or salon. This added convenience will minimize business interruptions and allow both large and small shops to patronize your business. B) Begin selling your own line of knives and scissors to smaller businesses. Owning additional tools will allow smaller shops to bring their dull tools to you. C) Offer to sharpen tools for small restaurants and salons during overnight hours. This will minimize business interruptions for smaller shops and still allow for daytime work for larger customers. D) Lower your prices to incentivize smaller customers to try your services. This will decrease the customer's psychological costs and increase their perceptions of value in the exchange. Answer: A Diff: 3 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 43) You are the brand manager for a line of denim pants that has been in production for more than 150 years. These jeans are moderately priced, traditionally styled, and known for being able to withstand years of wear and tear. Recently a competitive brand has been running comparative advertisements claiming that your brand is too out of touch with current fashion trends. What is the best way to respond? A) You emphasize your marketing strategy by creating a contest with your brand community as to who owns the oldest pair of your branded jeans. Ask customers to post photos of themselves and the jeans on social media. B) You do nothing. Your jeans are very good products, have sold well for many years, and are likely to continue to do so. C) You create a new line of trendy, more stylish jeans to compete with other brands in the current market. D) You begin an aggressive marketing campaign touting your brand's traditional styles as "always in fashion." Answer: A Diff: 3 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

44) The rise of experiential marketing and increased use of technology have given rise to what changes in the marketing mix? A) Moving the customer from the centre to encompass all four Ps and Cs B) Abandoning the current system for a most customer-centric approach C) Adding a new pair of Ps and Cs to the marketing mix D) Recreating the traditional idea of Place to accommodate new retail styles and online shopping experiences Answer: C Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 45) A benefit of creating a positive customer experience is A) building relationships. B) strengthening trust. C) encouraging more spending. D) developing loyalty. Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 46) How does experiential marketing differ from traditional marketing? A) It focuses on creating a bond with the brand. B) It focuses on developing social media communication. C) It focuses on monitoring analytic data on customer purchases. D) It focuses on incorporating technology in the creation of content. Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

47) A critical requirement for a company to create a memorable experience with the customer is to engage them in A) participation. B) gamification. C) social media. D) animation. Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 48) The effective use of technology in marketing allows for A) connectivity. B) social interaction. C) influence building. D) digital targeting. Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 49) Which of the following is the fifth part of the marketing mix? A) Participation B) People C) Persuasion D) Place Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

50) Which of the following element pairs helps marketers create the bond that forms brand communities? A) Brand purpose and consumption B) Brand awareness and communication C) Brand recognition and loyalty D) Brand engagement and participation Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 51) A company who creates interest in outside groups in exchange for their insights on a product is engaging in A) crowdsourcing. B) groupthink. C) co-creation. D) exploratory engagement. Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 52) Which part of the marketing mix should a company place specific interest in if they want to create the perception of a luxury brand? A) Price B) Product C) Packaging D) Promotion Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

53) What is the proper process that needs to be followed to make the marketing mix work effectively? A) Product, place, price, promotion, participation B) Product, price, place promotion C) Product, price, place, promotion, planning D) Product, place ,price, participation, promotion Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 54) The main target of all marketing decisions needs to be A) the customer. B) the shareholders. C) the company. D) the community. Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 55) The decisions marketing managers make in regards to the marketing mix are controlled by A) the producer. B) the customer. C) the management. D) the target market. Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

56) Sampling a spoonful of a new ice cream flavour before purchasing it is a form of A) experiential marketing. B) gamification. C) crowdsourcing. D) co-creation. Answer: A Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 57) Approximately what percentage of the world's population uses a mobile device? A) 6% B) 17% C) 67% D) 76% Answer: C Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 58) When the 5 Ps and 5 Cs framework is represented as a target, what is at the centre or "bull's eye"? A) Producer B) Marketer C) Connection D) Customer Answer: D Diff: 1 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

59) Adrienne was thrilled with the new design she had for neckties and posted it on the company's website. It wasn't long before negative comments flowed in complaining about the colours she chose and the overall design. She scrapped that design and started over. If the design had gone into production it would have been a costly mistake, and the process that prevented this from happening is known as A) production feedback. B) consumer-guided design. C) crowd-creation. D) co-creation. Answer: D Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 60) Corey's firm had a good reputation for integrating social media into its marketing processes. To engage customers further and to build ways to interact positively with the brand, Corey and his programmers were building sophisticated puzzles and adventures online, and using which process? A) Crowdsourcing B) Gamification C) Purposeful fun D) Online marketing research Answer: B Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 61) If a firm wanted to build enthusiasm for the launch of new product by getting input and advice from a large number of potential customers online, what process might they use? A) Crowdsourcing B) Open sourcing C) Mass design protocols D) Social media stimulation Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

62) Maya couldn't stop talking about her purchase of her new clothes for work. Not only had the people in the store been helpful and gracious, she was amazed at how comfortable the surroundings had been from the lighting to the flowers to the way the goods were colourfully displayed, the chilled water she was offered, the amenities in the changing rooms, the way her purchases had been wrapped and more. Her friends were acting bored, but they were also thinking about visiting the same store. What Maya had experienced was A) intimate retailing. B) personal shopping C) value-enhanced retailing. D) experiential marketing. Answer: D Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 63) Anthony and Brian both owned Harley-Davidson bikes, and both were members of the HOGS. They did not realize at first the HOGS were not an official part of Harley-Davidson, but a group that grew apart from the company. More recently this kind of phenomenon has gone online and become known as A) user communities. B) brand communities. C) interest communities D) social-media communities Answer: B Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 64) A car dealership allowing potential buyers to test drive a car over the weekend is a form of A) experiential marketing. B) promotional marketing. C) demonstrative marketing. D) interactive marketing. Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

65) A company that provides customers a chance to participate in product design and development is involved in A) co-creation. B) experimental marketing. C) innovative testing. D) marketing research. Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 66) The NFL's development of highly visible video platforms for fans to use to cheer and boo during a game is a form of A) co-creation. B) gamification. C) crowdsourcing. D) exploratory marketing. Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 67) Which of the following factors help marketers create the extended marketing mix? A) Participation and connection B) Placement and communication C) Performance and connectivity D) People and participation Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

68) In their attempt to communicate value to their customers, what does the Sewell car dealership provide that helps make the car purchasing experience memorable? A) Exceptional service B) Low prices C) Special financing D) Live long warranty Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 69) Which of the following is a trend shaping current marketing practice? A) The increased use of technology B) The use of cryptocurrencies for global exchange C) Societal focus on animal rights D) Societal interest in competitive sports Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 70) Which of the following is an example of experiential marketing? A) A shoe store encourages customers to try items on and walk around the store a bit before making a purchase. B) Participants in a Toronto-based film festival were housed overnight in a luxury hotel and slept on Endy-brand mattresses. C) Costco employs several college interns who demonstrate how to use various new appliances. D) The winning quarterback of each year's Super Bowl tells audiences, "I'm going to Disney World!" Answer: B Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

71) Which of the following accurately describes current use of technology? A) There are 45 billion active internet users in the world. B) Facebook is the largest social platform in the world. C) Weixin is the largest global messaging application. D) Much of the increased use of technology is happening in Europe. Answer: B Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 72) Kraft's "My Food and Family" website gives customers a forum for sharing recipes, party tips, and ideas for healthy living while also promoting the full line of Kraft food products. This is an example of A) gamification. B) crowdsourcing. C) co-creation. D) brand community. Answer: D Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 73) Made.com is an online furniture retailer based in the UK. Since it lacks showroom space, Made relies on customers to upload pictures of how Made furniture can be used in home design. This is an example of A) gamification. B) crowdsourcing. C) co-creation. D) brand community. Answer: C Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

74) McDonald's once held a "Build Our Next Burger" campaign in which customers could create a hamburger with their favourite, original toppings online. Customers then voted on their favourites. When the winners were chosen, McDonald's produced and sold each burger creation alongside a biography of the designer. This is an example of A) gamification. B) crowdsourcing. C) co-creation. D) brand community. Answer: B Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 75) When M&M launched a version of its candies filled with pretzels, it engaged users by creating an eye-spy game on its Facebook page. Users were challenged to find a "pretzel guy" hidden in the sea of colourful candies. The eye-spy campaign quickly went viral. This is an example of A) gamification. B) crowdsourcing. C) co-creation. D) brand community. Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 76) Which of the following statements accurately describes the extended marketing mix? A) In the extended model, one specific P affects one specific C, so a marketer's skills must remain flexible to influence each aspect of the mix. B) There is one best way to order the marketing mix decisions for products and another best way to order the mix for services. C) Success or failure of the marketing strategy depends on the combination of the five Ps and Cs. D) Product is the most important of the five Ps and connection is the most important of the five Cs. Answer: C Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 26

77) What is the BEST order of the five Ps when making mix decisions? A) Product, place, price, promotion, participation B) Product, price, participation, place, promotion C) Price, participation, product, place, promotion D) Participation, product, price, place, promotion Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 78) What is the primary difference between traditional and experiential marketing? A) Customer participation B) Promotional expenditures C) Stage of the product in its life cycle D) Impact on company financials Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 79) To appeal to advertisers and prospective subscribers, Glamour magazine created a beauty festival wherein attendees received manicures, facials, and other types of pampering. Beauty brands need to have customers try out their products and to become more knowledgeable about the latest trends. This is a B2B example of A) experiential marketing. B) gamification. C) crowdsourcing. D) brand community. Answer: A Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

80) Which of the following is the BEST example of crowdsourcing? A) Kickstarter, a platform wherein artists seek funding for their creations B) Waze, a GPS app that asks users to contribute real-time information about traffic jams, police radar areas, and so on C) Sephora's "Beauty Talk," an online forum through which users share ideas with each other and post photos D) KFC's "Shrimp Attack," a mobile game that requires users to swat away falling shrimp and results in a voucher for free product Answer: B Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 81) Why is experiential marketing becoming such a significant approach to consumer marketing? A) Interaction with the brand, product or service becomes more compelling and intimate leading to a stronger link between the customer and the firm. B) Experiences are more engaging and more fun, which contrasts with the seriousness and extreme competitiveness which had characterized marketing. C) Experiences are short, intense and memorable, which fit the profile of modern consumers much more effectively. D) More frequent interactions in smaller bits of information lends a new objectivity to the customer experience, building trust in the brand. Answer: A Diff: 3 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 82) Why is it important for a marketer to begin marketing mix decisions with Product when all 5 Ps are interrelated? A) Products are easier to test, and testing should be done before setting prices or determining where to place the product. B) If a firm has a good product, the other 4 Ps don't matter as customers will want the product. C) The level of risk increases as a marketer goes through the 5 Ps, and it's better to start with a less risky part of the mix. D) Products and clear ideas of the customer benefits are the basis for all other considerations. Answer: D Diff: 3 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 28

83) Patrick was frustrated with trying to get the fifth P—Participation—right. He knew the traditional 4 Ps were all well developed, so he decided to move ahead without nailing down the Participation aspect. Was this a good decision? A) Yes. The 4 Ps have worked well for decades, and the fifth is still largely unproven. B) No. Participation is the most important of the 5 Ps in today's marketing environment. C) Yes. Starting without Participation settled doesn't mean it can't be done later. Speed-to-market is important. D) No. All 5 Ps are interrelated, and problems with one indicate potential problems with the others. Answer: D Diff: 3 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 84) Dalton's Hardware Store has been a family-run business for more than 50 years. It is located in the middle of a well-established neighbourhood, surrounded by small houses with tiny yards. There is, however, an empty lot next door. Longtime neighbourhood residents brag about their ability to walk to Dalton's and love the friendly atmosphere. Newer residents dislike the lack of available parking and tend to shop at the national home improvement chains a few kilometres away. The Dalton family has many ideas for improvement. Which one would you recommend? A) Dalton's should purchase the adjacent lot and expand the business to offer more products like the big-box retailers the newer residents are frequenting. B) Dalton's should purchase the adjacent lot and convert it to parking spaces near the building. They should also consider creating ways for current and potential customers to participate with their brand, perhaps a contest to design a room using only what is available at Dalton's. C) Dalton's should consider lowering their prices to compete with the national home improvement chains, which would greatly appeal to newly cash-strapped homeowners. D) Dalton's should consider hiring an interior designer who could recommend and demonstrate Dalton products to the new homeowners when they visit the store. Answer: B Diff: 3 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

85) You are providing marketing advice to Ben, who recently opened a shop on Etsy where he sells models. His best seller is a Halloween village, which has been successful to date. All of his offerings are selling well, his profits are good, and his clientele is growing. He tells you that one customer asked for a unique Halloween house to add to his village—a self-service car wash—and that he is creating multiple to add to his product offerings. He tells you, "Thanks so much! You told me to connect with my customers and ask them to help create my brand, and it worked!" Which of the following is your BEST response? A) You congratulate Ben and wish him well with his sales of the new car wash model. B) You suggest that Ben turn his attention to promoting his Etsy business because it is the one area where he seems to lack focus. C) You explain to Ben that he responded to feedback from one customer and created a custom model. To really connect with his customers, Ben should invite more people to weigh in on what kinds of Halloween buildings he should add to his village. D) You explain to Ben that the car wash is merely a prototype. To really connect with customers, he should invite them to vote on whether or not to add the building to his collection. Answer: C Diff: 3 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 86) To make extra money, Sarika intends to sell decorated sugar cookies out of her house. She has created a Facebook page so people can order online. Which of the following is the best advice you can offer Sarika about how to proceed in business? A) Since Sarika has already chosen her product and her place, she must encourage participation from her target market to help decide appropriate prices. Once complete, she can begin promotion. B) Since Sarika has already chosen her product, place, and promotion, she can encourage participation from her target market. Once complete, she can set prices. C) Since Sarika has already chosen her product and her place, she should begin promoting to her target market, which will directly affect her pricing. Once complete, she can focus on getting participation from her market. D) Since Sarika has already chosen her product and her place, she must decide how to price her cookies, which will affect her decisions about promotion. Once complete, she must decide how to encourage participation from her target customers. Answer: D Diff: 3 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

87) To apply the marketing mix effectively, marketers must tie specific Ps to customer Cs. Which examples can you provide about how marketers should relate? Answer: Student responses may vary, but may include: • Product (P) decisions to desired customer benefits (C); • Place (P) decisions to customer expectations and desired levels of convenience (C); • Price decisions to customer perceptions of cost (C); • Promotion decisions to customers' communication (C) needs. Diff: 3 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 88) It has been stated that the 4 Ps are all producer-controlled variable. What is your view on this? Answer: Student responses will vary depending on view point, but should include references from the text such as the "From 4 Ps to Four Cs" section on page 126 discusses the four 4 Ps and Four Cs. Students can use this section to make their own interpretation and answer this question. A sample responses is as follows: The marketer controls which features are included in the product, how it is packaged, and the brand (product). The marketer decides when and where to make the product available to the customer (place). The marketer decides how much to charge in the exchange and what terms will be offered (price). The marketer also determines how the product will be promoted and what messages customers will see (promotion). However, to be successful, the marketer needs to understand how these activities are viewed by the customer. So, for each of the 4 Ps decision areas, we ask what the customer cares about. In other words, we would like to better understand the "customer mix" that represents the customer's perspective of the exchange. Diff: 3 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 89) In your own words, explain crowdsourcing. Answer: Student responses may vary, but should be along the lines of: The use of individuals or groups outside the organization to provide assistance, advice, or input on a task—which has been accessed by a number of companies to fund projects, generate new ideas, and test potential products. Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 31

90) What example can you provide relative to how marketers are responding to technology-based changes? Answer: Student responses will vary however a sample response is as follows: Marketers have responded to technology usage with an increased focus on social media and technology-based approaches to interact with customers and to provide ways for customers to interact with each other. Diff: 2 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 91) It has been stated that there are three key points to remember when applying the framework to make marketing decisions. Provide your answers and include your view. Answer: Student responses will vary, but may reference the text section "Integrating the Extended Marketing Mix" on page 133-134 that discusses the five P & C elements. Students can use this section to make their own interpretation and answer this question. A sample response may include the following points: 1. All five P & C elements in the extended mix are equally important. Marketers must consider all five elements thoroughly and with the same level of attention to have a successful mix. 2. The combination of P & C element decisions will determine the success or failure of the marketing program. A great decision in one element cannot make up for a poor decision in another area. 3. All five mix elements must work together. Strategic consistency requires the marketer to consider not just whether the P delivers on the corresponding C (e.g., product decision provides desired customer benefits), but also whether the decisions across elements are consistent (do all five decision elements work together and provide the same value message to the target customer?). Diff: 3 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

92) It has been stated that there are two trends changing marketing practice. Give your view. Answer: Student responses will vary, but should include reference to the text, such as the "How Current Marketing Practice Affects Marketing Decisions" section on page 129 discusses the two trends changing marketing practice. Students can use this section to make their own interpretation and answer this question. A sample response may include the following: Increased customer participation with brands and in the marketing process, with marketers trying to provide more positive customer experiences and customers becoming more reliant on technology to connect with brands and each other. A fifth P and C: Participation-connection: To accommodate the two trends in marketing practice, we added a fifth P and C to extend the marketing mix—participation (P) and connection (C). Companies create different ways customers can participate in the marketing process (before, during, and after purchase) that provide opportunities for customers to connect with the product, brand, company, and other customers to increase perceived value. Diff: 3 Learning Objective: 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 93) Assume you had a time machine, and you decided to go back to the late 20th century to see how the marketing mix was used then. What are the most important differences you would notice? Answer: Student responses will vary, but should definitely include the rise of experiential marketing, the impact of technology on how marketers work, the emphasis of the 4 to 5 Ps, the growing importance of the 4 to 5 Cs, and the increased demands and expectations of today's customers. The question summarizes material from the entire chapter, and student responses should also be broad to demonstrate their mastery of how the marketing mix is used. Diff: 3 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs.; 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs; Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

94) One of the challenges of marketing is to reconcile differing customers' demands and expectations so that the customers and the firm can both be satisfied. Experiential marketing suggests that a customer will take the time to engage his or her senses and enjoy a retail environment, which will lead to increased loyalty and purchases. On the other hand, Convenience in the 5 Cs suggests that customers want to get shopping done in as little time as possible and with as little effort as possible. How do you think marketers can creatively—and simultaneously—address both? Answer: Convenience and sensory enjoyment are not irreconcilable. Convenience is not limited to time; shoppers also want the right merchandise at the right time, and if the firm can also design layouts to increase customer access to promote speed, the customer may not notice, but he or she may be more willing to return to that store than to one that pays less attention to his or her need for convenience. The retailer can also develop colour schemes, signage, lighting and merchandise selection to enable then customers need for convenience and sense of aesthetics. More fundamentally, designing an experiential marketing environment should not get in the customer's way in making a purchase. Students should combine insights in the section Place Affects Convenience (pages 126-7) with the insights in the section How Current Marketing Practice Affects Marketing Decisions (pages 129-30). Diff: 3 Learning Objective: 7.1 Explain how applying the customer perspective to the 4 Ps yields four Cs.; 7.2 Describe the extended marketing mix with a fifth P and C added to account for current trends that have changed marketing practices. Section Reference: The Applied Marketing Mix: From 4 Ps to 4 Cs; Extending the Marketing Mix to Fit Current Marketing Practice Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

Applied Marketing, 1ce (Grayson) Chapter 8 Delivering Products and Brands that Meet Customer Needs 1) To maintain integrity in the marketing plan, marketers must separate products from any services. Answer: FALSE Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 2) Idea Generation and Strategy Development belong in the conceptualization process. Answer: FALSE Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Comprehension 3) If a marketer considers each step in the new product development process, the product will succeed in the marketplace. Answer: FALSE Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 4) New products that have similar uses to existing strong brands can help create value through a process known as in-category extensions. Answer: TRUE Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

5) What is a product made up of? A) Core product B) Actual product C) Augmented product D) All choices are correct Answer: D Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 6) How many critical points are there on the good-services continuum? A) 1 B) 2 C) 3 D) 0 Answer: C Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 7) What do consumers actually buy? A) Products B) Benefits C) Attributes D) Core product Answer: B Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Ethics Standard 2: Bloom's || Knowledge

8) How many different groups of benefits are there to describe a product? A) 5 B) 4 C) 3 D) 2 Answer: A Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 9) What is the most recent group to be incorporated into product benefits? A) Functional Benefits B) Resource Benefits C) Core Values D) Sensory Benefits Answer: C Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 10) How many levels is a product comprised of? A) 3 B) 2 C) 1 D) 0 Answer: A Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

11) Which type of product benefit affects how customers respond emotionally to product purchases? A) Sensory B) Functional C) Resource D) Psychological Answer: D Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 12) Which term refers to actions or activities performed by the seller for the buyer? A) Products B) Services C) Benefits D) Innovation Answer: B Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 13) The four different categories of product benefits are sensory benefits, functional benefits, resource benefits, and A) personal benefits. B) psychological benefits. C) business production benefits. D) social benefits. Answer: B Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

14) What part of a total market offering includes features that might speed the purchasing decision and make the product more attractive? A) Brand evaluation B) Augmented product C) Feature complexity D) Benefit focus Answer: B Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 15) When marketing transportation offerings, marketers may use different price levels to address which characteristic of services? A) Perishability B) Intangibility C) Inseparability D) Variability Answer: A Diff: 1 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 16) How do you create a strong and profitable business enterprise? A) Need satisfying product B) Make a product that is relevant to a limited audience C) Using creativity to create a new product D) Creating innovation without a process Answer: A Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Ethics Standard 2: Bloom's || Application

17) A consumer purchased a winter coat because the inside lining was made of a soft material. One type of benefit that was purchased was A) the coat. B) sensory benefit. C) resource benefit. D) the product. Answer: B Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 18) What drives how marketers create products? A) Benefits desired by the entire target market B) Combination that will give the most value to one specific customer C) Appealing benefits D) Appealing value Answer: A Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 19) A consumer purchases new windows for his/her home to replace the original windows put in when they house was built, this could be an example of what type of benefit? A) Product B) Resource benefit C) Sensory benefit D) The actual window Answer: B Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

20) A "fast pass" at an amusement park is an example of what type of product? A) Core product B) Actual product C) Augmented product D) Benefit Answer: B Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Ethics Standard 2: Bloom's || Application 21) Of the following, which is an example of a sensory benefit? A) A week at an exclusive resort B) A pressure cooker that can make dinner in less than an hour C) A movie that suggests laughter and entertainment D) A thick, fluffy robe that is soft to the skin Answer: D Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 22) Erica loves chocolate. Though she is a cash-strapped college student, she typically purchases a brand of expensive chocolate bars due to her strongly held belief in fair trade practices. Which term refers to the driving force behind Erica's behaviour? A) Resource benefit B) Sensory benefit C) Core value D) Core product Answer: C Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

23) What is the primary similarity between a core product and an augmented product? A) The intangibility of the product B) The type of benefits provided C) The level of motivation stimulated D) The level of satisfaction promised Answer: A Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 24) Which of the following statements accurately describes the goods-services continuum? A) Marketing services is easier because there is no need to balance supply and demand via inventory. B) Evaluating the quality of services can be more difficult than evaluating the quality of goods. C) Services delivered in person are easier to standardize than those delivered online. D) Inseparability can lead to variability. Answer: B Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 25) Customers will find value in different bundles of benefits, which is one major reason why marketers A) focus on retail outlets to provide the best selection for customers. B) use customized marketing mixes and the STP (segmentation, targeting, and positioning) process. C) depend on new product development. D) emphasize lowest price for the bundle to maximize value for the customer. Answer: B Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

26) When marketers are considering the motivations and benefits that a customer wants from a purchase, the marketer is focusing on which part of the product as a whole? A) Total product B) Augmented product C) Actual product D) Core product Answer: D Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 27) Of the following, which is an example of a resource benefit? A) A meal subscription service B) A theme park full of roller coasters C) A gated home community D) An aromatic candle Answer: A Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 28) Olivia has taken tap dancing lessons for several years. Recently, a new instructor has taken over the tap classes. After a few months, Olivia finds herself dreading the classes since they are no longer fun or challenging. What is the most likely reason for Olivia's reaction? A) Services are inseparable from their providers. B) Services are intangible. C) Services are perishable. D) Services are invariable. Answer: A Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

29) You need transportation to travel to and from work, so you purchase a new SUV from a local dealership that offers an attractive finance rate and warranty. What is the core product in this example? A) Transportation B) SUV C) Finance rate D) Warranty Answer: A Diff: 2 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 30) Consumers typically enjoy a quality product, however one specific consumer will brand hop and pay higher prices for a higher quality product 8 out of 10 times. How could you describe this consumer? A) Purchases based on sensory benefits B) Purchases based on resource benefits C) Purchases based on all benefits D) Incorporates his/her core values Answer: A Diff: 3 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis

31) You are opening a hair salon offering quality, but moderately priced, services. You hope to establish a large and repeat clientele by eliminating variability of service. Which of the following represents the BEST way to accomplish this goal? A) Hire experienced and skilled stylists. Educate your staff so that everyone has the same knowledge of techniques and processes. Establish rules for how to treat clients from the way they are welcomed into the salon to the time of their payment and departure. B) Hire experienced and skilled stylists with established clientele, thereby eliminating the need to recruit new customers. Allow stylists to continue to treat clientele in the same manner in which they are accustomed. C) Establish a practice of photographing clients after each appointment. Post the photos online so that clients may admire them afterwards and so that stylists may reference them prior to following appointments. D) Permit clients to make appointments with only one or two pre-selected stylists. The inseparability will eliminate variability. Answer: A Diff: 3 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 32) Where does idea generation fall within the product development process? A) Conceptualization B) Planning C) Commercialization D) Concepts Answer: A Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Comprehension

33) Which task does NOT belong in the planning phase? A) Idea screening B) Business analysis C) Marketing mix D) Marketing strategy Answer: A Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Comprehension 34) Which is a task you are likely to see in the commercialization phase? A) Product development B) Strategy development C) Concept development D) Business development Answer: A Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Comprehension 35) Where would you expect to see product innovation ideas in the process development process? A) Conceptualization B) Planning C) Commercialization D) Product concepts Answer: A Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

36) An improvement in a products ability to deliver its primary benefit to a customer is A) discontinuous innovation. B) continuous innovation. C) innovation. D) creativity. Answer: C Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Knowledge 37) A large jump in products benefit-delivering abilities is A) discontinuous innovation. B) continuous innovation. C) innovation. D) creativity. Answer: A Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Knowledge 38) How many steps are there in the product development process? A) 5 B) 4 C) 3 D) 2 Answer: A Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Knowledge

39) Which term refers to large jumps in a product's benefit-delivering abilities? A) Discontinuous innovations B) Continuous innovations C) Near-category extensions D) Out-of-category extensions Answer: A Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 40) What is the BEST definition of prototype? A) An improvement in a product's ability to deliver benefits to customers B) A working model of an actual product C) The first group of people to adopt an innovation D) The first stage of the product life cycle Answer: B Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 41) When a marketer has determined that a new product is viable, the new product development process changes from the conceptualization phase to the A) research phase. B) financial commitment phase. C) planning phase. D) commercialization phase. Answer: C Diff: 1 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

42) What is a difference between the two types of innovation? A) Size of innovation B) Benefit delivery abilities C) Improvement is created D) Improvement of primary benefit Answer: A Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 43) In which stage of the product development process will a company see prototypes? A) Conceptualization B) Planning C) Commercialization D) End product Answer: C Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 44) Why is the new product development process important? A) New product development failure risk is high. B) Creativity is important. C) It doesn't involve collaboration between functional areas. D) It's slow and cumbersome. Answer: A Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

45) Why are failure rates for new products debatable? A) Failure rate is not clearly defined. B) The market is always changing. C) Failure rates are high. D) Failure rate has a defined inclusive definition. Answer: A Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 46) Which of the following is an example of a discontinuous innovation? A) Northeast Electric Company markets the first electric typewriters. B) Toyota markets the first Prius, a hybrid automobile. C) Kellogg's markets Corn Flakes, the first shelf-stable, cold breakfast cereal. D) RCA markets the first colour television sets. Answer: C Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 47) Which of the following statements accurately describes the new product development process? A) By definition, the process is slow and cumbersome. B) Conceptualization is considered through the lens of marketing strategy. C) Commercialization begins with the rollout of product or services. D) It requires collaboration between functional areas of the business. Answer: D Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

48) Which of the following statements accurately describes new product successes and failures? A) Marketers typically define failure as products offered for sale for less than one year. B) Successful products often deliver short-term rewards to the companies that market them. C) Weihenstephaner beer is considered the world's worst product failure. D) Marketers disagree on what constitutes failure. Answer: D Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 49) Peter was enthusiastic about the new case that he was creating for a smartphone using advanced plastics. He tells you, "This is revolutionary. This is something that everyone needs. This is truly a discontinuous innovation." It is far more likely that this case will be a A) discontinuous improvement. B) continuous innovation. C) discontinuous enhancement. D) continuous improvement. Answer: B Diff: 2 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

50) You and your roommate have a viable food truck business on campus. You are about to introduce gourmet grilled cheese options to the menu for those customers who have asked for more non-meat options. Research shows that this will provide you with an advantage over your competitors. To be successful in developing this new product, what is your next step? A) Analyze the additional offerings by estimating costs, forecasting sales, and calculating return on investment. Proceed only if the addition of gourmet grilled cheese sandwiches appears profitable. B) Create the marketing plan and marketing mix by choosing the appropriate combination of Ps and Cs for the addition of gourmet grilled cheese sandwiches. C) Test market the gourmet grilled cheese sandwiches on campus, particularly with the customers who asked for non-meat menu additions. D) Since this is a small business venture, rolling out the new menu options now can serve as the business analysis and test marketing steps. Answer: A Diff: 3 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 51) Lisa and her marketing team are working on a new product for their firm. They've gone through a wide range of rough ideas about what kind of new product would be good in the marketplace, then they eliminated some ideas that seemed inappropriate, and started thinking about what the product offerings might look like. What else do they need to do to complete the conceptualization phase of the new product development process? A) Strategy development B) Focus groups and research C) Concept screening D) Operations assessment Answer: C Diff: 3 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

52) How many groups are there in the diffusion of innovation? A) 6 B) 5 C) 4 D) 3 Answer: B Diff: 1 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 53) The pattern of growing and declining sales in a product category over time is A) product life cycle. B) development stage. C) introduction stage. D) primary stage. Answer: A Diff: 1 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 54) How many stages are in the product life cycle? A) 8 B) 7 C) 6 D) 5 Answer: B Diff: 1 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

55) The idea that new technology and the products that utilize the technology spread through markets over time is called A) diffusion of innovation. B) discontinuous innovation. C) continuous innovation. D) innovation. Answer: D Diff: 1 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 56) Which term refers to the idea that new technology and the products that utilize the technology spread through markets over time? A) Diffusion of innovation B) Product life cycle C) Fad D) Fashion Answer: A Diff: 1 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 57) Which of the following describes an innovator? A) Young B) Willing to take risk C) Sense of tradition D) Cautious Answer: B Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

58) Which would be more useful to evaluate in regards to PLC? A) Samsung Galaxy B) iPhone X C) Cellular devices D) Google Pixel Answer: C Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 59) Which action are you most likely to see in the development stage of the PLC? A) Trial of a new product B) Investments being made C) Growth in product sales D) Competing brands begin to emerge Answer: B Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 60) Which action are you most likely to see in the maturity stage? A) Competing brands begin to emerge B) Sales begin to level off C) Growth in product sales D) Investments being made Answer: B Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

61) A fad is a variation in product life cycle. What makes it different than a normal PLC? A) Occurs quickly B) Sales could rise and fall more than once in a fad. C) A fad PLC takes into consideration sales, profits and competition. D) It shows the pattern of growing and declining sales. Answer: A Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 62) A fashion is a variation in product life cycle. What makes it different than a normal PLC? A) Occurs quickly B) Sales could rise and fall more than once in a fashion. C) A fashion PLC takes into consideration sales, profits and competition. D) It shows the pattern of growing and declining sales. Answer: B Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 63) Facial Tissue brands such as Kleenex are in what stage of the product life cycle? A) Decline B) Primary demand C) Selective demand D) Maturity Answer: D Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

64) Which of the following statements accurately describes diffusion of innovation? A) The curve is always bell shaped. B) The main value of the framework is a set of generalizations about the nature of the people who adopt innovations at various points in time. C) Early adopters and the early majority make up the mass market of an innovative product. D) While innovators like to be out front in a category, they tend to be more frugal than others. Answer: B Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 65) Nancy is in her late 70s. Recently, a worldwide pandemic has made it impossible for her to get books from her local library or to pay her bills via a teller at her local bank, so she purchases a laptop and Wi-Fi service. Into which diffusion of innovation category does Nancy most likely fall? A) Early majority B) Late majority C) Laggard D) Non-adopter Answer: C Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 66) Which of the following statements accurately describes the product life cycle? A) It focuses on the changing nature of people adopting a product over time. B) Fads are frequently cyclical with short-lived subsequent iterations. C) It follows a neat and symmetrical bell-shaped curve. D) It is affected by competition from multiple product brands. Answer: D Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

67) What is the BEST similarity between the growth and maturity stages of the product life cycle? A) Competition levels are increasing. B) Profits are increasing. C) Sales are increasing. D) Adoption levels are increasing. Answer: A Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 68) Paul was beginning to think about selling his new smartphone app, and he said, "I wish there was some way to know how this app will be accepted. Otherwise, I'm not sure if I'm succeeding or not." Paul needs to learn about which concept in marketing? A) Marketing research B) New product Development process C) Product life cycle D) Diffusion of innovation Answer: D Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 69) The small group of consumers who are willing to pay a premium price for new technologies and who tend to be risk averse are known as A) innovators. B) achievers. C) status-oriented. D) optimizers. Answer: A Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

70) When considering the product life cycle, the product category sales curve and the product category profits curve differ in their general shape EXCEPT during which phase, when the curves have relatively the same shape? A) Introduction B) Growth C) Maturity D) Decline Answer: B Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 71) Some products may see the mature phase of the product life cycle extend for a long period of time. While this may seem like a desirable state, one of the critical problems is A) lower profitability. B) new competitors. C) regulatory interference. D) declining customer base. Answer: A Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 72) If you were asked to help interpret a graphic of a product life cycle curve, and it looked like hills and valleys instead of a bell-shaped curve, you'd be looking at what kind of product? A) A hot new item at Christmastime B) Seasonal products C) Heavy-duty appliances D) Fast-moving consumer goods Answer: B Diff: 2 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

73) Where does a flip phone user fall in the bell curve of innovation? A) Innovators B) Early adopters C) Laggards D) Non-adopters Answer: C Diff: 3 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Ethics Standard 2: Bloom's || Evaluation 74) What is the BEST synthesis of the diffusion of innovation curve and the product life cycle curve? A) The patterns imply a corresponding need for changes in marketing strategy. B) Heavy competition drives sales and adoptions. C) Early majority adopters respond strongly to primary demand. D) Discontinuous innovations are most common when products reach maturity. Answer: A Diff: 3 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 75) Kathy has been pleased with the launch and steady sales of her new and innovative mobile printer, but she has noticed that with intense competition, profits have been declining. Competitors are now offering their own versions, taking sales away from her product. She knows she must take a new look at her marketing mix. What tool is most appropriate to help Kathy in considering what changes need to be made? A) Diffusion of innovation B) Marketing plan C) Marketing research D) Product life cycle Answer: D Diff: 3 Learning Objective: 8.3 Describe the diffusion of innovation and the product life cycle concepts and appreciate how these two theories affect marketing strategy through the life of a product category. Section Reference: Products Over Time Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

