Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona E

Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Chapter 1 Marketing and the Organization 1) Which answer best describes the marketing concept?

A) Companies maximize sales by promoting their products and services B) Company profits relate directly to the sales of their products C) Companies achieve their profits through the satisfaction of the consumer D) Companies sell their products to specific target markets

2)

is concerned with inputs ands outputs. It involves producing goods economically and doing things right.

A) Deficiency B) Efficiency C) Effectiveness D) Reliability

3) Once a product has been bought, customer satisfaction depends upon its perceived

performance compared to a buyer's A) expectations B) income C) efficiency D) effectiveness

.

4) Making marketing work requires much planning and effort across an organization.

Fundamentally, marketing planning functions at two levels: at a product/service level.

A) competitor B) business C) price D) distributor

level and at a

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

5) At the heart of the marketing planning process is the marketing

, which pulls together the planning process and defines the application of the marketing mix.

A) mix B) concept C) matrix D) strategy

6) The management of a production-orientated company focuses on A) having a wide range of products B) becoming cost-focused C) better customer satisfaction D) defining the business in marketing terms

.

7) Which of the following corporate goals suggests a market driven business?

A) A search for latent markets B) Maximum production efficiency C) Limited market research D) Relying on price and performance as a key to sales success

8) In response to the assertion that 'most new products fail' a market-driven organization would

most likely choose which response?

A) Not if enough money and time is invested on development B) Therefore we must continue to concentrate on our successful markets C) That depends on the level of sales support offered D) Even so we must continue to reward the development of new products

9) Which of the following concepts is not a direct component of the marketing mix?

A) Principle B) Product C) Price D) Promotion

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

10) In Narver and Slater's study of the relationship between marketing and business performance,

which measure was not used to assess market orientation?

A) Price orientation B) Customer orientation C) Competitor orientation D) Interfunctional coordination

11) Booms and Bitner argue that the 4Ps framework is not suitable for services marketing and

that a 7Ps approach is more suitable, which considers people, processes and evidence A) physical B) promotional C) political D) psychological

12) There is a major strike in your delivery firm. As a result all your products will arrive late and

out of date for your customer. Which of the 4Ps does this problem directly relate to?

A) Product B) Place C) Price D) Promotion

13) Within marketing-orientated companies, employees who take development risks or make

uncalled for innovations should be .

A) reprimanded B) asked to undertake psychological 're-programming' C) rewarded D) transferred to the marketing department

14) In order for a company to apply itself to the modern marketing concept, which of the

following goals is not central to that specific task?

A) The integration of the marketing concept throughout the corporate structure B) A shift from producer to customer emphasis C) An increased awareness of production and distribution costs D) Satisfied customers become the essential corporate goal

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

15) Which of the following corporate goals belongs to an internally-orientated company?

A) A rapid reaction to market stimuli B) A high level of investment in consumer research C) Market segmentation by product D) Innovations and new approaches encouraged

16) Which of the following corporate activities does not fit within the concept of market-driven

management?

A) Information gathering B) High levels of internal communication C) Developing implementable sales strategies D) Developing a highly structured, independent marketing department

17) One of the criticisms made about the 4-Ps' approach to marketing is that A) the concept fails to address the issue of distribution B) price should be given higher priority within the 4-Ps C) promotion should be divided into advertising and direct mail sections D) the concept is over simplistic in its approach to marketing

.

18) Recent studies have found a positive relationship between market orientation and business

. Market orientation has been found to have a positive effect on sales growth, market share and profitability.

A) control B) performance C) cooperation D) analysis

19) What is the basic premise of the marketing concept?

A) Meeting and exceeding customer needs better than the competition will improve

business performance B) Success lies in employing a forceful sales team C) A need to sell more products D) That to market efficiently managers must co-ordinate their efforts with the production department

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

20) Which of the following statements does not adhere to a modern marketing concept?

A) A set of specific goals B) An aim to meet and exceed customer needs C) An emphasis on producing the best possible product D) A competitive approach to the market

21) Which of the following best describes the creation of customer value?

A) If a product or service is cheap enough customers will value it B) A convincing salesperson can persuade a customer that anything is valuable C) Customers must perceive value in the benefits offered by a product or service D) If a new product or service is clever customers will value it

22) From a marketing perspective change is viewed as .

A) a continual threat to production levels B) central to the survival of the firm C) an obstacle to success that should be avoided if possible D) a problem primarily only for senior management

23) When faced with intensive competition, which reaction is most important to a company's

performance in a market driven business?

A) Ignore the competition B) Greater interest in latent markets C) A continued belief in existing products D) Lower production costs to increase profits

24) Which of the following is not an accepted approach towards marketing?

A) Marketing is an independent unit B) Marketing is an ideology C) Marketing is an orientation D) Marketing is a concept

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

25) Strategically, product, price, place and promotions are factors that can be used in order to

gain

advantage over competing firms.

A) competitive B) financial C) customer D) global

26) Which of the 4-Ps is related only to logistical considerations?

A) Product B) Price C) Place D) Promotion

27) All of the following are limitations of the marketing concept, except A) over simplified framework B) constraint on innovation C) customer focussed business philosophy D) source of dullness

.

28) Which of the following is not an indication of marketing success?

A) Corporate profitability B) Market share C) Improved economies of scale D) Share price

29) Which of the following is not a valid criticism of the marketing concept?

A) Often disregards the importance of the customer B) Views the customer on an individualistic basis C) May discourage major innovation D) Ignores the societal impact of purchases

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

30) Building relationships is central to marketing. Which of the following are likely benefits?

A) Customers return to re-purchase from the firm B) Cheap products or services will attract customers C) Sales promotions can always persuade a customer to buy a product or service D) Greater profitability from each individual sale

31) What would be the most likely outcome for an effective yet inefficient company?

A) Survival B) Rapidly out of business C) Slow death D) Thrives

32) Which of the following attributes is not central to a market-driven organization?

A) Skills in understanding customers B) Market-led strategy C) Product performance is key to success D) Implementable marketing plans

33) Which of the following is not beneficial to a marketing-orientated business?

A) Welcoming change B) Striving for competitive advantage C) An investment in market research and tracking market changes D) The creation of a tightly defined, independent marketing department

34) Which of the following is likely to influence the price of a product?

A) Perceived value by the customer B) Promotional expenditure C) Negotiation margin D) All of the above may influence price

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

35) Which of the following factors is most likely to constrain the marketing effort by a firm?

A) Strong and efficient marketing staff B) Financial resources C) Company location D) All of the above

36) Customer value equals _ .

A) maximum benefits minus maximum costs B) actual benefits minus actual sacrifice C) perceived benefits minus perceived sacrifice D) mean benefits minus mean costs

37) Perceived sacrifice is the sum of .

A) monetary, time, energy and locational costs B) monetary, time, energy and psychological costs C) pricing, place, promotional and product costs D) energy, pricing, locational and psychological costs

38) Adopting a long term strategic perspective on markets and brands is a characteristic of a

.

A) product orientated company B) marketing orientated company C) sales orientated company D) internally orientated company

39) Businesses that are driven by the market base their segmentation analysis on A) customer differences that have implications for marketing strategy B) the product C) previous sales performance D) profit expectation

.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

40) Which of the following is not one of the main characteristics of the Kano model?

A) ‘Must be' B) ‘More is better' C) ‘Wants' D) ‘Delighters'

41) Which of the following is not beneficial to a marketing-orientated business?

A) Welcoming change B) Striving for competitive advantage C) An investment in market research and tracking market changes D) The creation of a tightly defined, independent marketing department

42) Making marketing work requires much planning and effort across an organization.

Fundamentally, marketing planning functions at two levels: at a product/service level.

A) competitor B) business C) price D) distributor

level and at a

43) Marketing has a central role to play in business success and focuses managers' attention on

attracting and keeping

.

44) To what extent do you think the marketing concept is actually implemented in most firms?

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

45) Describe the difference between efficiency and effectiveness, and explain their role in the

future success of the firm.

46) Compare the concepts of customer value and corporate profit. To what extent are they in

conflict?

47) Discuss the key characteristics of a marketing-oriented company and explain how this

orientation differs from a company using a production orientation.

48) Explain how marketing-orientated companies go about creating customer value. Illustrate

your answer with examples.

49) Describe the elements of the classic marketing concept model.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

50) “Another perspective on business philosophy can be gained by understanding the distinction

between efficiency and effectiveness.” Discuss.

51) What is most likely to happen to a company that is efficient, yet ineffective?

A) The company dies slowly.

B) The company goes out of business quickly.

C) The company survives.

D) The company thrives.

52) According to Drucker (1999), the basic function of marketing is ...

A) To attract and retain customers at a profit B) To attract customers at a profit C) To retain customers at any price D) To attract and retain customers at any price

53) The basic function of marketing is to ... and ... customer at a profit.

54) The costs of attracting new customers have been found to be up to ... times the costs of

retaining current ones.

A) six B) ten C) three D) eight

55) Provide the definition of marketing according to Grönroos.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

56) Why is it important to not only understand what customers want but also what competitors

provide?

A) Because customers may switch to rival suppliers when they have an offer that suits their needs better.

B) Because companies need to do the same as their competitors.

C) Because the competition is strong.

D) There is no need to understand competitors offering.

57) How has the growth of the digital economy affected marketing practices?

A) It has increased opportunities to gather, analyze and exploit customer data.

B) It has influenced how we trade.

C) It has influenced how we behave, interact and communicate.

D) All of the above.

58) Market research found that 42% of companies do not listen to their customers or collect

feedback (Andrews, 2019). What does this suggest?

A) A large number of companies do not place sufficient emphasis on their customers and their views.

B) The market-oriented approach has not been adopted by the majority of companies.

C) All departments in an organization recognize the importance of the customers.

D) Companies should focus on their own products first.

59) According to market-driven businesses, marketing research expenditure is ... .

A) An investment that yields rewards through understanding customers.

B) An investment that is not preferred over anecdotes and received wisdom.

C) A cost that must be avoided.

D) An investment that increases efficiency

60) Consumers decide upon purchases based on the sum of customers' perceptions, and

reactions to a product or service expectations.

A) evaluations; psychological B) evaluations; physical C) experience; psychological D) experience; physical

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

61) ASOS, a successful online fashion retailer, focused on young consumers' desire to replicate

the looks of their favorite celebrities by offering affordable versions of celebrity styles.

Which of the following have they succeeded in?

A) B) C) D)

creating customer satisfaction creating new products creating profit by lowering prices creating efficiency in their business

62) Customer satisfaction is taken so seriously that it is considered a and is what drives in

many industries.

A) key succes factor; competition B) critical factor; competition C) critical factor; innovation D) competitive advantage; innovation

63) What is most likely to happen to a company that is inefficient, yet effective?

A) The company survives.

B) The company goes out of business quickly.

C) The company dies slowly.

D) The company does well, thrives.

64) What is most likely to happen to a company that is inefficient and ineffective?

A) The company survives.

B) The company goes out of business quickly.

C) The company dies slowly.

D) The company does well, thrives.

65) What is most likely to happen to a company that is efficient and effective?

A) The company survives.

B) The company goes out of business quickly.

C) The company dies slowly.

D) The company does well, thrives.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

66) Strategy is defined as a firm's conscious effort to use its resources to leverage advantage, and

adding a marketing perspective brings a valuable focus on how to use these resources to and make it more difficult for other firms to copy.

A) stand out from the competition B) create value for the consumer C) create profit from sales D) create original content for the consumer

67) Tactical marketing is often viewed as the deployment of the marking mix and consists of four

major elements: A) product, price, promotion and place B) product, price, content and place C) product, content, promotion and place D) offer, price, promotion and place

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Answer Key Test name: Chapter 1 1) C 2) B 3) A 4) B 5) D 6) B 7) A 8) D 9) A 10) A 11) A 12) B 13) C 14) C 15) C 16) D 17) D 18) B 19) A 20) C 21) C 22) B 23) B 24) A 25) A 26) C 27) A 28) C 29) A 30) A 31) A 32) C 33) D 34) D 35) B 36) C 37) B

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) B 39) A 40) C 41) D 42) B 43) customers 44) Essay 45) Essay 46) Essay 47) Essay 48) Essay 49) Essay 50) Essay 51) A 52) A 53) [attract, retain] 54) A 55) Short Answer 56) A 57) A 58) A 59) A 60) A 61) A 62) A 63) A 64) B 65) D 66) A 67) A

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Chapter 2 The Marketing Environment Student name: 1) Which of the following is not an example of a macro-environmental factor?

A) A change in business law B) A decrease in inflation C) A change in emphasis in the consumption habits of the population D) The emergence of a new competitor

2) There are four major economic influences on the marketing environment of companies:

economic growth and unemployment, interest, the growth of the emerging countries.

A) exchange B) dynamic C) expanding D) rent

rates and inflation, the Eurozone and

3) Which barriers need to be overcome by western retailers to market their products in growing

and emerging economies?

A) Major political and legal barriers B) Major societal and cultural barriers C) Major cultural and logistical barriers D) Major logistical and legal barriers

4) A key objective of the EU is to lower the cost of operating throughout Europe and to create

an enormous A) leisure B) secondary C) free D) reduced

market in which companies can flourish.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

5) Three key social cultural forces have implications for marketing. These are changes in the

profile of the population, cultural differences within and between nations and the influence of consumerism.

A) autocratic B) demographic C) economic D) competitive

6) Environmental scanning involves the examination of .

A) green policies that the company may adopt B) the policies of competing firms within a specified geographic area C) the marketing environment D) the cost effectiveness of adopting green policies

7) One problem with employing specific strategic planners to conduct environmental scanning

functions is .

A) a lack of knowledge of individual business unit operations B) a lack of knowledge about marketing and sales issues C) a lack of specialist analytical scanning skills D) a lack of research skills

8) The over-50 year olds segment is a growing market and presents substantial marketing

opportunities because of their high level of per capita income and higher disposable income and than young people.

A) wages B) demand C) savings D) understanding

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

9) Consumerism is a social/cultural factor that has taken the form of organized action against

business practices that are not in the interests of consumers.

(CI) is a worldwide federation of consumer groups that have joined together as an independent voice of the consumer.

A) Consumers International B) Consumers Informed C) Commercial Insights D) Culture International

10) Culture is the combination of traditions, taboos, values and

of the society in which

an individual lives.

A) mannerisms B) activities C) attitudes D) controls

11) The consumer movement is .

A) the transit of consumers from a national to global economy B) the flow of products to a consumer C) a method for protecting consumer rights D) the distribution chain which links supplier, retailer and consumer

12) The self-regulatory codes controlling the advertising industry are an example of which type

of law/regulation?

A) Voluntary bodies set up by industries to create and enforce codes B) EU laws and regulatory bodies to protect consumers' rights C) National laws covering consumers' rights and protection D) EU competition laws

13) Environmental scanning provides the essential informational input to create strategic fit

between a company's strategies, its A) costs B) organizational operations C) competitive environment D) marketing mix

and the marketing environment.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

14) Which of the following examples demonstrates a product driven by technological rather than

market-based priorities?

A) Compact disks B) Windows 95 C) Concorde D) Airbus A380

15) A lack of investment in high-potential technological areas can severely affect the fortunes of

companies. For example, - once regarded as a leader in high-tech product innovation - lost ground due to its lack of early investment in developing flat screen television, liquid crystal display, allowing Samsung to gain a competitive advantage in flatscreen televisions.

A) Sony B) Apple C) LG D) Sharp

16) The role of competition policy in the EU is to encourage A) creation of strict controls B) anti-competitive activities C) restrictive practices D) competition

.

17) Which one of the following is not part of the EU legal framework relating to competition

policy?

A) B) C) D)

Preventing firms from colluding by price fixing and forming cartels Controlling the size that firms can grow to through mergers and acquisitions Restricting state aid to firms Controlling the content of advertising messages

18) Which of the following is not a macroenvironmental force?

A) Ecological influences B) Legal implications C) Consumer behaviour D) Political changes

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

19) Which of the following are not actors in a firm's microenvironment?

A) Customers B) Politicians C) Competitors D) Distributors

20) PEEST stands for .

A) Political, economic, environmental, social, transnational B) Political, environmental, ecological, social, technological C) Political, economic, ecological, social, technological D) Political, economic, efficiency, social, technological

21) Price fixing, cartels and other collaborative activities are examples of A) collusion B) mergers C) market dominance D) corruption

.

22) EU business imposed societal and legal constraints on companies actions not only make good

sense from a long-term social and environmental perspective, they also make good long-term sense too.

A) political B) commercial C) collaborative D) economic

23) Which of the following companies has been heavily fined for its alleged misuse of its near

monopolistic market position?

A) National Health Service B) Microsoft Corporation C) Renault D) Nokia

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

24) Laws relating to mergers are designed to prevent firms building up excess market power by

.

A) acquiring other companies B) creating strategic alliances C) establishing cartels D) creating secure networks

25) Drawing up codes of practice to protect consumer interest within the advertising industry

results in the development of A) statute laws B) common laws C) self-regulation D) arbitration

.

26) Which of the following is not an economic macro environmental force?

A) Unemployment B) Interest rates C) Demographics D) Exchange rates

27) Which of the following is not a macroenvironmental force?

A) Legal B) Economic C) Competitors D) Social

28) Which of the following is a key social/cultural force that has implications for marketing?

A) Changes in the demographic profile of the population B) Increasing levels of globalisation C) The European Union and the Eurozone D) Information and data management

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

29) CO2 emissions are an example of a(n) A) economic B) ecological C) political D) social

force.

30) Which of the following has stimulated a drive toward energy conservation?

A) Increased demand B) Over production C) Finite resources D) Consumerism

31) Which term best describes concerns about changes in population in terms of size and

characteristics?

A) Segmentation B) Geodemographics C) Psychographics D) Demographics

32) Which of the following is an example of a demographic force?

A) Consumerism B) Household structure C) Economic growth D) Culture

33) Environmental scanning can deliver many potential benefits to companies. For example, it

can result in better general awareness of, and in better strategic planning and decision making.

A) feasibility of B) success of C) control of D) responsiveness to

environmental changes and can result

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

34) There are two key questions for managers when establishing environmental scanning: 1)

what to scan and 2) .

A) how to organize the process B) who to scan C) when to scan D) where to scan

35) Economic forces can impact on marketing decisions through their effect on A) business rules B) supply and demand C) society D) competition

.

36) Climate change, pollution control, conservation of energy are covered by which of the

following forces?

A) Political B) Ecological C) Economic D) Cultural

37) European countries are bound by several layers of laws and regulatory bodies that restrict

company actions and encourage the use of A) cultural B) national C) ethical D) radical

_ practices.

38) Which of the following is not an example of a reseller?

A) Distributors B) Supermarkets C) Suppliers D) Department Stores

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

39)

are at the centre of the marketing philosophy and effort and its the task of marketing management to satisfy their needs and expectations better than the competition.

A) Suppliers B) Customers C) Distributors D) Employees

40) It is important for companies to not only understand consumers' needs, but also to research

competitors and their brands and their strengths, weaknesses, strategies and patterns.

A) marketing B) environmental C) buying D) response

41) The fortunes of companies are not only dependent on customers, competitors and

distributors, they are also influenced by A) suppliers B) employees C) opinion leaders D) agents

.

42) The marketing environment consists of actors and

that affect a company's capability to operate effectively in providing products and services to its customers.

A) players B) forces C) people D) codes

43) A marketing orientated firm looks outwards to the environment in which it operates,

to take advantage of emerging opportunities and to minimize potential threats.

A) adapting B) competing C) expanding D) researching

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

44) Germany has taken the lead in many initiatives to protect the environment. For example,

Germany took the lead in the recycling of packaging when it introduced the law, a law that allows shoppers to return packaging to retailers and retailers to pass it back to suppliers.

A) Packvo B) Verpackvo C) Packung D) Verspacko

45) Marketing-led companies need to monitor

trends (e.g. communication, information and data management), but also pioneer breakthroughs that can transform markets and shift competitive advantage in their favour.

A) promotion B) political C) technological D) ecological

46) Economic growth can have a profound effect on a company's prosperity. For example, during

periods of , well-managed companies experience an expansion in the demand for their products.

A) boom B) slump C) recession D) fluctuation

47) The main actors in the microenvironment that affect a company's capabilities to operate

effectively include A) customers B) competitors C) supliers D) employees

. (Check all that apply)

48) Ecology in a marketing context is concerned with the relationship between people and the

environment.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

49) Describe the elements of the macro and micro environments. Explain how firms can manage

events at the boundaries between the two.

50) Explain the meaning of the term ‘macroenvironment' and then suggest how a company might

make use of a macroenvironmental audit.

51) Describe the effects on the economy of the aging population. Suggest some ways by which

firms could profit from the demographic shift.

52) Explain the basics of environmental scanning and the advantage of environmental scanning.

53) Identify three economic forces and suggest how these forces might affect marketing

activities.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

54) Not all businesses act in the interest of the consumer. Explain how consumers might take

'organised' action against retailers.

55) What is Corporate Social Responsibility (CSR)?

56) Discuss how digital technologies are changing processes in marketing and enabling firms to

generate better market-decision making.

57) Technological change provides many opportunities. Which of the following is not an

opportunity as result of technological change?

A) New product development B) New market development C) Change in marketing practices and communications D) Change in demographics

58) Innovation also occur in business models. How did Dell reinvest its supply chain?

A) It cut out the middleman and sells directly to customers.

B) It moved production to emerging countries.

C) It changed its marketing communication strategy.

D) It started to use different suppliers.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

59) Which of the following is not an example of a Software as a Service (SaaS) company?

A) Salesforce.com B) Slack C) DocuSign D) Apple

60) Technological innovations are driving numerous changes in business, which of the following

needs results out of these changes?

A) An increased need for security in virtual environments B) Workforces need to work from home C) Customers need to change their consumption behavior D) A need for multichannel retailing

61) Consumers' rights are protected by EU regulatory bodies and regulations. For example,

consumers' interests regarding food safety are protected by the .

A) European Food Standards B) Food Safety Regulation C) Safe Food Act D) Food Safety Protection Regulation

62) How is energy conservation reflected?

A) In the demand for energy-efficient housing and fuel-efficient cars.

B) In the demand for wood.

C) In the increased demand for oil D) In the demand for biodegradable and natural ingredients

63) Discuss three physical environmental forces, and how they (potentially) affect businesses.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

64) What actions are FMCG manufacturers taking to tackle the waste issue?

A) Introducing more recyclable packaging, eliminating single-use plastic, and

incentivizing customers to recycle.

B) Introducing more recyclable packaging, increasing recycling points, and raising awareness among all their stakeholders across the supply chain.

C) Eliminating single-use plastics, banning plastic bags and increasing recycling points.

D) Incentivizing customers to recycle, banning plastic bags, and raising awareness among all their stakeholders across the supply chain.

65) Sweden has a tradition for recycling before any legislation was introduced.

A) paper and metal B) plastic and metal C) paper and plastic D) paper and glass

66) Which of the following is not a concern of environmentalists?

A) production and consumption of products that lead to global warming B) pollution C) protection of laborers D) destruction of natural resources

67) Why should marketing managers not consider the consumer movement a threat to business,

but rather an opportunity?

A) There is an opportunity to create new product offerings to meet the needs of emerging market segments.

B) There is an opportunity to advertise sustainable practices.

C) There is an opportunity to adopt corporate social responsibility.

D) There is an opportunity to understand the changing tastes and behaviour of consumers.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

68) Web-based environmental scanning (ES) systems are widely used to automate the scanning

process and input information directly into .

A) marketing management information systems.

B) strategic management decisions C) tactical adaptions D) marketing monitoring systems

69) The emergence of market segments based on ethical consumption, leading to vegan, fair

trade, and organic practices, is an example of which force?

A) Demographic B) Cultural C) Economic D) Political

70) Digital technologies are changing processes in marketing and enabling firms to .

