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Principles of Marketing 13th Edition, Kotler Test Bank

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Test Bank For Principles of Marketing 13th Edition, Kotler. Note: This is not a text book. Description: ISBN-13: 978-0136079415, ISBN-10: 0136079415.

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Test bank Principles Marketing 13th Kotler & Armstrong

Chapter 1: Marketing: Creating and Capturing Customer Value
1) All of the following are accurate descriptions of modern marketing, EXCEPT which one?
A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers’ needs.
E) Marketing is used by for-profit and not-for-profit organizations.
2) According to the opening scenario, the Tide marketing team is MOST concerned about which of the following?
A) maintaining its brand share
B) fostering customers’ emotional connections with their product
C) advertising their product’s benefits
D) comparing the effectiveness of their product to other brands
E) incorporating consumer-generated marketing in the marketing mix
3) According to management guru Peter Drucker, “The aim of marketing is to .”
A) create customer value
B) identify customer demands
C) make selling unnecessary
D) set realistic customer expectations
E) sell products
4) is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.
A) Selling
B) Advertising
C) Bartering
D) Marketing
E) Negotiating
5) Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships?
A) the first two only
B) the first three only
C) the first four only
D) the last three only
E) the last four only
6) According to the simple five-step model of the marketing process, a company needs to
before designing a customer-driven marketing strategy.
A) determine how to deliver superior value
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct key components of a marketing program
7) are human needs as shaped by individual personality and culture.
A) Needs
B) Wants
C) Demands
D) Values
E) Exchanges
8) When backed by buying power, wants become
A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges
9) What do companies call a set of benefits that they promise to consumers to satisfy their needs?
A) market offering
B) value proposition
C) demand satisfaction
D) need proposition
E) evoked set
10) Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
A) selling myopia
B) marketing management
C) value proposition
D) marketing myopia
E) the product concept
11) When marketers set low expectations for a market offering, the biggest risk they run is        .
A) disappointing loyal customers
B) decreasing customer satisfaction
C) failing to attract enough customers
D) failing to understand their customers’ needs
E) incorrectly identifying a target market
12) is the act of obtaining a desired object from someone by offering something in return.
A) A value proposition
B) Exchange
C) Bribery
D) Value creation
E) Donation
13) A(n) is the set of actual and potential buyers of a product.
A) market
B) audience
C) group
D) segment
E) exchange
14) Consumer research, product development, communication, distribution, pricing, and service are all core activities.
A) exchange
B) marketing
C) management
D) production
E) customer relationship management
15) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
A) All customers will be delighted.
B) Customer-perceived value will increase.
C) Customer evangelists will become unpaid salespersons for the service or product.
D) Not all customers will be satisfied.
E) The company will need to follow up with a demarketing campaign.
16) In the case of excess demand, may be required to reduce the number of customers or to shift demand temporarily or permanently.
A) marketing
B) demarketing
C) value marketing
D) surplusing
E) negotiating
17) The art and science of choosing target markets and building profitable relationships with them is called .
A) marketing management
B) positioning
C) segmentation
D) selling
E) differentiation
18) Selecting which segments of a population of customers to serve is called
A) market segmentation
B) positioning
C) customization
D) target marketing
E) managing the marketing effort
19) Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs?
A) a money-back guarantee
B) low pricing
C) good customer service
D) a value proposition
E) an attribute
20) Which customer question is answered by a company’s value proposition?
A) “Why should I buy your brand rather than a competitor’s?”
B) “How does your brand benefit me and society?”
C) “What are the costs and benefits of your brand?”
D) “What kind of experience will I have with products and services associated with this brand?”
E) “What are the benefits of being a loyal consumer of your brand?”

Chapter 2: Company and Marketing Strategy: Partnering to Build Customer Relationships
1) Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment?
A) long-range planning
B) short-range planning
C) media planning
D) strategic planning
E) annual planning
2) When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing .
A) mission planning
B) values planning
C) strategic planning
D) business-portfolio planning
E) operations planning
3) Which of the following is the first step in strategic planning?
A) set objectives and goals
B) develop the business portfolio
C) define the company mission
D) plan marketing strategies
E) identify threats and weaknesses
4) Which of the following is NOT a step in the strategic planning process?
A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating all members of the value chain
5) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be?
A) objectives and goals
B) a mission statement
C) a business portfolio
D) marketing and functional strategies
E) operational strategies
6) should be market oriented and defined in terms of .