76) How many categories of extensions are there? A) 4 B) 3 C) 2 D) 1 Answer: B Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 77) ________ allow one branded product to feature another brand as a component part or ingredient. A) Co-brands B) Partnership C) Brand Image D) Process of branding Answer: A Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 78) The name or symbol that identifies a specific business's product or service A) branding. B) brands. C) brand marks. D) brand names. Answer: B Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

79) The financial value of a brand is captured in the concept of A) brand equity. B) brands. C) brand names. D) brand marks. Answer: A Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 80) Which of the following terms applies to the image of a green two-tailed mermaid dubbed "the siren"? A) Brand name B) Brand mark C) Brand value D) Brand extension Answer: A Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 81) Which of the following is NOT one of the reasons marketers work to build brands? A) Brands protect against competition. B) Brands can enable premium pricing. C) Brands support product extensions. D) Brands reduce marketers' efforts. Answer: D Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

82) The willingness to pay more for one brand over another brand is known as A) consumer flexibility. B) brand equity. C) brand preference. D) consumer choice. Answer: B Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 83) Which of the following is NOT one of the options available to marketers in building a strong brand image? A) Build image on low pricing. B) Build image focusing on the customer. C) Build image on market failures. D) Build image on leadership. Answer: C Diff: 1 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 84) The font used to spell iPhone is a A) brand mark. B) brand name. C) brand equity. D) brand. Answer: A Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

85) The spoken word iPhone is a A) brand mark. B) brand name. C) brand equity. D) brand. Answer: B Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 86) If a consumer buys Charmin bath tissue that is the exact same quality as a generic brand only more expensive, Charmin has created ________ with the consumer. A) brand mark B) brand name C) brand equity D) brand Answer: C Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 87) Apple creating iPhones after many years of producing iPods and computers would be considered what type of extension? A) In-category extension B) Near-category extension C) Out-of-category extension D) Extension Answer: B Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

88) Pampers created diapers specifically to be worn at nighttime and for swimming. What type of extension is this from the original diaper Pampers started with? A) In-category extension B) Near-category extension C) Out-of-category extension D) Extension Answer: A Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 89) Swiffer dusters can now be bought with the scent of Febreze. This is an example of what strategy? A) Brand Image B) Brand Partnership C) Co-brand D) Process of Branding Answer: C Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 90) The Folgers jingle "the best part of waking up is Folgers in your cup" is building a brand image A) how or when the product is used. B) around the customer. C) by identifying key benefits. D) through leadership. Answer: A Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

91) Yeti's slogan "built for the wild" is building a brand image A) how or when the product is used. B) around the customer. C) by identifying key benefits. D) through leadership. Answer: C Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 92) Which of the following statements accurately describes brand equity? A) Brands have financial returns only when customers have experience with the product. B) Following trial, the benefits a brand delivers are more important than the company's marketing claims. C) It allows customers to distinguish between competing products. D) It is unrelated to brand loyalty. Answer: B Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 93) Which of the following is an example of a near-category brand extension? A) Samsonite outerwear B) Colgate lasagna C) Clorox toilet-bowl cleaner D) Pillsbury frozen microwave popcorn Answer: C Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

94) Which of the following is an example of an out-of-category brand extension? A) Pillsbury Toaster Strudel B) Colgate toothbrush C) Advil migraine medicine D) Levi's tailored men's suits Answer: D Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 95) In 2012, Taco Bell introduced Doritos Locos Tacos and sold over 100 million in the first 10 weeks. This is a successful example of which type of branding? A) Co-branding B) Brand loyalty C) In-category brand extension D) Out-of-category brand extension Answer: A Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 96) An established way to get financial value out of a brand is A) marketing return on investment. B) promotion capital. C) brand extension. D) marketing capitalization. Answer: C Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis

97) One of your friends has been able to create an upscale catering service, David's Elegance. He has been able to develop satisfied new clients. He has an interest in cars, and he is thinking about setting up a detailing service using the same name to cash in on the catering business success. You are against the idea as it seems a classic case of A) brand contamination. B) out-of-category extensions. C) cross-category ambivalence. D) service brand duplication. Answer: B Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 98) Which of the following is NOT one of the problems that can arise in co-branding? A) Customers may not see a logical connection between the two brands. B) Both brands may lose value if the combination doesn't succeed. C) A problem with one brand may diminish both brands. D) The cost of using two brands raises the price customers must pay. Answer: D Diff: 2 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 99) Which of the following took on the least amount of risk when creating a brand extension? A) Yankee Candle Company creating car air freshener products B) NyQuil creating a sleep aid "ZzzQuil" C) Clorox creating the wand toilet bowl cleaner D) Oreo creating cookie dough Oreos Answer: D Diff: 3 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

100) You are the brand manager of a new carbonated, flavoured water and want to develop a strong bond between the brand and the market. What is the BEST way to proceed? A) Using the information finalized when positioning the brand, focus your marketing efforts on the product's specific psychological benefits, and the ways in which it appeals to the target market's core values. B) Treat the venture like a fad, so that sales spike quickly and the company recoups its investments while competition is weak. C) Develop marketing efforts that appeal to the innovators and early adopters since their purchases bring the highest profits and their recommendations are key to fending off competition. D) Due to the conspicuous consumption of the product, create brand equity by using a marketing campaign consistent with the target market's self-image. Answer: A Diff: 3 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 101) The marketing team was brainstorming about promoting a new brand and its products. They will be able to draw on work in another well-developed and researched process to make the brand consistent and increase its chances for success. What other marketing tool(s) should they use? A) Segmenting, targeting, and positioning B) Diffusion of innovation C) Product life cycle D) New product development Answer: A Diff: 3 Learning Objective: 8.4 Define what a brand is and understand how brands create value for customers and marketers. Section Reference: Product Brands and Branding Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

102) What is the difference between a product attribute and a product benefit? Give an example of one product and list both the product attributes and benefits. Answer: Responses will vary. A sample response is as follows: a. Product attributes include the physical and intangible properties of characteristics the product has taken on b. Attributes can be materials, styling and branding. c. What the consumer actually gets d. Product benefit is how the product attributes appeal to one of the consumer's five senses. e. Starbucks iced coffee i. Attributes: Starbucks, dark roast coffee, plastic cup ii. Benefits: sensory benefits/psychological benefits Diff: 3 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 103) What is the good services continuum? Describe the goods-services continuum for the coffee market. Answer: Responses will vary. A sample of the points included in a response is as follows: • The goods and services continuum organizes the broad term "product." • A product can be a good, services, or a combination of both. • On the left side of the continuum for the coffee market: purchase of coffee beans/grounds to be used for personnel consumption (mostly goods) • In the middle of the continuum: a consumer buying a latte at a coffee shop (good/service) • Right side of the continuum: coffee bean farmers (mostly services) Diff: 3 Learning Objective: 8.1 Define the term product, explain its relationships to benefits and core values, and understand the implications for marketing strategy. Section Reference: What Products Mean to Marketers Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 104) How could you describe the innovation (continuous, discontinuous) of the Internet, from inception to date? Answer: Responses will vary. A sample is as follows: a) Discontinuous innovation: the initial large jump when the service was introduced/created b) Continuous innovation: how the service is provided, Wi-Fi, speed, devices capable of accessing the internet Diff: 3 Learning Objective: 8.2 Understand the differences between new-to-the-world products and new-to-the-company products, the new product development process, and the strategy implications for product management. Section Reference: New Products and Innovation Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 36

Applied Marketing, 1ce (Grayson) Chapter 9 Place Decisions and Customer Convenience 1) The total set of companies, exchanges, and transactions that produce goods and make them physically and commercially available to consumers is the definition of "place" in the marketing mix. Answer: FALSE Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 2) If a store advertises it has "wholesale prices," it cannot sell to the final consumers of a product. Answer: FALSE Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 3) While some stores urge you to "eliminate the middleman" in transactions, significant value can be lost when manufacturers move to more direct marketing channels. Answer: TRUE Diff: 1 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 4) Brian took a job at a wholesaler, thinking only of the way wholesalers make products available to retailers. What he will realize when he starts working is that there is a flow moving in the opposite direction of money and valuable information, such as complaints. Answer: TRUE Diff: 1 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

5) Relationships among members of the supply chain are sought by the each of the members of the supply chain for that individual's benefit as well as the each of the other participants. Answer: FALSE Diff: 2 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 6) Marketers need to focus on the ultimate customer. They realize that retail supply chains are significant, but these concerns are more tactical than strategic. Answer: FALSE Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 7) If a marketer develops a strong brand, it will be easier to use impersonal approaches such as online sales or catalogues. Answer: TRUE Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 8) Once a marketer has designed a retail supply change and then set everything in motion, the remaining task is to monitor the results to ensure the strategy and the design are working. Answer: FALSE Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

9) Retailers will go through detailed planning to determine the atmosphere, lighting, staffing, layout and many other variables, but they are at the mercy of manufacturers who can dictate what kinds of merchandise will be cared in what stores. Answer: FALSE Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 10) Before the emergence of strong retailers, manufacturers traditionally had more power in supply chains based on the power of the brands they had built. Answer: TRUE Diff: 1 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Comprehension 11) Because of the differences between selling activities in physical stores and online retailers, different kinds of conflicts arise when power is exerted in the supply chains of the two. Answer: FALSE Diff: 1 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge 12) Jim's firm had worked for several years to get producers, retailed and wholesalers working together. This system, which proved beneficial to all, is known as a vertical marketing system. Answer: TRUE Diff: 1 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Comprehension

13) Which of the following is NOT one of the many elements of an industrial supply chain? A) Farmers B) Components manufacturers C) Retailers D) Miners Answer: C Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 14) ________ are the core of place decision as the concept encompasses a broader array of ideas than simply moving goods from producer to consumer. A) Supply chains B) Consumers C) Wholesalers D) Reverse supply chains Answer: A Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 15) Supply chains as the total series of companies, exchanges, and transactions that produce goods and make them physically and commercially available to ________. A) wholesalers B) consumers C) retailers D) supply chain managers Answer: B Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

16) Merchandise sometimes flows backwards from consumer to producer. This is known as a(n) A) supply chain. B) industrial supply chain. C) retail supply chain. D) reverse supply chain. Answer: D Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 17) A key function of an effective supply chain is A) providing exchanges that make goods available to consumers. B) operating efficiently while protecting the environment. C) moving products from manufacturers to suppliers. D) offering coordination between producers and retailers. Answer: A Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 18) The role of supply chains is to A) deliver materials to producers and consumers. B) ensure products are delivered on time. C) assist distributors in coordinating deliveries. D) transport products efficiently to multiple locations. Answer: A Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 19) The goal of retail supply chains is to A) create exchanges that ensure goods move from producer to consumer. B) develop proper distribution channels. C) organize and transport product to various regions and distribution centres. D) coordinate proper technology to monitor delivery of products. Answer: A Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 5

20) Which of the following is the BEST definition of supply chain? A) The movement of goods from producer to consumer B) The total series of companies, exchanges, and transactions that produce goods and make them physically and commercially available to consumers C) The act of making products easily attainable and convenient to consumers D) The use of a sales force and promotional incentives to convince wholesalers and retailers to carry the producer's products Answer: B Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 21) Which of the following utilizes one or more marketing intermediaries to get products from the producer to the consumer? A) Direct retail supply chain B) Indirect retail supply chain C) Reverse supply chain D) Wholesale supply chain Answer: B Diff: 1 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 22) Heather was a marketing intern in a large manufacturing firm, and she was attending a meeting to examine how to streamline entire process of getting raw materials to the firm and the finished goods to market. Several of the other participants were talking about "marketing intermediaries," and she was not clear who or what these are. Who are the "marketing intermediaries" that were the focus of this discussion? A) Transportation firms bringing materials to the firm B) Sales agents used by the firm's suppliers C) Wholesalers and retailers D) Marketing and advertising agencies retained by the firm Answer: C Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

23) Paul and Marcus were planning the launch of a new product line for their firm, and they both got enthusiastic about breaking out of the traditional selling they had been doing using wholesalers to sell directly to the consumers using their website. They had checked with everyone associated with the operations of the website it was relatively easy to do. They needed to get approval from the CMO because the company would be taking on the new role of A) marketing intermediary. B) direct retailer. C) wholesaler disintermediation. D) supply chain manager. Answer: B Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 24) Sarah was always looking for bargains, and she was talking about the number of refurbished and reconditioned electronics on companies' website. Her friend Alexis, a marketing major, explained to her that this was one of the results of the growth of which process? A) Recycling B) Reverse supply chains C) Profit maximization D) Product-life extensions Answer: B Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 25) Wayfair and Amazon use which type of supply chain when selling products? A) Direct retail B) Indirect retail C) Direct wholesale D) Indirect wholesale Answer: A Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

26) Which of the following is a reason why companies such as L.L.Bean might use reverse supply chain? A) To accommodate returned or defective products B) To assist in recycling used merchandise C) To facilitate efficiency in transporting products D) To coordinate the distribution of time sensitive products Answer: A Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 27) Roberto is a finish carpenter for a local construction firm. He purchases his lumber and necessary hardware from Lumber Nation, a company that sells only to professional builders. Which of the following terms most accurately describes the role of Lumber Nation in this scenario? A) Wholesaler B) Retailer C) Mass merchandiser D) Category killer Answer: A Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 28) Nespresso is headquartered in Switzerland and operates in 60 countries. It sells its coffee pods and coffee makers via company-owned boutiques or online. Which of the following terms BEST describes this type of supply chain? A) Reverse supply chain B) Industrial supply chain C) Traditional supply chain D) Direct supply chain Answer: D Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

29) Veronica purchased a Ring doorbell from Home Depot for her new home. Since it never seemed to work correctly, she returned it to the store in exchange for a new one. Home Depot shipped the malfunctioning doorbell to Ring, where it was repaired and sold as "certified refurbished." Which of the following terms BEST describes this type of supply chain? A) Industrial supply chain B) Direct supply chain C) Reverse supply chain D) Traditional supply chain Answer: C Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 30) A bottle of laundry detergent begins with a plastic producer and a chemical manufacturer. Once filled and labelled, the detergent bottles are shipped to companies like Clean It Supply. They end up at mass merchandisers like SuperStore, which sell directly to the end customer. This is an example of a(n) A) industrial supply chain. B) direct retail supply chain. C) reverse supply chain. D) indirect retail supply chain. Answer: D Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 31) Intermediaries provide what areas of expertise to supply chains? A) Efficiency in moving and sorting B) Security in storage and retrieval of goods C) Protection against theft and vandalism D) Assistance in managing logistics Answer: A Diff: 1 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

32) Supply chains can provide valuable information to retailers by A) gathering information from scanners and mobile devices. B) tracking purchase patterns of customers. C) designing metrics to guide logistics efficiency. D) anticipating shortages in product deliveries. Answer: A Diff: 1 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 33) Which of the following is NOT one of the ways retailers help get products to the customers? A) Retailers increase the variety of choices available to the consumer. B) Retailers provide efficiency and effectiveness to keep products at or below the "manufacturer's suggested retail price." C) Retailers provide moving, sorting and handling goods as they become specialists in this area. D) Retailers reduce the number of transactions for manufacturers. Answer: B Diff: 2 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 34) Dawn's marketing director urged her to give special attention to several of the retailers buying her firm's product. He even suggested they might take some short-term losses if necessary. Why would the marketing director decide to do this? A) He was concerned that if the firm were seen as being too strict or too firm, it might be seen as unethical. B) He felt that if the retailers do well, it will benefit Dawn's firm in the long run. C) He was concerned that damaging the retailers might lead to lawsuits from them. D) He knew that if he drove even a few of the firms to bankruptcy, his firm would end up losing money. Answer: B Diff: 2 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

35) Manufacturers can stimulate demand for their products by creating promotions with the understanding that A) retailers will pass on some of the price savings to customers. B) competitors cannot match the promotion. C) these promotions may indicate to others in the supply chain a change in the firm's objectives. D) strategies aren't working, and tactics are required. Answer: A Diff: 2 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 36) Which of the following is a reason why producers might offer discounts to retailers? A) Inventory control and promotional planning B) Develop or repair important relationships C) Reduce inventory or storage space D) Eliminate waste and spoilage Answer: A Diff: 2 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 37) Which of the following statements most accurately describes the importance of supply chains? A) The presence of retailers in a supply chain saves consumers considerable time, effort, and resources. B) Producers possess logistics expertise that wholesalers and retailers do not. C) Marketing intermediaries frequently place goods in unexpected places, which improves product awareness and trial. D) The ability to buy directly from producers saves consumers a great deal of money. Answer: A Diff: 2 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

38) Which of the following is a source of power for retailers? A) The flow of money through the retail chain B) The promotional assistance they can provide the other supply chain members C) The technological capability of collecting information from cash register scanners D) The direct contact with the final consumer Answer: B Diff: 2 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 39) The level of availability for the product or service is referred to as A) intensive distribution. B) distribution intensity. C) exclusive distribution. D) selective distribution. Answer: B Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 40) When producers utilize ________, they place their brands in as many, but not all, outlets as possible. A) exclusive distribution B) selective distribution C) intensive distribution D) distribution intensity Answer: C Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

41) Producers sometimes use ________ by placing their product in few outlets. A) exclusive distribution B) distribution intensity C) selective distribution D) intensive distribution Answer: A Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 42) Which is a leading reason why a company might decide to use catalogs when communicating with customers? A) Customers do not need the product immediately. B) Customers depend on promotional discounts. C) Customers prefer a traditional form of evaluating possible purchases. D) Consumers are not price sensitive and are not bargain shopping. Answer: A Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 43) Indirect supply chains can sometimes decide to bypass which of the following? A) Wholesalers B) Intermediaries C) Distributors D) Suppliers Answer: A Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

44) When producers wish to make their products easily obtainable and increase convenience, they select a(n) ________ strategy. A) distribution intensity B) intensive distribution C) exclusive distribution D) selective distribution Answer: B Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 45) Luxury brands such as Rolex and Gucci would use which type of distribution strategy? A) Exclusive B) Selective C) Prestige D) Intensive Answer: A Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 46) Which of the following terms is defined as the level of availability for a product or service? A) Relationship marketing B) Relational exchange C) Distribution logistics D) Distribution intensity Answer: D Diff: 1 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

47) A firm is producing luxury desk sets—letter openers, pencil cups, etc. They are beautifully made, and they are made of rare and expensive materials. When the firm is developing its Place strategies in the marketing mix, what kind of distribution intensity would the firm select for these products? A) Intensive B) Selective C) Premium D) Exclusive Answer: D Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 48) Megan's firm is launching a new line of hair-care products which are not expensive, but a certainly higher quality than the less-expensive products dominating the market. What kind of distribution intensity should she select for these new products? A) Intensive B) Professional C) Selective D) Exclusive Answer: C Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 49) When you feel you just have to have a piece of chewing gum, you know there will be a vending machine or many different kinds of stores where you can get a pack of gum quickly and without much thought. The chewing gum company selected an intensive distribution strategy because A) they want a consistent brand image of a product anyone can afford. B) they want to be in as many locations as possible to close out as many competitors as possible. C) they know margins will be low, and they look for locations that will not be expensive in which to place the product. D) they recognize this is the industry standard practice, and they see no reason to depart from it. Answer: B Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 15

50) Under what condition is it best to include one or more wholesalers in the supply chain? A) When pre-purchase inspection is not important B) When customers do not need the product immediately C) When the producer is of small or medium size D) When the producer needs absolute control over how its brands are merchandised Answer: C Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 51) Stella McCartney partnered with Adidas to create a line of designer athletic footwear, which is sold at outlets like Nordstrom, Holt Renfrew, and Zappos.com. A savvy shopper may even find them on sale. This is an example of which type of distribution? A) Selective B) Intensive C) Exclusive D) Inclusive Answer: A Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 52) A Birkin handbag retails for thousands of dollars and is only available for purchase in an Hermes store, of which there are 5 in Canada. Which type of distribution is exemplified in this scenario? A) Selective B) Intensive C) Exclusive D) Inclusive Answer: C Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

53) Gatorade is available in vending machines, convenience stores, grocery stores, sporting goods stores, and concession stands. Which type of distribution is exemplified in this scenario? A) Selective B) Intensive C) Exclusive D) Inclusive Answer: B Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 54) Which strategy would a company use if they wanted to make their product easy to acquire? A) Intensive distribution B) Exclusive distribution C) Selective distribution D) Direct distribution Answer: A Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 55) Retailer ________ is the ability of a retailer to attract consumers in a producer's target market or markets. A) type B) image C) reach D) fit Answer: D Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

56) ________ are very large retail stores that specialize in selling large volumes of merchandise at low prices. A) Discount stores B) Mass merchandisers C) Department store D) Specialty stores Answer: B Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 57) Marketers are concerned with the concept of retail fit, trying to answer the question about which store would be best for customers. Which of the following is NOT one of the dimensions of retail fit? A) Retailer reach B) Retailer sustainability C) Retailer type D) Retailer image Answer: B Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 58) ________ are physically much smaller in space. A) Discount stores B) Specialty stores C) Department stores D) Mass merchandisers Answer: B Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

59) ________ are also large stores that feature apparel and home furnishings. A) Department stores B) Discount stores C) Mass merchandisers D) Specialty stores Answer: A Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 60) ________ stores, such as Walmart and Giant Tiger, are all mass merchandisers. A) Discount B) Specialty C) Department D) Chain Answer: A Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 61) Which of the following is NOT a type of retail store? A) Convenience stores B) Mass merchandiser C) Chain stores D) Specialty stores Answer: A Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

62) What are distinguishing features of specialty stores? A) Narrow inventory and high level customer service B) Deep product selection and exclusive luxury brands C) Custom products and private showing D) Exclusive brand selections and limited assortments Answer: A Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 63) How does a push strategy differ from a pull strategy? A) It is less expensive. B) It is more impactful. C) It is easier to manage. D) It is difficult to imitate. Answer: A Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 64) Which dimension of retailer fit is defined as the ability to attract consumers in a producer's target market? A) Retailer intensity B) Retailer type C) Retailer image D) Retailer reach Answer: D Diff: 1 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

65) Jordan had been working diligently to gather as much information as possible about the stores where his firm might put their new line of sports apparel. He was trying to assemble all the criteria he could think of to test each of the stores, but he was feeling more confused than he had been at the beginning. When he was explaining his frustration to Sam over coffee, Sam said, "You're going at the this the wrong way. There's only one question you need to answer." What is that one question? A) Which store's margins are the most attractive? B) Which store will carry the merchandise without having to pay an allowance? C) Does the brand belong in a particular retail store? D) Which store is not already carrying the competitor's products? Answer: C Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 66) Crystal saw a new brand of salsa being promoted online, and it was getting great reviews. She couldn't find it anywhere in her area, so she began a campaign using social media to convince grocery retailers to start carrying this new brand. This is an example of what kind of retail strategy? A) Word of mouth strategy B) Pull strategy C) Push strategy D) Social-media action strategy Answer: B Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

67) Paula's firm was relaunching a line of yard tools and an argument broke out in the marketing department. The veterans wanted to focus on lawn care centres, nurseries and selected hardware stores. On the other hand, the younger marketers wanted to emphasize an online push. Paula stepped in and asked what kind of research was available that discussed the balance between online and retail brick and mortar stores. Both groups came back with the same answer A) About a third of retail sales are online. B) More than three-quarters of retail sales were made online. C) Within the last few years, the retails sales for online and physical stores were about the same. D) The overwhelming majority of sales occur in physical stores. Answer: D Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 68) Which of the following is a way in which retail reach can be measured? A) Determining how well the retailer can attract the target customer B) Determining which advertising will reach the target customer C) Determining which social media platform appeals to the target customer D) Utilizing analytic data to determine marketing content that needs to be changed Answer: A Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 69) What must producers consider when creating an image for their store? A) If the retailer's image matches the products sold in the store B) If the store highlights the uniqueness of the brand being sold C) If there is a fit between the item sold and the target customer D) If the producer has access to the luxury brands necessary to create the image Answer: A Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

70) Suppose that Tech Yeah! is a large and hugely successful retailer in Canada. It carries a large and deep assortment of consumer electronics and appliances. Consumers report that Tech Yeah! prices are extremely competitive. Tech Yeah! is an example of which type of retailer? A) Category killer B) Specialty store C) Department store D) Mass merchandiser Answer: A Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 71) La Senza is a lingerie retailer. Stores carry deep inventories, but brands are limited. Employees are expected to provide quality customer service. La Senza is an example of which type of retailer? A) Category killer B) Specialty store C) Department store D) Mass merchandiser Answer: B Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 72) Which of the following BEST describes the difference between a push strategy and a pull strategy? A) The need for product promotion B) The necessity of demand from customers to retailers C) The necessity of demand from retailers to producers D) The need for additional cash outlay Answer: D Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

73) Kristoff tries veggie chips at a sampling station at a trade show. During his next shopping trip at his locally owned grocery store, Kristoff asks the manager if she carries the tasty chips. When she replies negatively, Kristoff raves about them. A few weeks later, at that same store, Kristoff notices an endcap filled with bags of veggie chips. This type of marketing interaction is termed a A) power exchange. B) discrete transaction. C) push strategy. D) pull strategy. Answer: D Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 74) You are a marketing manager for a sporting goods manufacturer that is launching a new lawn bowling game. The plan is for the game to be sold via stores like SportChek and National Sports, and also Hudson's Bay and Walmart. One of your subordinates approaches you with concerns that selling via mass merchandisers is overkill as those stores reach consumers far beyond your target market. What is your BEST response? A) You agree and limit your sales to specialty stores where customers readily expect your products. B) You move forward with your original plan. While mass merchandisers attract customers outside your target market, they do attract a significant number of consumers within your target. Further, consumers will expect products like yours in the mass merchandisers' sporting goods sections. C) You move forward with your original plan. Mass merchandisers attract customers outside your target market and, by placing product there, you may extend your reach and increase your sales. D) You agree and rebrand your bowling game so that it clearly favours a specialty store market. Answer: B Diff: 3 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

75) Mariah has invented a new kind of insulated covering that can keep beer cans frosty cold for days. She knows this product has great potential, but her capital is limited. She comes to you for advice on the best way to get her product into retail stores. What is the best advice to give her? A) Forget about retail stores and focus on online retailing, which is where consumers expect new products to be sold. B) Focus on creating social media buzz and support. Tell interested consumers to ask for the product at local retailers. C) Visit mom-and-pop convenience stores with considerable beer sales, demonstrate the product, and ask for shelf space. D) Attempt to create a relationship with a beer manufacturer. Customers who buy a case of their beer can receive a free insulated covering by mail. Answer: B Diff: 3 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 76) The major sources of conflict in supply chains are the differing goals, differing ideas of who should be responsible for what, and A) geographic exclusivity. B) who sets prices. C) how target markets are seen. D) brand image differences. Answer: C Diff: 1 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge 77) Which of the following is NOT one of the potential sources of conflict in supply chains? A) How much shelf space can be allocated to a manufacturer's products B) When products will be delivered C) When payments will be made D) Which sales associates will oversee reordering and stocking issues Answer: D Diff: 1 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge

78) Companies can threaten another supply chain member, it is called ________ power. A) reward B) brand C) members D) coercive Answer: D Diff: 1 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 79) What can be the end result of supply chain conflicts? They can A) produce positive results. B) lead to repaired relationships. C) resolve internal conflicts. D) create a better atmosphere. Answer: A Diff: 1 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 80) Which of the following most accurately defines reward power as it is exercised in supply chains? A) One supply chain member offers incentives to another member to share its expert knowledge. B) One supply chain member is threatened by another. C) One supply chain member offers positive incentives to another to gain compliance. D) One supply chain member is awarded control over the entire chain. Answer: C Diff: 1 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

81) When Stephen began working at a children's apparel company, he had very firm opinions about specific retailers, including setting his own rules about where he would shop. As he worked, he found he actually enjoyed meeting and working with counterparts in these retailers, which caused him to soften his opinions. This reflects which fundamental element of supply chain relationships? A) A person should not bring his or her personal opinions into work. B) Business relationships are developed by people not companies. C) A person should not be judgmental about people he or she works with. D) Conflicts arise because of preconceived ideas. Answer: B Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 82) Liz was observing how her company dealt with specific retailers. With some, she noticed threats were common and issues were often determined by the party with the most resources—one or the other firm was coerced into acting in some way. In others, the nature of the relationships, even in issues of power, were handled, and it rarely came down to force. The kind of power seen in the latter relationships is known as A) expert power. B) referent power. C) reward power. D) contained power. Answer: C Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 83) Which of the following is a way in which companies such as Heinz and Kellogg's might use power to gain entry into store? A) Reward power B) Shelf displays C) Point of purchase displays D) Product placement Answer: A Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 27

84) Which of the following statements accurately describes power in supply chains? A) Online retailers have limited power in supply chains. B) Producers are the most powerful supply chain members. C) Producers are the least powerful supply chain members. D) Technology plays a large role in which supply chain member wields power. Answer: D Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 85) Which of the following statements accurately describes conflict in supply chains? A) Supply chain conflict equals negative results for all parties. B) Conflict often arises because supply chain members have the same goal. C) Conflict may arise because supply chain members view the target market differently. D) While all producers are equally important to retailers, not all retailers are equally important to producers. Answer: C Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 86) What is the BEST similarity between coercive power and reward power when exercised in supply chains? A) Both seek to gain compliance. B) Both seek to cultivate loyalty. C) Both negatively affect relationships. D) Both motivate with types of punishments. Answer: A Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

87) When is coercive power most effectively exercised in supply chains? A) When one member is dependent on another B) When members are interdependent C) When competitors' products are few D) When distribution is intensive Answer: A Diff: 3 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 88) A major risk in working with various supply chains might be A) how to create and maintain relationships. B) how to be efficient and cost effective. C) how to use technology effectively across all channels. D) how to respond to product shortages and layoffs. Answer: A Diff: 3 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 89) In which sort of vertical marketing system does a manufacturer exert the most control? A) Corporate VMS B) Administered VMS C) Contractual VMS D) Integrated VMS Answer: A Diff: 1 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Knowledge

90) A benefit gained when supply chain members engage in relational exchange is A) trust. B) savings. C) loyalty. D) profits. Answer: A Diff: 1 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 91) Discrete transaction differs from relational exchange in that A) it is done on a one-time basis. B) it is unethical. C) it lacks transparency. D) it does not share information. Answer: A Diff: 1 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 92) What is the ultimate goal of a vertical marketing system? A) Satisfy the consumer B) Create supply chain efficiency C) Develop long-term relationships D) Improve efficiency Answer: A Diff: 1 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

93) Which of the following is NOT a vertical marketing system (VMS)? A) Franchise VMS B) Contractual VMS C) Administrative VMS D) Corporate VMS Answer: A Diff: 1 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 94) Which of the following terms applies when two parties have conducted business on a one-time basis with no set expectations of future business? A) Relational exchange B) Discrete transaction C) Franchise agreement D) Vertical marketing system Answer: B Diff: 1 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 95) The hosts on televised shopping channels focus on selling products to the people currently watching. Assured that new people will be watching later, they do not concern themselves with guaranteeing repeat sales. This type of marketing interaction is termed a A) relational exchange. B) discrete transaction. C) power strategy. D) pull strategy. Answer: B Diff: 1 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

96) Many companies that have been around for a few decades will observe how the way they interact with their own buyers and sellers has changed from adversarial, price focused transactions to a fundamentally different kind of system characterized by more trust, lower costs and more flexibility. This more modern approach is known as A) supply chain management. B) agile marketing. C) relationship marketing. D) egalitarian management. Answer: C Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 97) Which of the following would be characterized as a discrete transaction? A) Selling lingerie to a small retail clothing store B) Setting up an arrangement where administrative assistants in a company can order office supplies using their own discretion C) A small number of vendors were asked to submit confidential bids to refurbish the Vice President's office D) A restaurant running out of butter one night and sending someone to the local grocery store Answer: D Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 98) Lucas worked for an old-school business owner. When Lucas presented the idea of building relational exchanges with key vendor and buyers, the owner was skeptical at best. He told Lucas, "I'm not at all interested in having people feel good about business. It's not a party." Lucas then told him it could increase profits, and the owner took a new interest. Which of the following is NOT a way Lucas could demonstrate that relational exchanges would increase profits? A) Lucas's firm could get the lowest price on the key materials they needed. B) Lucas's firm could lower inventory costs with longer-term contracts with flexible deliveries. C) Lucas's firm could reduce purchasing costs through fewer searches and negotiations. D) Lucas's firm would not have to spend as much to test and examine in-bound materials. Answer: A Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 32

99) What happens in an administered vertical marketing system when different levels of power between two parties is significant? A) Companies may be dependent on each other, but the benefits are not equally distributed. B) Regardless of the safeguard established in the design of the system, the strong party can essentially do what it wants to do. C) Within a short period of time the administered VMS will evolve into a corporate VMS. D) The weaker party can protect itself with a franchise agreement. Answer: A Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 100) Sherwin-Williams has more than 4,000 company-operated paint and coating stores in 120 countries. They do not franchise. This is an example of which type of vertical marketing system? A) Corporate VMS B) Administered VMS C) Contractual VMS D) Discrete VMS Answer: A Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 101) Which of the following statements accurately describes relationship marketing? A) Relational exchanges involve constant oversight of relationships. B) Discrete transactions represent a major shift in thinking among companies operating in supply chains. C) Relational exchanges take a long-term view of business interactions. D) Relational exchange relationships limit new business opportunities. Answer: C Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

102) Giovanni wanted to be his own boss, so he bought a UPS Store franchise for $250,000. He is confident in his investment because his brand is well recognized, and he and his staff will be well trained. This is an example of which type of vertical marketing system (VMS)? A) Contractual VMS B) Corporate VMS C) Administered VMS D) Discrete VMS Answer: A Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 103) Small Producer is heavily dependent on Massive Mart for product sales. When Massive Mart aggressively negotiates lower wholesale prices so it can then lower prices in its stores, Small Producer has no choice but to agree. This is an example of which type of vertical marketing system? A) Contractual VMS B) Corporate VMS C) Administered VMS D) Discrete VMS Answer: C Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 104) What is the BEST synthesis of discrete transactions and relational exchanges? A) They facilitate supply chain transactions with members who offer the best financial terms. B) They facilitate supply chain transactions by sharing information and exchanging resources. C) They represent traditional ways of doing business. D) They operate on high levels of trustworthiness. Answer: C Diff: 3 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis

105) Ethan sells fruit and vegetable smoothies from a food truck. He has a large following, but business has fallen off a bit as customers are frustrated by his ever-changing menu and prices. Because his business relies on quality, fresh fruit, Ethan is at the mercy of his produce suppliers for availability and cost. Unfortunately, to purchase the low quantities he needs, Ethan always pays a high price. What is the best advice for Ethan? A) Ethan should seek bids from a variety of vendors each time he purchases produce. That way, he can be assured of the lowest costs. B) Ethan should purchase higher quantities of produce to lower his costs and create new smoothie combinations to use up the extra supply. C) Ethan should seek to partner with a specific vendor to get his required produce ingredients when he needs them. Though he likely will pay more, his costs will be offset by his increased sales. D) Ethan should consider growing his own produce. That way, he is assured to have what he needs when he needs it—and at minimal cost. Answer: C Diff: 3 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 106) What are the two types of supply chains? Provide an example of each. Answer: Student answers should include industrial (raw material suppliers) and retail (wholesalers). Examples of each may vary. Diff: 2 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 107) Why would a retailer want to take on functions that have value that had been traditionally added by a wholesaler? Use your response to demonstrate your understanding of marketing intermediaries. Answer: Responses will vary. However, they may draw on a number of different trends including: globalization, the expansion of ecommerce, the growing complexity of supply chains and the changes in power and control. The better student responses will demonstrate the challenges in bringing a product to market and how a firm exercising greater control can realize more of the value. Diff: 3 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis

108) Explain the role that retailers play in the supply chain process. Answer: Responses will vary, but may include an explanation similar to the following: Retailers are the intermediaries who buy merchandise from producers or wholesalers and then resale the merchandise to final consumers. Diff: 3 Learning Objective: 9.1 Understand the meaning, composition, and structure of supply chains. Section Reference: What Are Supply Chains? Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 109) What is the essential purpose of supply chains? Answer: Responses will vary, but may include an explanation similar to the following: The essential purpose of supply chains is to physically move materials and merchandise from suppliers to producers and from producers to consumers. Along with the flow of goods, supply chains also facilitate the flow of other important resources. Diff: 2 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 110) As a consumer, you've had the experience of having your purchase scanned. It is easy to see how the retailer might use that information, from recording payment received to inventory control. That information becomes an asset as others would like to use that information. What are some of the uses for a manufacturer in the scanned data from purchases? Answer: Responses will vary. The basic responses will include chapter information including purchase information, logistic information, complaints and everything that goes with the reverse supply chain. Better response will draw points from prior chapters, especially Chapter 8 considering new product development, adoption rates, etc. Diff: 3 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 111) Information is an important resource that flows thru supply chains. Explain how this information is captured. Answer: Responses will vary, but may include an explanation similar to the following: Increased capability and presence of technology for collecting information at retailers from cash registers, scanners and mobile devices has changed the information landscape in supply chains. Diff: 3 Learning Objective: 9.2 Appreciate the value of supply chains to consumers and the importance of what moves through supply chains. Section Reference: The Importance of Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 36

112) Discuss a less expensive way to establish a retail supply chain. Answer: Responses will vary, but may include an explanation similar to the following: A second and less expensive way to establish a direct retail supply chain is through catalogue or online sales, which may be an attractive approach under certain conditions. Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 113) Producers sometimes choose to use exclusive distribution. What is the process for exclusive distribution and for what it is often used? Include real world examples. Answer: Responses will vary, but should generally include an explanation similar to the following: Exclusive distribution is achieved when a producer places their product in limited outlets. This is most often used for luxury or specialty products, exclusive distribution contributes to brand exclusivity. Examples may include luxury clothing brands such as Chanel, Louis Vuitton, Gucci, Supreme, etc.; beauty brands, such as MAC, Biologique Recherche, Dr. Barbara Sturm skincare, etc.; tech brands, etc. Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 114) How would you explain the process of how producers use selective distribution? Answer: Responses will vary, but may include an explanation similar to the following: When producers utilize selective distribution, they place their brands in many but not all possible outlets. Selective distribution generally applies to products consumers are willing to put forth some effort to find in order to get the best value. Diff: 2 Learning Objective: 9.3 Learn how supply chain length and distribution intensity are incorporated into supply chain design. Section Reference: Designing Retail Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

115) Explain retailer reach relative to attracting customers. Answer: Responses will vary, but should include an explanation similar to the following: The ability of a retailer to attract consumers in a producer's target market or markets. Reach is a function of who a retailer attracts to the store or website and whether the retailer is located where the producer needs it to be. Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 116) Explain push strategy and how it is used to convince companies to carry their products. Answer: Responses will vary, but should include an explanation similar to the following: The producer uses its sales force and perhaps promotional incentives to convince wholesalers and retailers to carry the producer's products. Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 117) What is the pull strategy and how is it applied to increase product demand? Answer: Responses will vary, but should include an explanation similar to the following: When a producer goes directly to the consumer, usually by advertising, and attempts to build demand for its brands. Consumers then go to retailers seeking the product. Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 118) Discuss the cost of a pull strategy as compared to push strategy. Answer: Responses will vary, but may include a discussion similar to the following: A pull strategy can be considerably more expensive than a push strategy; however, social media and other forms of digital advertising hold the promise of reducing pull strategy costs. Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

119) Why is pull strategy antagonistic toward powerful retailers? Answer: Responses will vary, but may include an explanation similar to the following: It runs the risk of annoying powerful retailers who were averse to stocking the product in the first place. Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 120) Discuss pull strategy and the likelihood that it will used by less well-known or established brands. Answer: Responses will vary, but may include an explanation similar to the following: Producers with less well-known or established brands, or any producer introducing an innovative new product to the marketplace may need to rely at least in part on a pull strategy. If retailers see little promise in a brand, they may decline to stock it. Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 121) Discuss is the main goal of the pull strategy and provide an example of a real brand, product, or service. Answer: Responses will vary, but should generally include an explanation similar to the following: The main goal of a pull strategy is to attempt to build consumer demand to a point that retailers can no longer ignore the product. Examples will vary widely, buy may include items like Made for TV products such as the Snuggie (presented in the text). Other examples may include smaller independent beauty/skincare brands, clothing brands, and books or music from independent labels. Diff: 2 Learning Objective: 9.4 Learn the factors affecting retailer selection and the strategies to convince retailers to carry brands. Section Reference: Retail Supply Chain Strategy: Retailer Selection Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

122) Who is the driving force for creating relationships between businesses? Explain. Answer: Responses will vary, but may include an explanation similar to the following: Businesses are operated by people, so it's not businesses that create relationships; people do. The issues and characteristics that drive human relationships outside of work also affect relationships at work, including relationships between businesses that operate in supply chains. Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 123) What is coercive power and how might companies utilize it? Can you provide an example? Answer: Responses will vary, but may include an explanation similar to the following: Companies can threaten another supply chain member. For example, Nike might pressure a small local running store to accept larger and less frequent delivery of shoes in order to push inventory carrying costs onto the retailer by threatening to not sell new products to the retailer. Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 124) Explain reward power is, relative to how companies may utilize it. Provide an example to illustrate you explanation. Answer: Responses will vary, but may include an explanation similar to the following: Reward power is where one supply chain member offers positive incentives to another member to gain compliance. For example, Nike may offer SportChek promotional assistance, reduced prices, or other incentives to persuade SportChek to cooperate. Diff: 2 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

125) Discuss two major sources of conflict in a supply chain. Answer: Responses will vary, but may include an explanation similar to the following: Supply chain members have different goals, the most important of which is to make as much profit as possible. Profit for the retailer comes directly at the expense of the other supply chain members and vice versa. Second, sometimes supply chain members have differences about who should be responsible for what activities (promotions). Diff: 3 Learning Objective: 9.5 Understand the nature and effects of power and conflict in supply chains. Section Reference: Power and Conflict in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 126) Explain relationship marketing in regards to supply chains. Answer: Responses will vary, but may include an explanation similar to the following: An orientation between seller and buyer that focuses on customer satisfaction, loyalty, and engagement built over the long term. Diff: 2 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 127) Discuss why marketers are increasingly focused on relationship marketing. Answer: Responses will vary, but may include an explanation similar to the following: Logic begins with the adage that it is far cheaper to keep the existing customers than to get new customers. New customers should be adding to current sales, not replacing lost sales. Diff: 3 Learning Objective: 9.6 Understand what relationship marketing is and how vertical marketing systems support relationship marketing. Section Reference: Relationship Marketing in Supply Chains Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

Applied Marketing, 1ce (Grayson) Chapter 10 Managing Price and Customer Cost Perceptions 1) Positioning influences the way customers see value in a product or service, and while the price is of major concern to the marketer, price has much less influence than effective positioning for the customer. Answer: FALSE Diff: 1 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 2) Customer perceptions are more important than reality in setting prices. Answer: TRUE Diff: 2 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 3) A marketer has assembled costs related to the cost of goods sold, the selling and marketing costs, and the costs of keeping the buildings running effectively. He or she is now ready to set the price of the product. Answer: FALSE Diff: 2 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 4) Elastic demand characterizes discretionary items where a small change in the price of the items will have a noticeable effect on the number sold. Answer: TRUE Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

5) While marketers must pay attention to the prices charged by competitors and the expectations of customers, the effective way to attract customers at fair prices is to emphasis benefits and non-price elements. Answer: TRUE Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 6) A significant disadvantage of cost-based pricing is that it is difficult to get accurate information about what customers would consider the true price. Answer: FALSE Diff: 1 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 7) Successful value-based pricing relies on thorough market research more than on the company's internal costs. Answer: TRUE Diff: 1 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 8) The closing of small businesses due to the actions of larger retailers such as Walmart or Amazon has created an environment where enforcement of violations is becoming stronger. Answer: FALSE Diff: 1 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

9) Temporary market conditions can affect pricing, and this has become a defense of the practice of price discrimination. Answer: FALSE Diff: 1 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 10) While consumers gain from artificially low prices in predatory pricing and price wars, they are harmed by the illegal practice of price-fixing. Answer: TRUE Diff: 1 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 11) It is not unusual to see price mark-downs such as 50% off. A company does not need to establish that products were sold at price as long as it can show it had been offered at that price for a reasonable period of time. Answer: FALSE Diff: 1 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 12) Consumers are familiar with the Manufacturer's Suggested Retail Price (MSRP), but it might be illegal to sell products at that price. Answer: TRUE Diff: 1 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

13) One of the major problems marketers face with pricing is that although there are many "wrong" prices, there isn't one "right" price. Answer: TRUE Diff: 1 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 14) The ratio to help you determine how much the sale of each unit will make in covering the fixed costs is the margin. Answer: FALSE Diff: 1 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 15) Experienced marketers hope to emulate entrepreneurs with a strong intuition for pricing without using financial tools. Answer: FALSE Diff: 1 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 16) ________ is one of the most difficult decisions in the marketing mix, since it directly influences customer perceptions of value. A) Strategy B) Costs C) Market characteristics D) Pricing Answer: D Diff: 1 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

17) Price is a measure of the relative value of an item for both the customer and the ________. A) seller B) market characteristics C) costs D) owner Answer: A Diff: 1 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 18) Price is related to ________ for both the buyer and seller. A) market characteristics B) cost C) value D) strategy Answer: B Diff: 1 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 19) ________ must consider costs from both sides to set an acceptable price. A) Customers B) Sellers C) Marketers D) Owners Answer: C Diff: 1 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

20) Marketers manage all elements of the marketing mix as customers will decide to buy not just on the price tag but on the perceived value and A) competitive costs. B) associated perceived costs. C) information search costs. D) brand feature costs. Answer: B Diff: 1 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 21) Which of the four Ps is the most objective assessment of the value of a product? A) Product B) Price C) Place D) Promotion Answer: B Diff: 1 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 22) Which of the following statements accurately describes the price-customer cost relationship? A) Money is the only potential cost from the customer's view. B) Price is related to cost for the seller, but not the buyer. C) Price is a measure of the relative value of an item for both the customer and the seller. D) Marketers must consider costs from both sides to set an acceptable price. Answer: C Diff: 2 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

23) For an exchange to take place, a marketer knows that A) both the buyer and seller see value being created in the exchange. B) money needs to change hands. C) the buyer must know exactly what he or she is receiving. D) competitors cannot match the total offering. Answer: A Diff: 2 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 24) John is trying to figure out what to charge customers in the landscaping business he is starting. He knows what the labor costs are, and how to include the materials (plants, mulch, etc.) that he will use in the price. He thought he could add these two together, add an amount for profit and general expenses, and he'd have a fair price. Is he right? A) Yes. He has the major items covered and incidentals can be covered in the general expenses. B) No. He needs to ensure the price covers the tools needed for the job. C) Yes. For a small or start-up business, pricing should be kept as simple as possible. D) No. He needs to calculate any other expenses and add those into the price. Answer: D Diff: 2 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 25) Auctions are successful because A) marketers don't need to set prices. B) customers prefer to compete with one another. C) customers have different perceived value for products. D) marketers can avoid costly couponing and price promotions. Answer: C Diff: 2 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

26) An exchange will not take place until A) both the buyer and seller feel both will realize additional value in a transaction. B) the physical product can be delivered, or the service rendered. C) the buyer has made the purchase, and it meets expectations. D) all direct and indirect costs have been included in the price. Answer: A Diff: 2 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 27) Which of the following is NOT one of the four primary factors that influence price? A) Customer perceptions B) Company costs C) Analyst expectations D) Market characteristics Answer: C Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 28) Which of the following is NOT one of the primary factors that influence price? A) Customer expectation B) Company costs C) Marketers D) Competition Answer: C Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 29) An expectation about the price of a given product is known as A) pricing strategy. B) reference price. C) quote. D) market price. Answer: B Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 8

30) To be financially successful, companies must also consider their own costs when setting A) fixed costs. B) variable costs. C) strategy. D) prices. Answer: D Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 31) How a price is presented can also influence customer price A) feedback. B) decisions. C) perceptions. D) comparisons. Answer: C Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 32) ________ change with quantity sold and are generally tied to the product sold. A) Fixed costs B) Variable costs C) Reference costs D) Marketing costs Answer: B Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

33) Unlike variable costs, which vary with the quantity sold, ________ costs don't change based on sales. A) reference B) marketing C) product D) fixed Answer: D Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 34) The four primary factors that influence prices are customer perceptions and expectations, company costs, market characteristics, and A) the costs of the marketing mix. B) competition. C) selling costs. D) taxes. Answer: B Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 35) What is the term for the costs of a product that change with each good sold? A) Unit cost B) Variable costs C) Cost of goods sold D) Break-even margin Answer: B Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

36) Tracy's marketing team is doing long-range planning on their product, and they are using the product life cycle as a framework. Using this marketing tool, what usually happens to prices over the life of the product? A) Prices increase until the end of the maturity phase, then drop rapidly. B) Prices decrease after the introduction cycle. C) Prices are lowest at introduction and rise gradually until the end of the mature stage. D) Prices will hold steady until a critical mass of competitors enter the market. Answer: B Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 37) Which of the following terms refers to the relative influence of price on demand? A) Price sensitivity B) Reference price C) Fixed cost D) Variable cost Answer: A Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 38) All of the following are primary factors that influence prices, EXCEPT A) customer perceptions or expectations. B) company costs. C) reference price. D) market characteristics. Answer: C Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Comprehension

39) All of the following are marketing costs that are considered fixed costs, EXCEPT A) sales salaries. B) sponsorships. C) commissions. D) research and development costs. Answer: D Diff: 1 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Comprehension 40) You buy a can of beer from a vendor at Rogers Centre in Toronto. You are startled by the 12.00 price tag since you are used to paying between $6.00 and $7.50 at Great American Ballpark in Cincinnati. Which of the following most likely describes your beer buying experience? A) Cultural differences influenced the stadium beer prices. B) Past experience created a reference price for stadium beer. C) Rogers Centre incurs higher fixed costs than does Great American Ballpark. D) Great American Ballpark is in the midst of a price war involving stadium beer. Answer: B Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 41) Which of the following statements accurately describes internal costs and their effect on price? A) Variable costs include sales salaries, advertising, and sponsorships. B) Fixed costs include commissions, price discounts, and coupons. C) Variable costs do not change based on product sales. D) Fixed costs must be allocated across the quantity of product the company intends to sell. Answer: D Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

42) Which market is most sensitive to changes in price? A) Gasoline B) Salt C) Air travel D) Milk Answer: C Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 43) If you go to a fancy steak house and see a hamburger on the menu for $1.19 or if you go to a fast food restaurant and see a hamburger on the menu for $24.00, you'd think something was not right. Marketers understand you are comparing those posted menu prices to your own A) learned dining costs. B) reference price. C) perceived cost. D) expected value. Answer: B Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 44) Your reference price will become more accurate and reflect real prices when A) you have found a similar item online. B) you have experience related to the product. C) you have consulted your friends, family and colleagues. D) you are not emotionally involved in making the purchase. Answer: B Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

45) Simon is reviewing the marketing department's budget and expenses, and some figures would not fit easily into fixed or variable costs categories. Paul gave him an easy way to distinguish between the two, which was to determine A) if the costs are part of the marketing mix, then they are variable costs. B) if the costs are linked to things that cannot be easily moved, then they are fixed expenses. C) if the cost can be assigned on a per unit basis, then it is a variable cost. D) if it is a cost associated with headquarters, then it is a fixed cost. Answer: C Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 46) The product life cycle curve can help marketers determine pricing. In general, as a product matures, the price will go down as A) competitors exit the market. B) costs to make the product go down as it matures. C) inelastic prices are now becoming more elastic. D) all profits have been realized in a product, and the firm is moving to harvest the remaining value. Answer: B Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 47) Price wars are usually harmful to firms because non-loyal customers will switch to whichever product has a lower price, and loyal customers A) take advantage of lower prices, which diminishes profit. B) will abandon the product as the image becomes cheapened. C) will often pursue legal remedies. D) will stay out of the market until prices stabilize. Answer: A Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

48) While it is relatively easy to determine variable costs as they are linked to the units produced, fixed costs are more difficult to determine as A) much of the information is confidential and not readily available to the marketer. B) there are no formulas to work with. C) they must cover all the expenses of the firm and it may be difficult to get accurate estimates. D) depreciation on fixed assets can vary with accounting practices. Answer: C Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 49) You are shopping. You find something that interests you and that you don't usually purchase. You'll do a quick internal search for information to see if the price offered seems reasonable. The term for this expectation for the product is a(n) A) reference price. B) recalled estimate. C) comparative price. D) expected cost. Answer: A Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 50) The compensation for the CEO or owner of a firm must be included in the price the customer will pay. This expense is an example of A) executive expenses. B) variable costs. C) fixed costs. D) indirect expenses. Answer: B Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

51) Who usually wins in a price war? A) The firm that started lowering the prices B) The firm that responded after another firm lowered prices C) The ultimate consumer who buys the product D) The retailer who can capitalize on the lowest wholesale price Answer: C Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 52) When you are making a reasonably large purchase, you will probably go online to get some idea of the price. This is an example of which factor that influences a marketer's pricing? A) Customer expectations B) Comparatives C) Externalities D) Competition Answer: D Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 53) All of the following are considered variable costs, EXCEPT A) expected unit sales. B) manufacturing costs per unit. C) sales promotion costs. D) sales commissions. Answer: A Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

54) You work at a new retailer that is planning to use "compare at" price tags on each item of clothing. Based on your reading, what is the best way to ensure that these reference price comparisons are done legally? A) Ensure that the merchandise was once sold for that price. B) Ensure that the "compare at" price equals the base price for similar goods. C) Ensure that each markup covers both fixed and variable costs. D) Ensure that the pricing is the same for all customers at all stores. Answer: A Diff: 3 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 55) Ignacio owns a successful food truck business selling smoothies. Karina just began her competitive food truck business and sells smoothies at lower prices than does Ignacio. What is Ignacio's BEST response? A) Ignacio should avoid a price war with Karina and focus on the non-price benefits of his smoothies, like their organic and healthful ingredients. B) Ignacio should recalculate his prices, paying specific attention to lowering his fixed costs. If possible, he should lower his prices to meet Karina's but go no lower. C) Ignacio should focus on his variable costs and consider using lower-cost ingredients so that he can compete with Karina on price. D) Counting on the brand loyalty of his customer base, Ignacio should use a price war to drive Karina out of business. At that point, he can return his prices to "normal." Answer: A Diff: 3 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 56) When pricing existing products, the marketer must make three basic sets of decisions: the basis for setting the price, if the prices will change very much, and A) how it relates to other products the company sells. B) what the competition is doing. C) how similar products in target retailers are priced. D) how difficult or easy it will be to promote the price. Answer: A Diff: 1 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

57) A ________ strategy is defined as setting an initially high price and using gradual, timed price drops to make as much profit as possible over time by maximizing how much is made from each sale. A) skimming. B) price. C) penetration. D) value-based. Answer: A Diff: 1 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 58) Which of the following is defined as introducing a new product at a relatively low price with the intention of establishing a large market share before competitors can establish themselves? A) Skimming strategy B) Penetration pricing C) Cost-based pricing D) Value-based pricing Answer: B Diff: 1 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 59) ________ prices provide consistency and decrease the price shopping of customers. A) Prestige B) Static C) Cost-based D) Value-based Answer: B Diff: 1 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

60) Taking into consideration how the price of one product might influence the perception and price of another product is called price A) calculating. B) strategy. C) prestige. D) lining. Answer: D Diff: 1 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 61) When your grocery store advertises milk for 99 cents per litre in order to lure you into the store with the hope that you will purchase other items at regular prices, it is called A) loss-leader pricing. B) high-low pricing. C) everyday low pricing (EDLP). D) bait-and-switch pricing. Answer: A Diff: 1 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 62) One of the most challenging pricing decisions a marketer faces is A) knowing when the product is changing from the mature stage to the decline stage in the product life cycle. B) keeping prices low without starting a price war. C) establishing a price for new products without any market experience. D) keeping track of the laws and regulations affecting pricing. Answer: C Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

63) When a new product is introduced to a market and is priced high with the intention of eventually lowering the price as the market becomes more competitive, marketers are using a pricing strategy known as A) value-adding prices. B) premium pricing. C) rapid recovery. D) skimming. Answer: D Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 64) Eduardo and David have developed a unique gaming accessory and are determining how to price it. Their market analysis has told them the accessory will appeal to a large number of gamers, it is relatively inexpensive to produce, and they already are thinking about how they could enhance the accessory to make it even more attractive. What kind of pricing strategy should they use? A) Entrepreneurial B) Penetration C) Skimming D) Contingent Answer: B Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 65) An approach services use to set prices according to changing market conditions is known as A) value-based pricing. B) cost-based pricing. C) premium pricing. D) dynamic pricing. Answer: D Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

66) Chris and Lynn were watching sales slumping for their line of expensive, exotically-scented candles, and they had narrowed down their options to adjusting the price. Chris suggested the best thing to do would be to raise prices. Lynn thought Chris wasn't thinking clearly, but increasing prices to stimulate sales for luxury items is known as A) reverse pricing logic. B) prestige pricing. C) enhanced value-based pricing. D) dynamic pricing. Answer: B Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 67) Grace created innovative headphones with improved sound fidelity and greater comfort than any other product on the market. She has a good idea that none of current manufactures could create a product like hers any time soon, and she has a way of tracking the market to respond quickly to changes. She most likely will choose which kind of pricing strategy? A) Discontinuous pricing strategy B) Cost recovery strategy C) Skimming strategy D) Penetration strategy Answer: C Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 68) A firm is assessing the pricing for all of its products of a specific product line in response to market pressures. This strategic review will need to assess pricing fundamentals--how pricing is set, how much flexibility the firm has to change prices, and A) the success rate of past changes. B) how the product line pricing fits with the company's other products. C) how quickly competitors can respond. D) how long it has been since the products were introduced to the market. Answer: B Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

69) Simon is the sales manager for a large resort. He had booked a block of rooms for a destination wedding at a package rate, he was able to charge the full rate for most customers, and he occasionally had to lower the price if he had unsold rooms as the time guests would arrive gets closer. The pricing strategy used was A) dynamic pricing. B) flexible pricing. C) discriminatory pricing. D) opportunistic pricing. Answer: A Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 70) Which of the following represents the primary difference between skimming and penetration strategies? A) The stage of the product life cycle where the strategy works best B) The market's initial response to the product's price and the long-term market developments C) The level of competition in the current market D) The perceived luxury or convenience of the product Answer: B Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 71) Which of the following accurately describes a skimming strategy? A) The product should appeal to the mass market. B) It is best used for existing products. C) To maintain market share, the company should be ready to improve the product. D) Competition should be absent for an extended period after product launch. Answer: D Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

72) After the sold-out concert ends, you call for an Uber. You panic when the fare quoted to take you from the concert venue to your home is three times the fare that brought you from your home to the venue. What type of pricing strategy is Uber using in this example? A) Prestige pricing B) Static pricing C) Dynamic pricing D) High-low pricing Answer: C Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 73) What is the primary similarity between cost-based and value-based pricing? A) Both consider what customers expect to pay. B) Both are easy to implement with or without knowledge of variable costs. C) Both capture maximum profits possible. D) Both are used to price existing products. Answer: D Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 74) Your firm is about to introduce a new product, and it is important to get a commanding share of the market to be able to set the standard. The development team believes it could add features to the product later, if needed. The firm has moved to a product development strategy and this is the first roll-out, so it is important to succeed. What would be the appropriate pricing strategy? A) Developmental pricing B) Incremental pricing C) Penetration pricing D) Market-based pricing Answer: C Diff: 3 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

75) You are a brand manager for a line of headphones. You are tasked with pricing a new, improved set of wireless headphones that your company is releasing for the holidays. You have decided on using cost-based pricing since your variable costs are easily measured and obtained. You have also decided that prices will remain stable regardless of market conditions. What do you need to do next to complete your pricing task? A) Ensure that the price of the improved wireless headphones is higher than the prices of your company's wired headphones or of your older wireless headphones. The higher price will denote higher value to the customers. B) Consider using prestige pricing to enhance brand image and denote products of higher value than those of your competitors. C) Investigate any potential legal issues related to the prices of your headphones. D) Since this is a new product, decide whether to use a skimming strategy or a penetration strategy. Answer: A Diff: 3 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 76) What is the first step in setting a base price? A) Analyze competitor's prices, offers, value propositions B) Estimate demand and revenue C) Determine cost, volume, and profit relationship for different price points D) Set pricing objectives Answer: D Diff: 1 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 77) Which of the following statements accurately describes base price? A) It is the final price customers pay at the retail outlets. B) It does not account for consumer value perceptions, a disadvantage. C) It often is adjusted to achieve specific marketing goals. D) It ignores competitive offerings, an advantage. Answer: C Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

78) Which of the following is an example of a common adjustment to the base price? A) A designer purse line prices small, medium, and large bags with corresponding price points. B) A bar offers half-price drinks and appetizers during happy hour from 4-7 pm. C) A luxury watch brand charges only prestige prices. D) A manufacturer sells products for one price to a wholesaler, who then charges another price to the retailer. Answer: B Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 79) Dante is developing a small business selling office supplies for home offices, and he needs to set prices for his full line of merchandise. What's the first step he needs to take? A) Learning what competitors are charging for similar merchandise B) Estimating demand and revenue C) Commissioning market research D) Setting pricing objectives Answer: D Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 80) Gregory manages a men's clothing store, and he notices that men will buy suits without getting appropriate shirts and ties. To provide a financial incentive to get customers to get the complete outfit, he could try A) offering discounts on the shirts or ties. B) creating rebates if the customer buys more than one outfit. C) developing one-time offers for regular customers. D) bundling all three items for a price lower than for the three separately. Answer: D Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

81) As brand manager for a popular ice cream, you offered a "buy one, get one half off" discount. Sales were substantial, but your boss is angry with you. What is the most likely reason? A) The company lost money because brand-loyal customers would have bought the ice cream at the base price. B) The company lost customers because it had positioned the product as one of prestige and lowering the price tarnished that image. C) The company could be accused of predatory pricing. D) The ice cream base price was considered an EDLP and should never be adjusted. Answer: A Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 82) You own a small local restaurant that is popular with an older clientele. Your busiest hours are from 6 pm until 8 pm. Since your dining room is practically empty from 4 pm until 6 pm, you decide to make those "early bird" hours and offer drink and entrée specials during that time. Many of your regular customers are happy and have shifted their dining hours into the early bird range. After a few months, you note that sales increased, but you are losing money. What is the most likely reason? A) You primarily are selling to your loyal customer base who would have purchased the meals at full price. B) Your base price is set too low given the increased volume of restaurant clientele. C) You considered the price only from the customer's perspective and not from your own as the seller. D) Your customers prefer the price bundling provided in the early bird hours. Answer: A Diff: 3 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 83) The first step in setting a base price for a product is A) estimate demand and revenue. B) determine cost, volume and profit relationships for different price points. C) analyze competitors' prices, offers and value propositions. D) set pricing objectives. Answer: D Diff: 1 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 26

84) Which term refers to the act of setting prices below an item's variable cost with the goal of putting competitors out of business? A) Predatory pricing B) Bait and switch C) Price-fixing D) Price discrimination Answer: A Diff: 1 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 85) Rick had solid information about the internal costs, volume and objectives he needed to set prices for the next year. Before he can set prices, he also needs to understand what is going on the market in general. He will examine the competitors' overall pricing, and he will need to research consumer demand for the products to know how the size of the total market and A) the competitors' break-even points. B) the demand for his product. C) the impact of changing demographics. D) the actual sales for the past three years. Answer: B Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 86) Sharie camped out all night outside a retailer to get an unbelievably low, advertised price on a hot-selling toy for her children. She was the first in line, but when the store opened, she was told there were no more available at that price, but there were some higher-priced toys. Since no one had gotten there before her, she couldn't believe it. This is an example of an illegal practice known as A) false pricing. B) deceptive pricing. C) bait-and-switch pricing. D) fraudulent pricing. Answer: C Diff: 2 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 27

87) Maya is setting prices for her home remodeling business. Over the course of the year, there are times of peak activities--such as pre-holidays--and times when consumers were not as interested in home remodeling. This is an issue throughout the industry, so she knows it isn't just her business. After she determines a base price for the service, she could stimulate demand during the slow periods by using A) discounts. B) bundling. C) premium pricing. D) no-cost consultations. Answer: A Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 88) Nevin has an electronics store with a focus on high-end audio and visual products. He knows he cannot compete with the "big box" stores to attract everyone, so he has focused on people who demand high quality in their electronics even though some can't easily afford it. He has already used rebates, especially those offered by the manufacturers. He doesn't want to lower his prices as a large part of his customer base can afford his prices. What other discounting option does Nevin have that makes sense for his business and won't undermine the base price? A) Price lining B) Financing C) Buy-one-get-a-discount-on-the-second purchases D) Refer-a-friend bonuses Answer: B Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

89) Angie needed a new refrigerator after her old one stopped working and couldn't be repaired. At the appliance store, she ended getting a new refrigerator plus a new stove and dishwasher because the sales associate showed her that by buying all three, should could save money that she could save not buying any of the items separately. The store used what kind of adjustment to the base price? A) Financing B) Quantity discounting C) Rebates D) Bundling Answer: D Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 90) A large regional chain of office-supply stores has developed a practice of setting lower prices than small stores can offer. If the chain can force the small stores out of business, the chain will then return prices to the previous or higher levels. The practice is known as A) strategic discounting. B) predatory pricing. C) price discrimination. D) flexible pricing. Answer: B Diff: 2 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 91) Which of the following accurately describes illegal pricing practices that affect competition? A) Enforcement of violations has increased significantly in recent years. B) Quantity discounts are illegal in Canada. C) Laws regarding predatory pricing are the most easily enforceable. D) Customers often are disgruntled when the government halts a company's predatory pricing scheme. Answer: D Diff: 2 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

92) An electronics store advertises a flat-screen television for an astonishingly low price in its after-Thanksgiving sale advertisements. Though you are first in line on sale day, you learn that the store never had that model in stock. The salesperson offers to sell you a similar television at a discounted, though higher, price. What term describes your experience? A) Predatory pricing B) Bait and switch C) Price-fixing D) Price discrimination Answer: B Diff: 2 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 93) Which of the following accurately describes illegal pricing practices that affect customers? A) MSRP references are now considered illegal. B) Original laws introduced the first pricing regulations to protect customers. C) The federal Competition Bureau monitors and enforces predatory pricing. D) Companies cannot charge different prices for the same thing, even when attempting to meet competitor's prices. Answer: C Diff: 2 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 94) What is the BEST synthesis of the illegal practices of predatory pricing and price-fixing? A) Competition plays a crucial role. B) Customers ultimately benefit from lower prices. C) Temporary market conditions are potential defences. D) Services provide a loophole wherein the practice may be lawful. Answer: A Diff: 3 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis

95) Businesses in Canada often compete on price, and competition can be very tough beyond pricing. Competing on price is an accepted practice in the marketplace and under the law. What is the name of the practice that goes beyond fair competition to drive another business out of the market by dropping prices to an extremely low level with the intention of destroying another business? A) Loss-leader pricing B) Domestic dumping C) Predatory pricing D) Monopolistic pricing Answer: C Diff: 1 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 96) Daniel and Sarah were going to a movie, and they started discussing the way the theater offered discounts to senior citizens before 6:00 PM. Sarah commented, "That's discrimination. They see the same movie in the same seats. Why should they pay less?" Which of the following is NOT one of the explanations as to why this is not treated as discrimination? A) Marketers can use pricing as a way to influence demand. B) Services are not subject to the Competition Act. C) Marketing practice allows discounts as long as they do not discriminate within protected classes. D) Senior citizens can rarely afford the costs of the full-priced tickets. Answer: D Diff: 2 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 97) One of the fundamental "building blocks" of pricing is an estimate or understanding of how many units can be sold in a given period—usually a year. This estimate is known as expected unit sales or A) annual product sales. B) demand forecast. C) sales forecast D) product forecast. Answer: B Diff: 1 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 31

98) The product of expected unit sales and variable unit cost is known as A) total variable costs. B) fixed costs. C) variable costs. D) expected unit sales. Answer: A Diff: 1 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 99) Damon is developing a marketing plan for the product he is managing. What calculation will he use to determine how many incremental sales he will have to make if he increases advertising efforts by three different amounts? A) Break-even analysis B) Total variable costs C) Total fixed costs D) Unit contribution Answer: A Diff: 2 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 100) Analyses and calculations use estimates and projections. These will be imprecise, but the calculations require precision. Which of the following is NOT an approach that marketers can use to get more precise estimates? A) Marketing research B) Forecasts from sales representatives in the field C) Forecasts from trade associations D) Executive opinions Answer: D Diff: 2 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

101) All of the following are considered fixed costs, EXCEPT A) rent. B) advertising. C) salaries. D) sales promotion costs. Answer: D Diff: 2 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 102) Ming-tao was trying to figure out how much revenue he would have to bring in on a specific product to start earning a profit. He wanted to know the point at which the total sales at a given price level needed to produce zero profits, but cover costs. To determine the this, he needs to know the fixed costs and A) markup. B) expected unit sales. C) contribution margin. D) unit variable cost. Answer: C Diff: 3 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 103) Which of the following is calculated by multiplying expected unit sales by unit price? A) Unit contribution B) Markup C) Total costs D) Total revenue Answer: D Diff: 1 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