A) generate better market decision-making B) influence consumer purchases C) affect price setting by retailers D) use AI for marketing communication

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Answer Key Test name: Chapter 2 1) D 2) A 3) C 4) C 5) B 6) C 7) A 8) C 9) A 10) C 11) C 12) A 13) B 14) C 15) A 16) D 17) D 18) C 19) B 20) C 21) A 22) B 23) B 24) A 25) C 26) C 27) C 28) A 29) B 30) C 31) D 32) B 33) D 34) A 35) B 36) B 37) C

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) C 39) B 40) D 41) A 42) B 43) A 44) B 45) C 46) A 47) [A, B, C] 48) physical 49) Essay 50) Essay 51) Essay 52) Essay 53) Essay 54) Essay 55) Essay 56) Essay 57) D 58) A 59) A 60) A 61) A 62) A 63) Essay 64) A 65) A 66) C 67) A 68) A 69) B 70) A

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Chapter 3 Sustainable Marketing and Society Student name: 1) CSR stands for .

A) Customer Satisfaction Ratios B) Corporate Strategic Relationships C) Corporate Social Responsibility D) Customer Sales Returns

2) CSR is based on the

theory of the firm, which contends that there are groups that have a legitimate interest in what the company does.

A) shareholder B) stakeholder C) economic D) cost

3) A

of a company is an individual or group that either is harmed by or benefits from the company or whose rights can be violated, or have to be respected by the company.

A) concern B) shareholder C) public D) stakeholder

4) Non-profit organizations aim to achieve some objectives other than

_. Their primary goal is non-economic e.g. to provide cultural enrichment (an orchestra) or alleviate hunger (Oxfam).

A) profit B) success C) cost reduction D) differentiation

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5) Most non-profit organizations serve several groups (or publics). The two broad groups they

serve are and clients.

A) donors B) mavens C) employees D) prospects

6) There is a distinction between the legality and ethicality of marketing decisions. Ethics

concerns personal principles and values, while laws reflect society's principles and standards that are enforceable in the courts.

A) ideal B) legal C) moral D) social

7) Business Ethics are moral values and principles that guide A) an individual's behaviour B) a firm's behaviour C) behaviour of society D) behaviour of peer groups

8)

.

Ethics concern .

A) enforceable laws B) personal moral principles C) cultural values D) common laws

9) Societal

are patterns of behaviour in a particular group, society or culture to which an individual is expected to conform.

A) norms B) beliefs C) attitudes D) conventions

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10) Coca Cola's launch of Dasani, which concealed the fact that the brand was nothing more that

bottled tap water is an example of A) bad taste B) poor research and development C) misleading advertising D) anti-competitive behaviour

.

11) Which element of the marketing mix was affected when Coca Cola's launch of Dasani,

concealed the fact that the brand was nothing more the bottled tap water?

A) Product B) Price C) Place D) Promotion

12) Spam is often seen as an example of an invasion of privacy for Internet users, as it is A) B) C) D)

direct mail. free solicited unsolicited annoying

13) A slotting allowance is .

A) a product placement fee paid by a retailer to a manufacturer B) a product placement fee paid by a manufacturer to a retailer C) an agent's fee for selling manufacturers products D) a wholesaler's fee for breaking bulk from the manufacturer

14) Materialism is .

A) promotion of a consumer's interest B) an intense or excessive desire for wealth C) an approach to manufacturing style used in the fashion trade D) an over emphasis on material possession

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15) When Meadowbrook negotiated to enable Ben and Jerry's the US ice-cream manufacturer to

become a private company again, which of the following was ultimately the deciding factors for Ben and Jerry's?

A) Ethical beliefs B) Financial considerations C) Stakeholder values D) Management preferences

16) One ethical issue in pricing that causes concern is A) price fixing B) price promotion C) price flexing D) price concessions

.

17) Ethical issues can arise from any of the elements of the marketing mix. Which element of the

mix would be affected by ‘slotting allowances"?

A) Product B) Price C) Place D) Promotion

18) Ethical issues can arise from any of the elements of the marketing mix. Which element of the

mix would be affected if sales people attempt to deceive customers in order to close a sale?

A) Product B) Price C) Place D) Promotion

19) Ethical issues can arise from any of the elements of the marketing mix. Which element of the

mix would be affected in a situation where a company sells sugary drinks, which can cause tooth decay, to children?

A) Product B) Price C) Place D) Promotion

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

20)

is an ethical issue due to multinational companies being able to exert considerable power in the host country, use huge marketing expenditures to influence consumers and governments and destabilize competition by eliminating smaller rival companies.

A) Environmentalism B) Short-termism C) Materialism D) Globalization

21) Carroll views CSR as a four-part model. Which of the following is not one of the concepts

considered in Carroll's model?

A) Economic B) Legal C) Social D) Philanthropic

22) According to Carroll, philanthropic responsibilities are .

A) maximizing profits within a legal framework B) corporate actions that meet society's expectations that a business will be a good

corporate citizen C) to maintain a strong competitive position, operate at high levels of efficiency and maintain profitability D) maximize profits within a political framework

23) Which of the following is a key area of concern for companies aiming to pursue sustainable

marketing?

A) Product safety B) Fair Trade initiatives C) Fair Pay D) Pollution control

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24) Which of the following is a key area of concern for companies aiming to pursue cause-

related marketing?

A) Product safety B) Support for the wider community C) Fair Pay D) Pollution control

25) Which of the following is a key area of concern for companies aiming to pursue societal

marketing?

A) Product safety B) Fair Trade initiatives C) Fair Pay D) Pollution control

26) Which of the following is a key area of concern for companies aiming to pursue fair trade

marketing?

A) Product safety B) Combating global warming C) Setting standards for human rights D) Pollution control

27) Which of the following is a key area of concern for companies aiming to pursue internal

marketing?

A) Product safety B) Fair Trade initiatives C) Fair pay D) Pollution control

28) Which of the following is the first stage in the move towards excellence in environmental

performance?

A) Sustainable policy B) Sustainable products C) Sustainable services D) Sustainable production

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29) When a company makes huge charitable donations, which are used to support local

communities, which form of marketing is the company engaging in?

A) Sustainable marketing B) Fair trade marketing C) Internal marketing D) Cause-related marketing

30) Tobacco companies have been criticized for marketing cigarettes which may cause cancer.

Which element of the marketing mix is considered to be at blame?

A) Product B) Price C) Place D) Promotion

31) Societal marketing takes into account .

A) the physical environment B) consumers' and society's wider interests C) the supply chain D) employee training and motivation

32) Equal opportunities are a key issue for A) internal B) fair trade C) sustainable D) societal

33) Honesty in communications is a key issue for A) internal B) fair trade C) sustainable D) societal

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

34) Conservation of energy is a key issue for A) internal B) fair trade C) sustainable D) societal

35) Support for the local community is a key issue for A) internal B) fair trade C) sustainable D) cause-related

marketing programmes.

marketing programmes.

36) Reasons why a company might not engage in CSR initiatives are it A) reduces operating costs B) discourages consumer cynicism C) may be viewed as misguided D) improves access to capital

.

37) Environmentalism is .

A) the organized movement of groups and organizations to protect and improve the

physical environment B) when individuals make purchasing decisions taking into account the interests of society and the environment C) organized action against business practices, which are not in the interests of the consumer D) an over emphasis on material possession

38) Companies not only have ethical, economic and philanthropic responsibilities, but also have

responsibilities and must ensure that they respect principles and standards that are enforceable in the courts.

A) consumer B) competitive C) political D) legal

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39) Which set of responsibilities does Carroll place at the top of their pyramid of social

responsibilities?

A) Economic B) Ethical C) Philanthropic D) Legal

40) Why are economic responsibilities at the bottom of Carroll's pyramid of social

responsibilities?

A) Alpha-numeric arrangement B) Because of the importance of stakeholder values C) Because of the importance of financial success to company survival D) All of the above

41) What action has McDonalds taken in response to an increase in consumer interests in

nutrition?

A) Refurbishment of high street restaurants B) Introduction of the super burger offering more beef content C) The addition of salads to its menus D) All of the above

42) Which of the following is not an example of responsible company behaviour?

A) Coca Cola's reduction of sugar in some fizzy drinks B) Marks and Spencer's reduction of salt in its sandwiches C) Café Direct's programme to protect coffee growers D) Wal-Mart's wide-scale use of women as checkout staff and low skilled jobs

43)

marketing focuses on reducing environmental damage by creating, producing and delivering sustainable solutions while continuing to satisfy customers and other stakeholders.

A) Producer B) Sustainable C) Mass D) Internal

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44) If a company is looking to reduce the long-term harmful effects of a product, which area of

marketing best reflects its concerns?

A) Fair trade marketing B) Cause-related marketing C) Societal marketing D) Internal marketing

45) Which dimension of corporate and social responsibility is affected when a company is

considering Fair Trading Standard setting for suppliers?

A) Supply chain B) Consumers C) Employee relations D) Physical environment

46) Which is not a key area of concern for the physical environment dimension of corporate and

social responsibility?

A) Combating global warming B) Use of environmentally friendly ingredients and components C) Recycling and non-wasteful packaging D) Support for the local community

47) Economic success is the sine qua non of CSR. What does this phrase mean?

A) Economics are not relevant to CSR B) Economic success is a non- essential part of CSR C) Economic success is an essential part of CSR D) None of the above

48) Societal marketing relates to which of the following?

A) Physical environment B) Marketing’s direct effect on people C) Companies taking actions which do not affect society D) Respecting privacy

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49) An individual who purchases status symbols may be accused of A) short-termism B) socialism C) consumerism D) materialism

.

50) Which of the following is not represented as part of Carroll's four part model of CSR? A) Economic B) Legal C) Ethical D) Technological

51) One aim of societal marketing is to .

A) demand support from local communities B) encourage satisfaction of short term needs C) form partnerships which benefit the selling organization D) consider consumer needs and long-term welfare

52) When Meadowbrook negotiated to enable Ben and Jerry's the US ice-cream manufacturer to

become a private company again, which of the following was ultimately the deciding factors for Ben and Jerry's?

A) Ethical beliefs B) Financial considerations C) Stakeholder values D) Management preferences

53) Which of the following would be considered stakeholders who affect or are affected by a

company's activities? (Check all that apply) A) Suppliers B) Customers C) Employees D) Competitors

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

54) Which of the following are characteristics of non-profit organizations? (Check all that apply) A) Education vs. meeting current needs B) Multiple publics C) Public scrutiny D) Private scrutiny

55) True or false: All unethical practices are illegal. ⊚ true ⊚ false

56) "Ethics and marketing mix do not belong in the same breath". Discuss.

57) Explain the impact of ethical considerations on marketing. How does ethical thinking fit into

the profit motivation?

58) Explain stakeholder theory. How do stakeholders interact with each other, and what is the

input of marketing on this process?

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59) How can corporate social responsibility be expressed in 21st century business life?

60) Is the concept of corporate responsibility realistic in the current business climate?

61) Discuss the key sustainability issues that shape the marketing landscape.

62) Nestlé has been investing in raising water stewardship standards across its operations. What

does this mean?

A) Reducing consumption of water during manufacturing processes B) Improving effectiveness C) Facilitating the use of recycled water D) Increasing access to safe drinking water and sanitation

63) Marketing is often accused of putting the immediate interest of consumers before society's

long-term interests. How is this practice called?

A) Short-termism B) Materialism C) Consumerism D) Immediatism

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

64) Which of the following challenges are all part of the SHIFT framework?

A) Social influence; habit formation; individual self B) Tangibility; feelings; company image C) Company image; feelings; habit formation D) Social influence; rationality; tangibility

65) Discuss the five big challenges presented by the SHIFT framework (White et al. 2019) that

need to be addressed to close the gap between attitudes and behavior.

66) What is defined as 'a theoretical framework used to consider all phases in the manufacturing

of a product from a sustainability perspective'?

A) Product Lifecycle Management B) Life Cycle Thinking C) Product Manufacturing Thinking D) Manufacturing Cycle Management

67) According to SHIFT framework, five big challenges can help address the gap between

attitudes and behavior. To which one does the following refer: 'making sustainability real in the eyes of the consumer'/ A) Tangibility B) Social influence C) Feelings and cognition D) Individual self

68) According to SHIFT framework, five big challenges can help address the gap between

attitudes and behavior. To which one does the following refer: 'adopting sustainable behavior once can lead to repeated good practices in the future'?

A) Habit formation B) Social influence C) Feelings and cognition D) Individual self

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Answer Key Test name: Chapter 3 1) C 2) B 3) D 4) A 5) A 6) C 7) B 8) B 9) A 10) C 11) D 12) C 13) B 14) D 15) B 16) A 17) C 18) D 19) A 20) D 21) C 22) B 23) D 24) B 25) A 26) C 27) C 28) A 29) D 30) A 31) B 32) A 33) D 34) C 35) D 36) C 37) A

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) D 39) C 40) C 41) C 42) D 43) B 44) C 45) A 46) D 47) C 48) C 49) D 50) D 51) D 52) B 53) [A, B, C] 54) [A, B, C] 55) FALSE 56) Essay 57) Essay 58) Essay 59) Essay 60) Essay 61) Essay 62) [C, D] 63) A 64) A 65) Essay 66) B 67) A 68) D

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Chapter 4 Customer Behaviour Student name: 1) Which of the following is not one of the five roles in the decision making process?

A) Initiator B) Agent C) Influencer D) User

2) When an individual buys a bottle of Aqua Pour Homme Cologne for Men by Bulgari, they

are likely to be motivated by a(n) A) inhibitor B) rational C) functional D) emotional

need.

3) Marketers must be aware of the role of emotions in consumers' evaluation of alternatives. It

has been found that emotion is particularly linked to impulse purchasing and buying.

A) pulse B) panic C) choice D) source

4) There are four categories of choice criteria that consumers use when evaluating products and

services: economic, social, personal and A) technical B) demographic C) geographic D) financial

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

5) Laurent and Kapferer identified four factors that affect involvement, self-image, perceived

risk, social factors and _ A) rational B) practical C) hedonistic D) heuristic

influences.

6) In the case of extended problem solving, marketers can help in this buying situation by

providing -rich communications.

A) emotion B) information C) hedonistic D) social

7) The way in which information is presented to consumers can affect their interpretation of it.

This is known as information A) reasoning B) evaluation C) phasing D) framing

8) Consumers can learn by means of

.

learning i.e. learning from others without direct

experience or reward.

A) motivational B) informational C) selective D) vicarious

9)

is the inner psychological characteristics of individuals that lead to consistent responses to their environment and affect their consumer behaviour.

A) Motivation B) Perception C) Personality D) Learning

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10) Under which of the following circumstances would Ehrenberg and Goodheart's model be

most likely to apply?

A) High involvement B) Cognitive dissonance C) Evoked set D) Low involvement

11) Which of the following is most likely to be purchased as a result of routine depletion?

A) Pet food B) Perfume C) A TV set D) A bridal gown

12) Which of the following is not an external search process?

A) Asking a friend how good a product is B) Calling a shop to inquire about the price C) Recalling the last time you used a particular product D) Reading a newspaper review of the product

13) Which sequence best describes the Ehrenberg and Goodhart model?

A) Personal beliefs - Attitudes - Purchase B) Normative beliefs - Subjective norms - Purchase C) Awareness - Trial - Repeat purchase D) Attitude - Purchase intentions - Purchase

14) The two key aspects of information processing are A) information and processing B) perception and learning C) knowledge and process D) advertising and purchase

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15)

problem solving occurs when a consumer repeat-buys the same product with little or no evaluation of alternatives - for example, buying the same breakfast cereal on a weekly shopping trip.

A) Limited B) Extensive C) Habitual D) Regular

16) Selective distortion occurs when .

A) advertisements exaggerate or embellish their claims B) competitor's ads are used as a stimulus to buy a different product C) consumers distort the information they receive in respect to their own beliefs D) mass markets all read an ad the same way

17) A customer notices an advert for a soap powder which cleans all forms of heavy duty stains.

She remembers the fact next time she looks for a soap powder. The customer has demonstrated which of the following?

A) Shaping B) Cognitive learning C) Classical conditioning D) Operant conditioning

18) Which of the following categories would be classified as a life cycle stage?

A) The full stagers B) Empty nester C) C1C2 D) Market mavens

19) Geodemographics groups households into clusters based on their A) postcode B) personality C) social grade D) size of home

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20) An opinion leader may be defined as .

A) a marketing manager who can influence consumers B) the individual who all consumers copy at all purchase situations C) a source of guidance within a reference group D) a lifestyle segment

21) Blackwell et al. identify an 'influencer' as _.

A) the advertising medium B) any person who attempts to impose his or her choice criteria on others C) the company behind the product D) an illegal form of promotion

22) The person who consumes the product is _.

A) of little interest to consumer researchers B) always the target of all the marketing activity C) not necessarily the decision maker D) the most influential member of the buying centre

23) Which stage of the consumer decision-making process follows need recognition but is before

evaluation of alternatives?

A) Purchase B) Information search C) Key influencing D) Post-purchase evaluation

24) What follows purchase in the consumer decision-making process?

A) Satisfaction B) Evaluation of alternatives C) Financial exchange D) Evaluation of decision

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25) Which of the following could be perceived as a need inhibitor?

A) A lack of functional competency B) Increased budget allocation C) Price reduction D) Excellent distribution networks

26) Marketing managers should concentrate on which of the following need recognition

characteristics?

A) Stimulation B) Need inhibitors C) Consumer needs and problems D) All of the above

27) An internal information search is one conducted _ A) within the store B) within the home C) within the consumer's memory and experiences D) all of the above

.

28) The objective of an information search is to .

A) choose a particular brand B) find out the cost of a product C) build an awareness set D) obtain as much information about one particular brand

29) An evoked set is _.

A) the result of an information search B) the basis from which an awareness set is selected C) the first brand a consumer can recall D) the short list of brands for careful evaluation

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30) Fishbein and Ajzen's model relates to the consumer A) reaction to differing retail environments B) attitude toward a brand C) implicit theories of marketing strategy D) need for high involvement products

.

31) In relation to consumer research, attitudes are best described as A) the ideas and concepts a consumer relates to a particular brand B) the degree to which a brand is liked or disliked C) a negative reaction often found in youth markets D) the amount of personal relevance a product has for a consumer

.

32) Which of the following is not true of a low involvement purchase?

A) The level of information processing is very limited B) A typical example would be repeat purchase C) The consumer conducts a reasoned evaluation of alternatives D) The consumer often exhibits habitual behaviour

33) It is important for a marketing manager to distinguish between high and low involvement

situations because _.

A) each involves different market segments B) low involvement customers should be excluded from marketing activity C) the implications for marketing strategy are dramatically different D) high involvement customers are always prepared to pay for the product

34) In high involvement situations the consumer .

A) often relies on habitual behaviour B) will often simply repeat purchase their existing brand C) is best targeted through the repetition of advertised images D) will perform an extensive information search on the brand

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35) In low involvement situations advertising will usually be A) aimed at top-of-the-mind awareness B) longer in duration C) a large selection of attractive product features D) only featured in the press rather than TV

.

36) Emotion is one example of which kind of consumer choice criteria?

A) Technical B) Economic C) Social D) Personal

37) Extended problem solving is required when .

A) there are many differentiated alternatives B) there is an inadequate amount of time to decide C) the purchase is low involvement D) the product is bought on a regular basis

38) Information processing is .

A) a technique for the analysis of advertising B) a computer process designed to aid consumption C) the process by which the customer receives, stores and retrieves a stimulus D) the key method for compiling and monitoring information on market segments

39) The process by which we screen out unimportant or meaningless advertisements is known as

.

A) selective distortion B) selective attention C) selective retention D) classical conditioning

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

40) Which of the following is an example of classical conditioning?

A) An advert which is shown twice works better that when it is shown only once B) Advertising is more entertaining in the evening than in the daytime C) An advert for a high involvement product features more product information D) An advert which makes people laugh ensures its products elicit a pleasant response

41) Which of the following is an example of operant conditioning?

A) A funny advert for a brand of shampoo B) A free sample of toothpaste C) An increased number of ads for a product D) All of the above

42) Attitudes toward a product consist of a set of A) product factors B) marketing mix variables C) beliefs D) emotions

.

43) A brand personality is .

A) a celebrity who endorses a particular product B) the kind of personality the customer is thought to have C) the characteristics of a product as perceived by the customer D) all of the above

44) The life cycle is .

A) a fitness product launched unsuccessfully in 1974 B) a routine in which a customer repeats his or her behaviour C) the stage a customer has reached during his or her life D) the patterns which customers use to buy products

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45) Which of the following best illustrates a cultural difference?

A) Japanese consumers eat more noodles than UK consumers B) The Dutch are more possessive than US consumers C) American restaurants are generally larger in area D) All of the above

46) In the UK social class is based on .

A) size and location of house B) a complex combination of variables C) the occupation of the main income earner D) the family tree

47) Geodemographics classifies consumers according to A) geographic location B) ethnicity C) car ownership D) income

.

48) If a segment had been identified as 'empty-nester, married, working', the method of

classification used would be A) social class B) lifestyle C) lifecycle D) geodemographics

.

49) A reference group is best defined as .

A) the social peer influence on consumer behaviour B) a number of products considered before purchase C) a help group for unstable or addictive consumers D) a series of purchases a consumer reflects on

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50) Identify which of the following is not considered when developing an understanding of

consumer behaviour.

A) Where are they now B) How do they buy C) When do they buy D) Who is important

51) People worry about security of financial information when they are purchasing online. This is

an example of a .

A) personal purchase criteria B) technical purchase criteria C) selective distortion D) need inhibitor

52) Subjective norms are .

A) the perceived consequences of buying a particular brand B) a shortlist of brands for evaluation C) outside influences of approval or disapproval of a purchase D) attributes a consumer uses when evaluating products

53) If a consumer is concerned about the running cost of a car and its residual value, he/she is

using

criteria to inform his/her purchasing decision A) economic B) social C) technological D) personal

54) It is common for customers to experience some post-purchase concerns, where they

experience some uncertainty or regret after purchase. These post-purchase concerns are known as .

A) resultant regret B) resultant dissonance C) cognitive dissonance D) hedonic dissonance

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55) According to Fishbein and Ajzen the theory of reasoned action explains A) high involvement purchasing B) low involvement purchasing C) habitual purchasing D) routine purchasing

.

56) Social belonging is an example of which type of choice criteria?

A) Economic B) Personal C) Social D) Technical

57) Cognitive dissonance is likely to increase when A) the purchase is expensive B) the decision is difficult C) the decision is irrevocable D) the purchase is low involvement

. (Check all that apply)

58) Attitude is the degree to which someone likes or dislikes a brand e.g. McDonalds. ⊚ true ⊚ false

59)

are individuals who buy products or services for personal consumption.

Organizational buying, on the other hand, focuses on the purchase of products and services for use in an organization's activities.

60)

problem solving occurs when the consumer has some experience with the product in question, but a certain amount of external search and evaluation still takes place.

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61) "We define ourselves not by what we produce, but by what we consume" Discuss.

62) Explain the differences between extended, limited and habitual problem solving.

63) How can marketers influence members of a decision-making group within a family? What

are the roles evident in a decision-making group?

64) Describe the decision-making process. How can marketers influence each stage?

65) The consumer decision-making process deals with the question of "how" consumers

approach the consumption process. Explain how an understanding of the consumer decisionmaking process can be useful to a company's marketing efforts.

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66) Market orientated companies expend resources on developing a better understanding of

consumer behaviour. Explain how an understanding of the consumer decision-making process can be useful to a company’s marketing efforts.

67) Explain how understanding consumer behaviour can assist marketing managers.

68) Identify a product you might need to buy, explain your possible reasons for making the

purchase and then explain which choice criteria might inform you purchasing decision.

69) What concept can be defined as 'a force that prompts action and relates to a conscious or

unconscious decision involving how, when, and why to allocate effort to a task or activity'?

A) motivation B) personality C) attitudes D) learning

70) The lack of steel, is an example of which type of risk a buying team must consider?

A) Raw material shortage B) Trade war C) Product recall D) Climate change

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71) When a child convinces its parents to buy a new toy, which kind of buying role does this

child take?

A) Initiator B) Influencer C) Decider D) Buyer

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Answer Key Test name: Chapter 4 1) B 2) D 3) B 4) A 5) C 6) B 7) D 8) D 9) C 10) D 11) A 12) C 13) C 14) B 15) C 16) C 17) B 18) B 19) A 20) C 21) B 22) C 23) B 24) D 25) A 26) D 27) C 28) C 29) D 30) B 31) B 32) C 33) C 34) D 35) A 36) D 37) A

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38) C 39) B 40) D 41) B 42) C 43) C 44) C 45) D 46) C 47) A 48) C 49) A 50) A 51) D 52) C 53) A 54) C 55) A 56) C 57) [A, B, C] 58) TRUE 59) Consumers 60) Limited 61) Essay 62) Essay 63) Essay 64) Essay 65) Essay 66) Essay 67) Essay 68) Essay 69) A 70) A 71) A

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Chapter 5 Value Through Relationships Student name: 1) Customer retention involves targeting customers for retention, bonding,

marketing,

promise fulfillment, trust and service recovery.