A) Annual plans; product needs
B) Strategic plans; company needs
C) Long-range plans; company needs
D) Mission statements; customers’ needs
E) Objectives; competitors’ threats
7) All of the following are accurate guidelines for a company’s mission statement EXCEPT
which one?
A) A mission statement should be realistic.
B) A mission statement should be narrow.
C) A mission statement should emphasize the company’s strengths in the marketplace.
D) A mission statement should be specific.
E) A mission statement should motivate employees.
8) A company’s mission statement serves as a statement of .
A) fact
B) values
C) purpose
D) financial goals
E) employee commitment
9) Which of the following is NOT a market-oriented business definition?
A) “to make the Internet buying experience fast, easy, and enjoyable”
B) “to sell tools and home repair and improvement items”
C) “to deliver low prices every day”
D) “to be the guardian of our customers’ financial dreams”
E) “to bring aspiration and innovation to every athlete in the world”
10) All of the following are examples of product-oriented mission statements, EXCEPT which one?
A) “We provide online services.”
B) “We run theme parks.”
C) “We sell shoes.”
D) “We sell lifestyle and self-expression; success and status; memories, hopes, and dreams.”
E) “We rent hotel rooms.”
11) Which of the following is the principle objective of a market-oriented mission statement?
A) to satisfy basic customer needs
B) to satisfy basic supplier needs
C) to satisfy basic stockholder needs
D) to satisfy basic owner needs
E) to satisfy basic partnership needs
12) Revlon has clearly defined its “mission” of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to next be turned into detailed that guide each level of the company.
A) sets of strategies
B) sets of tactics
C) product mixes
D) supporting objectives
E) sets of promotional tools
13) The collection of businesses and products that make up a company is called its .
A) strategic business unit
B) mission statement
C) strategic plan
D) business portfolio
E) operational factor
14) Which of the following can be a company division, a product line within a division, or sometimes a single product or brand?
A) a market B) the BCG C) an SBU D) a PLC E) a value delivery network
15) After management has identified the key businesses making up its company, what is the next step in portfolio analysis?
A) identifying businesses in which to invest
B) assessing the attractiveness of its SBUs
C) deciding whether to harvest any businesses
D) completing short-range planning
E) identifying SBUs
16) The best known product portfolio planning method was developed by _ .
A) the Boston Consulting Group
B) Philip Kotler
C) Harvard University
D) the SRI Consulting Firm
E) James P. Hess
17) Most portfolio analysis methods evaluate SBUs on two dimensions, namely and         .
A) market share; strength of the SBU’s position
B) market diversification; relative market share
C) market or industry attractiveness; strength of the SBU’s position
D) market growth rates; profits
E) market penetration; market development
18) In the Boston Consulting Group approach, attractiveness.
A) relative market share
B) market development
C) market penetration
D) market growth rate
E) market segmentation
19) In the Boston Consulting Group approach serves as a measure of company, strength in the market.
A) relative market share
B) market development
C) market diversification
D) market growth rate
E) market segmentation
20) The BCG growth-share matrix classifies four types off SBUs. They are          ,         ,          , and        .
A) product; price; promotion; placement
B) sales; market share; price; promotion
C) stars; cash cows; question marks; dogs
D) planning; implementing; leading; controlling
E) market penetration; market development; product development; diversification

Chapter 3: Analyzing the Marketing Environment
1) You are directed to study the actors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying?
A) the macroenvironment
B) the microenvironment
C) the marketing environment
D) the demographic environment
E) the global environment
2) Which of the following terms is used to describe the factors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers?
A) the marketing environment
B) the cultural environment
C) strategic planning
D) target markets
E) the marketing mix
3) You are directed to study the demographic, economic, natural, technological, political, and cultural factors that are larger societal forces affecting your company. What are you studying?
A) the macroenvironment
B) the microenvironment
C) the external environment
D) the marketing mix
E) the global environment
4) Which of the following is NOT a type of factor in a company’s macroenvironment?
A) demographic
B) economic
C) technological
D) competitive
E) political
5) All of the groups within a company are called the .
A) culture
B) diversity
C) internal environment
D) climate
E) range
6) Which type of organization helps companies to stock and move goods from their points of origin to their destination?
A) financial intermediaries
B) physical distribution firms
C) marketing services agencies
D) resellers
E) suppliers
7) Banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods and services are referred to as .
A) financial intermediaries
B) physical distribution firms
C) marketing services agencies
D) resellers
E) wholesalers
8) Currently, Diego Calabresa is employed by a firm that conducts marketing research and creates ads for other companies that help them target and promote their products to the right markets. Who is Diego’s employer?