104) Some companies will drop prices to a point where competitors may question their motives. Although federal law prohibits predatory pricing and similar actions, the situations are rarely prosecuted because it is difficult to prove and A) the fines are so low it's not worth the effort. B) consumers gain from artificially low prices. C) The Competition Bureau does not have easy access to variable costs of an item for companies. D) few lawyers are qualified to prosecute or defend charges in this area. Answer: C Diff: 2 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 105) Debra is trying to determine the optimum level for advertising for the next year, and among the tools she will use, she will certainly include A) profit and loss analysis. B) competitive response projections. C) break-even sales and volumes. D) media quantity discounts. Answer: C Diff: 2 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 106) You have a small landscaping business. You pay $5,000 per month to lease land, $2,500 per month in growing materials, and $1,000 per month on promotional materials. You also pay your landscapers $4,000 per month. What are your total fixed costs for the year? A) $108,000 B) $120,000 C) $126,000 D) $150,000 Answer: D Diff: 2 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

107) You expect to sell 3,000 units of Product XYZ at $5 per unit. Your total variable costs are $1 per unit and your fixed costs are $4,000 per year. What is your expected profit (or loss) on the venture? A) ($34,000) B) ($10,000) C) $8,000 D) $15,000 Answer: C Diff: 2 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 108) You have 20 percent market share of an industry that sells 1,000 total units each year. You know that each unit contributes $2,000 to profits. If your fixed costs amount to $250,000, what is your profit or loss for the year? A) $150,000 B) $400,000 C) $650,000 D) $1,750,000 Answer: A Diff: 2 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 109) You have a small business selling beaded bracelets. You charge $15 per bracelet and expect to sell 4,500 bracelets each year. You pay your one employee $1,500 per month. Other expenses include $500 per month for promotion and $6 per unit on craft materials. At what revenue amount will your business earn a profit of zero, but cover associated costs? A) $24,000 B) $37,500 C) $40,000 D) $67,500 Answer: C Diff: 3 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

110) Alex and Monica decided on a Saturday morning to have four other couples over that evening for a cookout. After they figured out how many people would be coming, they began to plan what to serve. Alex found steaks on sale at about $3.00 a pound cheaper at a store about ten kilometres away. Monica said, "We'll just get the meat here instead along with the other supplies. That's not enough of a savings to go there." Marketers know that customers are concerned about more than just the actual per item price. What did Monica see in the total price to counteract what seems like a very good deal? Answer: Answers could include the travel time required, especially given the immediacy of the need, the extra time it would take in a new store to find the other things needed assuming they would make only one trip, the expenses related to the travel, the lack of convenience, etc. The better student responses will go beyond the obvious and include several ideas. Diff: 3 Learning Objective: 10.1 Define prices and the relationship between price and customer costs perceptions. Section Reference: The Price-Customer Cost Relationship Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 111) What can be said of price spirals considering how they negatively affect businesses? Answer: Responses will vary, but should include points such as: a price spiral will drive prices closer to costs for all competitors and in the extreme case go low enough to drive some competitors out of business. When that happens, the remaining companies can raise the prices back to higher levels or perhaps even higher than the original price since the competition is less after running some of the competitors out of the market. Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 112) How does the stage in the product lifecycle influence pricing? Answer: Responses will vary, but should include points such as: during the introduction stage, prices are higher; they decrease across the life cycle. Price competition will be especially intense in the maturity stage. Since costs typically decrease as the product moves through its life cycle, producers are typically able to lower prices. Diff: 2 Learning Objective: 10.2 Describe the primary influences on price setting. Section Reference: Influences on Price Setting Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

113) Which ideas validate the term prestige pricing? Answer: Responses will vary, but should include points such as: setting a relatively high price to specifically enhance the brand image as higher value. Using value-based pricing also has the advantage of forcing the company to continually monitor and adjust to customer perceptions in the market to keep price in line with potential changes in perceived value. Diff: 2 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 114) Identify and discuss the conditions that must be met in order for skimming to be effective. Answer: Responses will vary slightly, but all should mention the following: 1. The product must be perceived to be significantly more valuable than the product it is replacing. 2. The company must be certain that there will be an extended period after it introduces the new product without competition. 3. The company must be able to appropriately assess price thresholds to avoid decreasing the price too quickly or too steeply. If any of these conditions are not met, then a more effective pricing strategy would be a penetration pricing strategy. Diff: 3 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 115) Identify and discuss the conditions that must be met in order for penetrative pricing to be effective. Answer: Responses will vary slightly, but all should mention the following: 1. The product should appeal to the mass market rather than just a niche or small market. 2. The company must have a cost structure to support the lower initial price. 3. The company should be dedicated and prepared to improve the product to maintain market share. Penetration pricing is defined as introducing a new product at a relatively low price with the intention of establishing a large market share before competitors can establish themselves. Diff: 3 Learning Objective: 10.3 Describe the differences between pricing strategies for new products versus existing products, and identify pricing strategy options in both cases. Section Reference: Pricing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

116) Identify and describe common adjustments to price that are used by marketers. Provide an example of each. Answer: Responses will vary slightly, but may mention the following: 1. Marketers commonly adjust base prices using discounts that reduce the price a customer pays. An example of this would be any sale that occurs during "Black Friday" or "Cyber Monday," or any other holiday-associated sales that result in markdowns on goods. 2. One of the most common discounts is based on order size or quantity to encourage larger orders. An example of this is in many wine stores, or vineyards, which often provide a discount if a buyer purchases 12 bottles or more. 3. Price is increased--called prestige pricing--to stimulate sales for luxury items. An example could be the luxury skincare brand La Mer. Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 117) Identify and discuss three of the six steps of the price-setting process. Answer: Responses will vary, depending on the steps the student identifies. The following steps are correct. Discussion will vary by student, but general descriptions are included: 1. Set pricing objectives: Pricing objectives are determined depending on sales goals, financial (profit) goals, or other nonfinancial goals, such as image. 2. Estimate demand and revenue: The potential size of the market is determined based on number of potential customers (demand); the number of potential customers who may be expected to be YOUR customer and purchase your product or services (revenue). 3. Determine cost, volume, and profit relationship for different price points: Variable cost data (received from operations, suppliers, etc.) is obtained, which typically relates to the estimated volume; profit is then determined based on where these figures intersect. 4. Analyze competitors' prices, offers, value propositions: Market research is done to obtain competitor prices, customer loyalty, price attractiveness, customer perception, etc.; this should then be compared with your product to determine benefits or failings, and to determine the customer value on your product. 5. Set initial base price: based on analysis of competitor prices, offers, value propositions; usually tested with potential customers to determine appropriateness 6. Adjust to set final price: based on the initial base price analysis; consideration given to potential situations in which price adjustment may be warranted Diff: 2 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application

118) Marketers go through a great deal of time and effort to set accurate and reasonable bases prices. When they make adjustments to the base price, they do so for specific reasons. Identify three common adjustments marketers make to the base price and for each, briefly describe when that adjustment would make the most sense. Answer: Responses will vary considerably, but will most likely reflect students' own experiences as consumers. Examples of adjustments include quantity discounts, demand-shifting discounts, bundling, financing, and increasing prices for premium products. Better responses will include discussion of raising as well as lowering prices and discussion of not changing the prices so drastically that the firm loses money, and discussion of how to avoid cannibalization. Diff: 3 Learning Objective: 10.4 List and describe the six steps used to set a price, and describe the most common adjustments to arrive at a final price. Section Reference: Price-Setting Steps Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 119) Discuss predatory pricing, including definition. Include an example—either real life, or one that you make up—to illustrate this concept further. Answer: Responses will vary slightly, but should generally explain that predatory pricing is when one company/seller sets prices extremely low for an item or items, specifically to run competitors out of business. Companies using this illegal practice set a low price that competitors can't match, which eventually drives the competitors out of business. Once that happens, the remaining company, without any significant competition anymore, raises prices to a level even higher than the original regular price, hence negatively affecting customers in the long run as well. An example that some students may indicate and is widely understood is the business model that Amazon employs, by marking some items down significantly lower when purchased through Amazon.com, as opposed to directly from the item's manufacturer. Diff: 2 Learning Objective: 10.5 List and describe the common legal issues related to pricing decisions. Section Reference: Legal Issues Related to Price Decisions Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

120) Catherine had calculated and was using a set of prices to market her product line of baking pans and related items. Midway through the year, a competitor introduces an imported product line of comparable products at a much lower price. Catherine does not want to start a price war, but she knows she must respond. To determine what pricing options she has, she will need to re-examine all of the calculations she made. Which factors can she consider changing and which will remain the same? Answer: Fixed costs will remain constant by definition. Catherine will need to examine all the elements of variable costs and how many units can be sold at various levels. Students will need to demonstrate an understanding of how changing factors affect the total calculations. Diff: 3 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 121) Assume you were tasked with calculating the outcome for the following question: How much profit or loss are you making if you have 15% market share? Why is this calculation important? Explain. Answer: Responses will vary slightly, but should generally explain that this calculation is important because it assumes a specific level of sales and then asks you to find profit. Before, we were concerned with breaking even. In this case, we are trying to determine if we can make some money. Diff: 3 Learning Objective: 10.6 Calculate and apply the key financial indicators used to make pricing decisions. Section Reference: Pricing Calculations Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

Applied Marketing, 1ce (Grayson) Chapter 11 Using Promotion to Communicate with Customers 1) Effective promotion should include which of the following? A) Advertising on television and in social media B) A catchy slogan or jingle C) Multiple communication channels D) All of these Answer: C Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 2) How should social and digital tools and technology should be considered in your overall marketing mix? A) As related, but distinct, elements B) As necessary tools given changes in media preference C) As the most important elements of the mix D) As accounting for the bulk of your promotional spending Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 3) Which are considered to be traditional personalized promotional tools? A) Television and radio B) Magazines and newspapers C) Digital media and technology D) Personal selling and direct marketing Answer: D Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

4) This model postulates that people must pass through cognitive and emotional states before taking an action. A) The hierarchy of effects model B) The basic communications model C) The liking and preference model D) The awareness and knowledge model Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 5) Contest entries, website hits, and social media likes are examples of A) communications objectives. B) digital objectives. C) non-sales behavioural objectives. D) non-promotional objectives. Answer: C Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 6) Promotion is the set of marketing communication activities designed to inform and persuade groups of people. These people are limited to A) existing customers. B) potential customers. C) your primary target markets. D) important groups of people, primarily customers. Answer: D Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

7) Relying on a single tool to communicate with customers is often A) ineffective. B) cost-effective. C) the optimal approach to promotional spending. D) a properly-sequenced approach to promotions. Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 8) With what does a properly planned and executed IMC strategy begin? A) Promotion mix B) Overall marketing or brand strategy C) Promotion and communications strategy D) Brand messaging strategy Answer: B Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 9) Promotional objectives can be stated using which types of metrics? A) Psychological or behavioural B) Reach or frequency C) Sales or profits D) Defined or implied Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

10) What is the primary focus of communications objectives? A) Non-sales behaviour B) Persuading customers to purchase a product or service C) Reach and frequency D) How well a promotional activity conveys information and meaning to a target market Answer: D Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 11) Which approach to budgeting takes a backward view of promotion, assuming sales produce promotion versus promotion producing sales? A) Objective and task B) Competitive response C) Percentage of sales D) Intuition and instinct Answer: C Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 12) A set of marketing communication activities designed to inform and persuade important groups of people, primarily customers, is a(n) A) promotion. B) promotion mix. C) integrated marketing communications (IMC). D) sales related objective. Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

13) A useful way to categorize promotion objectives is using A) the Hierarchy of Effects model. B) cognitive variables. C) affective variables. D) behavioural variables. Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 14) Which of the following is NOT a part of the hierarchy of effects? A) Attention B) Knowledge C) Liking D) Preference Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 15) Which of the following promotional objectives focuses on how promotions can impact a target market? A) Communication objective B) Sales objective C) Marketing objective D) Advertising objective Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

16) A key to the success of promotions is for marketing managers to determine A) a promotional budget. B) a communication plan. C) an ad spending strategy. D) a social media campaign. Answer: A Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 17) Which of the following is a traditional, group tool in an integrated marketing communications (IMC) strategy? A) Direct marketing B) Digital media C) Personal selling D) Sales promotion Answer: D Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 18) The combination of promotional tools to develop synergies among them is referred to as a(n) A) promotion mix. B) integrated marketing communications strategy. C) hierarchy of effects model. D) boundary spanning. Answer: B Diff: 1 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

19) Which has added greatly to the complexity of the promotion function? A) The introduction of cable TV channels B) The decline in readership among magazines and newspapers C) Integrating digital communication with more traditional channels D) The new trend toward Integrated Marketing Communications Answer: C Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 20) Promotional activities should be focused A) exclusively on members of the target market. B) as broadly as possible to include all prospective buyer. C) on anyone with whom the company wants to exchange. D) on users of the media selected for promotional efforts. Answer: C Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 21) Encouraging participation beyond simple communication relates to which elements of the promotional mix? A) Digital media and technology B) Integrated marketing communications C) The entire promotional mix D) Direct marketing Answer: A Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

22) Which is the most philosophically and practically justifiable approach to developing a promotional budget? A) Intuition and instinct B) Objective and task C) Percent of sales D) Competitive response Answer: B Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 23) Why is it often difficult to estimate the financial returns from promotional expenditures? A) Promotions often have a cumulative effect that's difficult to measure at a given point in time. B) It's impossible to accurately measure wasted reach. C) Frequency objectives often go unmet. D) The objective of most advertising is not related to increasing sales. Answer: A Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 24) Which is NOT a group tool? A) Direct Marketing B) Advertising C) Sales promotions D) Public relations Answer: A Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis

25) Which is NOT a personalized tool? A) Business sales B) Personal selling C) Direct marketing D) Sales promotion Answer: D Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 26) Digital media and technology are categorized as which type of tool in the promotion mix? A) Traditional B) Group C) Personalized D) Outside traditional Answer: D Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 27) What does the promotion mix send to the target customer? A) Brand messaging strategy B) Communication channel C) Traditional tools D) Brand message Answer: D Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis

28) Awareness and knowledge can be categorized as A) affective variables. B) behavioural variable. C) sales related objective. D) communications objectives. Answer: D Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 29) Liking and preference can be categorized as A) cognitive variables. B) communication objectives. C) sales related objective. D) behavioural variable. Answer: B Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 30) Sales related objectives could be expressed in A) absolute terms. B) relative terms. C) percent of growth. D) All of these Answer: D Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Application

31) Why is it hard to link sales to advertising? A) Other factors affect sales B) Sales are based on assumptions C) Advertising is expensive and hard to quantify D) Product orders are turned in Answer: A Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Application 32) How many promotional budget-setting methods are there? A) 2 B) 4 C) 5 D) 6 Answer: B Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 33) Which promotional budget-setting method is used without any actual quantitative data? A) Intuition and instinct B) Percent of sales C) Competitive responses D) Objective and task Answer: A Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Application

34) Which promotional budget-setting method is used after sales occur? A) Intuition and instinct B) Percent of sales C) Competitive responses D) Objective and task Answer: B Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Application 35) A promotional budget set based on the outside environment is mostly likely A) intuition and instinct. B) percent of sales. C) competitive responses. D) objective and task. Answer: C Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Application 36) A promotional budget based strictly on the future is most likely A) intuition and instinct. B) percent of sales. C) competitive responses. D) objective and task. Answer: D Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Ethics Standard 2: Bloom's || Application

37) Which of the following statements BEST describes the setting of promotional objectives? A) Financial returns from promotional expenditures are easily estimated using the hierarchy of effects model. B) The hierarchy of effects model postulates that people must pass through three cognitive states and one affective state before taking action. C) Promotional objectives fall into one of three categories: sales-related, non-sales behavioural, or communication. D) Promotional objectives must focus directly on the financial performance of the firm. Answer: C Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 38) Which of the following is the BEST example of a cognitive variable in the hierarchy of effects model? A) Claire likes Product D because it is a symbol of status. B) Renaldo learns from his hair stylist that Product A is great for curly hair. C) Deshawn purchases Product E because he like the advertisements. D) Yael favours Product C over Product B even though B is cheaper. Answer: B Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 39) Which of the following is the BEST example of advertising's lagged effect? A) When Bonita inherits a considerable sum of money, she seeks out the help of a financial advisory firm for which she remembers receiving a mail flyer months ago. B) Dan's Financial Services must decide on its advertising budget months before it will see any return on investment. C) Our Community magazine requires companies to purchase ads in their monthly flyer months before the printed circular is mailed. D) Companies see diminishing returns when the same advertisements are run over and over again. Answer: A Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

40) Which of the following statements most accurately describes non-sales behavioural objectives? A) Variables include social media likes, website hits, and contest entries. B) Targets are expressed in relative terms and absolute terms. C) Collection of variables typically requires expensive marketing research. D) Variables do not focus directly on firm financial performance, which is a disadvantage of this type of objective. Answer: A Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 41) Which of the following statements BEST describes working with promotional budgets? A) The most philosophically and practically justifiable is the percent of sales method. B) Many managers prefer formulaic approaches that require little time or effort. C) A disadvantage of most budgets is that they do not allow managers to monitor the progress of promotional campaigns. D) The competitive response method focuses on internally defined objectives. Answer: B Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 42) Which of the following is the BEST example of an affective variable in the hierarchy of effects model? A) Justine favours Product W because it provides the best value for her money. B) Natalia has heard of Product X and its great benefits, but has yet to try it for herself. C) Viktor purchases Product Y because it's what his family always used at home. D) Diego recognizes that Product Z is a waste of money, but buys it anyway. Answer: A Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

43) Which of the following is the BEST example of a sales-related objective? A) A 30% increase in target market product awareness B) A 10% increase in market share C) A 20% increase in monthly store foot traffic D) A 15% increase in social media likes Answer: B Diff: 2 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 44) When a consumer purchases a product after moving through cognitive and affective variables, how would you classify the consumer in terms of the hierarchy of effects model? A) Awareness B) Liking C) Affective D) Action Answer: D Diff: 3 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis 45) A consumer at Walmart sees a display of a new brand of hairspray marked 10% off if purchased during the debut period. The consumer passes on the purchase during that trip but wants to remember to buy the product when her current spray is empty. The promotional objective here is A) sales related. B) sales behavioural. C) lagged. D) communication. Answer: C Diff: 3 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis

46) You work in marketing for a cookware manufacturer. You have recently partnered with a famous chef and are debuting a line of cookware and bakeware. In August, you begin running advertisements in magazines targeted to foodies, cooks, and homemakers. By October, your boss says you that you have not met your sales-related objectives. What is the BEST way to respond? A) Remind the boss of the lagged effect of sales. Suggest that you delay making any changes because you believe sales will improve as people begin to focus on cooking and entertaining for the winter holidays. B) Suggest that you switch from the objective and task method of budget setting to the intuition and instinct method. Your gut instinct is that products sales will improve this winter. C) Suggest performing some marketing research to determine how many of your target customers have awareness or knowledge of your cookware and what percentage like it or prefer it to the competition. These cognitive and affective variables are the key to behavioural variables (e.g., sales). D) Remind the boss that you are using only group promotional tools. Suggest that you add a more personalized approach like direct marketing. Answer: A Diff: 3 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 47) You work in marketing for a multinational fast-food restaurant that sells Mexican-American food. You recently oversaw the creation of a series of advertisements featuring a chihuahua acting as spokesperson for your chain. The ads have become a viral sensation. Marketing research has shown that consumers are more aware and knowledgeable of your restaurant than ever and say they like your products and prefer them to the competition. You view the ad campaign as a success, but company management does not. What is the most likely reason for your disagreement? A) You focused on communication objectives—and successfully conferred your information and meaning—but these assume sales will follow eventually. It is likely that your advertisements did not positively affect the firm's financial performance. B) You focused on non-sales behavioural objectives—and successfully created a viral sensation—but the marketing research did not denote how those behaviours would eventually lead to sales. C) You used corporate image advertising but created a negative image of the company by using a dog to promote food products for the human market. D) Your advertising execution style is viewed as outdated by Millennials and Gen Z, which make up the primary market for fast food restaurants. Answer: A Diff: 3 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 16

48) Which form of advertising is designed to build the general reputation of the organization and create goodwill toward the company and its brands? A) Public relations B) Institutional advertising C) Traditional advertising D) Competitive advertising Answer: B Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 49) Comparative advertising focuses on which approach? A) Comparing your product to that of your competition B) Comparing how you are now to how you'll be after purchase C) Comparing product benefits to product costs D) All of these Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 50) Maximizing exposure of the advertising message to the target audience while minimizing waste coverage is the definition of A) traditional advertising. B) media strategy. C) promotional mix. D) non-traditional advertising. Answer: B Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

51) Adding incentives or inducements for consumers to buy products sooner, rather than later, describes A) trade sales promotions. B) urgency advertising. C) direct marketing. D) consumer sales promotions. Answer: D Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 52) Public relations encompasses which of the following? A) Determining stakeholder attitudes and fostering understanding between stakeholders and the organization B) Continuous and ongoing crisis management C) The organization's general life as a citizen of the communities in which it operates D) All of these Answer: D Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 53) What do marketers use to target segments of customers based on customer characteristics and communication objectives? A) Group promotion B) Marketing mix C) Integrated marketing communications D) Marketing strategy Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

54) Which of the following statements concerning press releases is true? A) News outlets will re-write releases according to accepted journalistic standards before publication. B) Companies coordinate press releases with their social media presence. C) Most press releases include a media kit. D) They are not the primary public relations tool. Answer: B Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 55) A paid, nonpersonal communication by a sponsor to an audience is A) advertising. B) institutional advertising. C) corporate image advertising. D) product advertising. Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 56) The form that creative ideas take is referred to as A) execution style. B) straight sell. C) demonstrations. D) creativity in advertising. Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

57) Pioneering advertising is incorporated at what stage of the product life cycle? A) Introduction B) Growth C) Maturity D) Extension Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 58) Which of the following is a type of product advertising? A) Comparative advertising B) Pioneering advertising C) Institutional advertising D) Compatible advertising Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 59) A goal of sales promotions is to A) encourage quick transactions. B) increase impulse buying. C) drive traffic in stores. D) create customer loyalty. Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

60) What is the purpose of loyalty programs such as the ones used by airlines and hotels? A) Developing long-term relationships B) Offering attractive discounts C) Creating a memorable consumer journey D) Expanding the customer experience Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 61) Which of the following is the purpose of trade shows? A) Generating sales leads B) Testing market products C) Conducting on-site research D) Cultivating new relationships Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 62) Companies can use which form of advertising to strengthen their brands? A) Institutional advertising B) Traditional advertising C) Digital marketing D) Social media advertising Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

63) The first step in the personal selling process is A) prospecting. B) preparation. C) practice. D) presentation. Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 64) Which type of advertising stimulates primary demand for products or services? A) Advocacy B) Competitive C) Pioneering D) Comparative Answer: C Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 65) Which of the following consumer sales promotions is defined as a small gift sent to consumers who provide proofs of purchase? A) Free premium B) Contest C) Sweepstakes D) Sampling Answer: A Diff: 1 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

66) Advertising that stimulates primary demand when product categories are new A) occurs early in the PLC. B) has a goal of promoting the category versus the brand. C) is called pioneering advertising. D) All of these Answer: D Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 67) What is one of the major benefits of direct response advertising? A) It increases retailer involvement. B) It helps reduce the possibility of channel conflict. C) Results can be tracked to measure effectiveness. D) It is the least expensive form of promotion. Answer: C Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 68) Which is a common guideline for creative advertisements? A) It must be attention getting. B) It must be capable of multiple executions. C) It must be detailed enough to be tested in advance. D) All of these Answer: D Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Application

69) Which execution style category can be inexpensive to produce and has clear brand messaging, although it may struggle to keep audience attention? A) Straight sell B) Demonstrations C) Testimonials D) Slice of life commercials Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Application 70) Apple's famous 1984 commercial, aired during the 1984 Super Bowl, exemplifies which execution style? A) Slice-of-life commercial B) Personality or symbol advertising C) Celebrity endorsement D) Fantasy advertisement Answer: D Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Application 71) What is true of reach and frequency with a limited budget? A) They are inversely related to one another. B) They are mutually exclusive objectives of an advertising campaign. C) Most plans eliminate waste coverage. D) All of these Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

72) What is true of most consumer sales promotions? A) The majority of coupons are redeemed during the promotional period. B) Bonus packs are the most cost-effective form of sales promotion. C) They are intended to produce quick transactions between buyers and sellers. D) Contest and sweepstakes are, essentially, the same thing. Answer: C Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 73) Which of the following statements concerning public relations is true? A) The public image of a company has little impact on marketing efforts. B) It can be used as a promotional tool to build positive feelings about a brand. C) It focuses on the company's target market to the exclusion of other stakeholders. D) It relates primarily to crisis management. Answer: B Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 74) Why should competitive advertising be used carefully? A) It reminds the target market of the competitor and their offerings. B) It can backfire if potential customers see the comparisons as unnecessary or unfair. C) It can result in competitors responding with negative claims about a firm. D) All of these Answer: B Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

75) As reach increases, ________ decreases. A) frequency B) exposure C) media budget line D) waste coverage Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 76) As frequency increases, ________ decreases. A) frequency B) reach C) media budget line D) waste coverage Answer: B Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis 77) Sampling is considered a A) consumer sales promotion. B) trade promotion. C) public relation marketing. D) promotional allowance. Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

78) An advertising campaign used by an oil company to show their care and concern for a clean environment is an example of A) institutional advertising. B) product advertising. C) crisis management. D) advocacy advertising. Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 79) A celebrity's effectiveness as an endorser depends on A) the celebrity's image fitting the product brand's positioning. B) the celebrity's following on social media. C) the celebrity's ability to have a high public profile. D) the celebrity's brand and past success as an endorser. Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 80) The use of characters such as the gecko on Geico commercials is an example of A) symbol advertising. B) institutional advertising. C) comparative advertising. D) product branding. Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

81) Frequency differs from reach in that it is A) the average number of times an audience sees an advertisement. B) the percentage of viewers who see an advertisement at a given time. C) the impact that an advertisement has on an audience. D) the rapidity in which an advertisement is shown over a 30-minute time span. Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 82) What is a key decision media planners must be able to make? A) Match the demographics of the target market to various media B) Develop a budget that supports the advertising that must be conducted C) Select the most effective mediums for showcasing the product D) Coordinate the use of digital media with traditional media Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 83) The small bottle of shampoo that guests find when they arrive at their hotel room is an example of what type of sales promotion? A) Sampling B) Product placement C) On-site promotions D) In-house advertising Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

84) Marketers are able to target members of supply chains by engaging in which of the following? A) Trade promotions B) Sampling C) Entertainment D) Networking Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 85) Which of the following is NOT a way that personal selling is distinguished from mass marketing promotions? A) Personal selling is proven to be the most persuasive technique. B) Personal selling is interactive, two-way communication. C) Personal selling offers immediate feedback. D) The personal selling message can be adapted to various situations. Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 86) Levi's "Circles" television commercial shows people of various ages, races, and ethnicities wearing Levi's brand clothing and dancing to the song "Makeba." Which term BEST describes this advertisement? A) Pioneering B) Direct response C) Comparative D) Institutional Answer: D Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

87) Which of the following statements accurately describes media strategy in advertising? A) It typically takes years of experience before marketers are able to perfectly solve the basic media planning problem. B) Reach is the average number of times members of the target audience see an advertisement. C) Marketers are finding it easier to handle the basic media problem as communication outlets increase in number and size. D) Reach and frequency are inversely related to one another. Answer: D Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 88) For many years, Pepsi has aligned itself with the NFL Super Bowl and its halftime show. The stadium is covered with Pepsi advertisements and retail stores carry point-of-purchase displays suggesting PepsiCo products be consumed while watching the game. Which type of consumer sales promotion is best exemplified by Pepsi? A) Sponsorship B) Premium C) Sweepstakes D) Sampling Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 89) Which of the following statements most accurately describes trade promotion? A) Retailers appreciate companies who offer spiffs to their salespeople because it encourages sales efforts and enthusiasm. B) Trade shows represent the worst return on marketing investment for many B2B sellers. C) Trade promotion can involve incentives to induce customers to buy more. D) Cooperative advertising is an important aspect of most training programs. Answer: C Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

90) Which of the following statements accurately describes sales promotions and competition? A) Creating sales promotions that become a sustainable competitive advantage is the most effective way to meet competitive pressures. B) Most marketers believe sales promotions are unnecessary, even when faced with intensive competition. C) It is cheaper to recruit new customers than to keep existing customers happy. D) While most promotional activities are easily copied by competitors, loyalty programs are a good investment. Answer: D Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 91) Which of the following statements accurately describes marketing public relations? A) Public relations tools are often used to build brand loyalty. B) Press conferences are the primary public relations tool. C) Press releases are enhanced media kits. D) Digital media content should be used to tout product or service issues only. Answer: A Diff: 2 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 92) What is the relationship between reach and frequency when a male consumer watching the super bowl is forced to watch a cover girl commercial during the half time break? A) Underexposure B) Effective exposure C) Over exposure D) Waste coverage Answer: D Diff: 3 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

93) You work in marketing for a vacuum cleaner company and have been tasked with increasing sales to Millennials. Your boss suggests creating print and televised product advertisements that demonstrate the features and performance of the vacuums. What is the best way to respond? A) Gently explain to the boss that Millennials view traditional methods of promotion as outdated and would respond negatively. Such ads would be ineffective and a waste of money. B) Suggest using advocacy advertising wherein you show the products, perhaps in use, and tout the company's involvement with animal rescue organizations. C) Agree with his plan in part, but instead of demonstrations, you suggest using a Millennial-like celebrity to endorse the product. D) Suggest using a direct marketing promotional tool like email or telemarketing to ensure reaching the specific target market—Millennials. Answer: B Diff: 3 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 94) You are the brand manager for a new cold breakfast cereal and are tasked with creating advertising. Since your cereal appeals mostly to children, but will be purchased by parents, what is the best way to proceed? A) Create a cartoon character that appeals to children, who influence purchasing decisions, but create content that details the cereal's nutritional benefits to the parents. B) Create a family-centric, slice-of-life commercial that appeals to parents who ultimately make grocery purchasing decisions. C) Create an advocacy advertisement focusing on the company's involvement with the farming community. D) Create an advertisement with an endorsement by a celebrity parent or by a popular, fictional parent (perhaps one from a children's show). Answer: A Diff: 3 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

95) Which form of promotion involves direct, two-way communication? A) Sales promotion B) Personal selling C) Television D) Radio Answer: B Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 96) A carefully scripted and practiced sales presentation describes which approach? A) Canned sales presentation B) Adaptive selling C) Objectives anticipation D) Field sales Answer: A Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 97) The process of transitioning from customer objections to closing the sale often involves A) scheduling a follow-up meeting. B) presenting a formal purchase order for signature. C) specifying a time frame for making the decision. D) using trial closes. Answer: D Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

98) The most important determinant of a mobile promotion is A) autodial technology. B) the timing of the call. C) relevance. D) using text versus voice. Answer: C Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 99) The media selected for direct marketing must match all of the following EXCEPT A) offer. B) customer. C) sales promotion. D) message. Answer: C Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 100) Which is true regarding business purchases? A) Most occur at a retail location. B) They result from a promotion that actively targets consumer groups. C) The seller often initiates the purchase. D) They typically involve a short purchase process. Answer: C Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

101) The world's leading cloud-based customer relationship management software platform used by salespeople is A) Microsoft Cloud. B) Amazon Cloud. C) Salesforce. D) Sales Cloud. Answer: C Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 102) Personal selling is primarily directed at which type of customers? A) Business B) Stay-at-home parents C) Party planning accounts D) Geographically-concentrated target markets Answer: A Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 103) Any selling activity that involves direct interaction between a buyer and seller is A) personal selling. B) adaptive selling. C) direct marketing. D) communication. Answer: A Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

104) Promotion to an individual consumer that includes an offer, information to justify the purchase, and a method for customers to respond is known as A) personal selling. B) adaptive selling. C) direct marketing. D) communication. Answer: C Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 105) A key goal of personal selling is to A) build long-term relationships. B) persuade others. C) network. D) build a brand. Answer: A Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 106) Which of the following is a main reason to use direct marketing? A) It is measurable. B) It is highly reliable. C) It is inexpensive to use. D) It strengthens a company's brand. Answer: A Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

107) Which of the following terms describes the first step in the personal selling process—that of identifying and qualifying potential customers? A) Boundary spanning B) Snowballing C) Prospecting D) Preparation Answer: C Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 108) Step six in the personal selling process helps the salesperson transition from meeting customer objections to closing the sale. It is referred to as a(n) A) trial close. B) adaptive sell. C) approach. D) pre-approach. Answer: A Diff: 1 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 109) How would the flow of communication in personal selling be categorized? A) It entails a one-way flow of information from seller to buyer. B) There is often a delay in feedback from the buyer. C) It is easily duplicated through other channels. D) The interaction is direct and two-way. Answer: D Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Application

110) Experienced salespeople often say the biggest mistake beginning salespeople make is A) not asking for the order. B) not anticipating common objections. C) not making enough cold calls. D) failing to use the proper script. Answer: A Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Application 111) The most important component of qualifying a potential buyer is A) using the snowballing technique with current customers. B) properly executing the pre-approach. C) determining whether the prospect has a real need for the product. D) being able to schedule an appointment through the gatekeeper. Answer: C Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 112) When is mobile direct marketing most effective? A) When the marketer utilizes a local area code in the caller ID B) When the marketer ties customer preferences to location and time C) When the marketer utilizes autodial technology to maximize customer contacts D) All of these Answer: B Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

113) Which of the following statements is true regarding direct marketing response devices? A) The response options should include a QR code that links to the company's website. B) The response options should generate attention and awareness. C) The response options should maximize customer convenience. D) The response options should include by mail for older consumers. Answer: C Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 114) Which of the following statements is true regarding creativity in direct response? A) Creativity can sometimes detract from effectiveness. B) Creativity is generally less important than it is in other forms of promotion. C) Creativity is typically more important than the offer itself. D) Creativity more closely adheres to specific rules for the medium. Answer: A Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 115) How can coupons be most effectively utilized as part of a direct marketing campaign? A) They can be tied to individual consumer behaviour. B) They can be included as part of a direct mail package to increase responsiveness. C) They can improve generating trial on new product introductions. D) They can aid in new customer acquisition. Answer: A Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Application

116) Why would smaller brands with less general brand recognition turn to direct marketing? A) It is personalized at the individual level. B) It offers the potential for fine-tuning the offer. C) Response is based primarily on the offer. D) It is the most affordable compared to other promotional tools. Answer: C Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 117) What is a potential negative consequence of salespeople having a boundary spanning job? A) The job is not routine and can vary markedly from day to day. B) They may develop divided loyalties between their company and their customers. C) They must learn many skills and apply them in constantly changing circumstances. D) The job requires great flexibility, adaptability and innovativeness. Answer: B Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 118) Phone and telemarketing calls are considered A) direct response advertising. B) direct marketing. C) personal selling. D) boundary spanning. Answer: A Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Ethics Standard 2: Bloom's || Analysis