A) internal B) mass C) direct D) social

2) It is not always beneficial for service providers to invest in relationship building with

customers, who may be troublesome and too costly to focus on long term.

A) destructive B) disruptive C) dedicated D) decisive

3) Companies normally take a(n)

marketing approach to those customers that they would prefer not to do business with long term.

A) relationship B) reputational C) transactional D) mass

4) Level

retention strategies build long term relationships through social as well as financial bonds, capitalizing on the fact that many service encounters are also social encounters.

A) one B) two C) three D) four

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5) When a company provides solutions to a customer's problems that are designed into the

delivery system and thereby tie the service provider to their customers, which type of bond is being formed?

A) economical B) financial C) social D) structural

6) A company's service staff act as "part time

", since their actions can directly affect

customer satisfaction and retention.

A) staff B) marketers C) management D) customers

7) It is important for a company not to overpromise with marketing communication or the result

will be disappointment and consequently customer dissatisfaction and A) degrading B) detection C) defection D) demeaning

8) When the service provider and customer interact, 'moments of

.

' occur which can

have a real impact on customer satisfaction and retention.

A) service B) truth C) trust D) quality

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9) Thoughtless or abusive customers can cause problems for an organization, its employees and

other customers, thereby affecting the quality of the service experience. These customers are known as .

A) naycustomers B) jaycustomers C) anticustomers D) laycustomers

10) When establishing a service recovery strategy, companies need to set up a tracking system to

identify system failures, train and empower staff and encourage A) learning B) relationships C) truth D) quality

among staff.

11) Service

is crucial in developing a customer retention strategy as it can reduce the likelihood of dissatisfied customers telling others of their negative experiences.

A) image B) recovery C) awareness D) reduction

12) The 'service recovery

' is a situation where a customer may think more highly of a company after it has corrected a problem with their service, compared to how the company would have been regarded if no service failure had occurred.

A) action B) outcome C) result D) paradox

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13) Studies have shown that across a variety of service industries, profits climb steeply when a

firm lowers its customer A) acquisition B) retention C) detection D) defection

rate.

14) Loyal customers benefit employees as they raise job satisfaction and lower job A) quality B) support C) turnover D) status

.

15) Building a successful relationship with customers can offer a company a sustainable

competitive advantage as the competition.

A) core B) tangible C) intangible D) secondary

aspects of a relationship are not easily copied by the

16) Developing and maintaining strong customer relationships helps develop

between

the company and the customer, which may lead to increased purchases.

A) distrust B) trust C) expertise D) control

17) The start-up costs associated with attracting new customers is likely to be

than the

cost of retaining existing customers.

A) far higher B) far lower C) far easier D) more difficult

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18) A key tool for implementing relationship marketing is A) Key Action Marketing B) Key Action Management C) Key Account Marketing D) Key Account Management

19)

(KAM).

is a term used to describe the methodologies, technologies and e-commerce capabilities used by firms to manager customer relationships.

A) CTM B) CRT C) RTM D) CRM

20) It has been found that nearly half of CRM projects fail due to insufficient attention being paid

to the A) B) C) D)

involved. price procedures people processes

21) CRM systems are becoming progressively more complex as the number of potential

increases.

A) customer points B) relationship points C) touchpoints D) datapoints

22) Three types of relationships have been identified. Which of the following is not a type of

relationship?

A) nano B) internal C) inter D) intra

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23) Relationship marketing concerns the shifting from activities focusing on attracting customers

to activities concerned with current customers and how to A) entertain B) retain C) detain D) persuade

them.

24) For relationship marketing to be successful, a relationship should be a(n)

rewarding

connection between two or more people.

A) mutually B) exclusively C) extensively D) normally

25) For relationship marketing to be successful, the parties involved should commit to the

relationship and be willing to make changes to their own behaviour to maintain its A) fortuity B) accessibility C) ambiguity D) continuity

.

26) Relationship building can be enhanced by the provisions of customer services, including

giving technical support, expertise, resource support, improving service levels and using reduction strategies.

A) loss B) complaint C) cost D) risk

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27) Providing

support before sale or after sales service and providing training to customer's staff, can enhance the customer's know-how and productivity and can help build positive relationships.

A) technical B) economic C) legal D) relationship

28) Suppliers can help build relationships with customers by offering

support e.g.

extending credit facilities, A) resource B) technical C) relationship D) transactional

29) When a company offers free demonstrations or offers products for trial at zero or low cost to

the customer, they are employing a(n) building strategy.

A) cost B) risk C) returns D) problem

reduction strategy as part of a relationship

30) Relationship marketing moves the focus away from developing short-term

relationships towards building long-term relationships.

A) reputational B) transactional C) transformative D) competitive

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31) Firms engage in

creation when they enter into exchanges with their customers and this is central to building relationships.

A) product B) service C) resource D) value

32) The two important elements of relationship marketing are core service and relationship

.

A) development B) quantity C) quality D) management

33) There are a number of different factors that potentially affect the outcome of a relationship.

These are service quality, trust, commitment and A) satisfaction B) costs C) control D) networking

.

34) When a customer bases their commitment to a mobile phone company on the basis of their

contract which bundles together many benefits e.g. handsets, Internet services etc., what type of commitment is involved?

A) Hedonic B) Emotional C) Rational D) Psychological

35) According to Geysken et. al. (1999), a customer's level of satisfaction is influenced by their

level of knowledge, prior experience, social influence and A) geographic B) legal C) demographic D) economic

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36) LinkedIn is an example of an online A) value B) relationship C) control D) network

which connects professional workers together.

37) Loyalty cards are often used by supermarkets to gather consumer

and develop

targeted promotions.

A) loyalty B) promotions C) points D) data

38) When a supplier has

competitiors, they may feel that it is less important to develop

strong customer relationships.

A) few B) many C) several D) close

39) Although the idea of relationship marketing can be applied to many industries, it is

particularly important in services, where there is often provider and customers.

A) no B) indirect C) direct D) limited

contact between the service

40) The quality of the relationship between the service provider and customer is likely to

determine levels of satisfaction and loyalty and the A) control B) size C) breadth D) length

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41) Developing a long-term relationship with a service provider can reduce risk and

, as after a period of time, the consumer begins to trust the service provider as they can count on a consistent level of quality service and they feel comfortable in the relationship.

A) quality B) needs C) status D) stress

42) Knowledge of a customer built up as a result of an ongoing relationship with the service

provider, can result in a higher A) quality B) cost C) social D) stress

service to the customer.

43) The negative costs that a customer incurs as a result of changing suppliers, brands or

products, are known as _ A) sunk B) indirect C) changing D) switching

costs.

44) The desire of a personal relationship between a customer and the service provider's

employees can feed the customer's A) ego B) fears C) fulfilment D) empowerment

as they feel recognized and valued.

45) There are three key activities involved in fulfilling customer's promises. These are

.

(Check all that apply) A) making realistic promises B) keeping promises C) enabling staff D) evaluating promises

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46) How may a company build up their trustworthiness among customers? (Check all that apply) A) Use two way communication regularly B) Provide guarantees C) Operate a policy of lower pricing D) Operate a policy of fairness

47) Building successful relationships offers many benefits to the organization, which include

. (Check all that apply) A) increased purchases B) sustainable competitive advantage C) lower cost D) risk and stress reduction

48) Co-creation of value involves . (Check all that apply).

A) information sharing to aid supplier learning B) supplier development C) competitor development D) strategic knowledge sharing

49) Relationship marketing is particularly important where there is an ongoing or periodic desire

for a service by the customer, for example, in industries such as apply) A) banking B) house moving C) Internet services D) telephone

. (Check all that

50) Entering a long-term relationship with a company can reap a number of rewards for the

customer. These benefits include . (Check all that apply) A) risk and stress reduction B) social and status benefits C) employee satisfaction and retention D) higher quality service

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51) When a company relies on financial incentives with customers, such as higher discounts on

prices for larger volume purchases, they are using a level

52)

retention strategy.

marketing concerns training, communicating to and motivating the company's staff.

53) Good relationships with customers can increase the

value of a customer i.e. the prediction of the net profit attributed to the entire future relationship with the customer.

54) A firm with a large number of loyal customers is more likely to benefit from word-of-

than another without such a resource.

55) Suppliers can improve their

with customers by improving the level of service offered to them e.g. more reliable delivery, fast or JIT delivery etc.

56)

management plays an essential role in value creation because both buyer and supplier need to work together in the pursuit of mutual gains.

57) A

is a term used to describe a set of connections among people, which from a marketing perspective might be used as a resource to solve problems, share knowledge and add new connections.

58)

cards have been widely used by retailers, particularly supermarkets as a part of a strategy for retaining customers.

59) Relationship management is important in business to business markets. Identify and explain

the different types of relationships a company might engage in.

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60)

draws our attention to the expectation of gaining value, economic gains, and social benefits involved in an exchange relationship, which can be tangible or intangible.

A) Social exchange theory B) Value creation theory C) Relationship-building theory D) Customer value theory

61) When an organization improves its delivery and sets up a computerized reorder system,

which element is being improved to build a better relationship?

A) Service level B) Resource support C) Expertise D) Technical support

62) Discuss which sources an organization can use to create additional value for its customers,

and which benefits these imply.

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Answer Key Test name: Chapter 5 1) A 2) B 3) C 4) B 5) D 6) B 7) C 8) B 9) B 10) A 11) B 12) D 13) D 14) C 15) C 16) B 17) A 18) D 19) D 20) D 21) C 22) A 23) B 24) A 25) D 26) D 27) A 28) A 29) B 30) B 31) D 32) C 33) A 34) C 35) D 36) D 37) D

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38) A 39) C 40) D 41) D 42) A 43) D 44) A 45) [A, B, C] 46) [A, B, D] 47) [A, B, C] 48) [A, B, D] 49) [A, C, D] 50) [A, B, D] 51) 1 52) Internal 53) lifetime 54) mouth 55) relationships 56) Relationship 57) network 58) Loyalty 59) Essay 60) A 61) A 62) Essay

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Chapter 6 Digital Marketing Analytics and Customer Insights Student name: 1) The 'C' in CATI stands for A) Cost B) Centrally C) Commercial D) Computer

2) '

.

' refers to the practice of selling under the guise of marketing research.

A) Flogging B) Plugging C) Frugging D) Sugging

3) Marketing research adds

to marketers and their organizations as it aids in answering questions about their customers, which can inform their decision making.

A) cost B) value C) loyalty D) planning

4) The research

defines what the marketing research agency promises to do for its client and how much it will cost.

A) brief B) proposal C) statement D) objective

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5) Big data describes data that is generated in massive volumes, including petabytes, zettabytes

and

6)

.

A) mollabytes B) letabytes C) vettabytes D) yottabytes

fingerprinting is increasingly being used to provide behavioural advertisers with the information they need to develop highly targeted and personalized promotional offers.

A) Browser B) Clinical C) Advertising D) Promotional

7) Marketing research is a key part of MkIS because it makes a major contribution to marketing A) B) C) D)

8)

planning. matrices defence mix research

is a form of qualitative research which involves detailed and prolonged observation of consumers inn the situations which inform their buying behaviour.

A) Ethnography B) Endography C) Obology D) Monology

9) Three conditions are necessary to get a true response to a survey question: respondents must

understand the question, they must be able to provide the information and they must be .

A) compensated B) prescreened C) willing to answer D) coded

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10) Qualitative data is typically analysed using

analysis (systematic description of written, spoken or written communication), whereas quantitative research is usually analysed by means of statistical analysis.

A) content B) core C) mega D) beta

11) A marketing information system is a system for .

A) the gathering, storing and distribution of information B) computer analysis of the marketing environment C) an external agency who specialize in marketing data D) the analysis of secondary marketing research

12) MkIS stands for .

A) Market Internal Study B) Marketing International Services C) Marketing Information System D) Market Identification Services

13) Which of the following demonstrates an internal ad hoc use for MkIS? A) Estimating the sales of a leading competitor B) Monitoring the results of a specific ad campaign C) Assessing the general effect of the sales team over a 5 year period D) Continuously monitoring the marketing of all the major products

14) Marketing research usually focuses on A) employees B) internal data C) corporate structure D) external data

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15) Which of the following is an example of continuous research?

A) Omnibus studies B) Custom designed studies C) Consumer panels D) Ad hoc research

16) One of the major purposes of exploratory research is to A) confirm a formulated hypothesis B) guard against the sins of omission and admission C) produce data which is strategically actionable D) assess secondary research

.

17) Typically, observational techniques can often precede a quantitative study in order to

.

A) define the target market B) observe which product to focus on C) create informed assumptions D) justify a quantitative approach

18) A research project breaks down the population into groups representing different categories.

The sample is drawn for each group ensuring a representative sample is constructed. The method used in this process is .

A) stratified random sampling B) quota sampling C) simple random sampling D) face-to-face interviews

19) The question - ‘Which of following products have you purchased recently? Tea / Lemonade /

Coke / Water' - is an example of a(n) A) open ended B) multiple choice C) dichotomous D) qualitative

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20) A sampling error occurs when .

A) a sample member produces invalid responses B) a sample's results do not represent the total population C) a sample is composed of unsuitable members D) the sample fails to complete the survey

21) Which element of a market research report is designed for the use of busy managers?

A) Research findings B) Summary C) Appendices D) All of the above

22) Which of the following could be described as a method to establish cause and effect?

A) experimental research B) descriptive research C) survey research D) focus group research

23) Which research method is most likely to provide an in depth insight into customers' attitude

toward a new product?

A) Quantitative research B) Mail survey C) Face-to-face interviews D) Telephone survey

24) What step precedes the research proposal in the development of the market research process?

A) The research brief B) Experimental research C) Secondary data D) All of the above

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25) In group discussions the moderator's role is to A) select members who will participate B) choose the sample C) guide the discussion D) ask a series of planned questions

26) The MkIS consists of A) internal data B) environmental data C) marketing research D) all of the above

.

.

27) Which element of the MkIS is best described as 'an early warning system' for external forces?

A) Environmental scanning B) Marketing research C) Continuous data D) Internal ad hoc data

28) Marketing research differs from environmental scanning in terms of A) complexity B) importance C) longevity D) immediacy

.

29) If a company enlists the help of a marketing research agency which of the following tasks

will the agency usually not perform?

A) Select a sample B) Design the questionnaire C) Conduct a briefing about the research requirements D) Analyse and interpret the results

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30) Consumer panels are .

A) a group of consumers who meet once to be interviewed by researchers B) a continuous study of consumers C) a method of monitoring retail purchases in store D) a series of two-way mirrors that allow consumer observation

31) Which of the following elements of a marketing research project are dictated by the client?

A) The timetable B) The questionnaire design C) The format of the research D) The style of the final presentation

32) Exploratory research involves .

A) exploring potential new markets B) a preliminary investigation to the data prior to the main study C) utilizing techniques previously untested in the market D) laboratory testing of consumers

33) Secondary research is best defined as data which is A) from anonymous or unreliable sources B) important but not immediately relevant C) second-hand D) newly collected and previously unused

34) The typical number for focus group discussions is A) no more than 3 people B) 3 to 5 people C) 6 to 12 people D) around 20 people

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35) Qualitative research seeks to understand the 'why' and ' A) where B) how C) when D) which

36) The first stage of the sampling process is to A) provide representative group results B) define the population C) design a sampling frame D) create informed assumptions

' of consumer behaviour.

.

37) Which of the following is not regarded as a survey method?

A) Face-to-face interviews B) Quota sampling C) Telephone interviews D) Mail surveys

38) Which of the following is a valid advantage of face-to-face interviewing?

A) Higher response rates B) Cheaper research costs C) A lack of interviewer bias D) All of the above

39) Digital surveys involve administering the survey by email, on a website by registering

keywords, or appearing in questionnaire.

A) banner B) television C) radio D) print

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advertising on search engines which drive people to the

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40) Digital surveys have many advantages over other data collection methods. It is suggested that

digital surveys are 'faster, easier, cheaper and A) better B) bolder C) broader D) busier

'.

41) What is a main advantage of digital surveys?

A) Experimental control B) Low cost C) Ability to probe D) Response rates

42) Piloting a questionnaire is essential in order to .

A) help structure the initial research design B) test the questionnaire design C) start the actual research with the chosen sample D) post-code the research

43) Which of the following is not an element of a Marketing Information System?

A) Environmental scanning B) Competitor analysis C) Internal ad hoc data D) Internal continuos data

44) Which element of the research report is found between 'research method' and 'conclusions'?

A) Previous related research B) Summary of conclusions and recommendations C) Research findings D) Nothing

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45) What is at the end of the Marketing Research Report?

A) Conclusion B) Summary C) Preface D) Appendices

46) If a research finding is 'statistically significant' the finding A) is representative of the whole population B) is useful in strategic positioning C) is of great importance to the company D) is valid only for the sample interviewed

.

47) How would the question 'Have you visited the supermarket in the last two months - Answer

Yes/No' be classified?

A) Open-ended B) Closed-ended C) Multiple choice D) Lifestyle

48) Which of the following would be the source of secondary data?

A) Panel interviews B) EU reports C) Exploratory research D) Group discussions

49) Which of the following is a potential issue facing researchers when asking a question in a

survey?

A) Leading questions B) Asking two questions in one C) Ambiguous wording D) All of the above

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50) Using the word 'chronological' in a survey questionnaire is not recommended due to it being

.

A) too long B) an unfamiliar word C) a dichotomous word D) a leading word

51) Layout, scaling and coding relate to the A) research brief B) target population C) questionnaire design D) exploratory research

.

52) A sampling frame is .

A) the target populations B) a list of chosen prospects C) a list of selection criteria D) a list of respondents

53) Sins of admission are .

A) not researching topics in enough details B) not allowing certain respondents to answer survey questions C) collecting relevant data D) collecting irrelevant data

54) Interviewer bias means that the market research interviewer A) doesn't like the look of a particular respondents B) supports a particular political party C) influences the respondents answers D) asks clarification questions

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55) When a researcher actively collects data through group discussions and interviewing

respondents, this is which of the following?

A) Quantitative research B) Qualitative research C) Exploratory research D) Collective research

56) Which of the following is seen as unethical competitive information gathering?

A) Posing as a potential supplier at a trade show B) Analysing industry databases C) Searching a competitor's Internet site D) Gathering information by reading trade journals

57) Which of the following are ethical concerns associated with marketing research? (Check all

that apply) A) Intrusions on privacy B) Misuse of marketing research findings C) Selling under the guise of marketing research D) Grey marketing

58) Which of the following information should be included in the research brief that is provided

to the research agency? (Check all that apply) A) The scale of the project B) The research objectives C) Background information D) Costs

59) Which of the following are examples of external continuous data sources used in marketing

research? (Check all that apply) A) Consumer panels B) Television audience monitoring C) Loyalty cards D) Advertising and product testing

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60) True or false: Marketing research is only used by commercial companies. ⊚ true ⊚ false

61) True or false: Social networking sites are generally used by millions of people across the

globe and tend to contain very sensitive data on people’s religious beliefs, political views, and sexual orientation, and consumer preferences. ⊚ true ⊚ false

62) True or false: Basic descriptive research will provide insights into the cause and effect of a

particular phenomena. ⊚ true ⊚ false

63) Website

is an important form of marketing research as it can enable the assessment of site performance and help to identify key areas for improvement on web sites and web pages.

64) What is the research brief, and how is it developed?

65) What is the role of exploratory research?

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66) A Marketing Information System has been described as: “ A system in which marketing

information is formally collected, analysed, stored and distributed to managers in accord with their informational needs” a) Describe the key elements of an information system. b) Outline and explain what is involved at the various stages of the marketing research process.

67) Identify and discuss the three major sampling methods a company might use.

68) Discuss the issues, which are important when assessing marketing research agency proposals.

69) Which of the following questions can help achieve a structured approach to creating a

marketing performance measurement system?

A) What do we want to achieve?

B) What is happening?

C) Why is it happening?

D) What should we do?

70) is a form of data-driven marketing based on computer algorithms, which can identify

patterns in data with implications for consumer purchasing behavior.

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71) Which of the following is a key benefit of data-driven marketing?

A) Agility B) Accuracy C) Autonomy D) Availability

72) Describe the different steps of the market research process.

73) Which of the following best defines a customer journey?

A) The experiences a customer has with a firm during their decision-making processes B) The route a customer has to take to get to a store C) The mental steps a consumer takes during their decision-making processes D) The route a customer follows in a store

74) What is considered a potential disadvantage of digital marketing research?

A) Skewed nature of internet users B) High costs C) Slow speed of delivery D) Less valid than other tools

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Answer Key Test name: Chapter 6 1) D 2) D 3) B 4) B 5) D 6) A 7) C 8) A 9) C 10) A 11) A 12) C 13) B 14) D 15) C 16) B 17) C 18) A 19) B 20) B 21) B 22) A 23) C 24) A 25) C 26) D 27) A 28) D 29) C 30) B 31) A 32) B 33) C 34) C 35) B 36) B 37) B

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38) A 39) A 40) A 41) B 42) B 43) B 44) C 45) D 46) A 47) B 48) B 49) D 50) B 51) C 52) B 53) D 54) C 55) B 56) A 57) [A, B, C] 58) [A, B, C] 59) [A, B, C] 60) FALSE 61) TRUE 62) FALSE 63) analytics 64) Essay 65) Essay 66) Essay 67) Essay 68) Essay 69) [A, B, C, D] 70) Precision marketing 71) A 72) Essay 73) A 74) A

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Chapter 7 Market Segmentation and Positioning Student name: 1) A market segment is best described as .

A) a group of similar people B) a differing group of people with the same consumption habits C) a mass market structured around particular products and services D) a group with shared characteristics which has implications for marketing

2) A tribe is made up of a network of individuals who are linked together by shared

about a brand.

A) division B) knowledge C) concern D) beliefs

3) Unilever used the concept of

and the medium of social media to create a group

called the 'Marmarati'.

A) tribalism B) materialism C) capitalism D) collectivism

4) Tribes are

to segments as they are comprised of people who share feelings,

passions and beliefs.

A) homogeneous to B) linked to C) different to D) similar to

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5) Those consumer segments who are primarily motivated by convenience are more likely to

make purchases A) offline B) online C) in store D) less frequently

.

6) Baby boomers are those .

A) aged over 55 B) born after 1980 C) born between 1965 and 1980 D) 32 years old or younger

7) Generation

are the group of customers who rather than being consumers of content are in fact the creators of content or 'prosumers'.

A) Y B) X C) M D) C

8) Online consumers can be identified by considering demographic, behavioural and

variables, which have implications for segmentation.

A) geographic B) psychographic C) psychological D) purchasing

9) Which of the following is not facilitated by market segmentation?

A) Differential marketing B) A tailored marketing mix package C) Mass marketing D) Target marketing

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10) What step usually follows the segmentation of the market?

A) Targeting B) Disaggregation C) Development of the promotional mix D) Assess opportunities and threats

11) If a market segment is referred to as 'sophisticated' the method of segmentation used is likely

to be

.

A) psychographic B) consumer C) demographic D) behavioural

12) If a consumer is segmented as a 'pleasure seeker' and that description relates directly to his or

her product use, the segmentation method used is A) psychographic B) behavioural C) lifestyle D) life cycle

.

13) If a market is segmented by usage variables, which of the following segments is likely to

receive most of the marketing attention?

A) Heavy users B) Non-users C) Light users D) All of the above

14) The usefulness of personality as a segmentation variable is likely to depend on A) product B) price C) promotion D) place

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15) In organizational markets which of the following is not a macro-segmentation variable?

A) Size B) Age C) Geographic location D) Industry location

16) Which of the following is not a barrier to market entry?

A) Patents B) High switching costs C) High competitive marketing expenditures D) The possession of specialized production facilities that cannot be easily liquidated

17) Which of the following firms is most likely to offer a customized marketing approach to its

customers?

A) An advertising agency B) A car manufacturer C) A telephone company D) A theatre company

18) If a company targets the same market with an existing product it will adopt what form of

repositioning strategy?