A) a financial intermediary
B) a physical distribution firm
C) a marketing service agency
D) a reseller
E) a green marketer
9) A is defined as any group that has an actual or potential interest in, or impact on, an organization’s ability to achieve its objectives.
A) team
B) competitor
C) market
D) public
E) intermediary
10) Which of the following is NOT an example of the type of public that is part of a company’s marketing environment?
A) financial
B) media
C) government
D) citizen-action
E) marketing department
11) A radio station that carries news, features, and editorial opinions about your area is which type of public?
A) financial
B) media
C) citizen-action
D) local
E) government
12) A consumer organization, environmental group, or minority group has challenged your firm’s stand on a local issue. Your firm is being challenged by a public.
A) local
B) general
C) government
D) citizen-action
E) media
13) Workers, managers, and members of the board are all part of a company’s public.
A) general
B) internal
C) local
D) intermediary
E) market
14) Percy Original caters to a market of individuals and households that buys goods and services for personal consumption. Percy Original caters to a market.
A) business
B) reseller
C) government
D) consumer
E) marketing intermediary
15) Which type of market buys goods and services for further processing or for use in the production process?
A) business
B) reseller
C) wholesale
D) consumer
E) retail
16) Which type of market buys goods and services to produce public services or to transfer them to others who need them?
A) government
B) reseller
C) wholesale
D) consumer
E) retail
17) Rachel Patino works for a wholesale company called Distributors Unlimited. She is responsible for buying and selling goods at a profit to small retailers. What is her market?
A) business
B) reseller
C) wholesale
D) consumer
E) retail
18) Your marketing department is currently researching the size, density, location, age, and occupations of your target market. Which environment is being researched?
A) demographic
B) psychographic
C) economic
D) geographic
E) cultural
19) The three largest generational groups in America are the baby boomers, Generation Xers, and .
A) seniors
B) Millennials
C) teens
D) tweens
E) toddlers
20) As a group, _ are the most affluent Americans.
A) baby boomers
B) Generation Xers
C) the Millennials
D) echo boomers
E) seniors

Chapter 4: Managing Marketing Information to Gain Customer Insights
1) Despite the data glut that marketing managers receive, they frequently complain that they lack       .
A) enough information of the right kind
B) timely information
C) accurate information
D) reliable information
E) valid information
2) Which of the following statements is NOT true regarding information collected for marketers?
A) Many managers lack information of the right kind.
B) Most managers do not need more information.
C) Most managers need better information.
D) Many managers are burdened by data overload.
E) Managers have enough of the right information.
3) A marketing information system (MIS) consists of people and procedures to assess information needs, , and help decision makers analyze and against what they really use the information.
A) experiment to develop information
B) test market the information
C) develop the needed information
D) critique the needed information
E) question the needed information
4) A good MIS balances the information users would and what is .
A) need; like; feasible
B) like; can afford; needed
C) like to have; need; feasible to offer
D) need; can afford; useful
E) use; have to use; available
5) Marketers must weigh carefully the costs of additional information against the resulting from it.
A) organization
B) benefits
C) creativity
D) ethical issues
E) cost
6) Four common sources of internal data include the accounting department, operations, the sales force, and the
.
A) owners
B) stockholders
C) marketing department
D) competition
E) Web
7) Marketing information from which type of database usually can be accessed more quickly and cheaply than other information sources?
A) external
B) LexisNexis
C) Dun & Bradstreet’s
D) internal
E) Hoover’s
8) is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
A) Marketing data
B) Marketing intelligence
C) Sales management
D) Customer intelligence
E) Competitive intelligence
9) Which of the following statements regarding marketing intelligence is true?
A) The advantage of using competitive intelligence is negligible.
B) All marketing intelligence is available for free.
C) Marketing intelligence relies upon privately held information.
D) Marketing intelligence relies upon publicly available information.
E) Marketing intelligence gathering is more focused on gaining insights into consumer activities than competitors’ activities.
10) Which of the following is NOT considered a source of marketing intelligence?
A) suppliers
B) resellers
C) key customers
D) causal research
E) activities of competitors
11) Which of the following is NOT a potential source for marketing intelligence?
A) looking through competitors’ garbage
B) purchasing competitors’ products
C) monitoring competitors’ sales
D) collecting primary data
E) talking with purchasing agents
12) Through which of these sources of information is a competitor LEAST likely to reveal intelligence information?