119) How many steps are there in closing a personal selling activity? A) 3 B) 4 C) 7 D) 6 Answer: D Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 120) A salesperson needs to adjust their presentation when they encounter unexpected situations or questions from a client. This is an example of A) adaptive selling. B) negotiations. C) comparative selling. D) persuasive adaptation. Answer: A Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 121) Direct marketing differs from direct response in that it A) is personalized. B) presents information at the individual level. C) relies on data collection and analysis. D) is costly and highly dependable. Answer: A Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

122) The use of direct mail is effective because of which of the following reasons? A) It allows for the use of mail pieces, which contain more information. B) It allows for more precise sorting by postal code. C) It allows for the use of multiple and persuasive colours in the mailings. D) It allows for the use of various sizes and shapes of the materials. Answer: A Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 123) Which of the following is a disadvantage of using catalogs as a direct marketing tool? A) Lacks a relevant product assortment B) Fails to capture the audience's attention C) Inability to be flexible with price discrimination D) Inability to coordinate with other e-commerce activities Answer: A Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 124) Which of the following statements accurately describes personal selling? A) Career sellers enjoy the routineness of the job. B) Interaction is direct and two-way. C) Performance is difficult to quantify objectively. D) Feedback lag time can create job stress. Answer: B Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

125) Park sells commercial laundry services. He has a list of several potential customers in his selling area and knows these businesses are open to hiring a new and better cleaning company. Today, he is researching the companies on social media. Which step in the personal selling process is Park currently completing? A) Pre-approach B) Approach C) Adaptive selling D) Preparation Answer: B Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 126) Which of the following statements accurately describes a direct marketing promotional tool? A) Direct mail is most effective when messages are creative and brief. B) Catalogs with large assortments and a broader target market are more effective than those with a focused product line. C) Relevance is the most important determinant of promotion via mobile devices. D) Telemarketing is decreasing because the process has become cumbersome and slow. Answer: C Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 127) Which of the following statements accurately describes direct marketing? A) It is a form of group promotion. B) It is difficult to measure. C) It is unregulated. D) It is less dependent on brands than other forms of promotion. Answer: D Diff: 2 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

128) In virtually all cases, marketers advertise to build sales, though there are different avenues for doing so. Which of the following represents advertising whose intent is not to build sales? A) Institutional advertising designed to create goodwill toward the brand B) Advocacy advertising highlighting the company's commitment to a social cause C) Anonymous contributions to Public Service Announcements (PSAs) D) Advertising designed to facilitate customer interaction on the company's social media platforms Answer: C Diff: 3 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 129) Which approach would you consider a sales representative at a jewelry store to take? A) Personal selling B) Direct marketing C) Personalized promotion D) Public relations Answer: A Diff: 3 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 130) What would you expect the relationship to be between selling a high-risk product and a low-risk product using personal selling? A) High-risk is more likely to be sold using personal selling. B) Low-risk is more likely to be sold using personal selling. C) Low-risk and high-risk are equally as likely. D) High-risk is less likely to be sold using personal selling. Answer: A Diff: 3 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Synthesis

131) Blue Apron sending out a mailer for 10% off the first box if you sign up now using the mailer code could help the company do which of the follow? A) Narrow the audience for better results B) Have a two-way interaction C) Communicate directly D) Adjust sales presentations Answer: A Diff: 3 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 132) You are the brand manager for a popular shampoo. Sales are good. Customers are loyal. You are tasked with increasing market share. What is the BEST promotional tool for accomplishing your goal? A) Create a series of cents-off coupons that will run in local newspapers, in magazines, and on the backs of mass merchandiser receipts. B) Use retail technology to identify shampoo users who have purchased multiple brands. Then create a cents-off coupon that will appear on the backs of mass merchandiser receipts. C) Create a contest requiring customers to send in UPC code as proof of purchase. D) Hand out sample bottles at retail stores where shoppers are likely to browse the shampoo aisle. Answer: B Diff: 3 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

133) You work in marketing for a manufacturer of water sports equipment. When a new model of kayak is developed, you are tasked with introducing its and touting its features to all the outdoor equipment retailers who may choose to carry it. What is the most efficient and effective way to accomplish your goal? A) Use personal selling by having members of your company's sales team pitch the product to as many retailers as possible. Include the retailer's sales personnel so that they can communicate similarly with customers. B) Create a direct mail piece to be distributed to all pertinent retailers. C) Use public relations by creating a media kit that includes a press release about the kayak. D) Hold a training program for all outdoor retailers in a location known for kayaking, like Muskoka, Ontario. Include the retailer's sales personnel so that they can communicate product benefits with customers. Answer: A Diff: 3 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 134) Describe the hierarchy of effects and how a consumer reaches taking an action to go to a store/buy a product. Give an example scenario of a consumer going through the stages. Answer: Student responses will vary. A sample response may include the following: • People pass through two cognitive states and two emotional states before acting • The two cognitive states are made up of the awareness and knowledge stage. This stage is the thinking stage. • Liking and preference represent the emotional stage. • Action is the doing part of the hierarchy. • A consumer that is a dog owner watching a commercial about a new healthy brand of dog food represents the awareness and knowledge stage. • A consumer talking to a friend who uses the dog food could create a positive preference and liking for the consumer who has not yet purchased the new brand of dog food. • After the consumer has gained knowledge, created a preference and has decided to like the product, the consumer now goes to the store and acts on those cognitive and emotional behaviours. Going to the store and buying the new product represents the action stage. Diff: 3 Learning Objective: 11.1 Explain the promotion mix, promotional objectives, and options for setting promotion budgets. Section Reference: Managing the Promotion Mix Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

135) What are reach and frequency and explain how they are related. Why is effective exposure important? Answer: Student responses will vary. A sample response may include the following: • Reach is the percentage of a target audience that sees and advertisement at least once during a given period. • The average number of times members of the target audience see the advertisement. • Reach and frequency are inversely related. • As one goes up the other goes down. • High reach and low frequency would result in underexposure. • High frequency and low reach is overexposure. • A balance of frequency and reach is where effective exposure happens. Diff: 3 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 136) How are non-sales behavioural objectives structured to eventually lead to sales? Answer: Responses may vary, however a sample response is as follows: The hierarchy of effects model postulates that consumers must pass through two cognitive and two emotional states before taking an action. It's virtually impossible for a single promotional campaign to take consumers through five stages. A first promotional campaign would make consumers aware of the product or service. A second would provide information (knowledge) about it. Then, promotion would focus on making consumers like the product, followed by building a preference for that product over that from a competing brand. Only then can the final sale occur. Diff: 3 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 137) Why does the goal of advertising change as a product cycles through the product life cycle? Answer: Responses may vary; however, a sample response is as follows: In the introductory phase of the PLC, marketers are concerned with advertising geared toward making potential buyers aware of the new offering and generating trial. As the product enters the growth phase, competitors appear and advertising changes to build preference for the company's product over competitors. During the maturity phase, the focus of advertising shifts to remind consumers of the product and, occasionally, to introduce new attributes or product varieties. Finally, during the decline phase, advertising virtually ceases as companies attempt to maximize remaining profits. Diff: 3 Learning Objective: 11.2 Outline the common types of group promotion, including advertising, sales promotion, and public relations. Section Reference: Group Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 47

138) You believe you've completed answering all the objections by a potential buyer; however, your trial close does not produce a positive response. What would you do now? Answer: Responses may vary, however a sample response is as follows: You would recognize that you haven't surfaced or dealt with all the buyer's objections. Either he or she has a hidden objection you need to 'smoke out' or you didn't follow-up appropriately in answering an earlier objection to ensure you'd addressed it to their satisfaction. In this case, you'd probe to uncover the hidden objection so you can address it. Upon ensuring you've done this, you'd try another trial close. Diff: 3 Learning Objective: 11.3 Describe the common types of personalized promotion, including personal selling and direct marketing. Section Reference: Personalized Promotion Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

Applied Marketing, 1ce (Grayson) Chapter 12 Encouraging Participation to Connect with Customers 1) In traditional markets, customers do not have as much information about the brands because the company controls the brand communications. Answer: TRUE Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 2) Marketers using digital media to target customers anywhere and anytime with seamless messaging experiences in a practice known as omnipresent marketing. Answer: FALSE Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 3) Which is the key to marketing success in the digital age? A) Having corporate Facebook and Twitter accounts B) Sending regular email offers to customers C) Using technology to encourage customers to connect with brands D) All of these Answer: C Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 4) The three components of customer connections are behavioural, social, and A) physical. B) technical. C) historical. D) psychological. Answer: D Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 1

5) Which of the following is NOT true about digital marketing? A) Some digital marketing does not use any of the internet platforms. B) Marketers use digital marketing tactically, but the marketing strategy is separate. C) Digital marketing might combine both benefit delivery and communications. D) Digital marketing could include products that exist only in digital form. Answer: B Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 6) ________ are advertisements placed in a limited space on a website. A) Banner advertisements B) Product placements C) Videos D) Blogs Answer: A Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 7) Which is NOT one of the three components of customer connections? A) Behavioural B) Social C) Psychological D) Cognitive Answer: D Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

8) The pinnacle of brand loyalty for many companies is having consumers consider their brand to be A) a lifestyle brand. B) a symbol of achievement. C) a member of a customer's consideration set. D) the preferred alternative. Answer: A Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 9) One of the characteristics of digital marketing is that when customers make social, behavioural and psychological connections with the brand, these connections are A) less important than in traditional marketing. B) more limited than in traditional marketing. C) more intense and immediate than in traditional marketing. D) less long-lasting than in traditional marketing. Answer: C Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 10) Psychologists use the term polysynchronous consumption; when marketers use the term, they are referring to the situation when consumers A) buy multiple items of a product for consumption. B) use the product often. C) think of the product more frequently. D) purchase different brands of the same product. Answer: C Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

11) Which term refers to the strategies and tactics of communicating with customers or delivering benefits to customers using technology? A) Digital marketing B) Digital media C) Digital media tools D) Digital advertising Answer: A Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 12) Which of the following is a digital media tool? A) Email B) Banner advertisements C) Search engines D) Social media platforms Answer: B Diff: 1 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 13) With the development and maturity of digital marketing, which of the following statements is true? A) Branding is less important now than it was in the past. B) Brands control the conversation with customers. C) Brands no longer control the ways in which customers connect to them. D) Integrated marketing communications is less important now than it was in the past. Answer: C Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

14) Digital marketing includes both communication and benefit delivery. Which of the following statements is true? A) The two ideas are mutually exclusive. B) The two ideas must be delivered simultaneously. C) Often these two ideas have significant overlap. D) The two ideas are totally unrelated. Answer: C Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 15) Digital media provides the means through which brands and customers connect with one another. Which are the techniques by which marketers use digital media to build these connections? A) Digital media tools B) Integrated marketing communications C) SEO and SEM D) Earned media Answer: A Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 16) Unlike traditional media, digital media such as website or social media platforms can do what? A) Provide measurable metrics with which to gauge financial performance. B) Communicate specific benefits to your target market. C) Show demonstrations of your product or service in use. D) Create immediate and interactive connections with and between customers. Answer: D Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

17) Which of the following is NOT involved in the co-creation of value? A) Marketer identification of basic needs and communicating information to influence what the consumer wants to satisfy them. B) Using or consuming purchases and communicating with others about the experience. C) Creating value for each other and companies through information shared in reviews. D) Customers becoming knowledgeable about product while companies use information to improve product and respond to complaints. Answer: A Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 18) Which information on a company's website will BEST help reassure customers uncertain about making a purchase? A) A detail of product features B) Customer reviews C) Detailed pictures of the product D) Contact information for reporting problems Answer: B Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 19) Which is true concerning lifestyle brands? A) They become part of a customer's self-concept. B) Brands in virtually any category are well-suited to become lifestyle brands. C) They typically do not reflect behavioural, social or psychological components. D) All of these are true. Answer: A Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

20) What is a major advantage of digital media over traditional media as it relates to increasing levels of consumer demand for immediate and personalized attention? A) It is more widely accepted by Millennial and Generation Z consumers. B) It can be tailored to the individual consumer. C) It creates immediate and interactive connections. D) It matches the increased reliance on mobile devices to stay connected. Answer: C Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 21) Digital marketing, as opposed to traditional marketing, is significantly distinguished by A) multiple flows of information in multiple directions. B) the use of the internet to deliver messages. C) diminished importance of marketing in brand discussions. D) reduced applications for direct marketing. Answer: A Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 22) Jim applied for a position as a digital media marketer, as he was proficient using Twitter and Facebook. He did not get the job. Which of the following is a likely job-related reason why? A) He did not know traditional marketing tactics. B) He did not know enough about other platforms. C) He should have known that Facebook and Twitter have declined substantially for business use. D) He did not have a LinkedIn profile to demonstrate his proficiency. Answer: B Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

23) One reason studying consumer behaviour is so essential to marketers in a digital marketing environment is that the marketer must A) understand where consumers will go to get information during the buying process and what will influence the decision. B) know how different the entire buying process has changed with electronic commerce. C) anticipate which customers will like the product enough in the post-purchase phase of the buying process to be an advocate in social media. D) learn how to avoid damaging comments in social media from the behaviour of current customers and non-customers. Answer: A Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 24) When customers create and post online reviews of products, they are involved in which of the following marketing-related process? A) Brand advocacy B) Co-creation C) Guerilla marketing D) Socialization Answer: B Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 25) Brad discovered a designer brand of clothing that fit him well and appealed to his sense of taste. He started discussing the brand frequently on social media and found himself paying more for clothing than he intended to spend. When consumers like Brad develop this kind of purchasing behaviour, they are demonstrating what kind of customer connection? A) Conspicuous consumption connection B) Co-creation of value connection C) Social relevance connection D) Psychological connection Answer: D Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

26) Carol and her marketing team have been using digital marketing to engage with customers and build the firm's brand into a lifestyle brand. She and the team are working to A) ensure customers become purchasers for their whole life. B) develop strong behavioural, social, and psychological connections. C) make sure the brand endures longer than a fad or fashion. D) create a dependence on the part of the customers. Answer: B Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 27) What is the primary difference in marketing via traditional media versus digital media? A) The number of customers impacted B) The amount of marketing expertise required C) The way in which communication flows between marketers and customers D) The impact of the message on the target market Answer: C Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 28) Which of the following statements accurately describes customer connections? A) They are less intense, but more immediate and interconnected with digital marketing. B) Polysynchronous consumption often overwhelms consumers and limits brand loyalty. C) The three basic components are behavioural, spiritual, and psychological. D) Online reviews can create social proof. Answer: D Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

29) Lululemon's customers feel extremely connected to the yoga-wear brand through sharing encouraging fitness messages with others on Twitter, by attending fitness classes at company studios, and by visiting company "fuel bars." Of the following, which term best describes this example? A) Mobile marketing B) Social proof C) Polysynchronous consumption D) Lifestyle brand Answer: D Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 30) As you drive past a local restaurant, you notice that there are so many customers waiting for tables that they are forced to wait outside. You decide that the restaurant must have good food. This is an example of A) the co-creation of value. B) polysynchronous consumption. C) social proof. D) a brand community. Answer: C Diff: 2 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

31) You are the new brand manager for a line of flavoured, carbonated beverages. The parent company is older and has a moderate digital presence in the marketplace. Your product is priced slightly higher than your competitors', but you truly believe it tastes better. What is the BEST digital marketing strategy for your new brand? A) Use various digital media to promote your brand and keep customers apprised of new developments. Provide channels for customer feedback or reviews using social media or targeted surveys. Respond to as many customers as possible, especially those with negative experiences. B) Create a well-written and engaging blog about your product. Target the content to the consumers most likely to become loyal to your brand, since these customers typically are willing to pay more than others. C) Aim to become a lifestyle brand by carefully coordinating customer interactions on social media platforms and by sponsoring large, popular activities enjoyed by your target market. D) Use various digital media to promote positive feelings and attitudes about your product, which likely will lead to product trial—and hopefully, brand loyalty. Answer: A Diff: 3 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 32) An entrepreneur hires you to help him market his new line of sweet and spicy salsas. His funding is in place and he wants to target upscale customers who socialize frequently. His products are priced slightly higher than his competitors', but he truly believes they taste better. An older gentleman, he insists that he wants to use traditional marketing methods only. What is the best way to respond? A) You tell him that digital marketing provides detailed information about your customers and will allow you to create marketing targeted specifically to them. Also, the customer connections created encourage a psychological connection of brand loyalty—and brand loyal customers willingly pay more for their preferred salsas. B) You tell him that digital marketing allows you to control your brand's message in ways that traditional marketing does not. By allowing customers to comment on your brand, you can create social proof and enlarge your brand community. C) You tell him that digital marketing is a very broad term for many activities. You suggest that you start by creating a company website to tell his story and to provide the information most likely needed by potential customers. When he feels more comfortable, you can start creating banner advertisements. D) You tell him that traditional marketing methods are viewed as outdated by today's consumer. Digital marketing creates the kind of social proof that will create positive feelings and attitudes about your product, which will encourage customers to pay more for it. Answer: A Diff: 3 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 11

33) Mobile accounts for almost ________ of all digital media time. A) 20% B) 50% C) 70% D) 90% Answer: C Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 34) Groups of consumers united by strong connections with a branded product or service are referred to as A) target markets. B) brand communities. C) influencers. D) opinion leaders. Answer: B Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 35) Digital media have spurred the evolution from multichannel marketing to A) omnichannel marketing. B) promotional videos on social media sites. C) banner advertising. D) rich media. Answer: A Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

36) Like traditional word-of-mouth, ________ carry with them high levels of credibility. A) tweets B) online reviews C) Facebook advertisements D) YouTube videos Answer: B Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 37) Which of the following statements is true? A) Over half of adults under the age of 35 trust online reviews more than the opinions of friends and family. B) Consumers who read reviews on smartphones are more likely to buy than those who read reviews on desktop computers. C) Almost 9 in 10 online shoppers say reviews influence their purchase decision. D) All of these statements are true. Answer: D Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 38) Which is NOT accurate concerning characteristics of the digital culture? A) Consumers are growing increasingly comfortable with the personalization of messaging. B) The consumer digital culture is consumer-centred. C) Digital media produces information useful to both consumers and marketers. D) The digital culture is limited primarily to younger consumers and is not relevant to older groups of consumers. Answer: D Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

39) Which of the following is NOT one of the characteristics of the consumer digital culture? A) Internet enabled B) Information rich C) Consumer centred D) Personalized Answer: A Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 40) Michael was considered by his colleagues to be behind the times, but he was the CMO. At a recent meeting of his leadership team, he said the online policy should be to give the customers only the information favourable to the brand. His team knew this was not a good idea because in a digital marketing environment, A) brand information must be tightly controlled. B) consumer demands exceed Michael's threshold. C) website design needs to feature brand associations in addition to information. D) digital marketing must be more flexible. Answer: C Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 41) In response to the explosive growth of online reviews, marketers should do all of the following EXCEPT A) hire staff or retain outside assistance to monitor the online reviews. B) collect and analyze the data about online review content. C) develop a response strategy for negative online reviews. D) send free samples or coupons to authors of favourable online reviews. Answer: D Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

42) About what percentage of their digital media time do consumers spend on a mobile device? A) 30% B) 40% C) 52% D) 90% Answer: C Diff: 1 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 43) Which is true concerning omnichannel marketing? A) It is basically unrelated to digital media. B) It is more appropriate for services than products. C) It relies exclusively on digital media for delivery. D) It integrates various communication channels to accommodate the consumer's interests and desires. Answer: D Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 44) The average amount of time each day consumers spend on mobile devices has done what over the years? A) Remained static for the past three years B) Grown every year C) Experienced rapid growth followed by a decline D) Declined every year Answer: B Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis

45) Which is the BEST approach for a marketer to follow in regard to brand communities? A) They should not attempt to control over govern the communities. B) They should not encourage their formation. C) They should maintain control over the communities to ensure all members are treated fairly. D) They should not monitor community activities to maintain neutrality. Answer: A Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 46) Which is the BEST approach for marketers to take regarding online reviews? A) They should monitor them but take no active role in facilitating them. B) They should always maintain inside control of the monitoring function. C) They should not monitor reviews as it discourages honest discourse. D) They should invest in monitoring and encouraging positive online reviews. Answer: D Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 47) How is qualitative research relevant to online reviews? A) Due to its highly subjective nature, standard analytic techniques are not useful in analyzing online reviews. B) Given the propensity of reviewers to say negative things, analysis of reviews is not directionally sound. C) Many standard analytic techniques can be applied to the written content of online reviews. D) It is applicable only in rare situations. Answer: C Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

48) How does digital media contribute to the viability and success of omnichannel marketing? A) By utilizing the interconnected and interactive nature of digital media to create a seamless messaging experience B) By immediately sharing customer contacts, both positive and negative, on the company's website and social media sites C) By using traditional media to drive traffic to the company's website and social media sites D) By delegating younger employees to engage with influencers on the company's social media sites Answer: A Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 49) Tom and some other marketing students found an old marketing textbook, and they were comparing it to their experiences as regular and sophisticated users of online commerce. They decided—correctly—that the area most fundamentally affected by the new digital marketing culture was A) online purchasing and distribution. B) communications. C) product design. D) information search. Answer: D Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 50) Which of the following statements accurately describes the consumer digital culture? A) It encourages a self-focused mindset, which keeps customers conscious of their own needs and involved in a never-ending search for new and improved products. B) Like social media, retailer websites may allow for interconnectedness. C) It continues to grow among younger audiences, but still fails to garner much attention from older age groups. D) Consumers are growing increasingly uncomfortable with the privacy violations inherent in personalized marketing content. Answer: B Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

51) What is the BEST similarity between word-of-mouth and online reviews? A) High levels of credibility B) Low levels of credibility C) Anonymity D) Marketability Answer: A Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 52) Who is most inclined to trust a positive online review? A) Someone using a smartphone B) Someone over the age of 40 C) Someone shopping in a brick-and-mortar store D) Someone using Angie's List Answer: A Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 53) Makeup giant Sephora created Beauty Talk, an online forum where customers can share makeup tips, reviews, and advice with interested others. This is an example of A) omnichannel marketing. B) a brand community. C) polysynchronous consumption. D) banner advertising. Answer: B Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

54) The consumer digital culture is consumer-centric, so how do marketers benefit from it? A) By tracking the online behaviours of their target markets to gain greater insight into their consumers B) By connecting with consumers who are well-connected digitally, thereby increasing the size and general makeup of the target audience C) By providing traditional, safe marketing methods in situations where privacy issues are becoming increasingly important to digital consumers D) By locating consumers who can influence the opinions of others in the target and mass market Answer: A Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 55) What is the primary difference between multichannel marketing and omnichannel marketing? A) Personalization and two-way flow of communication B) Repetition of the marketing message C) Perceived value and effort in the marketing exchange D) Financial impact on the company Answer: A Diff: 2 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 56) Karen's manager was furious. She told Karen, "You sold me on the idea that brand communities would be good marketing for our products. Look at these negative comments. You need to fix this right away." Karen was afraid she might lose her position, but she also knew A) the expression of the brand community indicated the product was inferior to competitors' products. B) the reaction of the brand community would be even worse if she tried to shut down the conversation. C) the brand community supporting her product should overshadow the negative comments. D) the expression of negative comments was probably from competitors, and her firm should do something similar tactically. Answer: B Diff: 3 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

57) What is the BEST synthesis of polysynchronous consumption and omnichannel marketing? A) They soon will render traditional media outlets useless. B) They increase personalization while decreasing potential privacy violations. C) They create customer connections that can increase brand loyalty. D) They negate the need for word-of-mouth information. Answer: C Diff: 3 Learning Objective: 12.2 Identify and understand trends in digital marketing. Section Reference: Trends in Digital Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 58) Which is the most popular social network site based on the number of active users? A) Snapchat B) Instagram C) Twitter D) Facebook Answer: D Diff: 1 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 59) Which of the following is categorized as a media-sharing network? A) Yelp B) YouTube C) Facebook D) Renren Answer: B Diff: 1 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

60) Which is identified as the next big thing in social media? A) Instant messaging B) Video sharing C) Collecting followers D) Viral videos Answer: A Diff: 1 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 61) Which is fast becoming the mainstay of digital media and may soon overtake traditional media in terms of marketing investment? A) SEO and SEM B) Pop-up ads C) Banner ads D) Social media Answer: D Diff: 1 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 62) Which are specific named sites or applications accessed by users? A) Social media platforms B) Website analytics C) Advertising media D) Blogs Answer: A Diff: 1 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

63) There is a trend toward a large number of social media platforms being built around A) downloading content, especially videos. B) instant messaging and chat. C) news articles and stories. D) applications. Answer: B Diff: 1 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 64) What is the most popular social media platform in the world? A) YouTube B) WhatsApp C) WeChat D) Facebook Answer: D Diff: 1 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 65) Social media platforms are not completely isolated from one another, as they change their functionalities to broaden their services and their appeal. This results in what for marketers? A) They become more attractive. B) They become less differentiated and harder to use for segmentation. C) They become less effective in messaging. D) They require more effort to understand and correctly utilize. Answer: A Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

66) Using sophisticated research tools such as Google Analytics, Twitter Analytics, and Facebook Insights allows marketers to A) match promotional efforts to specific customers. B) improve their websites. C) learn about their customers. D) build awareness and brand loyalty. Answer: C Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 67) Which is NOT true of the Principles of Marketing through Social Media? A) Marketing through social media should be guided by a larger strategy. B) Quantity of content is more important than quality. C) Responses to dissatisfied customers should not be shared with other customers. D) It works best when you add lots of detail and information. Answer: B Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Analysis 68) The trend to improve social media reach involves A) using your own employees. B) using outside resources. C) using the staff of the social media platform. D) increasing your number of postings. Answer: A Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

69) Technology is becoming increasingly immersive. As a result of this, we can expect continuing which trend? A) Video becoming as common as text B) Greater postings of live video C) The incorporation of other technologies such as personal drones and virtual reality D) All of these Answer: D Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 70) Why are marketers still somewhat puzzled about how to use various social media platforms to connect with customers? A) It is still a relative new medium and marketers are still determining best practices. B) Social media is somewhere between traditional 'mass communications' like television and 'personal' communications like direct selling. C) Senior level marketers tend to be older and didn't grow up using, interacting with, and understanding social media like Millennials have. D) Each category of social media platform has its own unique qualities and marketers are still learning how to effectively utilize IMC with them. Answer: B Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 71) Kathy had been asked to develop a broad strategy to capitalize on social media platforms. She has included social networking sites, social publishing sites, online review sites, and bookmarking sites. What platform category should she also include? A) E-commerce sites B) The company website C) Interest-based networks D) Social utilities Answer: C Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

72) Marketers need to consider the marketing effort as a whole when considering marketing through social media. Which of the following concepts or tools from the large marketing effort would be most meaningful in developing the social media strategy? A) Diffusion of innovation B) Product life cycle C) Integrated marketing communications D) Pricing analyses Answer: C Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 73) Patrick has been tasked with managing the social media marketing, and his mandate includes keeping the company at the leading edge of social media. Which of the following would NOT be one of the actions he could consider? A) Finding ways to get others in the organization involved in developing the social media reach, even those who aren't in marketing B) Identifying influencers in the marketplace as new brand ambassadors C) Reviewing catalogues and brochures to ensure content is consistent with the online brand messages D) Reviving instant messaging as a strategic function Answer: C Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 74) Which statement accurately describes the social media environment? A) TikTok is now the second largest platform. B) Facebook has failed to match the growth of other sites. C) A growing trend is to build platforms around online reviews. D) Usage is a worldwide phenomenon. Answer: D Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

75) Goodwall is a social media platform that connects Gen Z and Millennials regarding college scholarships, internships, and job opportunities. Into what functional category does Goodwall fit? A) Social publishing platform B) Bookmarking site C) Interest-based network D) Media-sharing network Answer: C Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 76) Of the following, which statement accurately reflects connecting with customers using social media? A) While marketing tends to negatively impact profits in the short term, long-term profits are positively impacted. B) It can be extensive, powerful, interactive, and a bargain compared to traditional marketing. C) Its cost per thousand (CPM) is more than traditional advertising and less than live, in-person marketing. D) It requires expensive, highly sophisticated, and relatively rare research tools to learn about the target market. Answer: B Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 77) Which is a social media trend affecting marketing practice? A) The rise of instant messaging B) The use of celebrity influencers C) The limited use of video due to legal concerns D) The use of bot-initiated content for brand messaging Answer: A Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

78) You manage the marketing for a mom-and-pop grocery store in your community. You communicate primarily through a weekly circular advertisement and via Facebook. The store's strategy is to provide convenience, a sense of community, and a variety of products at reasonable prices. You feel you convey this in your simple visual content. This morning, you were startled to read a comment from an extremely disgruntled customer about your "price-gouging practices." Several other customers responded—both positively and negatively. What is the best way to move forward? A) Respond directly to the dissatisfied customer, which will be observed by your other Facebook followers. Gently remind him of the company's marketing strategy. Note that you cannot always compete with the grocery chains, but you set prices as low as you can. B) Ignore the dissatisfied customer and let the conversation play out among your Facebook followers. It is better to say nothing than to annoy a portion of your followers. Losing that one customer might actually be best to continue that communal feeling at the store. C) Respond directly to the dissatisfied customer, which will be observed by your other Facebook followers. Then, post messages about both everyday low prices and sale prices offered at your store, especially when those prices meet or beat prices at large chains. D) Ignore the dissatisfied customer and let the conversation play out among your Facebook followers. Then, post messages about the convenience of your location, your knowledgeable staff, and your friendly atmosphere in an attempt to focus the conversation away from prices. Answer: A Diff: 3 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

79) You are the marketing manager for a revolutionary hair styling tool. It allows women to condition, dry, straighten, and/or curl their hair all at once. You know your customers are tech savvy and use social media for information about products and services of interest. What is the best and most trendy way to connect with these customers? A) Partner with a haircare influencer to act as a brand ambassador to leverage their social media expertise and following. Use Facebook, YouTube, and/or Instagram to garner the most views and a global reach. B) Create a Facebook profile for your company and specific product. Invite customers from around the world to post pictures of their best results using your product. Respond to as many posts as possible, especially any that ask questions or negatively comment. C) Create social media teams using your current company employees to promote your brand's message on the social medium of their choice. To keep the message on point, allow employees to post only from a pre-written, company-approved list. D) Create social media teams using your current company employees who each provide one-on-one social customer service via instant messaging. Answer: A Diff: 3 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 80) Which represents the most visible and authoritative voice of the company and reflects its core values? A) Mission statement B) Unique selling proposition C) Brand identity D) Company website Answer: D Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

81) Which websites use algorithms and databases of web content to match keywords or search terms with relevant websites? A) Social media sites B) Blogs C) Search engines D) Links Answer: C Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 82) Mobile marketing relies on three primary tools to reach and engage customers. Which of the following is NOT one of them? A) Mobile push notifications B) Mobile display ads C) Mobile GPS tracking D) Mobile apps Answer: C Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 83) ________ remain the most central tool for digital marketing. A) Search engines B) Instant messaging platforms C) Company websites D) Social networking or relationship sites Answer: C Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

84) Which of the following is TRUE about company websites and marketing strategy? A) As consumers don't feel marketers are the most reliable sources of information, the website should focus instead on the basic e-commerce functions. B) Because virtually every company has a website, the marketer must use automated graphics and visual effects to make the website stand out from the crowd. C) Companies should limit connections to social media sites from their websites to focus on the most relevant to the product or brand needs. D) Even with all the important social media platforms, the company website is the most central tool for digital marketing. Answer: D Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 85) It is important to have quality content for search engine optimization because, to push results up a list, search engines A) count content with long words. B) look for unique content. C) develop algorithms that match traditional content. D) match content with other search engine results. Answer: B Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 86) Email communications—if directed to the right target market—can be especially useful for marketers as email has many benefits including it is inexpensive, can distribute information quickly, and A) is preferred by the majority of internet users. B) encourages marketers to use a single, standard message. C) does not require testing. D) offers potential two-way communication. Answer: D Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

87) Quantified self and tracking devices allow marketers new understanding as A) privacy issues are not a concern. B) wearers are unaware of the devices. C) the devices are becoming more and more inexpensive. D) significant lifestyle data are available. Answer: D Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 88) Which search engine has the overwhelming majority of the global market share? A) Baidu B) Google C) Bing D) Yahoo! Answer: B Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 89) Using Alexa Skills as a model, what is likely the next search engine optimization frontier for marketers? A) Dash buttons B) Voice command tools C) Smart watches D) Quantified self and tracking Answer: B Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

90) A well-designed company website A) includes automated graphics and visual elements designed specifically to impress visitors. B) optimizes various search engines. C) provides better features and functionality to visitors using mobile devices, than those for visitors using desktops or laptops. D) offers different messages than those on the company's social media platforms. Answer: B Diff: 1 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 91) What is the BEST way to improve the odds that an email will be opened by the recipient? A) Target customers under the age of 35. B) Include the brand name in the subject line. C) Use a reliable list of opt-in addresses. D) Use a precisely targeted list purchased from Constant Contact. Answer: C Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 92) Nikoli receives the following on his smartphone: "You are within 500 feet of one of our stores. Stop in for 20% off the product of your choice. And don't forget to use your 1,000 loyalty points!" This is an example of a mobile A) display ad. B) app. C) tracking trend. D) push notification. Answer: D Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

93) You have downloaded a program onto your smartphone that allows you to check the schedule for your favourite college basketball team, get updated scores, and find the nearest concession stand selling your favourite IPA. This is an example of a mobile A) display ad. B) app. C) tracking trend. D) push notification. Answer: B Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 94) New parents can dress their baby in a technology-enhanced one-piece sleeper that monitors baby's heart rate, temperature, and sleep habits. This is an example of A) quantified self (QS) and tracking. B) mobile push notification. C) opt-in. D) location-based capabilities. Answer: A Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 95) Which of the following companies is most likely to achieve search engine optimization (SEO)? A) Company W uses the same, simple name on each page of its website. B) Company X uses alt-text with each image used. C) Company Y pays Bing for a sponsored link. D) Company Z keeps its content static and as similar to other sites as possible. Answer: B Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

96) Given the trend in how consumers access digital, what is true about company websites? A) They should be accessible in mobile formats. B) They should embody the image of the company's brand. C) They must be easy to use and navigate. D) They should link with social media platforms. Answer: A Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 97) What is true regarding search engines' importance to digital marketing? A) There is a trend toward accessing information through mobile devices. B) There is a battle between Google and other search engines for users. C) There is a battle among competitive brands to be near the top of the list when a search term related to the brands is entered. D) There is an massive impact of Amazon upon general product searches. Answer: C Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 98) Which is NOT a common approach used in search engine optimization? A) Having unique and accurate page names B) Having a website mentioned in, and linked to, other internet locations C) Using robotic bidding on popular keywords and search terms related to a site D) Using images with descriptions Answer: C Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