A) Image repositioning B) Product repositioning C) Tangible repositioning D) Intangible repositioning

19) If a company has the ability to produce a competitive product at a lower cost than the

competition, its inherent strength relates to A) political factors B) capability factors C) market factors D) competitor factors

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20) Segmenting a market according to 'age' is an example of applying which consumer

segmentation criteria?

A) Profile B) Psychographic C) Behavioural D) Economic

21) Which of the following is not a socio-economic variable in segmentation?

A) Social class B) Geographic C) Terminal education age D) Income

22) A target market is .

A) used as the basis for a market segment B) a group of people who are most likely to purchase your products C) your regular customer base D) a particular market segment

23) What precedes the segmented market?

A) The target market B) Chaos C) The disaggregated market D) Promotional mix decisions

24) If a market segment is identified according to its favourable perception of the brand the

method of segmentation used is A) lifestyle B) psychographic C) behavioural D) life cycle

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25) If a segment is characterized as 'sophisticated' which method of segmentation is being used?

A) Lifestyle B) Usage C) Income D) Social class

26) Which segmentation method includes both lifestyle and personality variables?

A) Psychographic B) Profile C) Behavioural D) Lifecycle

27) If a market segment is classed as being 'retired', the method of segmentation used is A) income B) social class C) lifecycle D) lifestyle

.

28) Which of the following is an example of a variable which can be used to segment a market

by behavioural criteria?

A) Purchase occasion B) Lifestyle C) Gender D) Social class

29) The consumption patterns of a 34-year-old single man differ when compared to a 34-year-old

married father of four. This illustrates the A) lifecycle segmentation B) lifestyle segmentation C) behavioural segmentation D) socio-economic variables

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30) When launching a new product marketers segmenting by purchase behaviour will target

which of the following?

A) Innovators B) Extroverts C) Status conscious consumers D) All of the above

31) Which of the following segmentation variables can be applied to organizational markets?

A) Microsegmentation B) Geodemographics C) Lifecycle D) Organizational markets are not segmented

32) Which of the following is not a micro-segmentation variable?

A) Choice criteria B) DMU structure C) Organisational innovativeness D) Industry type

33) Which of the following would generally be considered an attractive feature of a potential

target segment?

A) Low price sensitivity B) Low segment growth rate C) High customer bargaining power D) Small segment size

34) One disadvantage of the differentiated marketing strategy is the A) loss of customer focus B) loss of cost economies C) reduced end user focus D) loss of profitability

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35) A company identifies several segments in a market, many of which are unattractive or

unreachable to the company. The company should adapt what kind of marketing strategy?

A) Differentiated B) Customized C) Focused D) Differential advantage

36) Positioning derives from the combination of segmentation, targeting and A) promotion B) product C) differential advantage D) selection

.

37) Successful positioning derives from clarity, competitiveness, credibility and A) luck B) consistency C) commodities D) carefulness

.

38) If a company targets a different market with a new product, it will adopt what form of

repositioning strategy?

A) Image repositioning B) Product repositioning C) Tangible repositioning D) Intangible repositioning

39) If a company targets the same market with a different product, it will adopt what form of

repositioning strategy?

A) Image repositioning B) Product repositioning C) Tangible repositioning D) Intangible repositioning

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40) When IBM moved away from the manufacture of computers to the provision of software and

services to essentially the same type of business customers, they were clearly engaged in .

A) image repositioning B) product repositioning C) tangible repositioning D) intangible repositioning

41) When a company develops a single marketing mix aimed at one particular niche, it is

practising .

A) customized marketing B) focused marketing C) differential marketing D) undifferentiated marketing

42) Which of the following market factors does not contribute to the attractiveness of a market?

A) Segment size B) Barriers to entry C) Barriers to exit D) Exploitable market assets

43) Which of the following statements about social class is not true?

A) It is easy to categorize B) It is well established C) It is based on the occupation of the head of household throughout the EU D) The extent to which it can predict consumer behaviour has been questioned

44) Which segmentation method provides an understanding of why people buy in a particular

market?

A) Profile B) Psychographic C) Demographic D) Benefit

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45) Which market segment did major airlines ignore and the result was an opening for airlines

like easyJet and Ryanair which focused on low prices?

A) Performance seekers B) Price sensitive C) Image conscious D) Benefit seekers

46) Personality segmentation is more likely to work when brand choice is a reflection of

.

A) self-reliance B) self-expression C) self-importance D) self-indulgence

47) Which of the following are advantages of market segmentation?

A) Differentiation B) Tailored marketing mix C) Target market selections D) All of the above

48) Organizational innovativeness is a A) macro B) micro C) cultural D) internal

segmentation variable

49) Spidergrams are used to determine .

A) importance rating of product attributes B) consumer preferences C) brand efficiency D) brand equity

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50) Which of the following is not a recognized target marketing strategy?

A) Differentiated B) Unfocused C) Focused D) Customized

51) A company uses perceptual maps to provide a visual representation of consumer perceptions

of

.

A) individual values B) individual attributes C) competitor attributes D) competitor values

52) The objective of implementing a positioning strategy is A) to match competitors existing place in the market B) to create and sustain a distinct place in the market C) to gain a technological edge D) to become the largest company in the industry

.

53) A useful tool for determining the position of a brand in the marketplace is A) a perceptual map B) a marketing information system C) a marketing audit D) the BCG Matrix

54) Segmentation in organizational markets is A) a single stage process B) a two-stage process C) a three-stage process D) a four-stage process

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55) Which of the following have been found to be the main characteristics of Internet buyers?

(Check all that apply) A) Desire convenience B) Are more impulsive C) Are wealthier D) Are less impulsive

56) True or false: Lifestyle segmentation variables group people according to where they live. ⊚ true ⊚ false

57) True or false: Only one segmentation variable should be used to identify a target market. ⊚ true ⊚ false

58) True or false: Geographic location is unimportant when planning marketing strategies for

industrial markets. ⊚ true ⊚ false

59) True or false: Market attractiveness can be determined by considering political, social and

environmental factors. ⊚ true ⊚ false

60) Digital

are those born after 1980 who were 'born digital' and who have been exposed to computer technology and digital communications from an early age.

61) People's needs change over time. How can marketers address this problem?

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62) What are the main advantages of undifferentiated marketing? Why would a marketer use

undifferentiated marketing rather than other targeting approaches?

63) What is meant by repositioning? When is it advisable, and when is it not advisable?

64) Discuss the possible benefits of segmentation for a large retail organization.

65) Explain the meaning of the term market segmentation.

66) Describe the three-step process of selecting a target market or markets.

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67) Explain, using examples, how the marketing mix can create a competitive advantage.

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Answer Key Test name: Chapter 7 1) D 2) D 3) A 4) C 5) B 6) A 7) D 8) B 9) C 10) A 11) A 12) B 13) A 14) A 15) B 16) D 17) A 18) A 19) B 20) A 21) B 22) D 23) C 24) C 25) A 26) A 27) C 28) A 29) A 30) A 31) A 32) D 33) A 34) B 35) C 36) C 37) B

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38) C 39) B 40) B 41) B 42) D 43) C 44) D 45) B 46) B 47) D 48) B 49) A 50) B 51) C 52) B 53) A 54) B 55) [A, B, C] 56) FALSE 57) FALSE 58) FALSE 59) TRUE 60) natives 61) Essay 62) Essay 63) Essay 64) Essay 65) Essay 66) Essay 67) Essay

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Chapter 8 Value Through Brands Student name: 1) The core element in the marketing mix is A) product B) price C) place D) promotion

.

2) A product mix is the total set of brands marketed by a company. The

of the product

mix can be gauged by the number of product lines an organization offers.

A) width B) depth C) length D) height

3) International hotelier Accor consolidated its economy hotel brands under the Ibis Budget

brand name to compete in the economy hotel sector. Which type of brand is Ibis Budget?

A) own-label B) fighter C) predator D) contract

4) A strong brand is important as it provides the foundation for

positive perceptions

and goodwill from the core brand to brand extensions.

A) locating B) sustaining C) leveraging D) lengthening

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5) The launch of Dasani bottled water in the UK, resulted in negative backlash when consumers

were made aware that the product was actually bottled tap water. The main reason for the failure was lack of brand .

A) identity B) awareness C) quality D) trust

6) Customer-based brand equity refers to the

effect that brand knowledge has on

consumer response to the marketing of that brand.

A) measurable B) reliable C) credible D) differential

7) Brand awareness contributes to brand equity. By raising brand awareness, the likelihood that

a brand will enter a consumer's A) proprietary B) evidence C) evoked D) propensity

set is increased.

8) Proprietary-based brand equity is derived from

attributes that deliver value to the

brand.

A) B) C) D)

controlled competition customer company

9) Global branding is the achievement of brand penetration worldwide. According to

Interbrand, the top global brand in 2014 was A) IBM B) Coca Cola C) Google D) Apple

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10)

is a champion of global branding. He has argued that intensified competition and technological developments are forcing companies to operate globally, ignoring superficial national differences.

A) Lewis B) Levitt C) Levi D) Lever

11) Which of the following is the fastest method of developing global brands?

A) Brand extension B) Brand acquisition C) Brand alliance D) Geographic expansion

12) Which of the following offers the highest degree of control when developing global brands?

A) Brand extension B) Geographic extension C) Brand acquisition D) Brand alliance

13) A service is a(n) A) adjunct B) tangible C) intangible D) partial

product.

14) A brand is .

A) any product capable of satisfying customer needs effectively B) created by a distinctive name, packaging and design C) a distinctive mark D) created by producers and bears their own name

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15) Which of the following is important in building successful brands?

A) Quality B) Positioning C) Repositioning D) All of the above

16) The product mix is .

A) the assortment of products offered B) products closely related in terms of function and benefits C) the total set of brands marketed by a company D) the strategy used to position the product in the mind of the consumer

17) Own-label brands are created and owned by A) distributors B) non-users C) manufacturers D) agents

18) Heinz tomato soup is a(n) A) assortment B) type C) product line D) variant

.

of the Heinz brand of the category soup.

19) The power of low-priced supermarket own-label brands has focused many producers of

manufacturers' brands to introduce A) fighter brands B) own-label brands C) manufacturer brands D) copycat brands

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20) Own-label brands are sometimes generically known as A) no frills products B) manufacturer brands C) discount brands D) distributor brands

21) A brand is created by

.

a core product with distinctive values that distinguish it

from the competition.

A) repositioning B) augmenting C) personalizing D) extending

22) Brand building involves a deep understanding of different types of customer values. Ease of

use is an example of a(n) A) rational B) emotional C) functional D) economic

customer value

23) If a company markets a computer that crashes regularly, the brand is likely to fail due to

.

A) poor quality of product B) low levels of service C) inadequate guarantee D) poor brand image

24) Brand names and associated image, service, design, guarantees and packaging can be used to

.

A) develop new products B) create awareness C) inform customer D) establish differential advantage

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25) Which of the following is not an element of a brand's strength?

A) Domain B) Personality C) Heritage D) Culture

26) Symbols, features and images that make a brand distinctive from other competing brands are

referred to as .

A) brand assets B) brand equity C) brand reflection D) brand values

27) The situation where a company's new brand gains sales at the expense of its established

brand is known as .

A) compensation B) cannibalization C) combination selling D) self competitive selling

28) The relationship between the brand and self-identity is called A) brand personality B) brand reflection C) brand equity D) brand image

.

29) Which of the following brand types has research shown to be more successful than follower

brands?

A) Manufacturer B) Own-label C) Fighter D) Pioneer

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30)

branding is a type of marketing tactic which involves the use of one brand name for the sale of several related products.

A) Family B) Individual C) Competitive D) Co-operative

31) What is an advantage of non-meaningful names like Diageo and Exxon?

A) Creates competitive advantage B) Allows creative advertising C) Transfers well over national boundaries D) Facilitates differentiation in new markets

32) When Nestlé bought Rowntree Mackintosh, they engaged in

, using the stronger

corporate brand name for the merged firm.

A) rebranding B) branding C) positioning D) repositioning

33) Brand familiarity is a reason why a company might decide to A) merge B) rebrand C) change corporate strategy D) embark on customer research

.

34) The use of an established brand name on a new product or category within the same broad

market or product category is known as A) brand stretching B) brand equity C) brand extension D) co-branding

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35) Brand equity is .

A) the associated goodwill which adds tangible value through higher sales and profits B) the distinctive name, packaging and design associated with a product C) the core values and characteristics of the brand D) the background to the brand and its culture

36) When the Yamaha brand name appears on hi-fi equipment, skis and pianos this is an example

of

.

A) brand extension B) brand stretching C) co-branding D) brand equity

37) The introduction of Anadin Extra could A) cannibalize B) enhance C) destroy D) expand

the sales of the original Anadin brand.

38) Brand extensions are not viable when .

A) the brand is used on a new brand within the same product category B) a target consumer holds the same values and aspirations from those in the original

market segment C) a target consumer holds different values and aspirations from those in the original market segment D) the brand is used on a new brand within the same broad market

39) Product-based co-branding involves linking two or more existing brands from A) different product lines B) different companies C) different product mix D) different brand category

.

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40) There are two variants of product co-branding: parallel and A) constituent B) element C) component D) ingredient

.

41) Which of the following has not been identified as contributing to global and pan-European

positions?

A) Geographic extension B) Brand acquisition C) Rebranding D) Brand alliance

42) A product line is .

A) the total set of brands marketed by a company B) a measure of strength of a brand C) a group of brands which are closely related in functions and benefits D) a product with distinctive competitive values

43) Ariel washing powder is an example of a(n) A) family brand name B) individual brand name C) augmented brand name D) product brand

.

44) Brand stretching is .

A) the use of an established brand name on a new brand within the same broad market B) linking the same two or more existing brands from different companies C) using an established brand name for brands in unrelated markets or product categories D) using marketing communications to inform new customers of the existence of an

established brand.

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45) Diet Coke, Pepsi Max and Smirnoff Ice are all examples of A) own-label brands B) brand extensions C) equity brands D) brand associations

.

46) How would you refer to the background of a brand and its culture?

A) Brand values B) Brand domain C) Brand heritage D) Brand personality

47) Which of the following is not relevant to the implementation of the re-branding process?

A) Extending the brand B) Assistance for distributors C) Understanding what the consumer identifies with the brand D) Speed of change

48) When Intel computer chips are marketed as a component of a computer brand, it is an

example of .

A) parallel co-branding B) ingredient co-branding C) copycatting D) a brand extension

49) Endorsement opportunities are advantages of A) parallel-based B) product-based C) communication-based D) service-based

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50) The financial value of companies can be greatly enhanced by the possession of strong brands.

For example, Nestle paid £2.5 billion for Rowntree, a UK confectionery manufacturer, a sum that was times its balance sheet value.

A) six B) four C) eight D) three

51) Strong brands offer many advantages. They achieve distribution more readily, achieve

economies of scale and are in a better position to resist retailer demands for price discounts, all of which feed through to higher .

A) complexity B) compatibility C) reliability D) profitability

52) Strong brands tend to enjoy positive consumer perceptions, which can act as a(n)

to

competition.

A) aid B) extension C) barrier D) rival

53) Developing positive customer-based brand equity is important as it is likely to result in

. (Check all that apply) A) high customer loyalty B) low price sensitivity C) a strong base for brand extensions D) high price sensitivity

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54) Proprietary-based brand equity can be found in many aspects of corporate activity, but the

two main sources are . (Check all that apply) A) patents B) brand awareness C) channel relationships D) brand image

55) Which of the following are seen as major ways of achieving a global and pan-European

brand position? (Check all that apply) A) Geographic extension B) Brand acquisition C) Brand alliance D) Brand extension

56) There are two sources of customer-based brand equity: brand awareness and brand

.

57) The success of Swatch watches is due to the fact that they augmented the basic product (a

watch) to offer functional and

values to customers.

58) Discuss the potential benefits of brand extensions for an organization.

59) What impact might own-label brands have on manufacturer brands?

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60) Critically evaluate the major forms of co-branding available to organizations.

61) What brand name strategies and choices are available to companies? How do these help in

strengthening the company's overall position in the marketplace?

62) Discuss the potential impact of a strong brand for an organization.

63) Outline the potential sources of brand equity for an organization.

64) Critically evaluate the different brand name strategies available to organizations.

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65) Discuss the potential reasons why an organization might decide to rebrand.

66) How do consumer benefit from strong brands?

A) They provide quality certification and trust.

B) They provide customer based-brand equity and good price-quality ratio.

C) They provide brand value and trust.

D) They provide quality certification and customer-based brand equity.

67) The character of the brand described in terms of other entities, such as people, animals or

objects is called ?

A) Brand personality B) Brand reflection C) Brand assets D) Brand domain

68) Why is it, in light of creating a strong brand, cutting the expenditure in the short term not

such a good idea?

A) Branding requires a long-term perspective.

B) Branding requires integrated marketing communication.

C) Branding requires the possibility to reposition in the short term.

D) Branding requires the possibility to invest in quality.

69) Which of the following statements is true about strong brands?

A) Strong brands are rarely the cheapest and offer high profits.

B) The reputation of strong brands may be a weak barrier to competition.

C) It is difficult for strong brand to achieve distribution.

D) Strong brands are more difficult for consumers to trust.

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Answer Key Test name: Chapter 8 1) A 2) A 3) B 4) C 5) D 6) D 7) C 8) D 9) D 10) B 11) B 12) B 13) C 14) B 15) D 16) C 17) A 18) D 19) A 20) D 21) B 22) C 23) A 24) D 25) D 26) A 27) B 28) B 29) D 30) A 31) C 32) A 33) B 34) C 35) A 36) B 37) A

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38) C 39) B 40) D 41) C 42) C 43) B 44) C 45) B 46) C 47) A 48) B 49) C 50) A 51) D 52) C 53) [A, B, C] 54) [A, C] 55) [A, B, C] 56) image 57) emotional 58) Essay 59) Essay 60) Essay 61) Essay 62) Essay 63) Essay 64) Essay 65) Essay 66) A 67) A 68) A 69) A

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Chapter 9 Value Through Pricing Student name: 1) Price is different from the other elements of the marketing mix because A) it is least easy to change B) it is the only one which is not a cost C) it is can be changed without consideration of the other three elements D) it prompts a faster reaction

2)

.

pricing refers to the situation where a firm cuts its prices with the aim of driving out the competition.

A) Dumping B) Predatory C) Penetration D) Discriminatory

3) In competitive bidding, the most usual process is the drawing up of detailed specifications for

a product and putting a contract out to tender. Potential suppliers then quote a price that is confidential to themselves and the buyer, known as a bid.

A) closed B) confidential C) secret D) sealed

4) For a company with a harvest strategic objective, an appropriate pricing objective would be

to maintain or raise for the purposes of short-term profit maximization, even if the result is long-term falling sales and/or market share.

A) discounts B) profit margins C) costs D) price

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5) Trade-off analysis, otherwise known as

analysis, measures the trade-off between price and other product features so that their effect on product preference can be established.

A) swop B) trading C) gap D) conjoint

6) Pricing strategy is dependent on understanding not only the ultimate customer, but also the

needs of who form the link between them and the manufacturer.

A) employees B) suppliers C) distributors D) competitors

7) When initiating price cuts, a company can employ a number of tactics including: a price fall,

staged price reductions, introducing fighter brands or price A) jumps B) wars C) unbundling D) bundling

.

8) Competitors' price cuts are likely to be followed when a company has a _

or hold

strategic objective.

A) harvest B) build C) divest D) reposition

9) A major problem with full cost pricing is that when sales fall A) prices fall B) prices rise C) prices remain fixed D) prices drop

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10) Direct cost pricing can be useful for services marketing because .

A) it allows a company to under-cut the competition B) it promotes efficiency within the operations C) it allows products that cannot be stored to be sold as long as they make a contribution

to overheads D) it indicates the highest price a customer will pay

11) Competitive bidding involves .

A) detailed specifications and sealed bids B) detailed specifications and open negotiations C) sealed bids and open negotiations D) detailed specifications and closed negotiations

12) Marketing-orientated pricing is .

A) simpler than competitor-oriented pricing B) simpler than competitor-orientated pricing but more difficult than cost-orientated

pricing C) simpler than both competitor-orientated pricing and cost-orientated pricing D) more complex than both competitor-orientated pricing and cost-orientated pricing

13) The pricing of new products is dependent on A) advertising strategy B) distribution strategy C) positioning strategy D) product strategy

.

14) Characteristics of high price market segments include .

A) products provide high value, lack of competition, low pressure to buy B) products have strong brand images, high competition, high pressure to buy C) products have strong brand images, high competition, high pressure to buy D) products provide high value, lack of competition, high pressure to buy

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15) Pricing of existing products within the context of strategy is dependent on A) hold, grow, harvest objectives B) hold, grow, promotion objectives C) hold, develop, harvest objectives D) build, hold, harvest objectives

16) Build objectives for a product in a price elastic market implies A) a price lower than the competition B) a price higher than the competition C) a lower brand share than the competition D) a higher brand share than the competition

.

.

17) If a company is maintaining or matching prices relative to the competition, which objective is

being pursued?

A) Build B) Hold C) Harvest D) Divest

18) Economic value to the customer analysis establishes A) the lower economic limit for price B) the upper economic limit for price C) the actual price level D) the ideal price level

.

19) Experimental pricing research in the field varies the price charged for A) imaginary products in real setting B) real products in unrealistic settings C) real products in simulated settings D) real products in realistic settings

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20) In a controlled store experiment, the prices are .

A) controlled in a number of stores and compared with historical data B) controlled in a number of stores and compared with data from other stores C) varied between two or more groups of stores and sales are compared D) gradually increased until maximum buyer response is recorded

21) Test marketing in pricing research .

A) enables the price to be set at different levels in the same area B) enables the price to be set at the highest level in one area C) allows the results to be obtained quickly D) allows a variety of prices to be tested in several areas

22) The major problem with test marketing is A) lack of areas in which to test B) lack of suitable data C) competitor reaction D) customer reaction

.

23) The price-quality relationship is considered when using A) marketing-orientated pricing B) customer-orientated pricing C) cost-orientated pricing D) competitor-orientated pricing

.

24) Product-line pricing is when a company .

A) takes account of the price levels across an existing product line B) ensures that all its products are priced within a similar price range C) ensures that a new product is priced above its existing product line D) ensures that a new product is priced below its existing product line

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25) The price waterfall is .

A) a slow reduction of price after launch B) prices being forced down by competition C) the difference between list price and transaction price D) setting different levels of price for different levels of quality

26) A negotiating margin is .

A) a planned difference between list price and a profitable transaction price B) pre-set levels of order-size discounts C) a discount given before the order is negotiated D) a discretionary discount given during negotiations

27) Circumstances leading to price increase include .

A) excess demand, a harvest objective, rising costs B) excess supply, value greater than price, rising costs C) excess demand, a build objective, rising costs D) price bundling, a build objective, excess supply

28) A price jump may .

A) avoid warning the competition but raise the visibility of price increases to customers B) avoid prolonging the pain of a price increase but raise the visibility of price increases

to customers C) reduce conflict in the distribution channel but raise the visibility of price increases to customers D) modify customer expectations but raise the visibility of price increases to customers

29) An alternative to reducing the price of existing brands to counter aggressive competitors is

.

A) to raise prices B) to launch fighter brands C) to keep prices as they are D) to lower prices in general

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30) Price unbundling involves .

A) charging separate prices for the constituent parts of an offering so as to lower the

overall price B) adding extra services to an offer without increasing the price C) charging separate prices for the constituent parts of an offering so as to raise the overall price D) not charging for packaging and delivery costs

31) Proactive price cutting can be used to .

A) reduce market demand B) pre-empt competitive entry into a market C) avoid a price war D) protect profit margins in the short term

32) Competitor's price increases are most likely to be followed A) when there is excess supply in the market B) when customers are price sensitive C) when there is industry-wide excess demand D) when there are many competitors in the market

.

33) Competitor's price increases are most likely to be ignored when A) costs are stable or falling B) there is excess demand in the market C) there are few competitors in the market D) there is a risk of a price war

34) Price is an important part of positioning strategy because A) it sends quality cues to the customer B) it is resistant to competitor threats C) it establishes equilibrium in a market D) it does not affect brand image

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35) A manager who matches the 'going rate' is using A) cost-based pricing B) market-based pricing C) competition-based pricing D) transfer-based pricing

.