A) annual reports
B) trade show exhibits
C) Web pages
D) press releases
E) internal marketing conferences
13) To combat marketing intelligence efforts by competitors, Unilever Corporation is now providing to employees.
A) competitive intelligence training
B) privacy blocks
C) protection
D) less information
E) a code of ethics
14) Which of the following is an example of a free online database that a company could access in order to develop marketing intelligence?
A) LexisNexis
B) ProQuest
C) Dialog
D) the U.S. Security and Exchange Commission’s database
E) Hoover’s
15) is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
A) The marketing information system
B) Marketing intelligence
C) Marketing research
D) Competitive intelligence
E) Causal research
16) What is the first step in the marketing research process?
A) developing a marketing information system
B) defining the problem and research objectives
C) developing the research plan for collecting information
D) implementing the research plan
E) hiring an outside research specialist
17) Which step in the four-step marketing research process has been left out of the following list: defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings?
A) developing the research budget
B) choosing the research agency
C) choosing the research method
D) developing the research plan
E) comparing and contrasting primary and secondary data
18) Causal research is used to .
A) test hypotheses about cause-and-effect relationships
B) gather preliminary information that will help define problems
C) uncover information at the outset in an unstructured way
D) describe marketing problems or situations
E) quantify observations that produce insights unobtainable through other forms of research
19) Managers often start with research and later follow with research.
A) exploratory; causal
B) descriptive; causal
C) descriptive; exploratory
D) causal; descriptive
E) causal; exploratory
20) Your colleague is confused about using the marketing research process, as he knows that something is wrong but is not sure of the specific causes to investigate. He seems to be having problems with , which is often the hardest step to take.
A) developing the research plan
B) determining a research approach
C) defining the problem and research objectives
D) selecting a research agency
E) C and D

Chapter 5: Consumer Markets and Consumer Buyer Behavior
1) is never simple, yet understanding it is the essential task of marketing management.
A) Brand personality
B) Consumption pioneering
C) Early adoption
D) Consumer buying behavior
E) Understanding the difference between primary and secondary data
2) The consumer market is made up of which of the following?
A) individuals who acquire goods or services for personal consumption
B) households that purchase goods or services for personal consumption
C) businesses that purchase goods and services
D) A and B
E) all of the above
3) Economic, technological, and cultural forces are all in the stimulus-response model of buyer behavior.
A) buyer responses
B) stimuli
C) components of the buyer’s decision process
D) buyer characteristics
E) buying attitudes
4) Most large companies research buying decisions to find out what they buy, where they buy, how and how much they buy, when they buy, and why they buy.
A) market
B) permanent
C) consumer
D) social
E) group
5) The starting point of understanding a consumer’s response to various marketing efforts is the
of a buyer’s behavior.
A) belief
B) subculture
C) postpurchase feeling
D) stimulus-response model
E) postpurchase dissonance
6) Marketing stimuli consist of the four Ps. Which is NOT one of these?
A) product
B) politics
C) price
D) promotion
E) place
7) The marketer wants to understand how the stimuli are changed into responses inside the consumer’s , which has two parts. First, the buyer’s characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyer’s decision process itself affects the buyer’s behavior.
A) culture
B) black box
C) belief
D) lifestyle
E) social class
8) In the model of buyer behavior, which of the following is NOT a major type of force or event in the buyer’s environment?
A) economic
B) technological
C) political
D) channel
E) cultural
9) is(are) the most basic cause of a person’s wants and behavior.
A) Culture
B) Brand personality
C) Cognitive dissonance
D) Societal factors
E) Selective perception
10) Marketers are always trying to spot in order to discover new products that might be wanted.
A) lifestyles
B) cultural shifts
C) groups
D) dissonance
E) attitudes
11) Each culture contains smaller , or groups of people with shared value systems based on common life experiences and situations.
A) alternative evaluations
B) cognitive dissonances
C) subcultures
D) motives
E) attitudes
12) Which of the following is NOT considered an important American subculture by marketers?
A) Hispanics
B) African Americans
C) mature consumers
D) opinion leaders
E) Asian Americans
13) This group of consumers tends to buy more branded, higher-quality products. and to make shopping a family event, with children having a big say in the purchase decision. In general, they are very brand loyal, and they favor companies who show special interest in them.
A) Hispanic
B) African American
C) Asian
D) mature
E) gay and lesbian
14) , the fastest-growing U.S. demographic segment, now number more than 45 million.