99) Companies have the most success with email marketing when they follow which approach? A) Cultivating opt-in email addresses B) Using a firm such as Constant Contact to rent a database of precisely targeted email addresses C) Spamming to reach the widest audience possible D) Increasing the frequency of outgoing emails Answer: A Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 100) Which approach increases the odds that a company's email messages will be opened? A) Developing a reliable list of opt-in email addresses B) Having concise, exciting, and informative subject lines C) Personalizing subject lines by referring to behaviours or characteristics of recipients D) All of these Answer: D Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 101) Mobile push notifications are especially effective under what condition? A) When they are activity sensitive B) When they are location sensitive C) When they are time sensitive D) All of these Answer: B Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

102) ________ tangibly connect customers and brands, serving as a focal point for repeated communication and interaction. A) Mobile apps B) Smart watches C) Smart speakers D) Social media sites Answer: A Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 103) ________ is/are a major concern surrounding mobile devices and QS tracking tools. A) Costs B) Privacy issues C) Current lack of functionality D) Low rates of diffusion Answer: B Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 104) How does a company's website relate to its overall brand identity? A) The website is the digital projection of the look, feel, and theme the company wants to communicate as its brand identity. B) The website landing page must include all the relevant brand identifiers: name, logo, slogan, etc. C) It must be clear, consistent, and compelling to match the company's overall IMC messaging. D) It is typically the first interaction a potential customer has with the company. Answer: A Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

105) A number of digital products have been created to facilitate communication and connection. A new wave of products are coming into the market created specifically for a different purpose. What is that purpose? A) Measuring all aspects of our daily lives B) Tracking location and activity C) Marketing, especially online shopping D) Connecting all electronic devices in our homes Answer: C Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 106) What is the synthesis of digital marketing and consumer privacy issues? A) The greater the impact of digital marketing, the more likely consumers willingly give up privacy. B) The greater the impact of digital marketing, the more consumers object due to privacy issues. C) As the use of digital marketing increases, so do the worldwide legal restrictions regarding consumer privacy. D) As the use of digital marketing increases, consumer interest in privacy increases. Answer: A Diff: 3 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 107) What is the key to marketing success in the digital age? Answer: Responses will vary, but may include the points that technology should be used to encourage customers to connect with brands and not simply for brands to connect with customers. These connections are evolving beyond merely providing content to consumers and asking them to comment on it. Marketers should use technology to enhance the connections between consumers and brands and connections among consumers. This is a critical distinction between companies that are successful in digital marketing versus those that lag behind. Diff: 3 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

108) Compare the ideas of traditional media verses digital media. Answer: Responses will vary, but may include the points that unlike traditional media, digital media, such as websites or social media platforms, can create immediate and interactive connections with and between customers. With the touch of a finger or the click of a mouse, consumers can access, create, and share information about brands and their experiences with them., The immediacy and interconnectedness of digital media makes the very nature of digital media strikingly different than traditional media. The one-way communication of traditional media has been replaced by multiple flows of information in multiple directions at once, which in turn has reshaped how marketers connect with customers, how customers connect with marketers' brands, and even how customers connect with each other. Diff: 3 Learning Objective: 12.1 Define key terminology in digital marketing and understand the nature and importance of customer connections. Section Reference: Customer Connections in the Age of Digital Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 109) Why is it important to "favour quality over quantity" as a key principle for social media marketing? Answer: Responses will vary, but should touch on the points that marketers should avoid the temptation to post content to social media just to for the sake of posting content, as an influx of mediocre content may achieve the opposite of the desired effect and will simply annoy customers and turn them off entirely. In terms of social media accounts, this could mean followers/customers "unfollowing" or "un-liking" a brand, which effectively cuts off that line of communication (and therefore, advertising/marketing) to a customer. Companies/marketers should invest in the resources necessary to create or curate content relevant to a brand's customers. Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

110) Why is "responding to customers" a key principle for social media marketing? Give an example of an effective use of this principle that may have been particularly impactful—either positively or negatively. Answer: Responses will vary, but should touch on the point that a huge strength of social media is the ability to respond directly to customers, particularly dissatisfied ones. Social media permits companies not only to respond, but to have that response observed by huge numbers of other followers of your brands. An example of this might be actress Busy Philipps using Twitter to complain about Delta Airlines error in separating her from her minor child in 2018, when their flight was cancelled and the airline rebooked the two on separate flights. Within a short time frame, Delta publicly apologized for the situation and resolved the issue by booking both Philipps and her child on the same flight. Once the issue was resolved, the actress deleted her original tweet, thus mitigating her huge social media audience from seeing the criticism of the airline. Diff: 2 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 111) Explain why it matters that companies design an easy and intuitive structure to exploit SEO. Answer: Responses will vary, but should include the point that search engines—like customers—love easy-to-navigate websites because clear and intuitive navigation gives the search engine clues about what content is important. The easier a website is to navigate, the more likely it is that a search engine will display that website as close to the top of the search results as possible, therefore increasing chances of a company, brand, or product's visibility to potential customers. Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 112) Discuss mobile display ads and the advantage of using them in terms of mobile marketing. Provide an example of this type of marketing that you have seen. Answer: Responses will vary slightly, but should present the points that mobile display ads work in many ways, like banner ads on other digital platforms. An advantage of mobile display ads is that they can combine location-based technology with consumer search histories to tightly target or even personalize display ads to meet consumers where they are with products that match their top-of-mind interests. An example may be advertisements for restaurants or hotels that are local to you when you are traveling outside of your normal geographic area. Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 39

113) Why is it important to promote a company or brand's website accurately and often to optimize searches? Answer: Responses will vary, but should include the points that the more a website gets mentioned and linked in other internet locations, the easier to navigate and more relevant it is to search engines. Promoting a website on social media gives more opportunities for social media users to promote the website—increasing chance that the company's audience/potential customer base expands. Each time the site is significantly updated, it should be promoted again. Diff: 2 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 114) Discuss the importance of the social media marketing key principle "know your audience" and how it applies more broadly to a brand's identity. Give an example of a brand that exemplifies this principle. Answer: Responses will vary, however all should indicate the key point that the wealth of data produced by social media use gives marketers no excuse not to have strong indications of audience composition and preferences. When a company successfully identifies who their target audience is, they can focus acutely on their needs, and thus tailor the brand's identity and marketing specifically to those customers. Examples of brands will vary widely, however an example may be GoPro, who has identified their target audience as being consumers who tend to live active lifestyles. Another example may be Ford, who recently has ceased production on the majority of their sedans and is focusing largely on trucks—their advertising tends to reflect the lifestyle of customers who will purchase Ford trucks. Diff: 3 Learning Objective: 12.3 Explain what social media are and their place in digital marketing strategy. Section Reference: Social Media in Digital Marketing Strategy Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

115) There is a newer category of products that exist solely in digital form. Give an example and describe how you would use digital marketing to reach your target market and enhance their purchase and usage experience. Answer: Responses will vary, however, examples would include things like movies purchased through Netflix or banking services from a financial institution. Digital marketing would be utilized in the same manner as used for traditional products and services; identifying your target market and determining the best media vehicles, including social media platforms to reach them. Following customer acquisition, you would utilize customer relationship management, with an emphasis on your database, to track customer behaviour and optimize offerings and engagement. Diff: 3 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 116) What is the impact of the increase in customer demands for personalized, relevant information and instantaneous response? Answer: Responses will vary. A sample response is as follows: Marketers must meet, and indeed stay ahead of, these demands. Approaches to doing this include high engagement of company employees on the company's website and social media sites along with training, delegation of authority, and motivation. Additionally, companies must stay current with mobile technology as it's the primary tool used by customer for contact. Finally, communications must be transparent and open to all the company's customers. Diff: 3 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 117) Why is social media important to global marketers like Nike, Apple and Coca-Cola? Answer: Responses will vary. A sample response is as follows: Social media usage is a worldwide phenomenon, which offers marketers opportunities to connect with global audiences through many social media platforms that originate outside Canada and the United States. Messaging and connections can be made on a global basis. This is particularly important given that traditional forms of media have widely varying costs and viewership/circulation, as well as different legal restrictions, in many foreign markets. Diff: 3 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

118) What are the challenges companies face with email marketing, particularly among younger consumers? Answer: Responses will vary. A sample response is as follows: It's difficult to obtain valid and up-to-date email addresses for all consumers and, particularly, for younger ones. Even with sophisticated targeting, email is often discarded before it's even opened. Finally, email is considered by many younger consumers to be old-fashioned, boring, or inert. Brands that rely on email marketing may be perceived as behind the times, damaging IMC for firms attempting to appeal to a younger target audience. Diff: 3 Learning Objective: 12.4 Outline the basics of other digital media available to digital marketing strategy. Section Reference: Other Digital Media Used in Marketing Strategies Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

Applied Marketing, 1ce (Grayson) Chapter 13 Measuring Marketing Effectiveness Through Metrics 1) Which are the short-term, narrow, operational decisions and actions that are used as part of larger marketing strategies? A) Operational strategies B) Metrics C) Tactics D) Promotions Answer: C Diff: 1 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 2) From where do tactical objectives flow? A) Strategic objectives B) Operational objectives C) Tactical strategies D) Tactical metrics Answer: A Diff: 1 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 3) The way in which marketing managers want their products to appear in the future is called A) tactical objectives. B) brand enhancement. C) strategic management. D) product extension. Answer: A Diff: 1 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

4) Consistency between strategic and tactical objectives is important because A) it helps managers control the flow of resources. B) it helps ensure a consistent message is being delivered. C) it helps with the management of brands. D) it helps with advancing ideas to the execution phase. Answer: A Diff: 1 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 5) When companies decide to make use of metrics in their decision making, it is important that the metrics meet which criteria? A) Easily implemented and clearly understood B) Reliable and unbiased sorting of data C) Statistical validation and interpretation D) Credible collection of information Answer: A Diff: 1 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 6) Which of the following terms refers to the short-term, narrow operational decisions and actions that are used as parts of longer marketing strategies? A) Tactics B) Metrics C) Objectives D) Strategies Answer: A Diff: 1 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

7) Which is common of all marketing objectives? A) They are short-term and used as part of a larger marketing strategy. B) They relate to sales and profits. C) They specific how marketing managers want the future to look in some way. D) They are open-ended in terms of time frames. Answer: C Diff: 2 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 8) Why is consistency between strategic and tactical objectives important? A) Because strategy naturally flows from tactics. B) Consistency assures that tactics do not work against strategies. C) Because they are develop simultaneously. D) Consistency is a key component of measurement. Answer: B Diff: 2 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 9) Why is it necessary that data relating to tactical outcomes be readily available? A) Tactical outcomes typically have short time horizons. B) Because the data is typically, and preferably, external. C) Because they normally relate to qualitative data. D) All of these. Answer: A Diff: 2 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 10) Managers should abide by these principles in interpreting metrics for purposes of measuring marketing effectiveness. A) Use absolutes versus ranges for outcomes. B) Stick strictly to the numbers. C) Ignore their instincts. D) None of these. Answer: D Diff: 2 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Application 3

11) What do we mean when we say that the metrics we use for measuring the effectiveness of marketing tactics be appropriate? A) They must be suitable for assessing the objectives at hand and should pertain to the objectives as precisely as possible. B) They must be easily implemented and clearly understood. C) They must be explicitly outlined as part of the marketing strategy statement. D) They must be relevant to the objective. Answer: A Diff: 2 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 12) Which of the following statements most accurately describes the process for measuring marketing effectiveness? A) Tactical objectives set the general plan, but strategy drives the choice of specific actions. B) The process for measuring effectiveness is repetitive. C) Managers should be flexible enough to choose appropriate metrics once tactics have been executed. D) Managers must ignore gut instincts and focus on the absolutes that metrics provide. Answer: B Diff: 2 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 13) Research has shown that Millennials are influenced more by information on social networking sites than by advertisements. This is why a popular wedding gown company asks brides to post wedding day photos on its Instagram page and to share their experiences with the product. This exemplifies which step of the process for measuring marketing effectiveness? A) Select appropriate metrics B) Set investment level C) Execute tactics D) Collect data Answer: C Diff: 2 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

14) Which is the percentage of the total sales in a product category going to a particular brand? A) Category sales B) Sales penetration C) Brand metrics D) Market share Answer: D Diff: 1 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 15) Which indicates returns attributable directly to marketing investment? A) Return on investment B) Return on marketing investment C) Advertising-to-sales return D) Sales-to-spending return Answer: A Diff: 1 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 16) Which of the following is NOT a way for managers to measure their overall effectiveness? A) Return on equity B) Market share C) Return on investment D) Return on marketing investment Answer: A Diff: 1 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

17) Marketers rely most frequently on which type of metrics? A) Market shares B) Relative market shares C) Projected market shares D) Market growth Answer: A Diff: 1 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 18) Even though marketing metrics can provide valuable information when evaluating marketing success, what key area do these metrics ignore? A) The competition B) The economy C) The customer D) The supply chain channels Answer: A Diff: 1 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 19) Which of the following metrics allows managers to consider how marketing tactics affect a brand's standing relative to competitors? A) Return on marketing investment B) Cost per thousand C) Category volume D) Market share Answer: D Diff: 1 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

20) What is a key benefit of receiving sales data in near real time? A) You can provide daily reports to senior management on tactical results. B) You can make daily adjustments to your tactics. C) You can use metrics previously reserved for strategic level planning to make tactical decisions. D) You can compare your results to your competitors' results. Answer: C Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 21) Which metric do marketing managers rely on most heavily to gauge overall success? A) Return on investment B) Market share C) Relative market share D) Return on marketing investment Answer: B Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 22) Which is the most relevant metric for comparing tactical objectives relative to competitors? A) Market share B) Relative market share C) Return on investment D) Return on marketing investment Answer: B Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

23) Why must metrics of financial performance be taken in context? A) Short-term losses are common and relate to normal business cycles. B) Products often have evolved into the next stage of the product life cycle. C) They are heavily weighted by interest rates and financial markets. D) Sometimes a company's financial metrics to not reflect the company's true outlook. Answer: D Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 24) Which statement about using sales as an overall measurement of tactical success is true? A) Because of the time lag associated with sales information, metrics using sales numbers are reserved for strategic level planning. B) The use of sales numbers is the best way for managers to get a complete picture of the effectiveness of tactical decisions. C) The relative market share metric views expenses as investments. D) Return on investment and return on marketing investment metrics consider both sales and expenses. Answer: D Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 25) Company Z sells $2 million dollars of Brand A each year in a category that sells $20 million dollars per year. What is Company Z's market share in that category? A) 1% B) 9% C) 10% D) Sales must first be converted into units before calculation. Answer: C Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

26) Company Y invested $10 million in the manufacture and marketing of Product B whose 2,000,000 users have produced a net profit of $1,000,000. What is the return on investment for Product B? A) 1% B) 2% C) 10% D) 20% Answer: C Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 27) What is the BEST similarity between market share and relative market share? A) Consideration of competitive products and services B) Consideration of investments C) Inclusion of sales and expenses D) Inclusion of digital marketing results Answer: A Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 28) Product ABC earns a gross profit of $12 million with marketing expenses of $10 million. What is the return on marketing investment for Product ABC? A) 20% B) 30% C) 67% D) 80% Answer: A Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

29) Company N sells 4 million units of Product L per year. Its top three competitors sell a combined 16 million units of similar product. What is Company N's relative market share? A) 2% B) 20% C) 25% D) 50% Answer: B Diff: 2 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 30) Why should marketing managers look beyond sales in many cases when assessing results of marketing tactics? A) It is difficult to relate sales changes directly to most types of promotional efforts. B) Market share is typically a more accurate measure of performance. C) Sales figures do not exist in isolation but in the context of many other factors. D) Sales is not the ultimate objective of marketing. Answer: C Diff: 3 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 31) During the last fiscal year, your market share was 10%, relative to competitors. You improved your product and used new promotional tactics to better compete with the top five products sold in your target market. Current data tells you that your company sold 2 million units in the past year while your top five competitors sold a combined 8 million units. Do you consider last year's marketing mix efforts to be successful overall? A) Yes, your relative market share increased from 10% to 20%. B) Unclear; your relative market share remained the same. C) No, your relative market share decreased from 10% to 2%. D) There is not enough data regarding the specific marketing mix elements. Answer: A Diff: 3 Learning Objective: 13.2 Describe the tools that are used to measure general tactical performance. Section Reference: Measuring General Tactical Success Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

32) Which gives the percentage of a particular target group that purchases a brand for the first time? A) Brand trial rate B) Market penetration rate C) Brand growth rate D) Brand development index Answer: A Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 33) Which metric compares a brand's performance in a target group to brand performance among all target groups? A) Brand trial rate B) Market penetration rate C) Brand growth rate D) Brand development index Answer: D Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 34) Which metric for product-related tactical success does NOT relate directly to the target market? A) Brand trial rate B) Market penetration rate C) Brand growth rate D) Brand development index Answer: C Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

35) Which metric for product-related tactical success is NOT measured in percentage terms? A) Brand trial rate B) Market penetration rate C) Brand growth rate D) Brand development index Answer: D Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 36) Market penetration is the percentage of the total target market to A) members of the target market who are aware of the product. B) members of the target market who are purchasing on a continuous (at least one re-buy) basis. C) members of the target market who have switched from a competitive brand. D) members of the target market who have tried the product at least once. Answer: D Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 37) A marketing manager's investment in benefit-delivery capabilities of a brand should lead to A) adoption of the brand. B) development and extension of new products. C) sales growth in underperforming products. D) rebirth of older brands. Answer: A Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

38) Which of the following is NOT a reason why managers use metrics? A) Assess brand awareness B) Assess sales growth C) Assess consumption of product D) Access adoption of product Answer: A Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 39) By examining market penetration, a company can determine A) the percentage of a target market who has tried the product at least once. B) the percentage of customers who show brand loyalty. C) the percentage of a market who uses the product most often. D) the percentage of customers enrolled in a loyalty or reward program. Answer: A Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 40) To make meaningful comparisons using the brand development index, how many distinct target market groups must be included in the calculation? A) 0 B) 1 C) 2 D) 3 Answer: D Diff: 1 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

41) What is required to make meaningful comparisons using BDI? A) Three or more distinct target markets B) Information on competitive sales C) Previously-specified objectives D) The percentage of brand sales to total market sales Answer: A Diff: 2 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 42) The decision to use brand trial rates will provide marketing managers with which type of useful information? A) An indication of new-user acceptance B) The results of new consumer preferences C) Evidence of the attractiveness of the brand D) A summary of consumer experiences with the product Answer: A Diff: 2 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 43) Company X has a target population of 1,000,000 for Brand C. It has determined that 100,000 people have tried Brand C for the first time and another 100,000 have tried Product C more than once. What is the market penetration rate for Brand C? A) 1% B) 5% C) 10% D) 20% Answer: D Diff: 2 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

44) Company W sells 20,000 units of Brand D this month, which is twice what it sold last month. What is the brand growth rate of Product D? A) 100% B) 10% C) 30% D) 1% Answer: A Diff: 2 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 45) Company OLD estimates that 50,000 people from a target group of 10 million tried Product NEW last year. What is the brand trial rate for Product NEW? A) .05% B) .5% C) 5% D) 50% Answer: B Diff: 2 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 46) You are the marketing manager at a company that sold 44,000 units of a product this year compared to 40,000 units last year. You know that the overall product category grew by 25% in the same timeframe. Based on your brand growth, what is the BEST response? A) Since you are losing ground to your competitors, you consider additional investments or other tactical adjustments. B) Since your growth is well behind that of your competitors, you eliminate manufacture of your product and invest in more promising market offerings. C) Since your growth is ahead of your competitors, you do nothing. D) Since your growth is significantly ahead of your competitors, you decrease product investment there and move the monies to other, more needy products. Answer: A Diff: 3 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

47) You are the marketing manager at a company with three target markets and a tactical objective to increase penetration to the target group. Target A has 5,000 people in it and total annual sales to A is $50,000. Target B has 10,000 people in it and accounts for annual sales of $20,000. Target C has 20,000 people in it and annual sales of $30,000. Based on BDI calculations, what is your BEST response? A) Since Target A has a higher-than-average purchase rate, you consider reducing tactical investments related to that market and redirecting those funds to Targets B and C. B) Since Target A has a BDI higher than Targets B and C, you consider expanding to new locations to find people more like Targets B and C. C) Since Target B has a purchase rate of 1, you must recalculate BDI with information pertaining to at least one additional target market. D) Since Target C has a purchase rate greater than 1, you increase tactical investments related to that market for better market penetration. Answer: A Diff: 3 Learning Objective: 13.3 Explain and apply product-related metrics in marketing. Section Reference: Product-Related Metrics: Measuring the Success of Investments in Customer Benefits Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 48) Which measures the number of times the inventory for a product is completely replenished in a given period? A) Stockturn rate B) Stockout rate C) Stockout days D) Stock metric Answer: A Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 49) Which measures how well-exposed a brand is within retail stores? A) Relevant outlet rate B) Category shelf facings C) Category volume D) All of these Answer: B Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 16

50) What does a stockturn rate measure? A) The percentage of total days an outlet is out of stock of an individual SKU B) How quickly individual SKUs move through a store C) How many units of an individual SKU a target customer buys in a set period D) The average number of times the inventory of an entire store is replenished Answer: B Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 51) Company V operates 100 stores. During a recent 30-day period, Product E was out of stock at 20 of those stores for 15 days. Which of the following is the correct measurement of stockout days for Product E? A) 15% B) 20% C) 50% D) 80% Answer: C Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

52) Company ACE identifies 2,000 retail outlets frequented by members of its target market. Total category sales at these stores equals $3 million. Of all the relevant retailers, 1,200 carry Company L's brands. Total category sales at these stores equals $2 million. Which of the following is the most accurate interpretation of this data? A) Stores carrying ACE brands account for 67% of category sales. Since these stores represent only 60% of all relevant outlets, the brand is in the right retail stores. B) Stores carrying ACE brands account for 60% of category sales. Since these stores represent 67% of all relevant outlets, ACE should consider moving its brand into other stores to improve sales. C) Stores carrying ACE brands account for 33% of category sales. Since these stores represent 40% of all relevant outlets, ACE should consider moving its brand out of those stores to those with better access to the target market. D) Stores carrying ACE brands account for 40% of category sales. Since these stores represent only 33% of all relevant outlets, the brand is in the right retail stores. Answer: A Diff: 3 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 53) Which of the following is NOT a metric used to assess the logistical performance of distribution channels? A) Stockturn rate B) Stockout rate C) Stock keeping unit rate D) Stockout days Answer: C Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 54) Which of the following metrics is NOT expressed in percentage terms? A) Stockturn rate B) Stockout rate C) Stockout days D) All are expressed in percentage terms. Answer: A Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 18

55) Marketing managers want the optimal level of distribution intensity consistent with A) maximizing stockturn rates. B) brand image. C) minimizing stockouts. D) competitive forces. Answer: B Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 56) Which of the following is NOT a metric that marketing managers can use to identify supply chain problems? A) Stockturn days B) Stockturn rates C) Stockout rates D) Stockout days Answer: A Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 57) Which of the following BEST describes distribution intensity? A) The number of retail outlets that carry a particular brand B) The level of competition seeking entry to the outlet C) The percentage of sales a brand generates D) The volume of sales relative to shelf space provided for products Answer: A Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

58) A metric that can be used to assess distribution intensity is A) category volume. B) stockout rate. C) category rate. D) category outlet rate. Answer: A Diff: 1 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 59) How do marketers view frequent stockouts? A) Positively, as they indicate strong consumer demand. B) Positively, as they reflect the potential for higher factory capacity utilization. C) Negatively, as they represent lost sales and poor supply-chain efficiency. D) Neither positively nor negatively, as they're a given in business. Answer: C Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 60) If a marketing manager at Target wants to determine how quickly a product moves through the store, they would examine which metric? A) Stockturn rate B) Stockout rate C) Stock inventory D) Stockout Answer: A Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

61) Company U has 100 outlets. Half of those outlets carry Brand F. Company U allots Brand F 5 shelf facings out of the 50 facings it allots for all brands in that category. What is the percentage of category shelf facings for Brand F? A) 5% B) 10% C) 25% D) 50% Answer: B Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 62) You own a small grocery store and sell many items that earn low margins. To earn solid financial returns, you seek products with A) high stockturn rates. B) high stockout rates. C) low category volume. D) low relevant outlet rates. Answer: A Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 63) During the month of March, Retailer M sells $25,000 of SKU MM and keeps an average inventory of SKU MM worth about $5,000. How many times did Retailer M replenish SKU MM during March? A) 3 B) 4 C) 5 D) 6 Answer: C Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

64) Retailer K operates 1200 stores, each carrying SKU P. During July, 300 stores reported stockouts of SKU P. Calculate the stockout rate. A) 25% B) 30% C) 33% D) 40% Answer: A Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 65) What is the difference between the stockout rate metric and the stockout days metric? A) The number of products available for measure B) The types of products to which the measurements can be applied C) The types of retail outlets that can use each measurement (mass merchandiser, category killer, etc.) D) The level of aggregation to which the measurements can be applied (single store, entire chain, etc.) Answer: D Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 66) Company L identifies 1,500 retail outlets frequented by members of its target market. Of those, 750 carry Company L's brands. What is the relevant outlet rate? A) 20% B) 30% C) 40% D) 50% Answer: D Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

67) Company L identifies 1,500 retail outlets frequented by members of its target market. Total category sales at these stores equals $2 million. Of all the relevant retailers, 750 carry Company L's brands. Total category sales at these stores equals $1.5 million. What is the category volume rate for Company L? A) 25% B) 50% C) 75% D) 90% Answer: C Diff: 2 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 68) You are the brand manager for Product XYZ, which sells 8 million units in a category that sells 20 million units per year. Product XYZ is available at 500 outlets of your primary retailer. Last month, 25 stores reported stockouts. According to Nielsen researchers, the retailer allots 4 shelf facings to XYZ out of the 40 for all brands in the category. What is the BEST course of action based on metrics? A) Product XYZ has a high market share of 40%, but a low category shelf facing rate of 10%. Further, you are unhappy with a stockout rate of 5%. You consider paying higher slotting allowances to the retailer for more shelf locations because you know that high market share with fewer facings increases the possibility of stockouts. B) Product XYZ has a high market share of 40%, but a low stockout rate of 10%. You decide that your current marketing efforts are effective and make no changes. C) Product XYZ has a low market share of 25% and a reasonable category shelf facing rate of 10%. The high stockout rate of 5% is concerning and you consider moving your product to another retail type. D) Product XYZ has a low market share of 25% and a reasonable category shelf facing rate of 40%. While you are unhappy with the stockout rate of 5%, you do not have enough information and need to peruse other metrics before you can proceed. Answer: A Diff: 3 Learning Objective: 13.4 Explain and apply place-related metrics in marketing. Section Reference: Place-Related Metrics: Researching the Value of Convenience and Availability Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

69) Which shows the ratio of the percentage change in quantity to the percentage change in price? A) Quantity elasticity B) Percentage change in price C) Percentage change in quantity D) Price elasticity Answer: D Diff: 1 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 70) Which indicates the number of units that must be sold at a specified price to just cover costs? A) Breakeven revenue B) Breakeven quantity C) Breakeven sales D) Variable cost quantity Answer: B Diff: 1 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 71) Which of the following BEST describes price elasticity? A) It measures how responsive people are to price changes. B) It evaluates the quality of products sold over a period of time. C) It provides a percentage of products sold over time. D) It is a ratio of discounted products to full-price products sold. Answer: A Diff: 1 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

72) A breakeven analysis can provide what important information? A) The level below which prices cannot fall B) The adjusted price a company can make on certain products C) The various products that can be discounted D) The number of units that must be sold Answer: A Diff: 1 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 73) Which metric measures consumers' responsiveness to changes in price? A) Price elasticity B) Percent change in quantity C) Breakeven quantity D) Breakeven revenue Answer: A Diff: 1 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 74) Marketers must not only balance the revenue and cost perspectives of pricing, but must also A) the competitive and consumer dimensions. B) the learning curve effects on pricing. C) the stage of the product life cycle. D) research and development costs. Answer: A Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

75) When in a situation with relatively elastic demand, marketing managers sometimes reduce price as an effective competitive tool. What is the potential downside of this approach? A) Reduced price may not result in sufficient incremental unit sales to increase total revenue. B) It can lead to potentially damaging price wars. C) It may negatively impact brand image. D) All of these Answer: C Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 76) What is the primary intent of performing a breakeven analysis? A) To maximize productivity B) To provide a rough idea of the level below which prices cannot fall C) To facilitate the allocation of fixed costs D) To determine price elasticity Answer: B Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 77) In a breakeven analysis, when the total cost curve intersects the total revenue curve, profits will be zero. What is also true at the point of intersection? A) Losses will also be zero. B) Losses will be at their maximum level. C) A price increase is justified. D) The product has moved into the decline stage of the PLC. Answer: A Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

78) Which of the following statements most accurately describes breakeven analysis? A) It provides marketing managers an exact measurement of the level at which prices cannot fall. B) When the total cost curve intersects with the total revenue curve, profits will be zero, but losses will be much greater. C) BEQ and BE$/BER enable estimations of when investments will cover costs under different cost, demand, and price scenarios. D) Prices not only help cover costs, but tend to increase demand. Answer: C Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 79) Company P sells Product J for $5 and achieves weekly sales of 100 units. When the price is lowed to $4, weekly sales increase to 200 units. What is the percent change in price? A) 2.5% B) 5% C) 25% D) 50% Answer: C Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 80) Why is it important for managers to understand how consumers respond to changes in price for a product? A) Because if pricing is relatively inelastic, they can use price as a competitive tactic. B) Prices may change frequently in response to changing costs, competition, or other factors. C) Because if pricing is relative elastic, profits may be increased by increasing price. D) Because price is always the most important element of the marketing mix. Answer: B Diff: 3 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

81) You are the brand manager for Product A. You have enjoyed relatively stable market conditions until a competitor introduced Product B. You need to decide whether or not to compete based on price. Historical data shows you that each week, retailer XYZ sells 1,000 units of Product A for $5. When the price was lowered to $4, weekly sales increased to 1,200 units. What is the BEST course of action based on metrics? A) Since price elasticity equals 0.8, demand for Product A is relatively inelastic, which means buying behaviour is relatively unaffected by changes in price. You should pursue other aspects of the marketing mix. B) Since price elasticity equals 1.25, demand is relatively elastic, which means price is a potentially effective competitive tool. You should pursue a price-war strategy while continuing to monitor relevant metrics. C) Since price elasticity equals 1, changes in price do not lead to changes in demand. You should pursue other aspects of the marketing mix. D) Since price elasticity equals 8, demand for Product A is relatively inelastic, which means buying behaviour is relatively unaffected by changes in price. You should increase the price of Product A to increase sales and profits for the company. Answer: A Diff: 3 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 82) Which of the following statements most accurately describes price elasticity? A) Information necessary for calculations is not readily available. B) It is the most important price metric. C) When demand is relatively elastic, people are relatively stable in their buying behaviour. D) When elasticity is less than one, price is an effective competitive tool. Answer: B Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

83) Company O sells Product K for $5 and achieves weekly sales of 100 units. When the price is lowered to $4, weekly sales increase to 200 units. What is the measure of price elasticity? A) 4 B) 2 C) 5 D) 25 Answer: C Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 84) Company K sells Product N for $4.50 and achieves weekly sales of 100 units. When the price is lowed to $3, weekly sales increase to 150 units. What is the percent change in quantity? A) 25% B) 33% C) 50% D) 66% Answer: C Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 85) Company J sells Product O for $500. It incurs monthly fixed costs of $500,000. A production run of 10,000 units creates variable costs of $1 million. Calculate breakeven revenue (BER). A) $400,000 B) $635,000 C) $2,500,000 D) $25,000,000 Answer: B Diff: 2 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

86) Which measures schedule intensity and is the product of reach and average frequency? A) Gross impressions B) Average frequency C) Gross ratings points D) Cost-per-thousand Answer: C Diff: 1 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 87) Which is used to compare media costs? A) CPM B) CPI C) CPC D) CPK Answer: A Diff: 1 Learning Objective: 13.5 Explain and apply price-related metrics in marketing. Section Reference: Price-Related Metrics: Covering the Cost of Delivering Benefits to Customers Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 88) Which of the following statements regarding Gross Ratings Points (GRPs) is true? A) They do not depend on the size of the target market. B) They are the product of reach and frequency. C) Reach is the sum of the ratings expressed as percentages in the calculation. D) All three statements are true. Answer: D Diff: 1 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

89) What are the components of schedule intensity? A) Reach and frequency B) Impression and ratings C) Timing and scheduling D) Exposure and impressions Answer: A Diff: 1 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 90) Which media metric could be used to determine the effects of an advertisement shown during a popular television show? A) Average frequency B) Average impressions C) Average rating points D) Average size of viewing audience Answer: A Diff: 1 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 91) When measuring the effectiveness of traditional media advertising, where should the focus be placed? A) On advertising rather than the creative content B) On content instead of number of impressions C) On style of the advertisement rather than content D) On impressions in place of message Answer: A Diff: 1 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

92) Which of the following terms applies to the notion that one advertisement is seen once by one person during a given period of time? A) Reach B) Frequency C) Bounce rate D) Impression Answer: D Diff: 1 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 93) Which are the two components of schedule intensity that give an indication of how heavy a brand's media exposure is? A) Gross ratings points and targeted ratings points B) Gross impressions and targeted impressions C) Gross impressions and frequency D) Reach and frequency Answer: D Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 94) Why is it dangerous to evaluate media solely based on CPM? A) Most media don't have accurate information on how many people they reach. B) Media differ vastly in their abilities to communicate information. C) It doesn't take into account the circulation of the media. D) Costs can vary among different advertisers, based on the number of buys. Answer: B Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

95) What can we say about evaluating outdoor advertising based on CPM? A) It doesn't take into account the size of the ad. B) It can vary significantly based on the location of the advertising. C) It is inexpensive but probably less effective in delivering creative impact compared to other media like television. D) It cannot be evaluated using CPM as a metric. Answer: C Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 96) Why is it more difficult to estimate frequency with magazine advertising? A) Magazines may be picked-up and read many times. B) It does not take into account pass-along readership. C) Readers are more likely to ignore advertisements. D) Some magazines are monthly and others are bi-monthly. Answer: A Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 97) What is a primary cause for high abandonment rates? A) A webpage may load too slowly. B) The webpage may require information the visitor is unwilling to provide. C) The interaction may become too long or complicated. D) All of these. Answer: D Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

98) Why does measuring effectiveness in traditional media advertising focus on exposure of advertising versus its creative content? A) Content is judged based on its efficiency versus its effectiveness. B) It is typically very difficult to change content once it's completed. C) There is no standard for measuring creative content. D) Because content can vary greatly depending on your target audience. Answer: B Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 99) How does the bounce rate give context to clickthrough rates? A) The bounce rate is deducted from the clickthrough rate when advertisers pay for traffic driven to their website. B) The bounce rate is important in robotic bidding for search engine marketing (SEM). C) It identifies customers who decided to visit a competitive website. D) It sets aside site visitors who reached a website by mistake or found the content uninteresting. Answer: D Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 100) Which of the following statements most accurately describes promotion-related metrics? A) GRP depends on the size of the target market. B) CPM measures the cost of each 1,000,000 impressions. C) Reach and impression are the two components of schedule intensity. D) Estimating frequency for print media is exceptionally difficult. Answer: C Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