36) Two major methods of cost-orientated pricing are A) full cost pricing and direct cost pricing B) direct cost pricing and marginal cost pricing C) going-rate pricing and marginal cost pricing D) transfer cost pricing and full cost pricing

.

37) A major benefit with full cost pricing is that it indicates A) the maximum price possible B) customers' willingness to pay C) the marginal cost D) if a product is worth launching

.

38) Direct cost pricing involves the calculation of .

A) only those costs which are likely to rise as output increases B) the delivered cost to the customer C) those costs which are likely to rise as output increases but excluding a profit mark-up D) those costs which are likely to rise as output increases plus an estimate of the

overheads

39) Competitor-orientated pricing methods include A) competitive bidding and marginal costing B) going-rate pricing and marginal costing C) going-rate pricing and competitive bidding D) competitive bidding and transfer cost pricing

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40) Statistical models of competitive bidding use the concept of A) marginal utility B) expected profit C) return on investment D) competitor intelligence

.

41) A combination of high price and low levels of promotional expenditure is called A) rapid entry B) rapid penetration C) slow entry D) slow skimming

.

42) Conditions for charging low prices at launch include .

A) experience curve effect, aiming for market domination, high levels of competition,

high levels of advertising expenditure B) experience curve effect, aiming for market domination, low levels of competition, make money elsewhere C) aiming for market domination, low levels of competition, high levels of advertising expenditure, make money later D) experience curve effect, aiming for market domination, make money later, make money elsewhere

43) The experience curve effect is due to .

A) economies of scale, improvements in skill levels, learning through experience B) improvements in skill levels, learning through experience, reduced production costs C) improvements in skill levels, reduced production costs, improved technology D) economies of scale, improved technology, learning through experience

44) Methods of estimating value to the customer include .

A) trade-off analysis and repertory-grid method B) economic value to the customer analysis and trade-off analysis C) repertory-grid method and economic value to the customer analysis D) the product life cycle method and lowest curve analysis

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45) Charging a low price for a prestige brand may not win customers if A) low price reduces marketing expenditure B) low price signals crisis within the company C) low price is perceived to mean low quality D) low price demotivates sales people

_.

46) A 'fighter brand' is a cut-price .

A) version of a major brand B) brand which competes with the brand leader C) brand which does not damage the image of an existing brand D) brand which is heavily promoted

47) Explicability refers to .

A) the trend for prices to rise slowly over time B) the explanation used to justify a sudden price increase C) the link between promotion and price sensitivity D) the capability of the salespeople to explain a high price to customers

48) The relationship between the quantity demanded and different price levels is known by

economists as the .

A) demand curve B) buyer-response curve C) experience curve D) s-shaped curve

49) For some products, a given fall in price leads to a large increase in demand. The demand for

such products is said to be price A) inelastic B) elastic C) insensitive D) Indifferent

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50) In certain conditions A) high profits B) low profits C) high prices D) low prices

can act as an entry barrier.

51) Price is the odd-one-out of the marketing mix because of which of the following?

A) It is concerned with economics rather than marketing B) Financial controllers control price setting rather than marketing managers C) Price is determined by one's competitors D) It is a revenue earner

52) Price should not be set in isolation; it should be blended with product promotion and place to

form a coherent mix that provides A) superior customer value B) greater revenue C) less competition D) new customers

?

53) Which of the following is not a method of setting prices?

A) Competitor-orientated pricing B) Market-led pricing C) Sales-focused pricing D) Cost-based pricing

54) Which of the following is not used in the calculation of full-cost pricing?

A) Expected sales B) Fixed costs C) Mark up D) Discounts

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55) Which of the following is a weakness associated with competitor-orientated pricing?

A) It is risky where a firm's cost position is weaker than its competitors B) It lets competitors dictate prices, therefore a loss of reputation as a market leader may

emerge C) It doesn't take into account economic conditions that may affect pricing decisions D) It is too simplistic and easy to use

56) A low price with low levels of promotional expenditure is an example of which of the

following?

A) Rapid penetration B) Slow skimming C) Rapid skimming D) Slow penetration

57) There are a number of key issues associated with initiating price changes. These are

. (Check all that apply) A) estimating costs B) estimating competitors' reactions C) the tactics that can be used D) the circumstances that may lead a company to raise or lower prices

58) Price

occurs when a supplier offers a better price for the same product to one buyer and not to another, resulting in an unfair competitive advantage.

59) How does pricing strategy relate to customer centrality?

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60) How might a company respond to a price cut on the part of a competitor?

61) Discuss the influences on customer value-based pricing.

62) Discuss the impact of technology on prices.

63) When competitors initiate price changes, firms better follow when A) Rising costs affect all firms B) brand image is consistent with high prices C) excess supply weakens demand D) build or hold strategic objectives are being followed

64) In the hospitality industry, firms tend to have high fixed costs and low marginal costs. Which

type of pricing can increase profitability as prices are automatically tailored to demand?

A) demand pricing B) real-time pricing C) name your own price D) value based pricing

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65) A fashion marketer consults you to determine the price of a new shoe. Which of the

following would determine whether they can ask for a high price?

A) Products have high psychological value, the target audience has the ability to pay and there is excess demand.

B) Products have high psychological value, the target audience has the ability to pay and there is excess demand.

C) Products have high psychological value, they wish to gain market penetration, and the consumer and bill payer are different D) Products have high psychological value, they wish to gain market penetration, and the consumer and bill payer are different E) There is a lack of competition, they wish to gain market domination, and they want to use price as a barrier to entry F) There is a lack of competition, they wish to gain market domination, and they want to use price as a barrier to entry G) The consumer and billpayer are different, they want to use price as a barrier to entry, and there is an experience curve effect.

H) The consumer and billpayer are different, they want to use price as a barrier to entry, and there is an experience curve effect.

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Answer Key Test name: Chapter 9 1) B 2) B 3) D 4) B 5) D 6) C 7) D 8) B 9) B 10) C 11) A 12) D 13) C 14) D 15) D 16) A 17) B 18) B 19) D 20) C 21) D 22) C 23) A 24) A 25) C 26) A 27) A 28) B 29) B 30) C 31) B 32) C 33) A 34) A 35) C 36) A 37) D

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38) A 39) C 40) B 41) D 42) D 43) A 44) B 45) C 46) C 47) D 48) A 49) B 50) D 51) D 52) A 53) C 54) D 55) A 56) D 57) [B, C, D] 58) discrimination 59) Essay 60) Essay 61) Essay 62) Essay 63) [A, B] 64) A 65) ABAB

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Chapter 10 Value Through Innovation Student name: 1) Which of the following is one of the reasons for companies to undertake new product

development?

A) Competitive pressures B) Technological advances C) Changing consumer tastes D) All of the above

2) In order to commercialize technology quickly and effectively, companies must remember

lessons from the diffusion of innovations curve and target A) mavens and early majority B) innovators and early adopters C) Early adopters and early majority D) pioneers and early innovators

3)

first.

technology quickly and effectively requires marketing and R&D staff to focus on the potential benefits the new product is likely to provide over existing products.

A) Communicating B) Commercializing C) Controlling D) Containing

4) Companies can use four different methods to organize effectively for new product

development. These are teams, product and brand managers, new product departments and new product committees.

A) brand B) project C) product D) marketing

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5) Successful innovating companies lead customers rather than simply follow them, by

imagining their A) incidental B) unarticulated C) accidental D) uniform

needs.

6) Companies can stimulate their corporate imagination by building a radical innovation

whose prime function is to foster a stream of innovative ideas from various sources.

A) hub B) ethos C) opportunity D) model

7) Having agreed a new product strategy, what is the next stage in the new product development

strategy?

A) Screening B) Business analysis C) Idea generation D) Concept testing

8) The process of

engineering refers to the practice of integrating the skills of designers, engineers, production, finance and marketing specialists so that product development is quicker, less costly and results in a high-quality product.

A) symmetrical B) joint C) cooperative D) simultaneous

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9) Having agreed a new product strategy, what is the next stage in the new product development

strategy?

A) Screening B) Business analysis C) Idea generation D) Concept testing

10) Which process is usually carried out after new product development but before

commercialization?

A) Business analysis B) Market testing C) Concept testing D) Screening

11) Test marketing is the

test of new product development since the product is being promoted as it would during a national launch.

A) open B) acid C) occasion D) simultaneous

12) In market testing, penetration refers to .

A) the rate at which consumers buy a new product again B) the proportion of consumers that buy the new product at least once C) the depth of the marketing research D) the number of market segments

13) According to the diffusion of innovation, laggards tend to be A) tradition-bound consumers B) late-night shoppers C) companies with no record of introducing new products D) employees who fail to come up with innovative ideas

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14) Which of the following product characteristics is least likely to affect the diffusion rate?

A) Compatibility B) Colour C) Communicability D) Complexity

15) The product replacement strategy of 'face-lifting' involves .

A) presenting the product in a more user-friendly way B) major product change; major changes to the target market and marketing mix C) minor product change; little or no change to the target market and marketing mix D) major changes to the 'cosmetic' appearance of the product

16) One of the key factors in encouraging effective new product development teamwork is to

.

A) lower bureaucratic barriers B) isolate those with specialized skills C) set and stick to deadlines

17) You have joined a small company which has not developed any new products in the last 15

years. Which of the following is likely to be the best first steps to encourage an innovative approach within the whole company?

A) Set up a company-wide project team B) Instigate an incentive scheme for staff to introduce their own ideas C) Encourage staff to adopt a subjective approach to innovation D) Introduce your own ideas to senior management for approval

18) Invention is .

A) any patented product B) the discovery of new ideas and methods C) commercializing a new idea by bringing it into the market D) the same as innovation

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19) How many broad categories of new products are there?

A) 4 B) 7 C) 10 D) 12

20) Approximately what percentage of new products fall into the category of new product lines?

A) 10% B) 20% C) 25% D) 45%

21) The surest way to kill innovative spirit in a company is to .

A) tolerate failure B) reward only those who are content to manage the status quo C) promote competition D) turn a blind eye to those working on pet projects

22) One of the key factors in encouraging effective new product development teamwork is to

.

A) lower bureaucratic barriers B) isolate those with specialized skills C) set and stick to deadlines D) only select experienced workers

23) Simultaneous engineering is .

A) sequential design and production engineering tasks B) multi-function productivity C) design and production engineering tasks carried out in parallel D) parallel production

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24) Which of the following is least likely to improve the relationship between R&D and

marketing personnel?

A) Develop informal relationships with each other B) Keep R&D people in the lab C) Formalize the product development process D) Encourage teamwork

25) Sensitivity analysis is .

A) studying how quickly a product can be launched B) studying how interested the customer is in a product C) studying how sensitive a product is D) studying the impact of variations from price, cost and customer acceptance

assumptions

26) In new product development, a break-even analysis calculates A) the quantity needed to be sold to cover advertising B) the quantity needed to be sold to increase profit C) the overall budget required D) the quantity needed to be sold to cover costs

.

27) In the concept testing of a new product, action standards can help to assess A) the production feasibility of the new product B) the best course of action to follow C) the robustness of the new product D) the buying intentions of respondents

.

28) Test marketing involves .

A) the launch of a new product in selected geographical areas B) testing a product under laboratory conditions C) testing a product in simulated domestic conditions D) running focus groups, followed by a questionnaire

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29) The diffusion of innovation process explains .

A) how a product is developed from inception B) how an innovative idea is developed into a product C) how a new product spreads throughout a market over time D) how consumers buy different products over time

30) According to the diffusion of innovation, innovators are likely to be A) those who are among the first to try out a new product B) venturesome consumers, willing to try something different C) companies who introduce many new products over time D) employees who come up with new product ideas

_.

31) Within the diffusion of innovation process, older and less well-educated members of the

population are likely to be .

A) late majority B) those who develop an innovative idea into a product C) early adopters D) laggards

32) In marketing terms, there are links between the diffusion curve and the A) 'S' curve B) early majority C) 'U' curve D) product life cycle

.

33) In terms of the speed of diffusion of a new product, divisibility refers to .

A) the degree to which a product can be tried on a limited basis B) the number of segments a market can be divided into C) the number of product extensions that can be made from the new product D) the number of identified uses for the new product

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34) One of the key means of addressing an innovation's divisibility is to A) identify as many market segments as possible B) allow low cost, risk-free trial C) identify as many uses for the new product as possible D) develop a product extension simultaneously with the new product

.

35) The product replacement strategy of intangible repositioning involves .

A) highlighting the service elements of the product B) offer a free trial C) minor product change; little or no change to the target market and marketing mix D) no product change but changes in the marketing mix and target market

36) Which product replacement strategy is suggested when the product is modified, and the

target customers are new?

A) Intangible repositioning B) Tangible repositioning C) Sectoral repositioning D) Specialized repositioning

37) In terms of product replacement strategy, 'product churning' is another term used to describe

.

A) relaunch B) repositioning the product to target the service sector C) 'face-lifting' D) neo-innovation

38) Why may traditional marketing research techniques have only a limited use when using

technology to create new markets?

A) People find it difficult to articulate their views about unfamiliar products/subjects B) Traditional marketing techniques tend to be too old-fashioned for these products C) Traditional marketing techniques are inappropriate for creating any new markets D) New markets can only be created for existing products

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39) Which of the following is an example of a new product line?

A) The Ford Mondeo B) Lucozade C) Apple Smart Watch D) The pocket calculator

40) Products that fit with consumers' values, experiences, lifestyles and behaviours are likely to

diffuse quicker because of their A) divisibility B) complexity C) compatibility D) communicability

.

41) Differential advantage, compatibility and the complexity of a product affect its rate of

.

A) development B) adoption C) profitability D) market growth

42) Re-launching a product involves .

A) changing the product and the market B) market and technology change C) changing the product and marketing mix D) marketing mix and technology change

43) Which of the following is not a new product brand category?

A) Additions to existing lines B) New products lines C) New-to-the world markets D) Category development

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44) Product replacements focuses on which of the following?

A) Deletion of mature products from a company's product mix, and the launch of an

entirely new product B) The addition of new products that add to a company's existing product lines C) Revisions, improvements to existing products, repositioning of existing products and cost reductions D) New product launches and the creation of entirely new markets

45) Which of the following new product categories carry the greatest risk?

A) Additions to existing lines B) New products lines C) New-to-the world products D) Category development

46) New product development is characterized by which of the following?

A) It is risky, expensive, and time consuming B) It is necessary, highly profitable, and expensive C) It is market driven, expensive, and has a high success rate D) It is expensive, consumer driven, and mandatory

47) Which of the following is the correct order for the eight-step new product development

process?

A) New product strategy, business analysis, idea generation, concept testing, screening, market testing, product development, and commercialization B) Business analysis, idea generation, screening, concept testing, new product strategy, product development, market testing, and commercialization C) New product strategy, idea generation, screening, concept testing, business analysis, product development, market testing, and commercialization D) Idea generation, business analysis, concept testing, screening, product development, market testing, commercialization and new product strategy

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48) New product ideas can be sourced from which of the following?

A) Distributors B) Customers C) Employees D) All of the above are sources of new product ideas

49) Which of the following is not an essential criterion used at the 'screening' stage of the new

product development process?

A) Test market results, indicating potential sales and profits B) The fit between the product and company objectives C) The capability of the company to produce and market the product D) Attractiveness of the market for the proposed product

50) Concept testing allows the views of which of the following to enter the new product

development process?

A) Distributors B) Investors C) Customers D) Employees

51) Based upon the results of the concept test and considerable managerial judgement, estimates

of sales, costs and profits will be made. This stage is called which of the following?

A) Commercialization B) Business analysis C) Market testing D) Screening

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52) Why is the new product development process being accelerated in many industries?

A) Customers are demanding more products with greater technological features B) Considerably reduces resources deployed on the research and development

departments, freeing them up so that they can be deployed elsewhere in the organisation C) Improves the likelihood of greater consumer adoption and reduces research and development costs D) Minimises the risk of technological obsolescence and cutting time to market can lead to competitive advantage

53) After a product has gained full market acceptance, what is the name given to the group of

individuals who are the last to begin buying or adopting a product?

A) Late majority B) Laggards C) Loiters D) Late comers

54) What potential dangers lie in extending the product range? How might extending the range

damage sales of existing products, and what can be done about this?

55) How can a creative culture be nurtured? What can be done to mitigate the occasional failures

which will inevitably occur?

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56) How can customer needs be built into the NPD process?

57) Explain the new product adoption process. How can marketers facilitate the process?

58) Which of the following statements is correct?

A) Innovation refers to new products that are so fundamentally different from existing

products that they reshape markets and competition.

B) Innovation refers to new products and service that make incremental improvements.

C) Effective new product development is enabled by bureaucratic leaders.

D) New product development is solely focused on the profitability of a new product.

59) Which of the following innovation ideas are reshaping our world?

A) Practical augmented reality B) Real-time language translation C) Chatbots D) The cloud

60) Which category of new products accounts for 25 percent of new product launches and take

the form of new products that add to a firm's existing product lines?

A) Product line extensions B) New product lines C) Innovations of the new-to-the-world products D) Product cost reduction

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61) What can be described as 'where customers interact with a company and data about their

interactions can be gathered'?

A) Touchpoints B) Community C) Trade shows D) Database

62) Research has indicated that companies should consider the overall customer experience.

Which of the following is one of the three rules companies should aim to follow?

A) Optimise the journey B) Optimise the touchpoint C) Try to please everyone D) Be in control of the channels

63) Indicate the concept below that 'begins by understanding the value, attitudes, and behavior of

various customers and prospects, which might form part of a relationship marketing strategy'?

A) Customer Relationship Management (CRM) B) Customer Relationship Database Intelligence (CRDI) C) New Product Development (NPD) D) Cross-Channel Customer Journey (3CJ)

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Answer Key Test name: Chapter 10 1) D 2) B 3) B 4) B 5) B 6) A 7) C 8) D 9) C 10) B 11) B 12) B 13) A 14) B 15) C 16) A 17) B 18) B 19) A 20) B 21) B 22) A 23) C 24) B 25) D 26) D 27) D 28) A 29) C 30) A 31) D 32) D 33) A 34) B 35) D 36) B 37) C

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38) A 39) C 40) C 41) B 42) C 43) D 44) C 45) C 46) A 47) C 48) D 49) A 50) C 51) B 52) D 53) B 54) Essay 55) Essay 56) Essay 57) Essay 58) A 59) [B, C, D] 60) A 61) A 62) A 63) A

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Chapter 11 Value Through Service Student name: 1) The simultaneous production and consumption of a service is known as A) the manufacturing curve B) customer service C) variability D) inseparability

2)

.

decisions radically affect how the procedures, mechanisms and flow of activities by which a service is acquired.

A) Process B) Physical evidence C) Place D) People

3) Lack of marketing research may lead to a(n)

barrier as management misunderstand

customer expectations.

A) exaggerated promises B) inadequate resources C) inadequate delivery D) misconception

4) Managers may understand consumer expectations and supply adequate resources, but fail to

select, train and reward staff adequately. This leads to a(n) A) exaggerated promises B) inadequate delivery C) inadequate conmpetition D) misconception

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5) The quality of the service experience is often heavily dependent on the staff-customer

interpersonal relationships. Jan Carlzon, Head of Scandanavian Airline Systems (SAS) called these meetings 'Moments of '.

A) excitement B) pleasure C) quality D) truth

6) Service staff are so important in influencing the quality of the service experience. New

service staff should undergo organization.

A) motivation B) socialization C) dedication D) evaluation

to allow them to experience the culture and tasks of the

7) Superior value is created in service industries by bringing together a company and its

customers in the value creation process. This is known as service A) dominant B) control C) customer D) employee

8)

logic.

has increased the level of competition in certain service industries, such as telecommunications, television and airlines. This has been a key driver of the expansion of services.

A) Demography B) Demarketing C) Regulation D) Deregulation

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9) For service marketers, it is important to achieve a balance between what is valued by the

customer as important and how they perceive the service provider's A) control B) mix C) performance D) criteria

_.

10) How well a service firm satisfies consumer choice criteria, depends on its marketing

.

A) mode B) model C) matrix D) mix

11) In order to manage services effectively, the service provider should focus on four things:

managing service quality, managing service productivity, managing service staff and positioning services and .

A) managing customer relationships B) managing employee relationships C) managing competitor relationships D) managing government relationships

12) Sandals Resort has built its success on A) exceeding B) meeting C) controlling D) reducing

guest's expectations.

13) There are four causes of poor perceived service quality. These are an inadequate resource

barrier, an inadequate delivery barrier, an exaggerated promises barrier and a barrier.

A) mislabelled B) misconception C) miscalculated D) misappropriate

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14) Variability in terms of service quality refers to A) the range of services offered B) different levels of service providers C) difficulties in standardization D) temporal fluctuations

15) The system of training staff in many tasks is known as A) staff development B) multi-skilling C) flex-training D) Customer Response Action (CRA)

.

.

16) Which of the following is one of the four key aspects of managing services?

A) Price differentials B) Location of services C) Advertising D) Positioning services

17) SERVQUAL is .

A) a software programme for service providers B) the BSI mark for quality of service C) a scale to aid measurement of service quality D) service equality - opportunities for all

18) What is the main risk faced by a company wishing to improve service productivity?

A) A decline in efficiency B) A decline on service quality C) A rise in costs D) A rise in staff training requirements

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19) If a supermarket changes any aspect of its

evidence, such as the store layout, facilities and design, it may have a negative effect on customers' comfort and convenience.

A) process B) fiscal C) service D) physical

20) EFTPOS stands for .

A) Electronic Funds Transfer at Point Of Sale B) Electronic Funds Transfer at Point Or Scale C) Effective Financial Training Positioning Of Services D) Effective Financing of The Production Of Services

21) How can demand for a service most effectively be spread out over time?

A) By staggering staff hours B) Through Sunday trading C) By introducing a queuing system D) By creative pricing

22) Who are 'halo customers'?

A) Those that are brand loyal B) Those from religious institutions and organizations C) Those at the periphery of the target market D) Children aged 3-9 years

23) Which of the following is one of the characteristics of a successful brand name of a service?

A) Accessibility B) Visibility C) Memorability D) Movability

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24) A company which encourages satisfied customers to inform others of their satisfaction is

stimulating .

A) market growth B) word-of-mouth communication C) replication D) non-verbal communication

25) Which of the following might best encourage word-of-mouth communication about a

service?

A) TV advertisements that use famous personalities B) Developing materials that customers can pass on to others C) Radio advertisements D) Free gifts or special offers

26) The process element of a service refers to _.

A) the procedures, mechanisms and flow of activities B) the production of the tangible factors C) the layout of the store or hotel D) the mechanical factors

27) Service positioning refers to .

A) the location of the store B) the choice of target market and differential advantage C) the location of products within the store D) the choice of store location and product range

28) Which of the following can be regarded as a service?

A) Watch B) Clothes C) Car repair D) Car

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

29) What colour scheme may be most appropriate for a shop specifically selling environment-

friendly products?

A) Brown B) Green C) Yellow D) Red

30) Why are perfume counters often near the entrance to a department store?

A) To create ambience B) To entice customers to buy luxury items C) To comply with fire regulations D) Because they look attractive

31) Non-profit organizations contribute to service sector activity, but are not driven by the

motive to satisfy their stakeholders.

A) profit B) satisfaction C) awareness D) image

32) One of the key functions of retailing is to "break _

" so that consumers can buy goods

in small quantities to satisfy their needs.

A) products B) bulk C) costs D) markets

33) Why is there a need to extend the traditional 4Ps marketing mix for services?

A) The high degree of direct contact between the firm and the customer B) The highly visible nature of the service assembly process C) The simultaneity of production and consumption D) All of the above

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

34) Which of the following is likely to be most effective in smoothing demand for a service?

A) A queuing system B) Differential pricing C) An EFTPOS system D) Predatory pricing

35) Unlike physical goods, services have

, that is, they have simultaneous production

and consumption.

A) heterogeneity B) variability C) inseparability D) perishability

36) According to Cowell (1984), what is the most significant factor in a 'service product'?

A) The dominance of tangible attributes B) The dominance of intangible attributes C) The dominance of perishability D) The dominance of variability

37) Which of the following is a pure service?