A) African Americans
B) Hispanics
C) Asian Americans
D) Mature consumers
E) Gays and lesbians
15) Although more price-conscious than other segments, consumers tend to be strongly motivated by quality and selection. Brands are important. They enjoy shopping and are more fashion conscious than other ethnic groups.
A) Hispanic
B) African American
C) mature
D) Asian
E) baby boomer
16) , the most affluent American demographic subculture, now have more than $450 billion in annual spending power.
A) Hispanics B) African Americans C) Asian Americans D) Gays and lesbians E) Gen Xers
17) are becoming a very attractive market: they are the ideal market for travel, restaurants, high-tech home entertainment products, and convenient services
A) Hispanics B) Asian Americans C) Mature consumers D) African Americans E) Teenagers
18) Which of the following is NOT true of mature consumers?
A) The best strategy is to appeal to their active, multidimensional lives.
B) They are an ideal market for “do-it-for-me” services.
C) High-tech home entertainment products appeal to them.
D) They place more importance on brand names and are more brand loyal than members of other age groups.
E) They are a good market for cosmetics and personal care products.
19) are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.
A) Social classes
B) Cultures
C) Reference groups
D) Attitudes
E) Lifestyles
20) What is one way that social class is NOT measured?
A) occupation
B) education
C) income
D) number of children in the family
E) wealth

Chapter 6: Business Markets and Business Buyer Behavior
1) In which of the following ways is GE like most other large companies?
A) It produces hundreds of products for a wide range of markets.
B) It has an entertainment division.
C) It has a finance division.
D) Most of its business comes from final consumers.
E) Most of its business comes from commercial and industrial customers.
2) As a purchasing agent, Benni Lopez buys goods and services for use in the production of products that are sold and supplied to others. Benni is involved in _.
A) consumer buying behavior
B) post-purchase dissonance
C) retail buyer behavior
D) business buyer behavior
E) interpretive business research
3) Business buying behavior refers to the buying behavior of organizations that buy all of the following EXCEPT .
A) products for use in production of other products
B) services for use in production of other services
C) products purchased to resell to others
D) products purchased to rent to others
E) products purchased for personal consumption
4) In one way or another, most large companies sell to                .
A) consumers
B) other organizations
C) employees
D) not-for-profit companies
E) the service sector
5) When compared to consumer markets, business markets are .
A) approximately the same
B) smaller
C) huge
D) somewhat larger
E) less complex
6) Which of the following is NOT a way that business and consumer markets differ?
A) market structure and demand
B) nature of the buying unit
C) satisfaction of needs through purchases
D) types of decisions
E) decision processes
7) There are many sets of purchases made for each set of purchases.
A) consumer; business
B) tangible; intangible
C) service; product
D) business; consumer
E) product; service
8) Which of the following is true about business marketers in comparison to consumer marketers?
A) They deal with far fewer but far larger buyers.
B) They deal with far more but far small buyers.
C) They deal with a more elastic market.
D) They deal with fewer demands in fluctuation.
E) They deal with the same decision buying process.
9) Hewlett-Packard and Dell buy Intel microprocessor chips because consumers buy personal computers. This demonstrates an economic principle called .
A) elastic demand
B) fluctuating demand
C) derived demand
D) joint demand
E) market demand
10) The Pure Drug Company produces insulin, a product with a very stable demand, even though the price has changed several times in the past two years. Insulin is a product with demand.
A) joint
B) service
C) inelastic
D) elastic
E) fluctuating
11) The demand for many business goods and services tends to change more, and more quickly, than the demand for consumer goods and services does. This is referred to as demand.
A) fluctuating B) derived C) inelastic D) elastic E) supplier
12) Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying decision process is more _ than the consumer buying decision process is.
A) formalized
B) creative
C) relationship-oriented
D) independent
E) concentrated
13) The owners of the company you work for have developed a core network of suppliers they are working closely with to ensure an appropriate and dependable supply of products. This is an example of management.
A) value chain
B) network relationship
C) channel captain
D) core channel
E) supplier development
14) Although there are many differences between business buying behavior and consumer buying behavior, both respond to the same four stimuli: product, price, promotion, and.
A) precision
B) personal relationships
C) place
D) publicity
E) packaging
15) In a typical organization, buying activity consists of two major parts: the buying
and the buying .
A) committee; time
B) time; reorder point
C) economic order quantity; reorder point
D) center; decision process
E) deciders; influencers
16) The buying center and the buying decision process are affected by all of the following factors
EXCEPT       .
A) internal organization factors
B) interpersonal factors
C) individual factors
D) external environmental factors
E) self-concept factors
17) Which business buying situation is the marketer’s greatest opportunity and challenge?