101) Company T runs two television commercials during popular Program G, which attracts 75% of a target market of one million. What is the average frequency of exposure? A) 1,500,000 B) 750,000 C) 15 D) 1.5 Answer: D Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 102) What is the primary similarity between gross impressions and gross ratings points? A) They measure reach and frequency. B) They primarily are used with digital promotions. C) They measure advertising's creative content. D) They are best for determining frequency in print ads. Answer: D Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 103) Program WOW attracts 10% of a target market of 1 million. An advertiser buys 10 commercials. Calculate gross impressions. A) 1,000 B) 10,000 C) 1,000,000 D) 10,000,000 Answer: C Diff: 2 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

104) You are a media planner for Company XYZ with an objective of achieving a gross ratings points (GRP) level of 100. According to Nielson, the television programming featuring three commercials attracts 50% of a target market of 10 million. What is the BEST course of action based on metrics? A) With a GRP of 80, you have fallen short of your media objective of 100. This means you need to reconsider the reach and frequency of your television commercials. B) With a GRP of 80, you have fallen short of your media objective of 100, This means you should consider increasing the size of your target market. C) With a GRP of 150, you have met your media objective and do not need to change your current course of action. D) With a GRP of 150, you have met your media objective, but should add CPM (cost per thousand) measures to your considerations. Answer: A Diff: 3 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 105) Which indicates browser contacts with a website? A) Visitors B) Page views C) Impressions D) Hits Answer: D Diff: 1 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 106) Which indicates an estimate of the percentage of visitors to a site who navigate away quickly without venturing beyond the landing page? A) Clickthrough rate B) Abandonment rate C) Bounce rate D) Visitor rate Answer: C Diff: 1 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

107) Which indicates the number of people who go to a website and view at least some of the information it contains? A) Visitors B) Hits C) Page views D) Conversions Answer: C Diff: 1 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 108) What is the purpose of CPM as a promotion metric? A) It is used to compare media costs. B) It can determine the value of the impressions the product receives. C) It predicts advertising impact on target audience. D) It is a way to measure increase in product sales. Answer: A Diff: 1 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 109) Gathering the bounce rate of a web advertisement can be useful because it A) suggests visitors did not have a reason to explore the website. B) predicts what content was effective. C) tracks the history of each visitor to the site. D) measures spikes in sales of certain products. Answer: A Diff: 1 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 110) What decisions can be made by examining clickthrough rates? A) Which advertising offers can change since information is reported daily B) Which promotions can be created based on viewing habits of visitors C) Which products will be repositioned to respond to changing trends being tracked D) Which loyal customers can receive special discounts and promotions Answer: A Diff: 1 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 37

111) A metric that can be used to determine if a poorly designed website fails to convert a visitor is called A) abandonment rate. B) failure rate. C) dismissal rate. D) retrieval rate. Answer: A Diff: 1 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 112) Which of the following is critical to analyze when measuring marketing effectiveness? A) Timely data B) Reliable surveys C) The demographic makeup of the target audience D) Persuasive messaging Answer: A Diff: 1 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 113) What is the primary advantage found in digital media metrics versus those for traditional media? A) Nearly real-time data B) Big data contains a lot more relevant information. C) It is easier to connect meeting objectives to digital advertising versus traditional advertising. D) All of these Answer: A Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

114) Why are page views of greater interest to marketing managers than hits? A) Not all hits are from current or potential customers. B) Many hits come from automated searches. C) Page views represent people who go to a website and view at least some of the information. D) All of these Answer: D Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 115) Why are unique visitors more important to a marketing manager than total visitors? A) Because the number of unique visitors is always larger. B) Because some people visit the site multiple times. C) Because visitors who visit the site multiple times are less likely to purchase. D) Because unique visitors are all driven to the site by promotional activities. Answer: B Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 116) Do conversion rates relate strictly to sales? A) Yes. It means that you've converted a visitor to a buyer. B) No. A conversion can be to any target behaviour. C) Yes. There can be, however, interim steps where the visitor becomes a prospect. D) No. Conversion just means you've moved from the landing page to another page in the website. Answer: B Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

117) Which of the following statements most accurately describes participation-related metrics? A) Digital media metrics have the advantage of using nearly real-time data. B) Facebook Insights provides data and information about all website traffic, including social media sites. C) Hit and page-view metrics require complicated calculations. D) Marketers who pay careful attention to abandonment rates often win back visitors who earlier abandoned the site. Answer: A Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 118) Company S uses banner advertising on a variety of websites to promote Product H. The websites attract a total of 100,000 unique visitors who see the ads and 100 click on the ads to navigate to the Company S website. Only 50 visitors remained on the first page for more than a few seconds. What is the clickthrough rate? A) 0.001% B) 0.1% C) 0.5% D) 50% Answer: B Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 119) What is the BEST similarity between bounce rates and abandonment rates? A) High numbers signal lost business. B) High numbers signal investment opportunities. C) They require no calculations. D) They view customers as merely visitors. Answer: A Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

120) Via banner advertising, Company R's website receives 150 visitors. Only 75 visitors remained on the first page for more than a few seconds. What is the bounce rate? A) 0.05% B) 0.5% C) 5% D) 50% Answer: D Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 121) Company Q's website had 100 visitors. Of those, 40 people attempted to place an order, but were thwarted by an error message. They navigated away and left the item(s) in their virtual shopping carts. What is the abandonment rate for Company Q's site? A) 4% B) 25% C) 40% D) 60% Answer: C Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 122) An ecommerce website is visited by 100,000 people. Of those, 15,000 people purchased at least one item. What is the conversion rate? A) 1.5% B) 6.7% C) 15% D) 67% Answer: C Diff: 2 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

123) According to Google Analytics, Company ABC's website has had 800,000 visitors. Of those visitors, 5,000 have made purchases. An additional 2,000 visitors put merchandise in a cart, but did not follow through. In the hopes of increasing website traffic and sales, Company ABC placed banner advertising on a variety of websites to promote its new product line. The websites attracted a total of 200,000 unique visitors who saw the ads and 200 clicked on the ads to navigate to the Company ABC website. Only 50 visitors remained on the first page for more than a few seconds. No new visitors made purchases. As the marketing manager for ABC, what is the BEST course of action based on metrics? A) You determine that ABC has a disappointing conversion rate of 0.5%, which means few visitors make purchases. The new banner advertising seems effective with a clickthrough rate of 0.1%, but the bounce rate is high at 75%. These metrics lead you to believe that visitors do not like what they see when they navigate to your website and may not be able to find the information they want. You decide to work with the design department to create a new interface. B) You determine that the new banner advertising seems effective with a clickthrough rate of 0.1% and a low bounce rate of 25%. You decide to increase ABC's banner advertising efforts to bring in more visitors to the website and improve your lowly conversion rate of 0.5%. C) You determine that ABC has a reasonable conversion rate of 0.5%. You are most concerned with the abandonment rate of 0.2%, which means 2,000 people thought about purchasing your products, but did not. You decide to focus efforts on communicating with these lost customers before making any further financial commitments to additional banner advertising. D) You determine that the new banner advertising seems effective with a clickthrough rate of 0.1% and a low bounce rate of 25%. But ABC has a disappointing conversion rate of 0.5%, which means few visitors make purchases. You decide that customers are unhappy with your product offerings and/or prices and endeavor to make changes that will appeal to your target audience. Answer: A Diff: 3 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 124) Why is it important that we consider spending toward marketing objectives as investments rather than expenses? Answer: Responses will vary. A sample response may include the following: It's important that marketing managers estimate what the returns on tactical marketing objectives are and whether they meet the criteria set for success. This breaks the common mindset that money spent on marketing objectives is lost forever; an expense versus an investment that will ultimate lead to increased sales and/or market share. Diff: 3 Learning Objective: 13.1 Outline the process for measuring marketing effectiveness. Section Reference: The Process of Measuring Marketing Effectiveness Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

125) Why is it difficult to use metrics like CPM, frequency, and quality of exposure in comparing one medium to another? Answer: Responses will vary. A sample response may include the following: In using CPM as a metric, media vary vastly in their abilities to communicate information. For instance, billboards may have a very low CPM compared to television; however, as a medium, they are far less effective in communicating. It is difficult to estimate frequency for magazines and, to a lesser extent, newspapers due to the fact that they may be picked-up and read several times. For media like television and radio, the quality of exposure may be diminished due to people not paying attention or channel-surfing during commercials. Diff: 3 Learning Objective: 13.6 Explain and apply traditional promotion-related communication metrics. Section Reference: Promotion-Related Metrics: Evaluating the Success of Traditional Communications Media Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 126) Why is it important for marketing managers to track abandonment? What actions might it lead to? Answer: Responses will vary. A sample response may include the following: By analyzing the degree of abandonment and, importantly, the point in the interaction where it typically occurs, marketers can work with technical and design staff to make changes that retains and cultivates customers. Changes may include asking for less information from customers, making the page more 'user-friendly', making pages load more quickly, or lessening the number of forms customers are asked to complete. Diff: 3 Learning Objective: 13.7 Explain and apply participation metrics for digital marketing. Section Reference: Participation-Related Metrics: Evaluating the Success of Digital Marketing Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation

Applied Marketing, 1ce (Grayson) Chapter 14 Developing an Integrated Marketing Mix 1) The GoPro product was certainly technology driven, and to communicate effectively with the range of customers who would want to know about the product, it went beyond social media to traditional media which one might not associate with a high-tech product. Answer: TRUE Diff: 1 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 2) GoPro was able to work from its side to encourage participation and customers understood and appreciated their connections needs in the many efforts GoPro made to get users to share experiences. The way customers responded demonstrates the importance and use of getting the participation and connection linkage correct. Answer: TRUE Diff: 1 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 3) The purpose of the detailed consideration of the 5 Ps and 5 Cs, and the linkages is to create a marketing mix that will increase the overall firm profitability and brand awareness. Answer: FALSE Diff: 1 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 4) We think of product-communications linkages as positive for the firm, but the linkage can also have a negative effect on the firm. Answer: TRUE Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

5) When a company offers group discounts or referral discounts, this is an example of the price-customer benefits linkage? Answer: FALSE Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 6) If a company is making a product that would benefit from in-store support and education, the firm will use the place-communications linkage to help determine what kinds of retailers should be used for the product. Answer: TRUE Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 7) Product-connection linkages can provide customers opportunities to create relationships with other customers through use of the product. Answer: TRUE Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 8) One of the most difficult problems a marketer faces while implementing the marketing mix is managing each of the supporting linkages among all five Ps and five Cs. Answer: TRUE Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

9) While the place-communication linkage communicates potential quality, it does not do a good job of indicating the amount and kind of information the potential customer will receive. Answer: FALSE Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 10) The marketing of services and the marketing of products have similarities, but services marketing does not make use of the product-convenience or product-connections linkages. Answer: FALSE Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 11) As the marketers focus on the core linkages for the marketing mix of a product, the most effective approach will be to isolate each of the 5 Ps and determine the desired levels of the consumer side 5 Cs to maximize the perceived value for the customer. Answer: TRUE Diff: 1 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 12) Elimination of supporting linkages and any other elements of the proposed marketing plan must be the result of discussions, not simple rules. Answer: TRUE Diff: 1 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 13) One reason to explore as many core and supporting linkages is to be able to construct the individual and specific marketing mixes for the target segments. Answer: TRUE Diff: 1 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 3

14) The process of establishing the core marketing mix elements of the marketing plan begins with 5 Ps not the 5 Cs, as the 5 Ps are the elements marketing can develop and control. Answer: FALSE Diff: 1 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 15) Once the core elements have been identified and the supporting linkage elements rank-ordered, the next step is to examine the package and determine fit and implementation. Answer: TRUE Diff: 1 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 16) As a general rule of thumb, supporting linkages should be retained, regardless of alignment with core linkages. Answer: FALSE Diff: 1 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension 17) The chapter uses GoPro to demonstrate how a firm actually deals with the many aspects of customer needs, firm needs, creative realities, and the marketplace. As a "practice marketer" you have a chance to evaluate the firm's actions, but without access to marketing research and insights into the firm's management structures, it is not possible to come up with accurate assessments. Answer: TRUE Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Comprehension

18) The connections between the elements of the 5 Ps and the corresponding 5 Cs are known as A) the marketing mix. B) core linkages. C) networks. D) correlations. Answer: B Diff: 1 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 19) The first criterion a marketer should consider when evaluating a marketing mix is A) effectiveness. B) profitability. C) consistency. D) cost. Answer: C Diff: 1 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 20) In the marketing mix, the term that describes how a marketer's decisions should affect customer perceptions of value is A) positioning. B) core linkages. C) unique selling proposition. D) core competency. Answer: B Diff: 1 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

21) When there is a clear customer need, a firm can be successful if it understands that need and can build a product to suit those needs. Three of the four following problems represented a failure of GoPro to get the product/customer benefit correct. Which of the following was NOT one of the customer benefit issues GoPro got wrong? A) GoPro misunderstood the benefits the customers wanted in a relaunch. B) GoPro misunderstood when the customer needed the product. C) GoPro launched a defective product which had to be recalled. D) GoPro created a product that did not benefit the customer. Answer: D Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 22) Place and convenience are connected by a core linkage. While GoPro was able to get the product into places where the customer could find it, it made an error when production problems forced it to A) ignore convenience stores in its distribution network. B) deliver fewer cameras than were needed during a holiday season. C) exert too much power in the distribution network. D) miss the customer connection by emphasizing place over convenience. Answer: B Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 23) GoPro had which promotion problem when the drone was postponed in the spring of 2016 and customers defected? A) The company had promoted expectations to meet customers' communication needs, and these expectations were not met. B) The company had promoted the product by the customers did not understand what was being communicated. C) The company was promoting a product but failed to communicate what the customers needed to know. D) The company promoted a product and unknowingly promoted competitors' products to the customers. Answer: A Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 6

24) GoPro worked to establish a base price for HERO4 Session but had to adjust the price downward to about half the initial price. When viewed from the customer perspective of cost, these adjustments demonstrated A) GoPro had not done enough analysis to set the base price. B) the greatest value of setting the base price as in encouraging discounts. C) customers did not see enough value in the product at the base price. D) customer prefer skimming instead of penetration. Answer: C Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 25) When launching any technology product, a firm such as GoPro must create a balance between what is technically possible—and innovative—and A) whether the intended customer base is at the right level of technological sophistication. B) the level of technological development of competitors. C) whether the technology responds to customer needs and benefits. D) how steep the marketers expect the product life cycle curve to be. Answer: C Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 26) GoPro demonstrated a large number of positive linkages between the 5 Ps and the 5 Cs, especially from the company's perspective. The overall problems demonstrate A) customers want it right from their perspectives every time. B) not all of the 5 Ps or the 5 Cs are equally important to the customer. C) if a firm can get the 5 Ps right, the corresponding 5 Cs will fall into place. D) neither the 5 Ps nor the 5 Cs are sufficient to address the marketing challenges of high-tech companies. Answer: A Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

27) Joel was discussing the launch of a new product with Lisa, and he knew it was going to have trouble meeting the launch date. He told Lisa, "We haven't got the place part of the marketing mix finished yet. Let's just roll with the rest of the plan and finish place after the launch." What's the problem with Joel's idea? A) Place is more important than price, and they should focus more on place. B) Joel needs to decide before launch whether to use online or brick-and-mortar outlets. C) The firm could expect problems with retailers including channel conflict. D) All five elements of the mix work together as a bundle. Answer: D Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 28) When evaluating the effectiveness of a marketing mix, one must first A) determine whether the main decision areas of the mix are consistent. B) study the mixes used by competitors for similar products. C) gauge the product's momentum in its life cycle. D) research the target market. Answer: A Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 29) GoPro experienced financial losses due to delayed launches with both its HERO Session mountable camera and with its Karma drone. What is the most likely reason the company abandoned the drone market to focus on mountable cameras? A) Drones were an existing product type, but customer benefits were unclear. B) Mountable cameras were a discontinuous innovation and competition was negligible. C) Drones had entered the maturity stage of the product life cycle. D) Mountable cameras had been embraced by laggards. Answer: B Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

30) In 2016, retailers refused to promote the HERO 5 because GoPro produced fewer cameras than expected. What is one lesson for marketers? A) Retailer reach is important. B) Retailer image can be tarnished easily. C) Supply chain conflict and power struggles must be managed. D) Marketing intermediaries should be eliminated, if possible. Answer: C Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 31) Consumers can purchase GoPro Plus subscription service for $60 per year. The number of subscribers increased 70 percent in 2020. What conclusions can marketers draw from this? A) GoPro may have made a bad pricing decision by charging too little. B) GoPro looked at price from the customers' perspective but failed to consider the company's measure of relative value. C) GoPro is using a skimming pricing strategy. D) GoPro accurately assessed customers' value perceptions for the service. Answer: D Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 32) Which of the following statements most accurately describes the integration of marketing mix core linkages? A) Effective decisions made in one area of the mix do not affect customer perceptions across the mix. B) Marketers tend to make decisions about mix elements independently. C) Each marketing mix P affects customer perceptions of only one C. D) Marketing plans are successful only if the bundle of mix decisions is consistently done well. Answer: D Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

33) When GoPro launched, it sponsored a world-renowned wingsuit pilot who wore a GoPro and broadcast his stunt flight over the Great Wall of China. This tactic allowed potential consumers to "sample" the product before purchase—an example of A) experiential marketing. B) gamification. C) mobile marketing. D) social proof. Answer: A Diff: 2 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 34) Core linkages are those connections between each of the corresponding 5 Ps and 5 Cs, and the linkages among one of the 5 Ps (e.g., product), and the remaining four of the 5 Cs are known as ________ linkages. A) subsidiary B) secondary C) supporting D) sustaining Answer: C Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 35) Supporting linkages are those that A) amplify the value of specific core linkages. B) are optional. C) affect customer perceptions that are not core linkages. D) override the core elements by supporting the marketing objectives. Answer: C Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

36) Price bundling is an example of which linkage in the marketing mix? A) Price-customer benefits B) Price-convenience C) Price-communications D) Price-connections Answer: B Diff: 1 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 37) Products affect customer costs in very basic ways—the development of the product and its technology, providing valuable software to operate the product, etc. How does the process work in reverse? Which of the following shows how price affects customer benefit? A) Price bundling B) Signaling premium status C) Making communication inexpensive D) Indicating the MSRP at the retailer Answer: B Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 38) You probably have retailers where you feel comfortable, where you go to get advice, and where you go to see the people who work there. Unless it's a company store, the manufacturer of products has little direct influence on why you shop there. From the perspective of the manufacturer, the selection of a retailer will be place, but what is going on from the customer's point of view? A) Convenience B) Communication C) Customer Benefit D) Connections Answer: D Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

39) Some companies develop how-to videos or information on how to purchase a product effectively, and while these reduce the risks that customers may perceive, this effort fits into the promotion-customer cost linkage by A) reducing search costs which must be included in the total price customers pay. B) explaining to customers the ways other have used the product at their own costs. C) creating special price reductions if the customers use the materials. D) using special one-time promotions to reduce customers' costs. Answer: A Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 40) Jason is the junior member working with the rest of the marketing team to identify and develop detailed core, and then supporting, linkages for the new product the firm will be launching. It seems to Jason that it had taken a really long time to get to this stage with the research, segmenting, targeting, and positioning, and considering all the elements of marketing mix. He was proud of all the work he had done to build the comprehensive list, and he was disappointed when he heard what the team would do next. What is the team planning to do next that is disappointing to Jason? A) Make the tough decision about whether to launch or not. B) Go back to the new product development process to track out a substitute product. C) Eliminate linkages that didn't seem strong enough to support a launch. D) Retain an outside agency to recommend how to use the materials. Answer: C Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 41) By carefully selecting the stores and outlets to carry a product, a marketer can add value to the customer purchase and usage experience. Within the marketing mix, marketers will address this element of value creation though which supporting linkage? A) Place-customer benefits B) Place-customer value C) Place-connections D) Place-convenience Answer: A Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 12

42) Maureen was developing a marketing mix for the small household appliances her firm manufactures. She wants to get customers to buy more than one appliance from her line, and she is exploring the price-connections linkage to reach that goal. She has the option of offering free accessories or services, but that does not seem like a good fit. Which of the following would be another good way to address the linkage? A) Work with retailers to set competitive prices. B) Use price bundling to encourage purchases of more than one appliance at a time. C) Encourage group purchases or group shopping. D) Establish a dedicated page on the firm's website. Answer: C Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 43) Which of the following is NOT one of the options a marketer would logically consider as part of the promotion-customer cost linkage? A) Offer price reductions B) Offer discounts C) Offer information on how to purchase D) Offer information on costs Answer: D Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 44) What is the BEST similarity between core and supporting linkages? A) Services have stronger reactions to linkages than products. B) Products have stronger reactions to linkages than services. C) Effective producer decisions increase customers' perceptions of value. D) Customers' reactions to effective linkages are decreasing with technology advances. Answer: C Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

45) Which of the following represents the difference between core and supporting linkages? A) The influence on customer perceptions B) The intentions of producers toward affecting customer perceptions C) The financial impact on the producer D) The impact of the external marketing environment Answer: B Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 46) In a supporting role, which of the following producer elements links most strongly to communication? A) Price B) Product C) Place D) Participation Answer: A Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 47) Which of the following shows how GoPro's new subscription service affects customer cost? A) Subscribers save time by uploading video directly from their devices. B) Subscribers save money by interacting with like others who use the brand. C) Subscribers enjoy unlimited cloud storage. D) Subscribers receive signals about product quality. Answer: A Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

48) An online image sharing company is known for its photography products. It offers current customers a free photo book for each new customer referral. The company is making pricing decisions. The customers are making decisions about A) convenience. B) connections. C) benefits. D) communication. Answer: B Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 49) Crafters love to use smart cutting machines in their creations. Most companies offer current customers how-to videos on the making of specific craft items. The companies use these videos as promotional tools. How do customers use them to reduce costs? A) By creating and connecting with a crafting community B) By discovering basic product benefits C) By increasing their knowledge, thereby reducing the risk of mistakes D) By influencing brand loyalty Answer: C Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 50) A snack food company holds an annual competition inviting customers to suggest new potato chip flavours. It then produces chips flavoured with the top 10 ideas and asks customers to vote on their favourites. The company is encouraging participation; customers are A) creating efficiency in sharing ideas. B) affecting their cost perspectives with the prospect of winning money. C) influencing convenience by creating tasty snack foods. D) co-creating value and benefiting from fun. Answer: D Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

51) You want a new set of wireless headphones. They are sold at a variety of locations, but you choose the location with the most generous return policy—in case you are displeased with your purchase. The headphone manufacturer made the place decisions. Your decision was based on A) customer cost. B) customer benefits. C) communication. D) connections. Answer: A Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 52) Your washing machine is broken beyond repair, so you seek a replacement at a home improvement store. While the price on the washer is good, the price on the washer/dryer bundle is too good to pass up, so you purchase both. The company made its decisions regarding price. Your decision was based on A) customer benefits. B) convenience. C) communication. D) connections. Answer: B Diff: 2 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 53) After you have assembled all the linkages that can be used, the next step is to eliminate those that are too difficult to do or those that A) could be easily copied by the competition. B) could be too innovative for the customer base. C) don't fit with the positioning plan. D) don't provide for the widest range of market attractiveness. Answer: C Diff: 1 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

54) Considering both core and supporting linkages can be overwhelming with the many linkages and many options with each of the linkages. What is the BEST way to select those that will become integral parts of the marketing mix? A) Determine the strengths and weaknesses of the marketer(s) developing the mix. B) Determine the nature of the product. C) Determine the least expensive with the most possible effects. D) Determine what is important to the customer. Answer: D Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 55) In the final stages of developing the marketing mix, the marketer must carefully examine each of the linkages one last time to ensure that A) inconsistencies are identified and eliminated. B) as many linkages as possible have been included. C) the producer's focus is more significant than customers' perspectives as the producers have to do the work. D) risks have been eliminated. Answer: A Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 56) Nick's marketing team has just spent several days brainstorming and exploring the core and supporting linkages for the new product they were launching. One of the junior members of the team asked, "How can we make sense of this? We can't focus on all of these." Nick replied that they needed to go back to the work done before the marketing mix considerations and begin with A) analyzing how the competitors are making linkages. B) focusing on the core linkages that best fit the target market. C) comparing the linkages with other products in the firm's offerings. D) determining which linkages would offer the greatest net profit. Answer: B Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

57) Once core elements of the marketing mix have been determined, marketers will focus on the supporting linkages by determining which of them will most enhance the core linkages and then A) selecting no more than three per core linkage to keep the implementation manageable. B) establishing a detailed budget to ensure implementation will succeed. C) ranking the supporting linkages for each core linkage to create priorities. D) conducting marketing research to determine target market size with as much precision as possible. Answer: C Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 58) Before beginning the three-step process of creating the final marketing mix solution, it is most critical that marketers fully understand A) what targeted customers need, want, and value in an exchange. B) the external marketing environment. C) the mass market and competitive influences. D) the company's overall marketing strategy. Answer: A Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 59) In creating your final marketing mix, you determine that two supporting linkages do not support the company's overall positioning strategy for the service. Which of the following represents the BEST next step? A) Eliminate the ill-fitting linkages. B) Evaluate the linkages to see if appropriate modifications are possible. C) Reevaluate the company's positioning strategy. D) Evaluate the perceived value of the service without that linkage. Answer: B Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

60) Which of the following questions might a marketer ask herself when finalizing a marketing mix? A) Which of the five core elements should be included? B) How does the external environment affect each linkage? C) What combination of linkages maximizes profit? D) Which linkages maximize value to both company and customer? Answer: D Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 61) Ji-woo and her marketing team are reviewing supporting marketing linkages to arrive at a final marketing mix. She senses that team members are becoming overwhelmed with all the information and potential linkages. What is the BEST way for Ji-woo to keep her team on task? A) Remind them that their job at this step is to determine which supporting linkages support the core elements and rank them in order. B) Remind them that supporting linkages are essentially unintended connections, which means they are less important than the core linkages already set in place. C) Suggest that you begin by eliminating any supporting linkages that are causing issues with the team and then focus on those that make the most sense. D) Suggest that struggling team members focus only on core linkages and remaining team members can power through supporting linkage review. Answer: A Diff: 2 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 62) If you have worked in a group for a project, you know what can happen in a group if one person isn't doing what he or she should be doing to support the group. In a similar way, all five elements of the marketing mix, must work together to achieve the marketing objective. Take the price/cost element and describe what could go wrong in place/convenience and promotion/communication if the product were priced too high or too low. Answer: Responses will vary widely. The place/convenience problems could include a mismatch between the store objectives and the level of pricing, inadequate attention to the costs involved in place/convenience, etc. The promotion/communication mismatch would include inappropriate messaging, problems with created expectations, again coverage of costs in pricing, etc. Student responses should demonstrate their familiarity with all three areas and a good demonstration of linkages. Diff: 3 Learning Objective: 14.1 Identify and describe the core linkages between the main producer and customer elements of the marketing mix. Section Reference: Integrating the Core Marketing Mix Linkages Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 19

63) Participation seems obvious in many high-tech products, especially when products have some sort of online interface, but as a part of the marketing mix, participation applies to all products. Choose either a ladder or a chair and explore how participation supports the other elements of the marketing mix. Answer: Responses will vary. These are products all students should know, and they are usually seen as low-tech. As examples, the student should explore participation and customer benefits (exploring not-obvious uses with others), convenience (shopping with others who might also use the product), customer cost (looking at the total cost including search costs, where to store or use the product, getting it home), and communication (establishing forums were other customers can provide input on the product uses and ideas for new uses). Better responses will show insights about the entire marketing mix. Diff: 3 Learning Objective: 14.2 Conduct a marketing mix analysis that identifies potential supporting linkages between producer and customer elements of the marketing mix. Section Reference: Supporting Marketing Mix Linkages Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis 64) Deciding amongst the many possible approaches requires tradeoffs. Focus exclusively on the marketing mix development and discuss what is meant by tradeoffs. Answer: Responses will vary and should reflect the reality that some elements may require choices about which to pursue, and that to assess those choices accurately, marketers must take a longer-term view to examine the costs and benefits. Students should also emphasize the importance of the customer perspective in dealing with tradeoffs. Better responses will discuss the possibilities of creatively resolving contradiction and dilemmas to the advantage of the firm and the customer. Diff: 3 Learning Objective: 14.3 Describe the steps to arriving at a final marketing mix solution. Section Reference: Arriving at a Final Marketing Mix Solution Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

Applied Marketing, 1ce (Grayson) Chapter 15 Finalizing A Marketing Plan 1) Effective marketing plans do not require marketing managers to develop an effective marketing mix strategy. Answer: FALSE Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 2) Anytime or anywhere a potential customer interacts with a brand should be considered a marketing opportunity whether a sale is made or not. Answer: TRUE Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 3) Some timelines can be flexible. Answer: TRUE Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 4) One of the most important aspects of any evaluation plan is to assign personnel specific tasks and responsibilities to make sure all activities have someone to complete the activity. Answer: FALSE Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

5) As some employees might leave and new ones might be hired, it is better to assign tasks to a relevant department instead of individuals. Answer: FALSE Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 6) Even though most marketing activities are processes rather than events, the focus of timelines should downplay the processes and focus on what matters most to the bottom line—outcomes. Answer: FALSE Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 7) ________ involves getting customers to go out of their way to purchase or do something. A) Logic B) Motive C) Marketing D) Desire Answer: C Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 8) Different extended marketing mixes leads to different marketing A) goals. B) mixes. C) logic. D) tactics. Answer: D Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

9) For a specific brand and target market, certain ________ will be more appropriate and offer better opportunities than others. A) offers B) linkages C) opportunities D) tactics Answer: B Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 10) Marketing's job is to create a viable marketing ________, decide how to implement it, and then evaluate and control the plan tools and tactics, adjusting as needed to improve success. A) tactic B) path C) goal D) plan Answer: D Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 11) While comprehensive planning makes it more likely marketing will be successful, ________ sometimes arise that affect the plan in unexpected ways. A) problems B) questions C) adjustments D) modifications Answer: A Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

12) How many essential questions are there to have an effective contingency plan? A) 3 B) 2 C) 4 D) 1 Answer: C Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 13) Something in which the company specializes or has an expertise is a A) core competency. B) contingency plan. C) marketing plan. D) strategy mix. Answer: A Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 14) Which of the following is NOT true about developing an extended marketing mix? A) Marketers should develop a single, consistent mix for all target segments to achieve maximum efficiency and effectiveness. B) Marketers should develop a marketing mix to create a competitive advantage with specific target markets. C) Marketers should consider all linkages between the 5 Ps and 5 Cs, but not all linkages are worth developing for specific target segments. D) Each target market, even in the same marketplace, needs a unique marketing mix. Answer: A Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

15) When a marketer is creating contingency plans for the marketing plan, she will need to consider the elements of the plan, which are the most difficult to implement, potential problems or roadblocks, and A) how the problem will affect profits. B) how to get around problems. C) how serious the problem is. D) how competitors are dealing with the problem. Answer: B Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 16) Which of the following represents the marketing strategy process? A) Mission, strategies, objectives B) Planning, implementation, evaluation, control C) Planning, leading, control D) Strategies, objectives, tactics Answer: B Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 17) Netflix specializes in content delivery. This is an example of a A) core competency. B) marketing dashboard. C) balanced scorecard. D) benchmark. Answer: A Diff: 1 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

18) Which of the following statements accurately describes the task of finalizing marketing plan tactics? A) The most successful companies with different extended marketing mixes have toiled to discover that one best marketing tactic that encompasses everything. B) A good marketing plan will not be successful until managers translate marketing tactics into objectives. C) When marketing managers describe what will happen, who will do it, when it will happen, and how much it will cost, they are converting the marketing mix into specific tactical actions. D) Comprehensive marketing planning eliminates the need for contingency planning. Answer: C Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 19) Which of the following is an example of a marketing tactic? A) Company A seeks to expand its business in 10 years. B) Company B intends to explore new demographics for its consumer products. C) Company C wants to create a new brand of snack chip. D) Company D plans to purchase banner ads on four clothing websites this month. Answer: D Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 20) Which of the following statements accurately describes contingency plans? A) Contingency plans provide clear guidance when problems occur, which saves the company time and money. B) Companies should consider taking actions outside their core competencies to meet problems in creative ways. C) Contingency planning prevents problems from affecting companies in unexpected ways. D) For contingency planning to be effective, companies should have an answer to the question, "What plan elements are the easiest to implement?" Answer: A Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

21) Amazon's mission is to be "Earth's most customer-centric company." It is known for its distribution logistics and for leveraging technology to deliver the goods consumers want, when and where they want them. Additionally, Amazon has created a platform for third-party sellers, like Audible and Twitch, to market their services. This is an example of Amazon's A) best practices. B) core competency. C) balanced scorecard. D) internal marketing. Answer: B Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 22) Ronald suggested to his CMO that, in response to a strike by truckers, his firm should get their own trucks and drivers to get the merchandise to market. The CMO rejected the suggestion. This was most likely because A) strikes don't last long, and it would take longer to get trucks and drivers. B) the additional costs would erode profit margins too much. C) the firm's customers typically kept enough inventory to outlast such a supply chain interruption. D) trucking is not a core competency the firm should develop. Answer: D Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 23) Problems can mount and get out of hand if a company has not considered how to respond ahead of time. These problems could occur in any part of the marketing mix, and the prudent marketing manager would have built analyses and response into the plans by considering A) public relations. B) corporate social responsibility. C) contingencies. D) crisis management. Answer: C Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

24) All of the following are steps in the marketing process EXCEPT A) marketing planning. B) implementation. C) evaluation and control. D) adjustments and modification. Answer: D Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 25) Which of the following is NOT one of the four main considerations for marketing contingency planning? A) What elements are most critical to the plan. B) What are the potential problems or roadblocks. C) Which elements are most difficult to implement. D) What elements affect the customer base. Answer: D Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 26) Which of the following BEST describes the end goal of the extended marketing mix? A) Generating sales B) Reaching the target market that the company would otherwise not be able to reach C) Creating brand awareness within the target market that ultimately leads to brand loyalty D) Developing key linkages that appeal to the target market and creating a competitive advantage Answer: D Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

27) Which of the following BEST describes an accurate marketing mix core linkage for product and customer benefits? A) An American sports car manufacturer places an American flag at the end of their television commercials. Customer receives the pride of patriotism and pride of purchasing an American-made muscle car. B) A watch company emphasizes low product cost in their commercials. Customer receives prestige. C) An American sports car manufacturer places an American flag in the embroidery of their car seats. Customer receives the pride of patriotism and pride of purchasing an American-made muscle car. D) A watch company typically prices their watches above market. Customer receives a good value. Answer: C Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 28) Which of the following BEST describes an accurate marketing mix core linkage for promotion and communication? A) An American sports car manufacturer places an American flag at the end of their television commercials. Customer receives the pride of patriotism and pride of purchasing an American-made muscle car. B) A watch company shows wealthy people in their commercials. Customer receives good value. C) An American sports car manufacturer places an American flag in the embroidery of their car seats. Customer receives the pride of patriotism and pride of purchasing an American-made muscle car. D) A watch company typically prices their watches above market. Customer receives a good value. Answer: A Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