A) Machinery purchase B) Marketing research C) Psychotherapy D) Upholstering

38) In terms of service characteristics, an example of 'perishablity' is A) yoghurt B) clothing C) wastage D) unoccupied theatre seats

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

39) What characteristics of services is defined as "a deed, performance or an effort rather than an

object, device or thing"?

A) Inseparability B) Intangibility C) Perishability D) Variability

40) Technology can be used to improve productivity and service

. For example, automatic cash dispensers in banks increase the number of transactions per period (productivity) while reducing customer waiting time.

A) marketing B) quality C) scope D) awareness

41) According to Wirtz, Chew and Lovelock (2013), there are four different categories of

services: people processing, possession processing, mental stimulus processing and processing.

A) input B) information C) index D) interchange

42) The services marketing mix is an extension of the 4Ps framework. Which of the following is

not one of the essential elements of the 7Ps mix?

A) Product B) Position C) People D) Process

43) In which of the following markets can personal selling be particularly effective?

A) Insurance and investment B) Encyclopaedias C) White goods D) Brown goods

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

44) Which of the following is of crucial importance in the achievement of high standards of

service quality?

A) Selection, training and rewarding of staff B) The provision of a high quality product with excellent features C) The very close monitoring of staff D) All of the above

45) Which of the following are important dimensions of service quality?

A) Trustworthiness, reliability, reciprocity, reputation and flexibility B) Reliability, responsiveness, courtesy, security and tangibles C) Reputation, responsiveness, intangibles, durability and reliability D) Assurance, reliability, responsiveness, reputation and flexibility

46) The ability to provide the service dependably and consistently refers to which of the

following dimensions of service quality?

A) Tangibles B) Reliability C) Inseparability D) Variability

47) Simultaneous production and consumption is a(n) A) intangibility B) inseparability C) variability D) perishability

48) Difficulty in evaluation is a(n) A) intangibility B) inseparability C) variability D) perisability

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characteristic of services.

characteristic of services.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

49) Evaluation systems are a(n) A) intangibility B) inseparability C) variability D) perishability

characteristic of services.

50) Differential pricing is a(n) A) intangibility B) inseparability C) variability D) perishability

characteristic of services.

51) Which of the following is a method used to deal with perishability?

A) Use of reliable equipment B) Evaluation systems C) Selection, training and motivation D) Multi-skilling

52) Which of the following methods helps tackle the problem of service variability?

A) Service mapping B) Service recovery C) Service standardization D) Service coding

53) Which of the following are examples of pricing techniques that can be used when setting fee

levels for services? (Check all that apply) A) Offset B) Inducement C) Progressionary D) Diversionary

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

54) Which of the following can be used to maintain a motivated workforce? (Check all that

apply) A) B) C) D)

Recognition of achievement Role clarity Monetary rewards Customer clarity

55) Which of the following are examples of service industries? (Check all that apply) A) Retailing B) Property management C) Non-profit organizations D) Steel manufacture

56) Companies rated higher on service quality have been shown to perform better in terms of

. (Check all that apply) A) market share growth B) profitability C) cost control D) market growth rate

57) True or false: On the physical goods-service continuum, marketing research is closer to being

a pure good than a pure service. ⊚ true ⊚ false

58) True or false: Because of their experiential nature word of mouth is unimportant to the

success for services. ⊚ true ⊚ false

59) True or false: Intangibility means that customers may find difficulty in evaluating a service

before purchase. ⊚ true ⊚ false

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

60) Charitable organizations contribute to service sector activity, but are not driven by the

motive to satisfy their stakeholders.

61) Distinguish between services and physical products.

62) Explain the concept of the extended (7Ps) marketing mix by applying it to a retail services

company of your choice.

63) What is the role of people in service companies?

64) Using examples from a service organization of your choice, explain how the characteristics

of a service apply to your chosen organization.

65) Discuss the criteria that might be used when managing customer service expectations.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

66) Managing service quality is important for service providers. Discuss the main considerations

for a marketer aiming to reduce the causes of poor perceived quality.

67) Explain the application of the marketing mix in a service environment.

68) Identify and explain the criteria a hotel company might use to evaluate a customer service

encounter.

69) Customer satisfaction can be measured using

. Social media platforms are also

widely used in the same context.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Answer Key Test name: Chapter 11 1) D 2) A 3) D 4) B 5) D 6) B 7) A 8) D 9) C 10) D 11) A 12) A 13) B 14) C 15) B 16) D 17) C 18) B 19) D 20) A 21) D 22) C 23) C 24) B 25) B 26) A 27) B 28) C 29) B 30) A 31) A 32) B 33) D 34) B 35) C 36) B 37) C

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) D 39) B 40) B 41) B 42) B 43) A 44) A 45) B 46) B 47) B 48) A 49) C 50) D 51) D 52) C 53) [A, B, D] 54) [A, B, C] 55) [A, B, C] 56) [A, B] 57) FALSE 58) FALSE 59) TRUE 60) profit 61) Essay 62) Essay 63) Essay 64) Essay 65) Essay 66) Essay 67) Essay 68) Essay 69) customer service questionnaires

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Chapter 12 Introduction to Marketing Communications Student name: 1) Integrated marketing communications has been introduced in order to A) integrate better with customers B) coordinate messages and their execution C) integrate the marketing department with the organization D) coordinate marketing and sales departments

.

2) The IMC school of thought aims to move the emphasis of communications away from a step-

by-step linear, transactional approach, to an ongoing A) positional B) relational C) rational D) radical

dialogue.

3) The advertising

plays an important role in selecting a creative agency. It sets down the advertiser's core requirements of the campaign, which act as a guide for everyone in terms of the message, target audience, the tone, the budget and the deliverables.

A) pitch B) framework C) statement D) brief

4)

drivers are leading to increased use of IMC. These drivers bring benefits from an operational perspective e.g. streamlining communications activities and creating opportunities fro increased profits through efficiency gains.

A) Target market B) Organizational C) Communication D) Core

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

5) Agencies and/or internal departments often prepare a

for a client, which will show how their ideas and their use of the communications budget will meet the client's requirements.

A) brief B) pitch C) tool D) message

6)

leaders play an important role in the communications process. They exert influence on others and can spread positive word-of-mouth about a company and its brands.

A) Opinion B) Purchase C) Brand D) Product

7) A theatre critic writing reviews for a national newspaper, is an example of an opinion

, who plays an important role in the communications process.

A) seeker B) leader C) taker D) former

8) Because of the likelihood of small market size and concentration and high customer

information needs, tends to be used extensively by business-to-business customers.

A) public relations B) advertising C) personal selling D) consumer sales promotion

9)

marketing campaigns aim to deliver communication messages through unexpected means and in ways that almost 'ambush' the consumer to gain attention.

A) Ambush B) Guerrilla C) Action D) Mass

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

10)

media are a non-traditional form of media that involve placing advertisements in unconventional places to take the audience by surprise.

A) Ambient B) Ambush C) Action D) Affiliate

11) Profile positioning strategies aim to develop the image and identity of an organization,

through the use of public relations, sponsorship, media relations and A) trade sales promotion B) consumer sales promotion C) lobbying D) direct marketing

12) A(n)

.

agency is one that offers a complete service across all the communication

tools.

A) B) C) D)

full service specialist core holistic

13) There are challenges associated with an IMC approach. For example, organizations might

have to change management structures and organizational culture to accommodate IMC and critics argue that IMC encourages , thereby stifling creativity.

A) variation B) uniformity C) differentiation D) positioning

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

14) Social

is an important consideration when companies are using social media. It refers to the power attached to particular members of the online community, who have the power to distribute a company's message to other members of a social network.

A) capital B) control C) ownership D) monitoring

15) Integrated marketing communications can .

A) improve consistency and positioning of brands B) reach more customers C) integrate marketing and sales departments D) integrate marketing and production departments

16) Which of the following is not part of the promotional mix?

A) Personal Selling B) Category Management C) Direct Marketing D) Sales Promotion

17) When a firm adopts an integrated marketing communications (IMC) approach, then this

involves .

A) sales promotion being only used to create action B) its adverts using similar media with a similar message C) a company coordinating its promotional mix to deliver a clear consistent message.

D) advertising being used to create awareness

18) Noise is a concept used in communications and it refers to .

A) consumer distortions of the message B) distractions which stop the consumer receiving the message C) consumer selective retention of the message D) deviations from the facts in the presentation of the message

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

19) The distribution of products, information and promotional benefits to target consumers

through interactive communication in a way that allows response to be measured is called which of the following?

A) Interactive Marketing B) Channel Management C) Direct Marketing D) Distribution Management

20) Any paid form of non-personal communication of ideas or products in the prime media refers

to which of the following?

A) Publicity B) Public Relations C) Advertising D) Promotional Mix

21) Which of the following is not a major consideration for the choice of promotional mix?

A) Product lifecycle B) Resource availability and the cost of promotional tools C) Product characteristics D) Customer information needs

22) A push strategy involves which of the following?

A) A push strategy involves an attempt to sell into channel intermediaries (e.g. retailers)

and is dependent on personal selling and trade promotions B) A push strategy involves bypassing intermediaries to communicate to consumers directly C) A push strategy involves heavy promotional expenditure at the start of an advertising campaign to achieve the maximum impact D) A push strategy involves heavy promotional expenditure throughout the duration of an advertising campaign to achieve maximum impact

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

23) A pull strategy involves which of the following?

A) A pull strategy involves an attempt to sell into channel intermediaries (e.g. retailers)

and is dependent on personal selling and trade promotions B) A pull strategy involves bypassing intermediaries to communicate to consumers directly C) A pull strategy involves a small promotional expenditure at the start of an advertising campaign and gradually increasing expenditure to improve the longevity of a campaign D) A pull strategy involves small promotional expenditure throughout the duration of an advertising campaign due to product unsuitability to advertising campaigns

24) Where a pull strategy is being deployed, which of the following promotional methods would

be the most suitable?

A) Personal selling B) Trade promotions C) Trade advertising D) Consumer sales promotion

25) The growth of Integrated Marketing Communications is due to organizational,

communication and A) competition B) positioning C) segmentation D) target market

-based drivers.

26) Which of the following is not a part of the simple communication process model?

A) Feedback B) Clutter C) Noise D) Source

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

27) The process by which the receiver interprets the symbols transmitted by the source is known

as

.

A) encoding B) decoding C) noise D) clutter

28) Media planners have three key media decisions to consider. They are media planning

decisions (media buying, scheduling, timing and frequency) and which of the following?

A) Media control and media evaluation B) Media class and media cost C) Media type and media vehicle D) Media cost and media weight

29) One of the key considerations when deciding which media channel to use is

factors

i.e. does the medium allow the communication objectives to be realized?

A) social B) environmental C) retail D) creative

30) The "target audience" refers to which of the following?

A) The group of people at which a product is aimed B) The group of people at which an advertisement or message is aimed C) The group of people which have past, present or future interest in the actions or

behaviour of a company D) The group of people referred to as stakeholders

31) The IMC school of thought aims to move the emphasis of communications away from

transactional communications to make communications more A) customer B) competitor C) company D) distributor

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-centered.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

32) The media class decision refers to the media planners' choice of which of the following?

A) B) C) D)

The choice of media scheduling The choice of media categories The choice of media frequency The choice of a particular newspaper, magazine, television spot, poster site, etc.

33) Which of the following is not a key IMC communications objective?

A) To stimulate trial B) To help position products in the minds of consumers C) To create awareness of a brand or a solution to a company's problem D) To defend market share

34) Which department in an advertising agency provides a liaison with the client and creative

teams within the agency?

A) Production B) Account Management C) Traffic D) Account planning

35) A pull positioning strategy involves .

A) obtaining a client’s consent to use a specific advert B) communicating directly to consumers C) encouraging retailers to stock your product D) encouraging media owners to place your advert

36) If a member of a household does not notice a TV commercial because the telephone rings,

then according to the communication process model, this is due to A) encoding B) decoding C) noise D) transmission

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

37) The promotional mix includes .

A) advertising, sales promotion, market research, publicity B) advertising, publicity, communication, market research C) advertising, sales promotion, personal selling, publicity D) advertising, sales promotion, publicity, people

38) Key characteristics of money-off sales promotions are that they .

A) provide a quick boost to sales, long-term effects may improve brand image B) provide a quick boost to sales, short-term effects may harm brand image C) provide a quick boost to sales, long-term effects may harm brand image D) provide a quick boost to sales, builds credibility, may improve brand image

39) IMC offers a number of advantages, including . (Check all that apply) A) reduced costs B) reinforces competitive advantage C) more consistent communication experience for the customer D) less management commitment

40) Mass communications are those tools that reach wide audiences, using non-personal

communication techniques, such as A) advertising B) direct marketing C) public relations D) personal selling

. (Check all that apply)

41) Direct marketing communication tools include A) personal selling B) public relations C) exhibitions D) direct marketing E) sales promotion

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. (Check all that apply)

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

42) Which of the following are elements of the promotional communications mix? (Check all

that apply) A) Advertising B) Personal selling C) Digital promotions D) Market research

43) True or false: The promotional mix is the exclusive element of the marketing mix concerned

with communication. ⊚ true ⊚ false

44) Effective communication is two-way from producer to consumer and from consumer to

producer. ⊚ true ⊚ false

45) Advertising expenditure is often used by salespeople to convince the retail trade to increase

shelf space of existing brands, and to stock new brands. ⊚ true ⊚ false

46) Decisions about target market selection and communications objectives are normally the

responsibility of the advertising agency. ⊚ true ⊚ false

47) Dove used a combination of advertising, public relations and in-store marketing to portray

the aspirational image their brand. This type of campaign is an example of an integrated marketing communication campaign. ⊚ true ⊚ false

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

48) Message receivers in a particular target market will all interpret the message in the same

manner. ⊚ true ⊚ false

49) Sales promotion is a long term strategic device. ⊚ true ⊚ false

50) Discuss the key considerations a company might make when planning an integrated

marketing communications campaign.

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Answer Key Test name: Chapter 12 1) B 2) B 3) D 4) B 5) B 6) A 7) D 8) C 9) B 10) A 11) C 12) A 13) B 14) A 15) A 16) B 17) C 18) B 19) C 20) C 21) A 22) A 23) B 24) D 25) D 26) B 27) B 28) C 29) D 30) B 31) A 32) B 33) D 34) B 35) B 36) C 37) C

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) C 39) [A, B, C] 40) [A, C] 41) [A, C, D] 42) [A, B, C] 43) FALSE 44) TRUE 45) TRUE 46) FALSE 47) TRUE 48) FALSE 49) FALSE 50) Essay

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Chapter 13 The Marketing Communications Mix: Mass Communications Student name: 1) Which of the following refers to media relations?

A) The communication of a product or business by placing information about it in the

media without paying for the time or space directly B) Generating word-of-mouth through original and effective advertising campaigns that are in the public domain C) Refers to the art of public relations, managing the informational needs of all a company's key constituents D) All of the above

2)

is the deliberate placing of products and/or their logos in movies and television, usually in return for money.

A) Product placement B) Advertising C) Sales promotion D) Sponsorship

3) Sales promotion involves the use of incentives to customers or

, designed to

stimulate purchase.

A) the trade B) salespeople C) suppliers D) competitors

4) The strong theory of advertising assumes that a person passes through the stages of

awareness, A) interest B) intention C) incline D) indecision

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, desire and action.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

5) Any paid form of non-personal communication of ideas or products in the prime media refers

to which of the following?

A) Publicity B) Public Relations C) Advertising D) Promotional Mix

6) The

theory of advertising is a conversion theory of advertising as it assumes that advertising has the ability to persuade people to buy who had not previously bought the brand.

A) core B) new C) weak D) strong

7) The weak theory of advertising suggests that advertising is not a very strong influence on

consumers and moves consumers through three stages: A) desire, trial and reinforcement B) awareness, interest and trial C) awareness, trial and reinforcement D) interest, trial and action

.

8) Television advertising messages work best if they communicate only one major selling

appeal, sometimes called the .

A) single-differentiated platform B) single-focused plan C) single-centred proposal D) single-minded proposition

9)

advertising is advertising that focuses on ensuring that the brand being advertised stands out in a crowded marketplace, by being different, using shock etc.

A) Ambient B) Creative C) Salience D) Post-modern

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

10) The formal part of an agency selection process is known as the

process, where the client produces a creative brief and the agency prepares a pitch to demonstrate how it will meet the brief.

A) relationship B) briefing C) communication D) pitching

11) Which type of advertising agency provides strategic planning research, creative development,

brand building and media buying and scheduling services, as well as a full range of expertise across all of the communication tools?

A) Full-service agency B) Media buying club C) Creative boutique D) Holistic agency

12) Product placement is often referred to as A) distorted B) hidden C) embedded D) controlled

marketing.

13) Product placement activity is growing because of its mass market reach, ability to confer

positive associations to brands, its high advertising barriers.

A) credibility B) costs C) promotion D) validity

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and message repetition and ability to avoid

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

14) The popularity of

is growing, giving rise to claims that it contributes to deceptive advertising, as it can't be controlled by the consumer in the same way traditional advertising breaks can.

A) product placement B) public relations C) sales promotion D) media relations

15) When selecting an event or programme to sponsor, it is important to consider the target

market, the costs, risks, promotional opportunities and A) past B) future C) present D) competitors

records.

16) Formal evaluation of a sponsorship deal may involve measuring media coverage and name

mention .

A) features B) influence C) sightings D) promotion

17)

of sponsorship should be based on measuring sponsorship results in terms of sponsorship objectives.

A) Selection B) Evaluation C) Placement D) Promotion

18) Which of the following is not an advantage associated with advertising?

A) Repetition means that a brand positioning concept can be effectively communicated;

TV is particularly strong B) Good for awareness building because it can reach a wide audience quickly C) Personal: gives flexibility and consumer questions can be answered with ease D) Can be used to aid the sales effort: legitimise a company and its products

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

19) The acronym "AIDA" stands for which of the following?

A) Awareness, Interest, Desire, Action B) Attention, Idea, Decision, Action C) Attention, Information, Distinguish, Action D) Awareness, Intention, Decision, Action

20) The awareness, trial, reinforcement (ATR) model sees a key role of advertising as which of

the following?

A) Sees a key role of advertising as being to defend brands by reinforcing beliefs to retain existing customers B) Sees a key role of advertising as being to maximise the awareness of a brand to ensure that it is in consumers' evoked set of brands C) Sees a key role of advertising as being to maximise the image of a brand so that its promotional strategy is in align to its chosen positioning strategy D) Sees a key role of advertising as being to support personal selling and sales promotions in order to convert trial consumers into loyal customers

21) When developing an advertising strategy, which of the following is the first communication

decision which must be made?

A) Define advertising objectives B) Set advertising budget C) Identify and understand target audience D) Identify positioning strategy

22) Which of the following is a method for setting the advertising budget?

A) Percentage of purchases B) Percentage of sales C) Objective and goal method D) Authenticity

23) Which of the following is a form of advertising post-testing?

A) Concept testing B) Readability tests C) Theatre tests D) Recognition tests

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

24) Public relations is referred to as which of the following?

A) Public relations is the use of communications tools for the process of managing

investor relations B) Public relations is the management of media relations so that a favourable reputation for the organisation is formed C) Public relations is the use of communications tools designed to create favourable publicity amongst stakeholders D) Public relations is the management of communications and relationships to establish goodwill and mutual understanding between an organization and its public

25) Public relations activities include which of the following?

A) Corporate advertising B) Premiums C) Direct mail D) Brand advertising

26) Which of the following is not a public relations activity?

A) Providing plant tours to stakeholders B) Management of sales promotion C) Lobbying D) Corporate advertising

27) Which of the following is a major aim of public relations?

A) It can foster prestige and reputation B) It can increase short-term sales C) It can increase impulse purchases D) It can stimulate trial

28) The two-way

model of public relations assumes that power is not equally distributed between the stakeholders and the organization and therefore the purpose of PR is to influence attitudes and behaviour through persuasion.

A) asymmetric B) symmetric C) systematic D) asystematic

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

29) Publicity is which of the following?

A) The communication about a product or organization through positive word of mouth

from the general public B) The communication about a product or organization through sponsorships, investor relations, media relations, event marketing and press releases C) The communication about a product or organization by placing news about it in the media without paying for the time or space directly D) The communication about a product or organization by placing news about it in the media through paid advertising and public relations

30) Sponsorship is referred to as which of the following?

A) A business relationship between a provider of funds, resources and services and an

individual, event or organization which offers in return some rights and association that may be used for commercial advantage B) A business relationship between a company and a retailer, where the company pays a bonus to salespeople based on the amount of product sold in order to gain a competitive edge C) A business relationship between a company and the media, where the company supplies the media with information on important events in the organization D) A business relationship between a company and its customers that involves the business using incentives and inducements to stimulate purchase

31) Which of the following is the most popular sponsorship medium?

A) Arts sponsorship B) Sponsoring community activities C) Sports sponsorship D) Sponsoring fairs

32) Which of the following is a major aim of sponsorship?

A) Increase short-term sales B) Benefit from economies of scale C) Move stock D) Create entertainment opportunities

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

33)

sponsorship is a growing form of sponsorship that involves sponsoring a television or radio programme.

A) Media B) Station C) Broadcast D) Promotional

34) Sports sponsorship transfers which of the following values?

A) Young, accessible, friendly, current, innovative and commercial B) Caring, concern, exploitive C) Healthy, young, energetic, fast, vibrant and masculine D) Admirable, concerned, caring, intelligent and explosive

35) The 'target audience' refers to which of the following?

A) The group of people at which a product is aimed B) The group of people at which an advertisement or message is aimed C) The group of people which have past, present or future interest in the actions or

behaviour of a company D) The group of people referred to as stakeholders

36) Which type of consumer sales promotion gives added value to the consumer by giving them

extra quantity at no additional cost?

A) Premiums B) Bonus packs C) Samples D) Coupons

37) When sales promotion is targeted at the trade, it is described as a A) give B) take C) pull D) push

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) Which of the following is an objective of trade sales promotions?

A) To encourage retailers to purchase smaller pack sizes B) To provide consumers with an incentive to buy C) To create goodwill among consumers D) To gain distribution and shelf space

39) Which of the following forms of consumer sales promotion is most likely to devalue the

brand in the eyes of the consumer if used long-term?

A) Prize promotions B) Loyalty schemes C) Premiums D) Money-off promotions

40) Which of the following consumer promotions is an example of promotional 'premium'?

A) Self-liquidating offers B) Self-promotional offers C) Off pack gifts D) Pay-in-mail offers

41) Why may a firm engage in trade promotions for retailers?

A) Retailer may buy extra quantities B) Retailer may allow in- store demonstrations C) Get greater allocation of retailer shelf space D) All of the above are reasons

42)

-testing research is carried out after a sales promotion campaign ends to assess whether or not promotional objectives have been achieved.

A) Post B) After C) Lead D) Lagged

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43) There are two types of research that can be used to evaluate sales promotion:

and

.

A) inter-testing; intra-testing B) macro-testing; micro-testing C) pre-testing; post-testing D) in-testing; out-testing

44) Media relations messages are seen to be A) more costly than advertising B) more credible than advertising C) less targeted than advertising D) less organized than advertising

.

45) Which of the following is not a consumer sales promotion tool?

A) Premiums B) Coupons C) Money off D) Allowances

46) Which of the following is a reason for the growth in sales promotions?

A) Increased impulse purchasing B) Reduced advertising clutter C) Lengthening time horizons D) Decreased impulse purchasing

47) Which of the following is not a key task of a media relations department?

A) Responding to requests from the media B) Paying the media for the time and space to promote a company/brand C) Supplying the media with information on events relevant to the organization D) Stimulating the media to carry the information and the viewpoint of the organization

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

48) Public relations activities include .

A) media relations, corporate advertising and sponsorship B) media relations, lobbying and sales promotions C) media relations, seminars and direct mail D) media relations, seminars and telemarketing

49)

of sales promotion is used to assess whether or not the sales promotional objectives have been achieved.

A) Post-testing B) Pre-testing C) Micro-testing D) Macro-testing

50) The reasons why expenditure on sales promotions has grown include .

A) increased impulse purchasing, the rising cost of advertising and cultural change B) increased impulse purchasing, the lack of effective alternatives and cultural change C) the rising cost of advertising, cultural change and the lack of effective alternatives D) increased impulse purchasing, the rising cost of advertising and competitor activities

51) In public relations, the two-way

model, communication flow is reciprocal and PR is used as a means of mediating relationships between the organizations and its various stakeholders.