A) modified rebuy
B) straight rebuy
C) new task
D) multiple rebuys
E) system rebuy
18) In which type of buying situation would a supplier most likely focus on maintaining product and service quality?
A) straight rebuy B) modified rebuy C) new task D) systems task E) solutions task
19) You just lost a major account because a competitor provided the most complete system to meet the customer’s needs and solve the customer’s problems, and made the sale. In other words, the competition beat you with       .
A) solutions selling
B) team selling
C) cross-functional skill
D) customer relationship management
E) promotions
20) Another name for systems selling is selling.
A) solutions
B) blanket contract
C) vendor-managed inventory
D) negotiated contract
E) periodic purchase

Chapter 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers
1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing .
A) concentrated marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation
2) What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence
3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more with products and services that match their unique needs.
A) efficiently B) effectively C) intensely D) indirectly E) both A and B
4) Even though several options are available at any one time, there to segment a market.
A) is one single best way
B) is no single way
C) is a most effective way
D) are limited ways
E) are four ways
5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be segmentation.
A) geographic
B) benefit
C) end-use
D) customer
E) image
6) Pendergraff Pet Supplies divides the pet market according to the owners’ race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?
A) geographic B) behavioral C) lifestyle D) demographic E) psychographic
7) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it?
A) demographic
B) gender
C) psychographic
D) behavioral
E) geographic
8) Demographic variables are so frequently used in market segmentation because they .
A) create smaller segments than other methods do
B) create more easily reached segments than other methods do
C) do not involve stereotypes
D) are easy to measure in comparison to many other methods
E) involve fewer attributes to consider than other methods do
9) Marketers must be most careful to guard against which of the following when using age and life cycle segmentation?
A) underestimating
B) stereotyping
C) traditional marketing
D) cultural bias
E) gender bias
10) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation?
A) age and life cycle
B) gender
C) behavior
D) psychographic
E) geographic
11) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?
A) gender B) income C) occasion D) usage rate E) benefits sought
12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is segmentation.
A) behavioral
B) psychographic
C) age and life cycle
D) demographic
E) geographic
13) Many marketers believe that which of the following variables are the best starting point for building marketing segments?
A) behavioral B) family size C) gender D) age E) beneficial
14) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?
A) behavioral
B) psychographic
C) occasion
D) impulse
E) emergency
15) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called .
A) user status B) usage rates C) benefit D) behavior E) loyalty status
16) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by .
A) user status
B) loyalty status
C) store type
D) brand preference
E) usage rate
17) By studying its less loyal buyers, a company can detect which brands are most its own.
A) competitive with
B) used with
C) overlooked with
D) similar to
E) complementary to
18) Many firms make an effort to identify smaller, better-defined target groups by using      .
A) user rates
B) loyalty segmentation
C) multiple segmentation bases
D) positioning
E) mass marketing
19) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT .
A) operating characteristics
B) purchasing approaches
C) situational factors
D) personal characteristics
E) brand personalities
20) As in consumer segmentation, many marketers believe that and segmentation provide the best basis for segmenting business markets.
A) geographic; demographic
B) user status; user loyalty
C) benefits; buying behavior
D) age and life-cycle; psychographic
E) income; usage rate

Chapter 8: Product, Services, and Branding Strategies: Building Customer Value
1) We define a as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
A) private brand
B) service variability
C) service
D) product
E) service encounter
2) are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
A) Line extensions
B) Services
C) Brands
D) Consumer products
E) Supplements
3) A product is a key element in the . At one extreme, it may consist of pure tangible goods or at the other extreme, pure services.
A) market offering
B) brand equity
C) brand extension
D) co-branding
E) value chain
4) To differentiate themselves, many companies are going beyond products and services, they are developing and delivering customer .
A) quality
B) experiences
C) brands
D) product lines
E) eventss
5) Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the , which addresses the question, “What is the buyer really buying?”
A) actual product
B) augmented product
C) core customer value
D) co-branding
E) exchange
6) The third level of a product that product planners must consider is a(n) _ around the core benefit and actual product that offers additional consumer services and benefits.
A) brand equity
B) augmented product
C) brand extension
D) industrial product
E) image
7) Product planners must design the actual product and find ways to it in order to create the bundle of benefits that will provide the most satisfying customer experience.
A) promote
B) package
C) brand
D) augment
E) present
8) Products and services fall into two broad classifications based on the types of consumers that use them. Which is one of these broad classes?