29) During a global pandemic, a manufacturer could no longer keep up with retail sales of bath tissue and stores shelves were quickly emptied. The supply chain for industrial sales was full to overflowing and stock sat untouched while company executives developed a strategy for shifting stock in the various supply chains. What most likely caused this problem? A) Failure to make comprehensive contingency plans. B) Failure to consider how product adds value to customers. C) Failure to create adequate tactical plans. D) Failure to adjust or modify plans as needed. Answer: A Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 30) Which of the following BEST describes an accurate marketing mix core linkage for price and customer cost? A) An American sports car manufacturer places an American flag at the end of their television commercials. Customer receives the pride of patriotism and pride of purchasing an American-made muscle car. B) A watch company shows wealthy people in their commercials. Customer receives prestige. C) An American sports car manufacturer places an American flag in the embroidery of their car seats. Customer receives the pride of patriotism and pride of purchasing an American-made muscle car. D) A watch company typically prices their watches below market but offers a warranty. Customer receives a good value. Answer: D Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

31) Which of the following BEST describes an accurate marketing mix core linkage for product and customer benefits? A) A cooler company portrays user of their coolers going on outdoor adventures in their commercials. Customer receives the feeling of being rugged and adventurous. B) A watch company shows wealthy people in their commercials. Customer receives prestige. C) A car company uses clean designs and gold trim inside their vehicles. Customer receives the feeling of being modern and fancy. D) A watch company typically prices their watches below market but offers a warranty. Customer receives a good value. Answer: C Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 32) Which of the following BEST describes an accurate marketing mix core linkage for participation and connections? A) A cooler company portrays user of their coolers going on outdoor adventures in their commercials. Customer receives the feeling of being rugged and adventurous. B) A watch company shows wealthy people in their commercials. Customer receives prestige. C) A football cleat maker sends reps to high school football games to get feedback from the players on the cleat functionality. The players (customer) get the feeling of having ownership in the cleat's design. D) A jeans maker shows celebrities in their commercials. Customers get the feeling of being famous for owning the jeans. Answer: C Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

33) Which of the following BEST describes an accurate marketing mix core linkage for promotion and communication? A) A cooler company portrays user of their coolers going on outdoor adventures in their commercials. Customer receives the feeling of being rugged and adventurous. B) A watch company typically prices their watches below market but offers a warranty. Customer receives a good value. C) A football cleat maker sends reps to high school football games to get feedback from the players on the cleat functionality. The players (customer) get the feeling of having ownership in the cleat's design. D) Domino's offers delivery to hotspots. Customer receives the benefit of ordering to locations that are conducive to their lifestyle. Answer: A Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 34) Your company is known for creating vehicles that use little power to operate and can travel about 20 kilometres per hour. Recently, it created a two-wheeled, upright human transporter. Technology industry influencers are calling this prototype revolutionary, and the media is interested. The engineering director says, "This is the best new product out there. Success is guaranteed!" As the marketing director, what is your BEST response? A) Even the best products can fail without proper marketing planning, implementation, and control. B) When you build the best products, the market will develop, purchase, and become loyal. C) We need to reevaluate. This product does not fit with our core competencies. D) We need to create a budget to ensure our ability to produce enough product to be successful. Answer: A Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

35) Which of the following BEST describes an accurate marketing mix core linkage for place and convenience? A) A cooler company portrays user of their coolers going on outdoor adventures in their commercials. Customer receives the feeling of being rugged and adventurous. B) Domino's offers delivery to hotspots. Customer receives the benefit of ordering to locations that are conducive to their lifestyle. C) A football cleat maker sends reps to high school football games to get feedback from the players on the cleat functionality. The players (customer) get the feeling of having ownership in the cleat's design. D) An American sports car manufacturer places an American flag in the embroidery of their car seats. Customer receives the pride of patriotism and pride of purchasing an American-made muscle car. Answer: B Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 36) Which of the following BEST describes an accurate marketing mix core linkage for product and customer benefits? A) A cooler company portrays user of their coolers going on outdoor adventures in their commercials. Customer receives the feeling of being rugged and adventurous. B) Domino's offers delivery to hotspots. Customer receives the benefit of ordering to locations that are conducive to their lifestyle. C) A football cleat maker sends reps to high school football games to get feedback from the players on the cleat functionality. The players (customer) get the feeling of having ownership in the cleat's design. D) A cooler company colours their coolers in camouflage. Customer receives the feeling of being rugged and adventurous. Answer: D Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

37) Which of the following BEST describes an accurate marketing mix core linkage for price and customer cost? A) A cooler company portrays user of their coolers going on outdoor adventures in their commercials. Customer receives the feeling of being rugged and adventurous. B) Roots offers clothes with modern designs at lower costs than most clothing designers. Customer receives the feeling of being stylish and prestigious. C) A cooler company colours their coolers in camouflage. Customer receives the feeling of being rugged and adventurous. D) Roots offers clothes with modern designs at lower costs than most clothing designers. Customer receives good value and the feeling of being stylish. Answer: D Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 38) Which of the following BEST describes an accurate marketing mix core linkage for place and convenience? A) An electric car maker installs charge stations at every gas station in the country. Customer receives the good feeling of helping the environment while also being able to use the product without any hassle to recharge. B) Roots offers clothes with modern designs at lower costs than most clothing designers. Customer receives the feeling of being stylish and prestigious. C) A cooler company colours their coolers in camouflage. Customer receives the feeling of being rugged and adventurous. D) Roots offers clothes with modern designs at lower costs than most clothing designers. Customer receives good value and the feeling of being stylish. Answer: A Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

39) Evan was working in his family's furniture store while taking marketing courses. He had convinced his parents that a marketing plan was essential, but they hesitated about the work of creating a detailed marketing mix for target segments. What would be Evan's BEST argument to overcome their objections? A) The hard work and analyses are already done, and the next steps are easier. B) A marketing mix is optional, but developing it will identify weaknesses in the strategies. C) Marketing mixes are the way good strategy, goals, and objectives are realized in the marketplace. D) The strategies in the plan may change, but once the mix is established, it will not be necessary to change the mix. Answer: C Diff: 2 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 40) Yeti has done a tremendous job at marketing. Yeti started off by making coolers and eventually added things like tumblers, soft-side coolers, and bottle openers to their product line. Beyond their superior quality, Yeti products are also known for being very expensive. Given this information, what is the greatest potential risk the Yeti brand faces? A) Customers will eventually tire of the of the high prices. B) Supplies for their high-quality coolers may become scarce. C) Yeti will find it difficult to reach most demographics with their limited product line. D) Yeti could run into problems caused by straying from their core competency. Answer: D Diff: 3 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

41) You and two friends created a lucrative business selling canned wine. You are sure your P and C combinations have created an effective marketing mix. Your wine is selling well at venues that prohibit glass bottles, like outdoor concerts and fairs. Unfortunately, during a pandemic, there is an aluminum can shortage and your business is hit hard. Which of the following is the most likely the cause of your predicament? A) You neglected to determine the most crucial elements to your marketing plan's success, pinpoint any potential roadblocks, and create contingency plans for each possible problem. B) You neglected to determine the company's core competencies and create the marketing plan around those elements, which would have prevented a dilemma like the one in which the company currently finds itself. C) You neglected to create a flexible timeline with short- and long-term objectives. This may have allowed the company some leeway in riding out an aluminum shortage. D) You neglected to eliminate the barriers that might impede implementation and control of the marketing plan. Answer: A Diff: 3 Learning Objective: 15.1 Describe the process for translating the core and supporting marketing mix linkages into specific marketing plan tactics to include contingency planning. Section Reference: Finalizing the Marketing Plan Tactics Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 42) Generally speaking, ________ assign tasks to someone in the organization with relative expertise. A) managers B) employees C) owners D) customers Answer: A Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

43) Employees often respond negatively when given responsibility without ________, such as being given a specific task with no budget to accomplish the task. A) direction B) goals C) authority D) asking Answer: C Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 44) What is perhaps one of the more difficult decisions to make regarding marketing expenditures? A) Timeline B) Responsibilities C) Adjustments D) Budgeting Answer: D Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 45) Budgets can also include minimum and maximum expenditure ranges to allow some spending A) modifications. B) adjustments. C) forecasts. D) flexibility. Answer: D Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

46) What are the two difficulties of budgeting? A) Justification and specificity B) Expenditures and responsibilities C) Costs and tasks D) Specificity and accuracy Answer: A Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 47) Marketers have not always done a good job of demonstrating effectiveness within an organization, partly because it is not always easy to show cause-and-effect analyses. This can lead to a problem in implementing marketing plans, which require budgeting A) certainty. B) responsibility. C) compliance. D) justification. Answer: D Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 48) Annual marketing plan goals and outcomes might be too far out to be useful. It would be hard to fix some problems if you wait a year. Good marketing practice calls for A) soft goals and outcomes. B) weekly assessments. C) quarterly sub-plans D) interim goals. Answer: D Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension

49) What is zero-based budgeting? A) Creating a budget with pre-set evaluation points and standards B) Building the budget based on marketing goals by justifying each dollar spent for the new period C) Building the budget based on unwritten influences on employee behaviour, which are not specified by management D) Creating a budget by comparing your company expenses to that of others in similar markets Answer: B Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 50) Which of the following would be used while implementing a marketing plan? A) Zero-based budgeting B) Steering control system C) Core competencies D) Continuous monitoring Answer: A Diff: 1 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 51) Which of the following statements most accurately describes the marketing plan implementation of responsibilities? A) Flexibility is important, so the plan should hold some tasks open and assign a responsible party only when needed. B) Most employees prefer to be given tasks without accompanying budgets; this allows them to spend at will. C) The best plans assign responsibility to employees without authority to make decisions regarding the task; it increases empowerment. D) The most successful plans assign responsibility to a specific person rather than a department. Answer: D Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

52) Which of the following statements most accurately describes the marketing plan implementation of budgets? A) Zero-based budgeting enables marketers to rely on previous budget approaches when creating new ones. B) While other departments view marketing budgets negatively, historically marketers have done an outstanding job tracking expenditures as investments. C) Flexibility is important because costs can change. D) Accurate budgeting is a simple, yet time-consuming, task. Answer: C Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 53) Which of the following statements most accurately describes the marketing plan implementation of timelines? A) Timelines should be limited to marketing activities and final outcomes. B) Flexibility is important as some activities are contingent on others. C) Adding interim goals to a timeline negates its flexibility and adds confusion. D) Long-term timelines tend to be more accurate than short-term timelines. Answer: B Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 54) What is the BEST similarity between the implementation of budgets and timelines? A) Flexibility is important since market factors constantly change. B) Justification is a primary problem. C) Specificity and firmness are essential. D) Previous approaches are valuable tools. Answer: A Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

55) Which of the following BEST describes an example of marketing plan implementation? A) A marketing manager develops a target market. B) A marketing manager asks a lower level manager to estimate total marketing costs for the coming year. C) A marketing manager performs quantitative research on a potential target market. D) A marketing manager assesses the best way to price a product for the target market. Answer: B Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 56) Which of the following BEST describes an example of marketing plan implementation? A) A marketing manager develops a linkage between promotion and communication. B) A marketing manager performs quantitative research on a potential target market. C) A marketing manager alerts her assistant that he has until the end of the quarter to assess the plan's outcomes. D) A marketing manager assesses the best way to price a product for the target market. Answer: C Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 57) Which element of marketing plan implementation has the problem of specificity? A) Responsibilities B) Budgets C) Control D) Timelines Answer: B Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

58) Which element of marketing plan implementation has the problem of justification? A) Responsibilities B) Budgets C) Control D) Timelines Answer: B Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 59) Which of the following is a key consideration when implementing a marketing plan? A) Link responsibility with authority. B) Determine the appropriate marketing mix core linkage. C) Review the balanced scorecard. D) Perform a marketing audit. Answer: A Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 60) Which of the following is helpful in overcoming difficulties in marketing plan implementation? A) Removing flexibility in timelines so employees deliver when the company needs them to. B) Assigning tasks to departments instead of individuals so more resources address the needed task as opposed to one individual. C) Creating flexible budgets. D) Maximizing the target market size so the plan has more flexibility. Answer: C Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

61) Your company decides it wants to begin optimizing costs, not just revenue. To do so, management asks you to scrutinize expenses and provide your reasoning for each. This is an example of A) zero-based budgeting. B) best practices. C) a marketing audit. D) reaction control systems. Answer: A Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 62) Which of the following statements on timelines is incorrect? A) Timelines for marketing outcomes can be both specific and flexible, depending on the outcome. B) The timeline to lower prices for non-seasonal items can be flexible. C) Timelines for marketing outcomes should involve short-term milestones to reach the long-term goal. D) It is ideal to address timeline deviations at the end of the year, so it can be done in a comprehensive manner Answer: C Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 63) Which of the following denotes a benefit of zero-based budgeting? A) It accurately predicts all marketing spending. B) It justifies every dollar spent on forthcoming marketing efforts. C) It relies on the company's previous budgeting rules. D) It minimizes marketing expenditures, which improves company profits. Answer: B Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

64) What is an advantage of zero-based budgeting? A) It's based on previous budget rules, which makes it easier to create. B) It doesn't require justification of each dollar spent, which makes it more flexible than most budgets. C) The accounting department leads the process, making it less strenuous on the marketing department. D) It forces new consideration of marketing tools and tactics to be used in the period, making it more relevant for decisions making. Answer: D Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 65) Nicole's team had spent weeks researching the market and planning to launch the new product. They had addressed all relevant Ps, Cs, linkages, and contingencies. As the manager, Nicole then took the lead in assigning who should be responsible, and she approved the budget. What's left before they can call the planning process complete? A) Making sure everyone in the firm has a copy of the plan and understands it B) Establishing deadlines for each task C) Creating some way for the team to observe the launch D) Protecting the plan from competitors learning what's in it Answer: B Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 66) Josie was frustrated to the point of quitting because she was required to update the website on a daily basis, but she had to get approval from three managers before she could make changes. This is an example of a problem in marketing plans known as A) assigning responsibility without authority. B) going beyond core competencies. C) maintaining unnecessary network security. D) discrimination against classes of employees. Answer: A Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application

67) Paul had created a marketing plan for the product he was managing, and due to the uncertainties in the marketplace, he suggested a budgetary range instead of a detailed budget. The CMO sent it right back most likely because the plan A) did not contain enough justification about how to minimize the uncertainties to justify the range. B) did not have a flexible but detailed budget. C) could not provide a proposed marketing return on investment without a realistic budget cost or investment. D) did not provide annual short-term goals within a longer-term, multi-year plan. Answer: B Diff: 2 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 68) Adam is the marketing manager for the dirt bikes division of Honda. Adam estimated that his divisional marketing budget for the year will be $2,000,000. He presents his budget to John, the divisional CFO. John reviews and tells Adam he needs to use zero-based budgeting. Considering John's direction, what is the most appropriate analysis for Adam? Consider each answer independently. A) Breaks down each expense, between commercials, trade shows, and online-advertising. The total of all of these ends up being $2,000,000 which should generate $2,000,000 in revenue. B) Adam benchmarks his budget against his biggest competitor, Kawasaki. Kawasaki sells more dirt bikes than Honda and spends around $1,800,000 a year on the division's marketing efforts. To outsell Kawasaki, Adam believes Honda will need a greater marketing investment. C) Knows that for every $10,000 dirt bike sold, Honda makes around $2,000. Adam performs an analysis and concludes that spending $2,000,000 on commercials and event advertisements should sell a little over 2,000 dirt bikes. D) Adam reviewed dirt bike sales for the last 5 years and noted that marketing was around 10% of sales. Management expects to sell $20,000,000 worth of dirt bikes this year. The $2,000,000 maintains a consistent marketing expense to sales ratio. Answer: C Diff: 3 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

69) You are a new marketing manager for an athletic wear company that traditionally sponsors a basketball tournament during Thanksgiving weekend. Your predecessor has always spent $250,000 on marketing at the event, which the company considers a yearly success. This year, with you as a new manager aboard, the finance and R&D departments are suggesting you cut that amount in half. What is the BEST way to respond? A) Keep the budget as is for now. Reassure them that you view marketing expenditures as investments. Vow to track this year's performance so that you have a clear idea of the return on marketing resource expenditures. You can then adjust future budgets, as needed. B) Keep the budget as is. Reassure them that company management—who continuously monitor marketing outcomes—has viewed the tournament as a successful campaign in prior years and has not asked for any changes. C) Reduce the budget as requested. Reassure them that the marketing department sees the company as a team. Vow to continuously monitor the effectiveness of the expenditures against strategic goals. D) To create flexibility and to appease the other departments, create a short-term budget using the lower amount and a long-term budget with the higher amount. Answer: A Diff: 3 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 70) After finalizing a budget and timeline, the manager must decide how to monitor and control A) implementation. B) modifications. C) outcomes. D) costs. Answer: A Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

71) Managers must also consider the ________ to implementation and control when making the three major decisions regarding monitoring and control. A) mechanisms B) barriers C) timeline D) elements Answer: B Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 72) A(n) ________ control system is probably still more common and involves preset evaluation points and standards. A) reaction B) steering C) informal D) formal Answer: A Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 73) A control system that involves preset evaluation standards is a(n) A) reaction control system. B) steering control system. C) informal control system. D) formal control system. Answer: A Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

74) A control system that is ongoing continuous monitoring approach is a(n) A) reaction control system. B) steering control system. C) informal control system. D) formal control system. Answer: B Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 75) An assessment of how a marketing tool or tactic is performing at a given moment is a A) point-in-time evaluation. B) marketing audit. C) continuing monitoring audit. D) marketing dashboard. Answer: B Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge 76) A continuous monitoring tool to link strategy, activities and performance in a graphic way that allows managers to quickly asses current performance on financial and nonfinancial measure is A) a balanced scorecard. B) a marketing dashboard. C) continuous monitoring. D) internal monitoring. Answer: A Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Knowledge

77) Brianna is a marketer working in a highly volatile market where daily and weekly goals are relevant and necessary. To ensure her plans are working and she can react, she will require A) a reactive control system. B) a steering control system. C) an interim control system. D) a flexible control system. Answer: B Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 78) Establishing the monitoring systems—either formal or informal—completes which critical work done earlier in the process? A) Investigating consumer behaviour B) Developing segmenting, targeting, and positioning C) Establishing goals and objectives D) Conducting marketing research Answer: C Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Comprehension 79) What tool would marketers use to judge how a plan is succeeding sooner than they would use a point-in-time evaluation? A) Continuous monitoring B) Informal monitoring C) Progressive monitoring D) Ad hoc monitoring Answer: A Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

80) It is difficult for a marketing plan to succeed without the help and cooperation of the entire organization. What is needed to make sure the organization supports the effort? A) Internal marketing B) A directive from the CMO C) A marketing dashboard for all employees D) Companywide incentive programs Answer: A Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 81) Which term is defined as the process of comparing your company to others to assess performance? A) Best practices B) Core competency C) Benchmarking D) Continuous monitoring Answer: C Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge 82) Which of the following is a tool for continuous monitoring of marketing performance? A) Marketing audit B) Marketing dashboard C) Benchmarking D) Sharing best practices Answer: B Diff: 1 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Communication Standard 2: Bloom's || Knowledge

83) Which of the following is one of the three major decisions that managers make regarding monitoring and control? A) Who should monitor the plan? B) Will our controls be formal or informal? C) How will our competitors respond to our strategy? D) What should our marketing goals look like? Answer: B Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 84) What is the primary difference between reaction control systems and steering control systems? A) The point at which managers make changes to the marketing plan implementation. B) The use of technology for monitoring and control. C) The types of goals being evaluated. D) The kinds of outcomes that help the company succeed. Answer: A Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 85) What is the primary difference between formal controls and informal controls? A) Competitive reaction B) The use of technology C) Proactivity versus reactivity D) Managerial input Answer: D Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

86) At a monthly meeting, the division head discusses the fast-paced important projects that are on the group agenda. She also praises Rebekkah for her successful work on an important project with an incredibly tight deadline. In this example, the department head is using a(n) A) benchmark. B) reaction control system. C) point-in-time evaluation. D) informal control. Answer: D Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 87) What is the BEST similarity between marketing audits and marketing research? A) The comprehensiveness of the assessment B) The people performing the task C) The ability to uncover problems D) The portion of the marketing mix studied Answer: C Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 88) What is the BEST similarity between marketing dashboards and balanced scorecards? A) The performance measurements tracked B) The employees monitoring the metrics C) The format of the presentation D) The currency of the metrics presented Answer: D Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

89) Which of the following most accurately describes barriers to successful marketing plan implementation and control? A) Internal politics provides opportunities to turn negative issues into positive results. B) Companies focused internally and not on customers tend to fail. C) Small companies tend to lack the functional departments and business units that encourage cooperation in marketing plan execution. D) Cross-functional work teams often decrease buy-in during implementation. Answer: B Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 90) All of the following are major questions that managers ask regarding monitoring and control EXCEPT A) "Will the monitoring and control approach be more proactive or reactive?" B) "How long will the process take to be completed successfully?" C) "What type of control mechanisms will be used?" D) "How will you know if the plan is working as it should?" Answer: B Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 91) If a sales manager at Best Buy implements a promotion because the quarterly sales are not where they need to be to reach the annual goal, what type of control system is he/she using? A) Steering control system B) Reaction control system C) Formal controls D) Informal controls Answer: B Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

92) Managers at Shoppers set daily goals of how many "Optimum loyalty cards" need to be opened each hour. What type of control system is being used? A) Steering control system B) Reaction control system C) Formal control system D) Informal control system Answer: A Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 93) All of the following are informal controls EXCEPT A) self-control. B) social control. C) process control. D) cultural control. Answer: C Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 94) Food Basics grocery store prides itself on lower prices because they employ less people to do the job. Food Basics employees are known as hard working to deliver the same service as larger grocery chains, what type of control is being used? A) Steering control system B) Reaction control system C) Formal controls D) Informal controls Answer: D Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

95) Juan had just been hired as a marketing assistant and on his first day, the human resources representative was introducing him to the heads of various areas as part of his on-boarding. When he met the head of operations, that manager said, "Another new person? The marketing area just spends money like it's going out of style, while I can't get needed improvements." What kind of barrier to the success of the marketing plans has Juan just encountered? A) Bureaucracy B) Corporate resistance C) Inward-focused marketing philosophy D) Internal politics Answer: D Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 96) Hudson's Bay Company department store cannot exceed a dollar threshold on Boxing Day advertising to ensure a return on their investment. What type of control is being used? A) Steering control system B) Reaction control system C) Formal control system D) Informal control system Answer: C Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 97) The Keg comparing their quality and price to Casey's is what type of evaluation method? A) Benchmarking B) Best practices C) Formal Controls D) Informal Controls Answer: A Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

98) Online shopping sites adopting the idea of free shipping on orders over a certain dollar threshold from Wayfair.com (one of the original companies to introduce it) is known as A) benchmarking. B) best practices. C) formal controls. D) informal controls. Answer: B Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 99) How could Shoppers evaluate why Optimum card sales were up during a particular hour as opposed to another? A) Using benchmarking B) Using point-in-time evaluation C) Using a marketing audit D) Using best practices Answer: B Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 100) Who is NOT a potential barrier when implementing a marketing plan? A) Employees B) Functional groups within the company C) Customers D) Marketing department Answer: C Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis

101) A company has a marketing department that has created a marketing plan but there isn't buy in from the employees nor the customers, what type of barrier is this company facing? A) Bureaucracy B) Internal politics C) Lack of marketing philosophy D) Inward-focused marketing department Answer: C Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 102) When a company focuses on a marketing plan that will help internally instead of their customers externally, which barrier is the company facing? A) Bureaucracy B) Internal politics C) Lack of marketing philosophy D) Inward-focused marketing department Answer: D Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 103) Which of the following is one of the two commonly used point-in-time evaluation methods? A) Marketing research B) Marketing control C) Marketing evaluation D) Third-party marketing Answer: A Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

104) All of the following are best practices that companies can adopt from other companies or other business units/departments EXCEPT A) shared processes. B) shared knowledge. C) shared services. D) shared expertise. Answer: C Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 105) Stephanie had completed her first marketing plan, and she was pleased to see that it was working. She was looking forward to working with the team again on another project. While there were no specific goals for what constitutes success in the plan, her attitude was clearly an indication of which marketing controls tool? A) Formal controls B) Engagement controls C) Empowerment controls D) Informal controls Answer: D Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 106) Sheila was mentoring newly hired Alison and described to her how information technology had made marketing both harder and easier. After discussing how hard brand management is now, Sheila went on to describe how IT has made one marketing area easier and more effective. Which area was she likely discussing? A) Establishing measurable goals and objectives B) New product development C) Informal controls D) Formal controls Answer: D Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Analysis 38

107) Ethan was pleased that his product had posted a 5% growth rate in sales over the past year, until he found out his three largest competitors had all experienced double-digit growth rates. What process could have been used to identify his lack of success? A) Environmental scanning B) Formal controls C) Benchmarking studies D) Corporate intelligence gathering Answer: C Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 108) At fiscal year-end, you note that your relative market share has decreased slightly from prior years. You decide to make some changes to your promotion investments. This is an example of a A) reaction control system. B) steering control system. C) best practice. D) marketing audit. Answer: A Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 109) Before hiring an outside vendor, you are required to seek price estimates from three different companies. You also must seek management approval for any quote over $1 million. These are examples of A) formal controls. B) informal controls. C) benchmarking. D) best practices. Answer: A Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 39

110) Your company has just instituted a policy requiring each employee, regardless of position, to take one customer service call per day. The goal is to promote a customer-centric focus throughout the workforce. To ensure that all employees comply, the company offers a financial incentive to those who take calls for 30 consecutive workdays. This is an example of A) internal marketing. B) internal politics. C) informal controls. D) inactive compliance. Answer: A Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Application 111) David and Katya were talking about the problems with the product they were marketing. Sales were declining, but they were not sure where the market was heading. David was convinced this was a short-term dip, and he was looking into various control mechanisms. Katya was equally convinced that there were fundamental problems with their approaches. What would Katya propose to determine if the marketing efforts were appropriate? A) Quantitative marketing research B) Combined formal and informal controls C) Benchmarking studies D) A marketing audit Answer: D Diff: 3 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

112) The Chief Marketing Officer of Yeti is performing an analysis. During her review, she determines that, while customers are willing to pay higher prices for Yeti products, they believe they're difficult to find in most stores, and require more driving relative to substitute products. She also discovers that part of the appeal of Yeti products is that customers feel as though they're a part of something bigger than themselves by owning a Yeti product. Which best describes the Chief Marketing Officer's efforts? A) She had performed a marketing audit of the Positioning and Place-Convenience Marketing Areas. B) She had performed a marketing audit of the Promotion-Communication and Place-Convenience Marketing Areas C) She had performed a continuous monitoring activity by reviewing the marketing dashboard. D) She had performed a point-time monitoring activity by reviewing the marketing dashboard. Answer: B Diff: 3 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 113) Edward had been producing detailed reports including ratios, statistics, actual and budget numbers, and so on, broken down by region. Using Excel made this easier, but the CMO was growing increasingly frustrated. "I need to be able to tell the CEO whenever she calls just how we are doing. I can't wade though pages and pages of numbers. These are probably accurate but who can tell?" What would help the CMO, and Edward, too? A) A marketing performance index B) A marketing dashboard C) Continuous sampling D) Instantaneous monitoring Answer: B Diff: 3 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

114) Despite the continued profitability of her product, Heather was getting questions from external and internal groups about the broader performance and what will happen in the future. These questions had been coming up for years, and she had commissioned ad hoc marketing research whenever she got real resistance. Now, she was getting new questions all the time. She can't do it all herself. What tool does she need to be able to meet the demands of the different constituencies? A) A 360° analysis B) Continuous research C) A marketing dashboard D) A balanced scorecard Answer: D Diff: 3 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 115) You are the new marketing manager for an amusement park. When you arrived, budgets and timelines for marketing activities were in place. Your most urgent job is to monitor and control marketing plan implementation. Customer feedback reveals that guest relations is a problem, leading many consumers to choose other activities. What is the BEST way to move forward in your job? A) Compare your park to similar others. Study those who excel at guest relations and apply their best practices. Create new policies or guidelines as needed and find ways to influence current employees to better handle guests. B) Stop reacting to customer feedback and be proactive about creating a park that excites consumers and provides excellent customer relations. C) Compare your park to similar others. Study those who excel at guest relations and create new ways of achieving the same outcomes. Employees and guests traditionally do not respond well when businesses merely copy activities of others. D) Use formal controls to enforce better guest relations from the current staff. Those who cannot or will not comply should be terminated. Use informal controls to influence remaining employees to better handle guests. Answer: A Diff: 3 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation

116) You are the new marketing manager for a very successful auto dealership. Budgets and timelines for marketing activities are in place. The dealership traditionally has used continuous monitoring tools to assess marketing tactics. Which of the following is most appropriate? A) As marketing manager, use the company dashboard to study data for operational activities. B) As a member of management, use the company's balanced scorecard to track progress toward strategic goals. C) Suggest that the company perform a marketing audit to look for potential marketing problems. D) Suggest that the company use point-in-time evaluations in order to see marketing outcomes sooner. Answer: A Diff: 3 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Evaluation 117) You're the Chief Marketing Officer of Thin-it, a new company that specializes in making extra thin wallets. So far, your company has not established distribution with retail stores and limited online sales. In fact, most sales come from sales made at trade shows and similar events. It's budgeting season at Thin-it and you've been asked by the Chief Financial Officer to create a zero-based budget using the following information: • Trade shows result in sales of 100 wallets per show. • Wallets sell for $10 and cost $2 to make. • Attending trade shows cost around $300 per show. • Thin-it can attend four trade shows per month. • Being admitted to trade shows requires pitching your product to trade show administrators. These "pitches" and the materials used for them require funds from the marketing budget. Create the marketing budget and write what you would say to the Chief Financial Officer when you present your budget. Answer: Responses will vary, but a general guideline for an appropriate and well thought out budget is as follows: "We can make $8 per wallet ($10-$2) and sell 100 wallets per trade show, which means we can make $800 in wallet sales. Minus the $300 per show and we profit $500 from each show. At 4 shows per month, we can make $24,000 in gross profit per year. So, whatever funds we need to cover non-marketing and non-product costs (salary, rent, utilities) and create enough profit should be subtracted from the $24,000, what's leftover is our budget to pitch to trade show administrators." Diff: 3 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis

118) It has been stated that a difficulty with budgeting is the problem of specificity. Explain why this is a problem. Do you agree or disagree? Answer: Budgets are spending plans created before the spending occurs, making it difficult to predict actual spending required. Costs can change. Deciding to advertise via radio in December might be less than needed in July when implementing the plan. Second, in some cases, the spending amount might change because original estimates were not accurate. For example, if you offer a $10 coupon to encourage customers to buy accessories and estimate only 10% of those who buy accessories will use the coupon, you can see that the cost of the sales promotion will increase dramatically if coupon usage is 20% instead of the predicted 10%. [Content on page 300 may be helpful to the student for this question.] Diff: 3 Learning Objective: 15.2 Identify the primary implementation directives to include in the marketing plan. Section Reference: Finalizing the Marketing Plan Implementation Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation 119) What are marketing dashboards and what do they provide insight into? Provide an example. Answer: Responses will vary, but should include points such as marketing dashboards provide a quick glance at performance measures to determine if tasks are on target. Elements in the dashboard should match the level and measures appropriate for the tasks and management need. For example, the Chief Marketing Officer might want a quick glimpse at sales (relative to goals), marketing spending, budgets (spending relative to estimates), and might want each of these measures separated by brand. Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis 120) Explain what formal controls are and provide an example. Answer: Responses will vary, but should include general discussion of the following points: Formal controls are rules, policies, or guidelines defined by management tied to marketing activity inputs, processes required to implement the activities, or desired outputs of the activities. For example, management might limit ad spending for a specific project (input control), require at least two quotes for any spending of over $30,000 (process controls), and set specific sales and profit targets (output controls). Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

121) What is continuous monitoring and what does it allow marketing managers to do? Provide an example. Answer: Responses will vary, but should include a general discussion of the following points: Continuous monitoring allows managers to see marketing outcomes sooner than point-in-time evaluations. For example, if a sales promotion is not working effectively—say it is losing money, then continuing the sales promotion will only lose more money. Similarly, identifying tactics that are working effectively sooner provides the manager with the opportunity to increase the investment in something that works well to increase the return on the marketing investment. Diff: 2 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Analysis

122) Describe two common barriers to implementation and how managers can overcome these. Answer: Responses will vary. A sample response is as follows: 1. Incentives. Typically, the company either offers incentives (financial or other) or threatens potential penalties if the employee does not cooperate appropriately when assigned a task. Reward-based incentives such as recognition or some type of financial reward tend to work best. Companies can use this barrier as an advantage. Importantly, employees want to feel appreciated, so, the incentive doesn't necessarily have to be significant to the company in terms of cost. 2. Functional divisions. Sometimes functional divisions get in the way of cooperation when implementing a plan. Often, this results from goal incongruence amongst the divisions which creates a lack of buy-in. The best way to combat this is incorporate cross-functional teams into the marketing process from the beginning. Doing so gives the non-marketing functions "skin in the game" early as opposed to forcing marketing related tasks on them when they had no say in creating and developing the tasks. Ideally, these teams can also be incentivized with a reward. 3. Internal politics. Perhaps one manager preferred a different plan or has an interest in the current plan. In such cases, power struggles often occur. Combating internal politics starts with setting the tone at the top. Another important factor is for managers to create open lines of communication between each other and divisions and have feedback on their effectiveness in doing so be a part of their annual performance review. 4. Inward-focused marketing department. In some cases, the marketing department is actually a barrier to implementing a marketing plan. The senior manager of the marketing department should drive the process based on customer needs. The person in charge of the marketing manager, perhaps it's the Chief Operations Officers, should ensure customer-focus drives the marketing process. Moving up the ladder, The Chief Executive Officer should ensure the COO knows a customer focus is key. Ultimately, the right marketing focus starts at the very top. Otherwise, this barrier will be difficult to combat. Diff: 3 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Reflective Thinking Standard 2: Bloom's || Synthesis

123) One option for measuring marketing effectiveness is to use point-in-time evaluations. Explain point-in-time evaluations and discuss about how marketers use them. Answer: Responses will vary but should include a general discussion of the following: Point in-time evaluations are assessments of how a marketing tool or tactic is performing at a given moment. Marketers use point-in-time evaluations to assess current tactic performance to uncover problems or to provide periodic checkups to make sure there aren't any hidden issues. [Content on page 302 may be helpful to the student for this question.] Diff: 3 Learning Objective: 15.3 Describe the key control measures used to assess marketing effectiveness in the short and long term, and identify potential barriers to implementation and control. Section Reference: Finalizing the Marketing Plan Evaluation and Control Mechanisms Standard 1: AACSB || Analytic Standard 2: Bloom's || Evaluation