A) symmetric B) asymmetric C) systematic D) asystematic

52) Sales promotions have effects on sales.

A) short-term only B) long-term only C) short-term positive and long-term neutral D) short-term positive and long-term positive, negative or neutral

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

53) Which of the following is not a method used for setting the advertising budget?

A) Percentage of sales B) Affordability C) Objective and task D) Share of voice

54) People use advertising for many different kinds of satisfaction. These include

.

(Check all that apply) A) vicarious experience B) risk reduction C) cost reduction D) entertainment E) product informartion F) variable experience

55) Which of the following are creative positioning bases used in advertising? (Check all that

apply) A) B) C) D) E)

Product use Product class Category specific Competition Promotion

56) Boutiques or creative houses are a type of advertising agency that specializes in

services. (Check all that apply) A) media planning B) creative content development C) copywriting D) media planning

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

57) Public relations concerns the management of communication and relationships between an

organization and its publics. These publics include A) employees B) the media C) customers D) competitors E) government

. (Check all that apply)

58) Advertising expenditure is often used by salespeople to convince the retail trade to increase

shelf space of existing brands, and to stock new brands. ⊚ true ⊚ false

59) Premiums are any merchandise offered free or at low cost as an incentive to purchase a

brand. ⊚ true ⊚ false

60) For high-involvement decisions, advertising is more likely to follow the

theory of advertising by creating a strong desire to purchase by convincing people that they should find out more about the brand.

61) Discuss the main factors to be considered when selecting which media to use for an

advertising campaign.

62) Discuss the extent to which sales promotion might be used to build a brand.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

63) Explain the importance of consumer sales promotions and discuss some frequently used

consumer sales promotion techniques.

64) Sponsorship provides an opportunity to create publicity and generate media coverage.

Discuss how sponsorship might be used to create different, favourable associations.

65) Explain the function, benefits and risks of product placement.

66) Identify and explain the factors which have caused the rise in the use of sponsorship.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Answer Key Test name: Chapter 13 1) A 2) A 3) A 4) A 5) C 6) D 7) C 8) D 9) C 10) D 11) A 12) C 13) A 14) A 15) A 16) C 17) B 18) C 19) A 20) A 21) C 22) B 23) D 24) D 25) A 26) B 27) A 28) A 29) C 30) A 31) C 32) D 33) C 34) C 35) B 36) B 37) D

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) D 39) D 40) A 41) D 42) A 43) C 44) B 45) D 46) A 47) B 48) A 49) A 50) D 51) A 52) D 53) D 54) [A, B, D] 55) [A, B, D] 56) [B, C] 57) [A, B, C, E] 58) TRUE 59) TRUE 60) strong 61) Essay 62) Essay 63) Essay 64) Essay 65) Essay 66) Essay

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Chapter 14 Digital Marketing and Media Student name: 1) Location is said to be key from a consumer perspective. When trading online, location

becomes .

A) more important B) less important C) about the same D) a problem

2) Internet technology enables A) 300/23/6 B) 52/12/7 C) 500/25/5 D) 365/24/7

trading hours.

3) The digital divide refers to the divide between A) urban and rural customers B) upper and working class consumers C) technology haves and have nots D) men and women

4) Blogs are a popular form of

.

that allow people to produce content to be shared with

others.

A) B) C) D)

social commerce social publishing social community social entertainment

5) Technology platforms are switching from analogue to digital and from fixed to A) visual B) audio C) wireless D) laptops

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6) Opt-in emails are an example of A) search engine marketing B) permission-based marketing C) viral marketing D) blogging

.

7) If the poorest members of society cannot afford a computer, broadband connection,

interactive television, digital radio or 4G phone and therefore cannot benefit from the vast array of products and services available, or access to information sources, which of the following ethical considerations is most pertinent?

A) Intrusion of privacy B) Piracy C) Social exclusion D) Parallel importing

8) Which of the following is a key dimension of the digital age?

A) Technology B) Applications C) Audiences D) All of the above

9) Which of the following is an element of a digital marketing plan?

A) Value proposition B) Organizational change C) Strategic alignment D) All of the above

10) Which of the following represents a phase of social media usage which will influence

campaign objectives?

A) Trial B) Transition C) Strategic D) All of the above

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

11) YouTube is an example of which of the following type of media?

A) Social community B) Social commerce C) Social publishing D) None of the above

12)

is a form of online advertising whereby one business rewards another for placing advertising on their web site.

A) Ambush marketing B) Affiliate marketing C) Reverse marketing D) Search engine marketing

13) The sending of unsolicited e-mails is referred to as which of the following?

A) Spam B) E-mail publicity marketing C) Viral marketing D) Review marketing

14) The digital divide refers to .

A) the divide between those able to use social media and those who cannot B) the divide between those with digital access and those without C) the divide between those companies who successfully use digital marketing and those

who do not D) the physical divide between technology manufacturers and consumers

15) Hoffman and Novak have expressed ethical concerns about the significant differences in

Internet usage based on _ A) personality B) age C) gender D) race

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and educational attainment worldwide.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

16) The digital divide between those with Internet access and those without, has led to ethical

concerns about A) economic B) social C) demographic D) technological

exclusion of those who cannot afford digital devices.

17) Although there have been ethical concerns about Internet access worldwide, mobile phones

and

have been more widely adopted worldwide as they reach into the community.

A) digital television B) tablets C) e-readers D) laptops

18) Digital marketing can be used to grow sales through cheaper prices, wider

or

greater product range.

A) scope B) distribution C) promotion D) uses

19) Digital marketing can add _______ through greater customer convenience, improved 24/7

access and/or more information.

A) value B) costs C) options D) media

20) Digital

is a term used to describe the methods used to evaluate the success of digital marketing programmes.

A) control B) analytics C) forecasting D) conversion

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

21)

marketing is a popular form of online advertising in which one business rewards another for advertising on their website.

A) Association B) Reward C) Reciprocal D) Affiliate

22)

is a means of building traffic to a particular website by achieving the highest position in the natural listings of a search engine results page after a keyword or phrase has been entered.

A) SEO B) PPC C) CPM D) DTV

23) Search engines use '

' to identify the titles, links and headings that are employed to assess relevance to keywords or phrases searched for.

A) spiders B) crawlers C) ants D) webs

24) The growth of digital television has given rise to an increase in

television (iTV), where viewers can use their remote control handset to see more information about an advertised product.

A) interactive B) interest C) intentional D) informed

25) Consumers are often involved in online content creation. This is known as A) unusually generated content B) user generated content C) user guarded content D) user generated consumers

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(UGC).

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

26) One advantage of mobile marketing is its ability to engage the audience. One way in which

this can be achieved is through the use of marketing, which involves using location technology to communicate directly with consumers via their mobile device.

A) guerrilla B) nearby C) location D) proximity

27)

marketing is defined as the passing of information about a product or service by verbal or electronic means in an informal, person-to-person manner.

A) Buzz B) Proximity C) Guerrilla D) Ambient

28)

websites are a type of website that act as a portal or gateway to a variety of content e.g. mainstream news sites or portals, social networks and price comparison sites.

A) Destination B) Intermediary C) Primary D) Secondary

29) Tuten and Solomon (2015) identify three different stages in their use of social media: the trial

phase, the transition phase and the A) tested B) adaption C) adoption D) strategic

30)

phase.

marketing is a reactive piece of content that is normally posted on social media during a live event.

A) Live-time B) Real-time C) True-time D) Life-line

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

31)

is a type of social media where individuals build personal profiles and these form the basis of what other community members see and engage with.

A) Social entertainment B) Social commerce C) Social community D) Social publishing

32)

is a type of community where the focus is on producing content e.g. written, videos, blogs etc.

A) Social commerce B) Social community C) Social entertainment D) Social publishing

33) The aim of a

community is to enhance a consumer's shopping experience, by developing relationships and support.

A) social commerce B) social cause C) social publishing D) social entertainment

34)

communities consist of like-minded individuals who play games and interact with one another.

A) Social cause B) Social entertainment C) Social commerce D) Social publishing

35) Measurement of social media normally involves looking at levels of activity, interaction and

.

A) awareness B) evaluation C) control D) performance

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

36) Measuring social media in terms of performance normally focuses on lead conversion rates,

ROI and customer A) true B) real C) lifetime D) lifecycle

37)

value.

connect people within a company, allowing communication between company staff.

A) Multinets B) Extranets C) Micronets D) Intranets

38) The purpose of a(n)

is to connect a company with its trading partners, such as

suppliers and distributors.

A) extranet B) intranet C) macronet D) micronet

39) There are four dimensions of the digital age that have implications for marketing. These are

technology, applications, marketing and A) communities B) networks C) audiences D) context

.

40) One of the main drivers of the expansion of the use of digital technology is

, which means bringing together into one device functions that were previously performed by several.

A) divergence B) convergence C) meshing D) syncing

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

41) Amazon, ASOS and Netflix may be described as virtual merchants or

that have cannibalized the supply chain by going straight from manufacturer to the end consumer.

A) disintermediators B) reintermediators C) misintermediators D) unintermediators

42) When Amazon suggest books that we may like e.g. 'You've bought this, so you might like to

buy this', they are using A) personality B) lifestyle C) behavioural D) psychographic

targeting.

43) Our online behaviour is tracked by means of

, which are text files that recognize

users.

A) B) C) D)

cookies drones spiders ants

44) The formal of a digital marketing plan is informed by five significant and interdependent

elements: strategic alignment, integration, the and implementation.

A) vision B) planning C) value D) customer

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proposition, organizational change

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

45) Integration of digital marketing and social media with traditional tools and techniques is

essential. This means that planning is required to consider all of the ' journey to ensure they receive a consistent message.

A) touchpoints B) mediapoints C) messagepoints D) corepoints

' in a customer's

46) When developing a digital marketing and social media plan, it is important to understand the

target audience's _, channel usage and online media consumption.

A) comparability B) customability C) communicability D) connectivity

47) Digital technology is not only a means of communication, but also a method of A) distribution B) pricing C) production D) branding

.

48) Social media are online _

which facilitate the sharing of ideas, information, publishing documents and video content.

A) promotions B) blogs C) plans D) communities

49) One of the unique properties of digital marketing is its ability to allow companies to engage

in many-to-many A) intelligent B) interactive C) inclusive D) monologue

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communication.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

50) When defining social media, it is important to consider the social element of this medium,

the media that can be used and the A) resources B) marketing C) network D) people

which makes everything possible.

51) Which of the following are outbound digital methods that can help companies to get closer to

customers? (Check all that apply) A) Search engine marketing B) Email C) Viral campaigns D) Blogs E) Monitoring chatrooms

52) Digital marketing's reach can be evaluated by looking at A) leads B) unique visitors C) sales D) conversions

53) Display advertising includes A) banner ads B) skyscrapers C) pop-ups D) keywords E) windows

. (Check all that apply)

. (Check all that apply)

54) Which of the following are examples of intermediary websites? (Check all that apply) A) Price comparison sites B) Superaffiliates C) Niche affiliates or bloggers D) Destination sites

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

55) Which of the following are more likely to be active social media users? (Check all that apply) A) Females B) Males C) Young D) Old E) More educated F) Less educated

56) When a company is at the trial phase of its social media usage, its objectives are normally

focused on . (Check all that apply) A) improving public relations B) increasing website traffic C) improving brand reputation D) reducing costs

57) Which of the following are examples of digital marketing tools? (Check all that apply) A) Websites B) Email marketing C) Blogging D) Radio E) Ambient media

58) An ethical consideration for companies using the Internet exclusively to deliver some

products and services is whether this technological approach leads to exclusion of the poorest members of society. ⊚ true ⊚ false

59) Discuss the main digital marketing objectives.

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60) Describe the various digital marketing tools that are at a marketer's disposal.

61) Identify and describe the key dimensions of the digital communications environment.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Answer Key Test name: Chapter 14 1) B 2) D 3) C 4) B 5) C 6) B 7) C 8) D 9) D 10) D 11) C 12) B 13) A 14) B 15) D 16) B 17) A 18) B 19) A 20) B 21) D 22) A 23) A 24) A 25) B 26) D 27) A 28) B 29) D 30) B 31) C 32) D 33) A 34) B 35) D 36) C 37) D

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) A 39) C 40) B 41) A 42) C 43) A 44) C 45) A 46) D 47) A 48) D 49) B 50) C 51) [A, B, C] 52) [A, B] 53) [A, B, C] 54) [A, B, C] 55) [A, C, E] 56) [A, B] 57) [A, B, C] 58) TRUE 59) Essay 60) Essay 61) Essay

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Chapter 15 Direct Marketing, Social Media and Direct Messaging Student name: 1) Which of the following promotional tools allows for direct interaction between the buyer and

the seller?

A) Advertising B) Internet promotion C) Personal selling D) Publicity

2) Organizations are reducing the size of their salesforces due to greater buyer concentration

and moves towards A) globalized B) standardized C) decentralized D) centralized

buying.

3) Salespeople must realize that people buy products because they have problems that give rise

to needs. It is A) benefits B) costs C) problems D) desires

that link customer needs to product features.

4) The secret to dealing with customer objections is to handle both the substantial and

aspects of the objection.

A) rational B) emotional C) relational D) relative

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

5) A(n)

agreement is a closing technique that may not involve closing a sale, but instead the salesperson attempts to achieve an agreement with the customer to take further steps before a future meeting.

A) hold B) delayed C) deferral D) action

6) Follow-up is important after a sale as it can provide reassurance to the customer and

minimize cognitive A) regression B) resistance C) dissonance D) discontent

.

7) Marketing strategy affects the personal selling function. If the strategic marketing objective

is to harvest, then the sales strategy will focus on A) calling on new accounts (prospecting) B) offering quantity discounts to targeted accounts C) continuing present call rates on current accounts D) calling only on profitable accounts

.

8) The most practical method for deciding the number of salespeople needed is called the

approach.

A) workload B) workrate C) frontload D) callrate

9) Direct marketing growth has been facilitated by the increased use of databases and data

that hold detailed information on individuals and businesses.

A) libraries B) warehouses C) stores D) techniques

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10) The

value of a customer measures the profits that can be expected from customers over their expected life with a company.

A) lifecycle B) lifestage C) lifetime D) lifepace

11) Geodemographic information held on a database stores information about the geographic

areas of customers and prospects and the social, to.

A) lifecycle B) personal C) cultural D) lifestyle

or business category they belong

12) Which of the following is not a characteristic of personal selling?

A) Interactive B) Adaptable C) Complex D) Simple

13) Which of the following statements is true?

A) In industrial marketing, over 70% of the marketing budget is usually spent on the

sales force B) In consumer marketing, over 70% of the marketing budget is usually spent on the sales force C) In industrial marketing, over 90% of the marketing budget is usually spent on the sales force D) In consumer marketing, over 90% of the marketing budget is usually spent on the sales force

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

14) Salespeople who respond to already committed customers, such as a sales assistant in a

convenience store or a delivery salesperson, are referred to as which of the following?

A) Order creators B) Order receivers C) Order getters D) Order takers

15) Salespeople, where the major objective is to persuade the customer to make a direct

purchase, are referred to as which of the following?

A) Order retainers B) Order receivers C) Order getters D) Order takers

16) Which of the following is the correct order for the seven phases of the selling process?

A) Need and Problem Identification, Preparation, The Opening, Presentation and

Demonstration, Dealing with Objections, Closing the Sale, The Follow Up B) Need and Problem Identification, Preparation, The Opening, Presentation and Demonstration, Dealing with Objections, The Follow Up, Closing the Sale C) Preparation, The Opening, Presentation and Demonstration, Need and Problem Identification, Dealing with Objections, Closing the Sale, The Follow Up D) Preparation, The Opening, Need and Problem Identification, Presentation and Demonstration, Dealing with Objections, Closing the Sale, The Follow Up

17) Preparation by a salesperson helps provide which of the following?

A) Increased product knowledge B) Improved presentation delivery C) Clear sales call objectives D) All of the above are benefits of preparation during the sales process

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

18) Effective need and problem identification during the sales process requires which of the

following?

A) The development of questioning and listening skills B) Extensive marketing research to improve understanding of customers' needs C) Excellent sales presentation technique D) All of the above are requirements

19) Which of the following statements is true?

A) The salesperson during a sales presentation should focus on customer benefits rather

than product features B) The salesperson during a sales presentation should focus on product features rather than customer benefits C) The salesperson during a sales presentation should leave all questions to the very end D) The salesperson during a sales presentation should ask all questions at the very start

20) The 'concession close' refers to which of the following?

A) Asking if one particular objection is overcome, will the customer buy the product or

service B) Offering a special deal to close the sale C) Asking for the order to close the sale D) Handing over the customer to a sales manager to close the sale

21) Why is the follow up stage, after the close of a sale, important?

A) To ensure payment B) Since most objections are dealt with at this stage C) Since most companies rely on repeat business D) To gain additional orders

22) Personal selling has been criticized for which of the following reasons?

A) Bribery B) Deception C) For being a hard sell approach D) All of the above are valid reasons

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

23) Which of the following is not an approach to organizing a sales force?

A) Customer-based structure B) Sale representative structure C) Product-based structure D) Geographic structure

24) Why has there been an increased usage of the "key account management" sales force

structure?

A) Increasing use of technology applications B) Increasing concentration of buying power into fewer but larger customers C) Inefficiency of other techniques D) Increasing market trends where the key account management structure is the norm, therefore, it needed to be adopted by all organisations

25) Which of the following is an advantage of key account management?

A) More in-depth penetration of the DMU B) Better follow-up on sales and service C) Improved communication and coordination D) All of the above are advantages

26) Improving salesforce

is important to sales success and can lead to increased creativity, higher self-esteem and the enhancement of relationships.

A) recruitment B) control C) evaluation D) motivation

27) Training should include not only product knowledge but also which of the following?

A) Character assessment B) Confidence assessment C) Character building exercises D) Skills development

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

28) Which of the following is the main reason that sales force evaluation is performed?

A) So that a salesperson can be allocated new objectives B) So that a salesperson's rewards can be determined C) So that a salesperson's strengths and weaknesses can be identified D) So that a salesperson's successes can be praised

29) Which of the following is not a qualitative criterion used in the evaluation of a sales force?

A) Customer relationships B) Number of sales calls C) Product knowledge D) Self-management

30) Which of the following is not a quantitative criterion used in the evaluation of a sales force?

A) Complaint handling B) Number of new customers C) Number of prospects visited D) Profits generated

31) Quantitative measures of salesforce performance can be assessed on input, output and

criteria.

A) throughput B) macro C) hybrid D) micro

32) What does the term CRM stand for?

A) Customer relationship management B) Customer retention management C) Client retention Marketing D) None of the above

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

33) Most companies find that

percent of their sales come from per cent of their customers. This means that it is vital to devote considerable resources for retaining existing high-volume, high-potential and highly-profitable customers.

A) 20; 80 B) 60; 40 C) 50; 50 D) 80; 20

34) Transactional data must be sufficiently detailed to allow FRAC information to be extracted

from each customer. What does FRAC stand for?

A) Frequency, recency, amount, category B) Fast, relevant, amount, category C) Fast, relevant, ample, continuous D) Frequency, rate, action, control

35) Database information allows organizations to build which of the following?

A) Customer profiles B) Loyalty schemes C) Understanding of shopper behaviour D) All of the above

36) Which of the following reasons has led to the growth in direct marketing activities?

A) Developments in technology B) High costs of other techniques C) Growing fragmentation of media and markets D) All of the above are reasons that have led to the growth in direct marketing activities

37) The origins of direct marketing lie in A) telemarketing B) direct mail C) electronic media D) direct response advertising

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) Which of the following is a form of direct marketing?

A) Catalogue marketing B) Institutional advertising C) Direct return advertising D) Guerrilla marketing

39) Which of the following is not a factor explaining the growth of direct marketing?

A) Growing consolidation in media and markets B) Developments in technology C) Emerging analytical techniques D) Market and media fragmentation

40) What is the first stage in a direct marketing campaign?

A) Creative decisions B) Identification of the target audience C) Media decisions D) Campaign execution

41) What is the final stage in the direct marketing campaign?

A) Identification of the target audience B) Media decisions C) Execute and evaluate campaign D) None of the above

42) Although email marketing has a relatively low cost, one limitation is that it may not reach

recipients as it is often treated as A) accountable B) unsolicited C) solicited D) unaccountable

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junk mail.

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

43) Which of the following is a disadvantage associated with telemarketing?

A) It lacks the personalization of other techniques B) It is more expensive than direct mail C) Higher costs per contact than a face-to-face salesperson visit D) Lacks accountability

44) Direct response advertising differs from traditional advertising because of which of the

following reasons?

A) As they use different media vehicles B) Direct response advertising relies on the hard sell approach C) As it is designed to elicit a direct response such as an order enquiry or a request for a visit D) As the average direct response adverts are 30 minutes long whereas traditional advertising is 30 seconds

45)

is a form of direct marketing that appears in prime media and is designed to elicit a particular outcome e.g. encourage the receiver to place an order, request a visit etc.

A) Direct control advertising B) Public service advertising C) Institutional advertising D) Direct response advertising

46) Which of the following is a limitation of direct mail?

A) Lacks visual impact and stimulation B) High mailing costs C) High database costs D) Highly untargeted

47) Which of the following is an advantage associated with catalogue marketing?

A) Distribution is decentralized, thereby reducing distribution costs B) Suits all product categories as products can be tested C) Cheap to produce catalogues D) Ability to reach certain market segments who value the convenience of choosing

products at home

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48) Which of the following reasons has led to the growth in direct marketing activities?

A) Market and media consolidation B) Customer consolidation C) Customer dedication D) Market and media fragmentation

49) Which of the following is an advantage associated with catalogue marketing?

A) Distribution is decentralised, thereby reducing distribution costs B) Cheap to produce catalogues C) Suits all product categories as products can be tested D) Opportunity to display a wider range of products than could feasibly be achieved in a

shop

50) Which of the following is a criticism of direct marketing?

A) Hard-sell B) Bribery C) Intrusion of privacy D) Reciprocal buying

51) Personal selling is criticized for employing high-pressure sales tactics to close a sale. Using

these A) B) C) D)

-sell tactics to pressure customers into buying is seen as unethical. soft cost hard profit

52) Which promotional tool has the stated benefit of "bringing buyers, sellers and competitors

together in a commercial setting"?

A) Exhibitions B) Sponsorship C) Catalogue marketing D) On-pack trials

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53) Which of the following are characteristics of modern selling? (Check all that apply) A) Customer retention and deletion B) Database and knowledge management C) Problem-solving and system selling D) Customer detection and selection E) Datasystems and core management

54) Which of the following are considered when assessing whether personal selling objectives

have been achieved? (Check all that apply) A) Call rates B) Improving customer relationships C) Improving customer and market feedback D) Improving relationships with competitors E) Detection rates

55) True or false: Direct marketing campaigns are short-term response-driven activities. ⊚ true ⊚ false

56) Sales managers are solely responsible for the motivation of their salespeople. ⊚ true ⊚ false

57) A key factor in the effectiveness of a direct mail campaign is the size of the mailing list. ⊚ true ⊚ false

58) The objectives of direct marketing campaigns can be the same as those of other forms of

promotion, namely, to improve sales and profits, to acquire or retain customers or to create awareness. ⊚ true ⊚ false

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59) Personal selling involves face-to-face contact and permits a direct interaction between buyer

and seller. Discuss the stages in the personal selling process.

60) Explain the role of salespeople in the marketing mix. What are the characteristics of a good

salesperson?

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Answer Key Test name: Chapter 15 1) C 2) D 3) A 4) B 5) D 6) C 7) D 8) A 9) B 10) C 11) D 12) D 13) A 14) D 15) C 16) D 17) D 18) A 19) A 20) B 21) C 22) D 23) B 24) B 25) D 26) D 27) D 28) C 29) B 30) A 31) C 32) A 33) D 34) A 35) D 36) D 37) B

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38) A 39) A 40) B 41) C 42) B 43) B 44) C 45) D 46) C 47) D 48) D 49) D 50) C 51) C 52) A 53) [A, B, C] 54) [A, B, C] 55) FALSE 56) FALSE 57) FALSE 58) TRUE 59) Essay 60) Essay

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Chapter 16 Place: Distribution, Channel Management and Retailing Student name: 1) The

refers to the means by which products are moved from producer to ultimate

customer.