A) industrial products
B) specialty products
C) supplies and services
D) materials and parts
E) convenience products
9) are products and services bought by final consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products.
A) Services
B) Consumer products
C) Line extensions
D) Industrial products
E) Straight extensions
10) are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons about these products.
A) Shopping products
B) Convenience products
C) Unsought products
D) Industrial products
E) Line extensions
11) are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
A) Shopping products
B) Unsought products
C) Specialty products
D) Industrial products
E) Line extensions
12) are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts.
A) Specialty products
B) Line extensions
C) Unsought products
D) Shopping products
E) Staples
13) are those products purchased for further processing or for use in conducting a business.
A) Unsought products
B) Specialty products
C) Shopping products
D) Industrial products
E) Accessories
14) Most manufactured materials and parts are sold directly to . Price and service are the major marketing factors; branding and advertising tend to be less important.
A) consumers
B) industrial users
C) brand extensions
D) co-branders
E) wholesalers
15) are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment.
A) Materials
B) Parts
C) Capital items
D) Specialty items
E) Supplies
16) consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization.
A) Person marketing
B) Organization marketing
C) Internal marketing
D) Service variability
E) Intelligence marketing
17) consists of activities undertaken to create, maintain, or change attitudes toward particular people.
A) Corporate image marketing
B) Person marketing
C) Social marketing
D) Organization marketing
E) Intermarket
18) involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, and regions.
A) Idea marketing
B) Place marketing
C) Organization marketing
D) Social marketing
E) Interactive marketing
19) is defined as the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well being and that of society.
A) Unsought product marketing
B) Internal marketing
C) Social marketing
D) Product line
E) Interactive marketing
20) Public health campaigns to reduce alcoholism, drug abuse, smoking, and obesity are all examples of .
A) specialty products
B) social marketing
C) shopping products
D) consumer products
E) responsibility marketing

Chapter 9: New-Product Development and Product Life-Cycle Strategies
1) What are the two ways that a company can obtain new products?
A) line extension and brand management
B) internal development and brand management
C) new-product development and acquisition
D) service development and product extension
E) market mix modification and research and development
2) Product improvements, product modifications, and original products can all be classified as .
A) pioneer products
B) new products
C) product concepts
D) product ideas
E) test products
3) Which of the following is NOT a potential reason for a new product to fail?
A) an underestimated market size
B) a poorly designed product
C) an incorrectly positioned product
D) higher than anticipated costs of product development
E) ineffective advertising
4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face?
A) All products eventually decline.
B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages.
C) A firm must be good at developing new products to replace aging ones.
D) A firm must be good at adapting its marketing strategies.
E) It is difficult to plot the stages as a product goes through them.
5) The creation of a successful new product depends on a company’s understanding of its and its ability to deliver to customers.
A) competitors, distributors, and employees; new styles
B) customers, brands, products; product images
C) customers, competitors, and markets; superior value
D) product, marketing mix, and marketing strategy; functional features
E) product life cycle, legal responsibilities, and social responsibilities; innovations
6) New product development starts with .
A) idea generation
B) idea screening
C) concept development
D) concept testing
E) test marketing
7) Executives, manufacturing employees, and salespeople are all examples of .
A) external sources for new-product ideas
B) internal sources for new-product ideas
C) core members of innovation management systems
D) research and development team members
E) new-product committee members
8) Your company decides to use internal sources for developing new product ideas. Which of the following would NOT be consulted?
A) executives and professionals
B) company records and data
C) intrapreneurial programs
D) suppliers
E) salespeople
9) Which of the following is perhaps the most important external source of new-product ideas?
A) engineers
B) customers
C) competitors
D) trade magazines, shows, and seminars
E) distributors and suppliers
10) Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas?
A) analyzing customer complaints and questions
B) relying heavily on customers to know what types of technical products they need
C) working alongside customers to get ideas and suggestions
D) turning customers into cocreators
E) putting customer-created products on the market
11) Your firm asks you to consult external sources for new product ideas. All of the following are common external sources EXCEPT .
A) customers
B) suppliers
C) competitors
D) trade shows and magazines
E) the firm’s executives
12) The purpose of idea generation is to create a number of ideas. The purpose of succeeding stages is to that number.
A) small number; reduce
B) small number; increase
C) large number; increase
D) large number; reduce
E) limited number; sustain
13) GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called _, to arrive at a realistic number to adopt.
A) business analysis
B) idea generation
C) concept testing
D) idea screening
E) concept development
14) Which of the following is most likely to be included in an executive’s write up of a new- product idea to be presented to a new-product committee?
A) the proposed customer value proposition
B) the product image
C) the marketing strategy
D) the business analysis
E) the planned marker rollout
15) A detailed version of a new idea stated in meaningful customer terms is called a .
A) product idea
B) product concept
C) product image
D) product proposal
E) product movement
16) A is the way consumers perceive an actual or potential product.
A) product idea
B) product concept
C) product image
D) test market
E) concept test
17) An attractive idea must be developed into a .
A) product idea
B) product concept
C) product image
D) test market
E) product strategy
18) calls for testing new-product concepts with groups of target consumers.
A) Concept development
B) Concept testing
C) Idea generation
D) Idea screening
E) Test marketing
19) In the concept testing stage of new-product development, a product concept in form is presented to groups of target consumers.
A) physical or symbolic
B) prototype
C) final
D) market-tested
E) commercial
20) With what groups do firms conduct concept testing for new products?
A) suppliers
B) employees
C) target customers
D) manufacturers
E) competitors

Chapter 10: Pricing Products: Understanding and Capturing Customer Value
1) is the amount of money charged for a product or service.
A) Experience curve
B) Demand curve
C) Price
D) Wage
E) Salary
2) Price is the only element in the marketing mix that produces .
A) revenue
B) variable costs
C) expenses
D) outfixed costs
E) stability
3) is an important element in the marketing mix. It is the only element that does not represent costs.
A) Current profit maximization
B) Market share leadership
C) Price
D) Product quality leadership
E) The target market
4) Consumer perceptions of the product’s value set the for prices.
A) demand curve
B) floor
C) ceiling
D) variable cost
E) image
5) Product costs set a(n) to a product’s price.
A) demand curve
B) floor
C) ceiling
D) break-even cost
E) experience curve
6) Which of the following is a customer-oriented approach to pricing?
A) value-based pricing
B) sealed-bid pricing
C) break-even pricing
D) target profit pricing
E) C and D
7) uses buyers’ perceptions of what a product is worth, not the seller’s cost, as the key to pricing.
A) Value-based pricing
B) Value-added pricing
C) Variable cost
D) Price elasticity
E) Product image
8) In , price is considered along with the other marketing mix variables before the marketing program is set.
A) value-based pricing
B) cost-based pricing
C) variable costs
D) price elasticity
E) building the marketing mix
9) Value-based pricing is the reverse process of .
A) variable cost pricing
B) cost-plus pricing
C) cost-based pricing
D) good-value pricing
E) value-added pricing
10) With , price is set to match consumers’ perceptions of product value.
A) variable cost pricing
B) cost-plus pricing
C) cost-based pricing
D) value-based pricing
E) every day low pricing
11) Measuring can be difficult. A company might conduct surveys or experiments to test this in the different products they offer.
A) price elasticity
B) the demand curve
C) perceived value
D) break-even pricing
E) quantity supplied
12) Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the _ level.
A) perceived
B) value-based
C) variable
D) demand curve
E) price-floor
13) If a seller charges than the buyer’s perceived value, the company’s sales will       .
A) more; benefit B) more; suffer C) less; increase D) less; suffer E) none of the above
14) Some companies have adopted a strategy, offering just the right combination of quality and good service at a fair price.
A) value-based pricing
B) good-value pricing
C) cost-plus pricing
D) low-price image
E) none of the above
15) Wal-Mart is famous for using what important type of value pricing?
A) competition-based pricing
B) everyday low pricing
C) cost-plus pricing
D) break-even pricing
E) penetration pricing
16) involves charging a constant, everyday low price with few or no temporary price discounts.
A) High-low pricing
B) Target pricing
C) Cost-plus pricing
D) EDLP
E) Penetration pricing
17) involves attaching features and services to differentiate a company’s offers and to support charging higher prices..
A) Break-even pricing
B) Target pricing
C) Value-added pricing
D) Cost-plus pricing
E) Pricing-down
18) is a company’s power to escape price competition and to justify higher prices and margins.
A) Variable cost B) Pricing power C) Target cost D) Fixed cost E) Unit cost
19) To maintain and increase a company’s , a firm must retain or build the value of its marketing offer.
A) variable cost B) pricing power C) target cost D) fixed cost E) image
20) When there is price competition, many companies adopt rather than cutting prices to match competitors.
A) pricing power B) value-added strategies C) fixed costs D) price elasticity E) image pricing

AND MUCH MORE