A) market B) retail trade C) wholesale trade D) channel of distribution

2) The three components of channel strategy are channel selection, channel intensity and

channel .

A) evaluation B) motivation C) provision D) integration

3) Retail marketing decisions involve choosing store locations, pricing, product assortment and

services and store A) packaging B) chain C) atmosphere D) management

.

4) Retailer product assortment decisions focus on the breadth and

of the product range, which enables retailers to tailor their product mix to suit particular audiences.

A) width B) depth C) length D) height

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5) Lidl and Aldi are examples of retailers who practice A) high-low pricing B) everyday low pricing C) low high pricing D) unusually low pricing

.

6) Channel intermediaries can improve distribution efficiency by A) reducing the delivery bulk B) reducing the range of products offered C) reducing the number of transactions D) selling smaller quantities

.

7) Bulk for transportation can be created by .

A) intermediaries combining a number of small purchases B) increasing the number of distribution channels C) increasing the channel intensity D) increasing the channel conflict

8) Car accessory outlets which open on Sunday are _ A) bridging the distribution gap B) bridging the time gap C) performing channel development D) achieving channel efficiency

.

9) Business-to-business distribution channels tend to be .

A) shorter than consumer channels because of the smaller number of ultimate customers B) longer than consumer channels because of the greater geographic concentration C) longer than consumer channels because of greater product complexity D) shorter than consumer channels because of product tangibility

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10) Channel strategy involves decisions about .

A) channel selection, distribution intensity, channel integration B) distribution integration, channel intensity, channel selection C) channel integration, channel intensity, channel cooperation D) distribution segmentation, channel intensity, channel integration

11) A major constraint on channel decisions is .

A) a lack of adequate market focus B) a lack of adequate resources to take on channel operations C) an excess of competitive distribution activity D) an excess of consumer brand franchise

12) Which of the following does not require intensive distribution?

A) Cigarettes B) Beer C) Newspapers D) Perfume

13) Which of the following is not a benefit of selective distribution?

A) Able to train distributor staff B) Able to reduce costs C) Able to maintain list prices D) Able to build close working relationships

14) Cars are often distributed through A) selective distribution B) mass-market distribution C) intensive distribution D) exclusive distribution

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15) A manufacturer or retailer who exercises considerable power over channel intermediaries

even though they are independent may result in A) an administered vertical marketing system B) exclusive distribution C) an integrated horizontal marketing system D) a contractual vertical marketing system

.

16) A franchise operation is an example of .

A) a contractual vertical marketing system B) an administered vertical marketing system C) an integrated horizontal marketing system D) a contractual horizontal marketing system

17) The key to effective motivation of channel members is to A) understand needs and problems of distributors B) exercise adequate channel power C) avoid channel conflict D) provide adequate financial rewards

18) Training in channel conflict handling should emphasize A) identification of provocations B) identification of win-win situations C) use of blaming behaviour D) development of channel authority

19) Conflict in multiple distribution channels can be reduced by A) identification of win-win situations B) development of channel authority C) market integration D) market partitioning

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20) Which of the following is not a part of the physical distribution system?

A) Materials handling B) Inventory control C) Order processing D) Just-in-time manufacturing

21) The major source of conflict between finance and marketing management in relation to

physical distribution is A) inventory levels B) credit control C) invoice processing D) delivery processing

.

22) Warehousing for goods over a long time period is provided by A) distribution centres B) bulk-breaking centres C) storage warehouses D) local warehouses

23) The transportation method offering maximum flexibility is A) air B) rail C) water D) road

.

.

24) The most cost-efficient transportation method for bulky non-perishable goods is A) air B) rail C) water D) road

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25) The transportation method most used for just-in-time systems is A) air B) rail C) water D) road

.

26) Unit handling achieves efficiency by .

A) combining multiple packages on to pallets B) breaking bulk down into single units C) handling goods through local delivery units D) handling goods through large regional delivery units

27) A key benefit of containerization is A) damage in transit is reduced B) the chance of leakage is reduced C) inventory levels are reduced D) inventory levels are increased

.

28) Which of the following is not a direct function of a channel intermediary?

A) To reconcile the needs of producers and customers B) To improve efficiency by reducing the number of transactions C) To improve profitability D) To provide specialist services to customers

29) One of the major conflicts reconciled by channel intermediaries is manufacturers produce a

large quantity of a limited range of goods but .

A) customers want a limited quantity of a wide range of goods B) customers want branded products at low prices C) customers want very prompt delivery D) customers want high quality products

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30) An industrial goods company without its own sales force may instead use _ A) a distributor B) an agent C) an agent or a distributor D) a supplier

31) A channel intermediary for a service provider is usually A) a wholesaler B) a distributor C) an agent D) a chain

.

.

32) Which of the following is not an example of franchising relationships?

A) Manufacturer and retailer B) Retailer and retailer C) Manufacturer and wholesaler D) Wholesaler and wholesaler

33) Ownership of distribution channels establishes A) a contractual vertical marketing system B) an administered horizontal marketing system C) an integrated horizontal marketing system D) a corporate vertical marketing system

.

34) Which of the following is not a major source of channel conflict?

A) Differences in goals B) Multiple distribution channels C) Channel ownership D) Inadequacies in performance

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35) The 'place' element of the marketing mix refers to which of the following?

A) Retailing B) Distribution C) Customer service D) Advertising

36) The major sources of channel conflict are differences in goals, differences in desired product

lines, multiple distribution channels and inadequacies in A) coercion B) evaluation C) performance D) ownership

.

37) Which of the following is not a method for improving customer service levels in relation to

physical distribution?

A) Fast order processing B) Reduced inventory levels C) Fast delivery D) Reduced stock-outs

38) The key decision in obtaining competitive advantage through physical distribution is

concerned with .

A) the level of customer satisfaction B) the reduction in delivery costs C) the absence of channel conflicts D) the trade-off between customer service requirements and cost reductions

39) Organizations who facilitate the distribution of products to customers are called which of the

following?

A) Retailers B) Channel intermediaries C) Channel agents D) Wholesalers

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40) Lead time refers to .

A) the difference in time between loading on to and off a truck B) the difference between safety and buffer stocks C) the difference in time between an order being placed and delivered D) the time it takes to reduce inventory levels to zero

41) Motivation, Selection, Evaluation are all issues which affect channel A) integration B) selection C) management D) integration

42) The major source of channel conflict is A) training B) motivation C) goal differences D) evaluation methods

.

.

43) Which innovative technology used at the store level has helped Zara the Spanish clothing

company to revolutionise distribution in the fashion industry?

A) Electronic Point of Sale B) RFID C) Interactive shelves D) Wireless headsets

44) When an agent is used in the distribution channel, the agent contacts wholesalers (or

retailers) on behalf of the producer and receives _ A) discounts B) costs C) commission D) assistance

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45) Which of the following factors does not influence channel selection?

A) Transport factors B) Competitive factors C) Market factors D) Product factors

46) Eliminating a layer of intermediaries from a distribution channel is called _ A) reintermediation B) disintermediation C) preintermediation D) prointermediation

47) Grey markets occur when products are sold through a(n) A) unauthorized B) fair C) intensive D) selective

.

distribution channel?

48) What is the introduction of a new layer of intermediaries into a distribution channel called?

A) Integral distribution B) Reintermediation C) Disintermediation D) Preintermediation

49) Retail positioning involves the choice of target market and A) price B) innovation C) differential advantage D) competition

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50) Channel strategy decisions involve the selection of A) the level of cost control B) the degree of channel integration C) the level of distribution intensity D) the most effective distribution channel

51) Store atmosphere is created by the A) layout B) colour C) design D) owner

. (Check all that apply)

of a store. (Check all that apply)

52) An administered vertical marketing system is where the manufacturer can command

considerable cooperation from wholesalers and retailers. ⊚ true ⊚ false

53) McDonald’s, Benetton, Hertz, the Body Shop and Avis are examples of franchise operations,

where local operators work with the producer. ⊚ true ⊚ false

54) A franchise agreement provides a administered vertical marketing system. ⊚ true ⊚ false

55) What are the main issues in choosing a distribution channel?

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56) Discuss the key factors that should be taken into account when deciding which distribution

channels to use when entering a new international consumer market.

57) Identify the various channels of distribution available to your organization which is aiming to

get its goods to consumer markets.

58) How does channel strategy fit with customer centrality?

59) How are power relationships resolved in distribution channels?

60) What conflicts might be apparent between physical distribution choice and customer

centrality?

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61) What is the role of the logistics approach in physical distribution?

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Answer Key Test name: Chapter 16 1) D 2) D 3) C 4) B 5) B 6) C 7) A 8) B 9) A 10) A 11) B 12) D 13) C 14) D 15) A 16) A 17) A 18) B 19) D 20) D 21) A 22) C 23) D 24) C 25) D 26) A 27) A 28) C 29) A 30) C 31) C 32) D 33) D 34) C 35) B 36) C 37) B

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38) D 39) B 40) C 41) C 42) C 43) D 44) C 45) A 46) B 47) A 48) B 49) C 50) [B, C, D] 51) [A, B, C] 52) TRUE 53) TRUE 54) FALSE 55) Essay 56) Essay 57) Essay 58) Essay 59) Essay 60) Essay 61) Essay

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Chapter 17 Marketing Strategy and Planning Student name: 1) In a company which markets a range of products in numerous markets the role of marketing

planning is to .

A) ensure only one product is eventually marketed.

B) increase production levels of all new products.

C) ensure as many diverse products are marketed to the consumer as possible.

D) determine the resources to be allocated to each product.

2) In order to minimize marketing planning problems, senior management support should be

attained and a(n) performance.

A) control B) reward C) planning D) auditing

_ system should be created that is focused on longer-term

3) Marketing planning is often viewed as of secondary importance in organizations where

systems are geared to the short-term.

A) reward B) control C) problem D) competitive

4) Marketing planning encourages the monitoring of change and encourages organizational

.

A) globalization B) standardization C) adaptation D) centralization

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5) A company's choice of the marketing mix tools to use and they choices they make, are

informed by the .

A) organizational process B) implementation process C) control system D) core strategy

6) Which of the following factors does not affect the role of marketing planning within a

company?

A) Number of products marketed B) The presence of SBUs C) The number of markets that are targeted D) Demographic size of the market

7) What question is the starting point for any planning activity?

A) Who am I? B) How do I start planning?

C) Where are we now?

D) What is my SBU?

8) Planning within a business is essentially a political activity because of A) the influence of local and central government on policy B) there is a fundamental need to be dishonest C) the allegiances of employees to differing political parties D) its influence on resource allocation

.

9) Mission statements cannot do which of the following?

A) Motivate staff B) Suggest immediate alterations to product design C) Communicate senior management beliefs D) Provide a common direction

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10) Which of the following can be classified as a macro-environmental factor?

A) The Data Protection Act B) The employment of a new marketing manager C) A 70% growth in profits D) Consumer choice criteria

11) In an external marketing audit, the factors considered differ from those in an internal audit

because they are _.

A) issues which influence the company indirectly and directly B) secondary problems which the company regards as less important C) forces over which the management has no control D) not included in the mission statement

12) An external marketing audit examines .

A) production, finance and personnel factors B) political, cultural, economic and technological functions C) the value of advertising, discounts, pricing and other related marketing strategy D) all internal factors in relation to environmental issues

13) The relationship between SWOT analysis and a marketing audit is .

A) negative, both replicate the same results B) positive, SWOT is a simple way to synthesize the results of a marketing audit C) negative, only one form of internal research is useful D) positive, SWOT is easy for managers to use

14) Which is the correct strategic objective for a new product?

A) Build B) Hold C) Harvest D) Divest

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15) Which strategic objective allows the product to be dropped from the production line?

A) Build B) Hold C) Harvest D) Divest

16) Competitive advantage can be gained .

A) only when all the elements of the marketing mix surpass the competition B) where all the elements of the marketing mix are the same as the competition C) where one particular aspect of the marketing mix matches the competition D) where a particular aspect of the marketing mix differentiates it from the competition

17) If a marketing plan 'degenerates into work' what is the most likely outcome for the company?

A) A loss of strategic vision B) An unworkable strategy C) Success D) A change in pricing

18) Which of the following is the most likely method of measuring the success of the marketing

plan?

A) B) C) D)

Costs Cash flow Profits All of the above

19) In which stage of the marketing plan is the question: 'Are we on course?' addressed?

A) SWOT B) Marketing audit C) Business mission D) Control

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20) Which of the following key questions is not addressed by SWOT analysis?

A) Where are we now?

B) Are we on course?

C) How did we get there?

D) Where are we heading?

21) Marketing planning is one element of A) financial planning B) strategic planning C) sales planning and control D) new product development

.

22) What does SBU stand for?

A) Situational Business Unification B) Selling Business Unit C) Strategic Business Unit D) Secondary Business Use

23) When developing a marketing plan, managers must consider the impact of the environment

and determine how to get the best strategic fit between the organization's _ resources and the market opportunities.

A) capabilities B) planning C) personnel D) credibilities

and

24) Which of the following questions does not feature in the list of key planning questions?

A) Are we on course?

B) Where would we like to be?

C) Where is the market?

D) How do we get there?

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25) Which one of the key planning questions is most likely to lead to modification in existing

strategy?

A) Where would we like to be?

B) Are we on course?

C) How did we get there?

D) Who did we work with?

26) Within the marketing planning process which of the following considerations comes first?

A) Marketing objectives B) Marketing mix decisions C) SWOT analysis D) Marketing audit

27) Which of the following best describes the Business Mission?

A) A particular issue or objective which the company thinks important B) A broadly defined enduring statement of purpose C) A centralized, corporate need to market effectively D) A generalized listing of all the assets and holdings

28) Which of the following factors is least likely to directly influence the definition of the

Business Mission?

A) Product focus B) Actual and potential competencies C) Environmental change D) Personalities of senior management

29) The marketing audit is best defined as .

A) a method for calculating the value of the department B) a method for estimating the cost of promotional facilities C) a technique which examines the marketing department's role within the company D) a systematic examination of a business environment and its strategy

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30) Which of the following is not a macro-environmental factor?

A) The current rate of inflation B) The objectives and strategies of a competing firm C) The growth of Chinese and Indian economies D) The invention of wireless computer networks

31) Which of the following is part of a micro-environmental analysis?

A) Economics B) SWOT Analysis C) Customer analysis D) Politics

32) Which of the following should be considered when developing an external marketing audit

for a company?

A) The turnover of the company B) The level of unemployment C) Company's market share D) Strategic issues analysis

33) Which of the following would be included in an external marketing audit?

A) A new law reducing pollution in production areas B) The perceived strategy of a new competitor C) A survey of the leading distribution companies D) All of the above

34) Which of the following is not part of the internal marketing audit checklist?

A) Portfolio analysis B) Marketing information systems C) Core competencies D) Customer analysis

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35) In conducting competitor analysis as part of an external marketing audit a company should

examine .

A) the competitor's strengths and weaknesses B) its ability to respond to the competitive threat C) the impact of competition on its marketing mix effectiveness D) all of the above

36) The marketing audit is _ .

A) often a vital opportunity to save an ailing business B) a rare opportunity to place a financial value on marketing activity C) an ongoing corporate activity D) always guaranteed to increase sales

37) Rapid changes in the macro-environment are likely to result in A) easier marketing planning B) shorter planning horizons C) no marketing planning D) longer planning horizons

38) The final stage of the marketing planning process is A) success B) sales C) an increase of strategic planning D) control

.

.

39) Which of the following quotes best illustrates a long-term control perspective?

A) "I monitor our profits weekly, our marketing works" B) "Every now and again I work out our costs per unit" C) "I have a computer system which charts our daily cash flow over the last 5 years" D) "Once a year I take a few days off and look at how we are doing from an external

view"

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40) A

strategy is used when current products are sold in new markets.

A) product development B) market development C) market penetration D) diversification

41) Which of the following is a potential marketing planning problem?

A) Internal politics B) Structured reporting system C) Competitors' culture D) Too much information

42) Distribution analysis is .

A) the multi channel strategy of the marketing plan B) an integral part of the mission statement C) an examination of the attractiveness of distribution channels D) not directly related to marketing activity

43) A micro-environmental analysis consist of a market, customer, competitor, distribution and

analysis.

A) employee B) political C) economic D) supplier

44) Which of the following statements is correct?

A) Marketing planning is part of a company's marketing audit B) Marketing planning is part of the marketing mix C) Marketing planning is part of the strategic planning process D) Marketing planning is part of the marketing audit

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45) Which element of the marketing planning process is most likely to lead to redefinition of the

business mission?

A) Marketing audit B) Core strategy C) Marketing objectives D) Control function

46) An example of a strategic objective is A) market penetration B) building market share C) product development D) market development

.

47) Which of the following is not a benefit of marketing planning?

A) Aids resource allocation B) Creates consistency C) Aids macro environment changes D) Creates competitive advantage

48) Core strategy focuses on how objectives can be accomplished and consists of three key

elements .

A) target markets, marketing audit, establishing a competitive advantage B) competitor targets, establishing a competitive advantage, core competencies C) target markets, competitor targets, establishing a competitive advantage D) establishing a competitive advantage, marketing planning, competitor targets

49) Market development is an example of A) a strategic objective B) a strategic thrust objective C) a conversion strategy D) a matching strategy

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50) The possibility that a volume car manufacturer could target niche markets is a potential

for a specialist low volume sports car manufacturer.

A) strength B) weakness C) opportunity D) threat

51) An external marketing audit consists of which of the following?

A) Microenvironment and macroenvironment B) Microenvironment and mini environment C) Macroenvironment and mini environment D) Mini environment and major environment

52) Which of the following are not major macroeconomic forces that affect marketing decisions?

A) Economic, physical and technological B) Economic, physical and social C) Social, legal and technological D) Social, competitors and customers

53) Which of the following are recommendations for overcoming marketing planning problems?

(Check all that apply) A) Attaining senior management support B) Matching the planning system to competitors C) Creating a reward system that is focused on long-term performance D) Creating a reward system that is focused on short-term performance E) Depoliticizing outcomes

54) Which of the following are problems associated with making marketing planning work?

(Check all that apply) A) Politics B) Opportunity costs C) Reward systems D) Control systems E) Economics

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55) When testing an effective core strategy, which of the following criteria would be used?

(Check all that apply) A) Internal consistency B) Incurs acceptable risk C) Clearly defines the target customers and their needs D) Conssitent with other competitor's core strategies

56) True or false: A company's marketing mix decisions should be taken in isolation and should

not focus too much on how competitors use their mix. ⊚ true ⊚ false

57) The microenvironment is a number of broader forces that affect not only the company but

also the other actors in the environment, e.g. social, political, technological and economic ⊚ true ⊚ false

58) Outline the key stages of the marketing planning process.

59) Explain what is meant by the marketing mix, and show how it fits within the corporate

planning process.

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60) Marketing plans often meet with resistance. Explain the sources of this resistance, and make

recommendations for overcoming it.

61) A central part of strategic marketing planning is setting marketing objectives. Explain the

levels and types of marketing objectives that a business might consider pursuing.

62) Explain the meaning of the term ‘macroenvironment’ and then suggest how a company

might make use of a macroenvironmental audit.

63) Identify and explain the key elements of the microenvironment.

64) Setting marketing objectives is an important part of the marketing planning process. Explain

the various types of marketing objectives that a business might consider following. Illustrate your answer with examples.

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65) Outline the key stages of the marketing planning process.

66) Discuss the benefits of marketing planning.

67) Discuss the four main elements of a mission statement.

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Answer Key Test name: Chapter 17 1) D 2) B 3) A 4) C 5) D 6) D 7) C 8) D 9) B 10) A 11) C 12) B 13) B 14) A 15) D 16) D 17) C 18) D 19) D 20) B 21) B 22) C 23) A 24) C 25) B 26) D 27) B 28) A 29) D 30) B 31) C 32) B 33) D 34) D 35) A 36) C 37) B

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38) D 39) D 40) B 41) A 42) C 43) D 44) C 45) D 46) B 47) C 48) C 49) B 50) D 51) A 52) D 53) [A, C, E] 54) [A, B, C] 55) [A, B, C] 56) FALSE 57) FALSE 58) Essay 59) Essay 60) Essay 61) Essay 62) Essay 63) Essay 64) Essay 65) Essay 66) Essay 67) Essay

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Chapter 18 Analysing Competitors and Creating a Competitive Advantage Student name: 1) Barriers to entry can be created by A) cost advantages B) high switching costs C) access to distribution D) all of the above

.

2) Dyson has built its success by inventing a bagless vacuum cleaner, which outperforms its

rivals by providing greater suction and convenience. As such, their success is built on a(n) strategy.

A) low cost B) profitable C) cost leadership D) differentiation

3) One form of competitive behaviour is

. This involves firms coming to some arrangement that inhibits competition in a market.

A) conflict B) collusion C) alliance D) coercion

4) Which form of competitive advantage takes advantage of the growing trend towards strategic

alliances?

A) Cooperation B) Collusion C) Co-existence D) Competition

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5) Which competitor confrontation strategy involves attacking unguarded or weakly guarded

ground that is not well served by established players?

A) Flanking attack B) Bypass attack C) Encirclement attack D) Guerrilla attack

6) Which competitor confrontation strategy may be the only feasible option for a small

company facing a larger competitor?

A) Bypass attack B) Encirclement attack C) Flanking attack D) Guerrilla attack

7) Which competitive defence strategy involves building a fortification around a firm's existing

territory and protecting it from competitors?

A) Pre-emptive B) Mobile C) Flanking D) Position

8) If a company has a build strategic objective, one possible objective is to engage in market

i.e. attracting new customers or finding ways to develop new uses for the goods or increasing their frequency of use.

A) expansion B) development C) control D) evaluation

9) Which strategic objective allows market share to drop while maximizing profit margins?

A) Build B) Hold C) Harvest D) Divest

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10) An industry is .

A) a group of firms that markets products which are close substitutes for each other B) any large company that specializes in only one product C) a group of firms that market products which are complimentary to each other D) any multinational company with several subsidiaries

11) The threat of new entrants to an industry depends primarily on A) the size of the customer market B) the current economic climate C) barriers to entry D) the bargaining power of suppliers

12) Entry into an industry is easiest for newcomers if A) the size of the customer market decreases B) barriers to entry are raised C) barriers to entry are lowered D) the number of suppliers increases

.

.

13) In an industry where there are few dominant buyers and many sellers, which of the following

groups is likely to have greater bargaining power?

A) Suppliers B) Buyers C) Providers of substitute products D) Competitors

14) The launch of generic products in, for example, the pharmaceutical industry is likely to

.

A) lower overall profitability B) increase supply and demand C) increase the threat of substitutes D) decrease supply and demand

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15) When exit barriers in an industry are high, rivalry between competitors will be A) unaffected B) less intense C) more intense D) non-existent

16) Identifying competitors' weaknesses can enable a company to A) target them for exploitation B) become a monopolistic organization C) set up cooperative ventures with them D) lower barriers to entry to the industry

.

.

17) Companies are considered to be in competition with each other when they are A) producing substitute goods that perform a similar function B) solving the problem eliminating it in a dissimilar way C) producing technically similar goods D) all of the above

.

18) 'Strategic thrust' refers to .

A) future areas of expansion that a company may contemplate B) maximizing short-term cash flow through slashing expenditure and raising prices C) encouraging employees to increase production D) the opportunity to stab competitors in the back

19) A major objective of competitor analysis is to be able to .

A) recruit competitors' employees B) predict customers response to market and competitive changes C) predict the long-term growth of your own company D) predict competitor response to market and competitive changes

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20) Competitive advantage is usually gained through _

or by managing for lowest

delivered cost.

A) product differentiation B) product diversification C) marketing complimentary products D) increasing the range of products

21) A method for locating superior skills and resources within a company is A) the Boston Box B) Porter's model C) the Ansoff matrix D) the value chain

.

22) The creation of a differential advantage comes from linking skills and resources with the key

attributes ( A) choice B) risk C) quality D) prestige

criteria) that customers are looking for in a product offering.

23) By creating a differential advantage of a well-trained sales force, the value to the customer is

likely to be .

A) better quality products B) superior problem solving C) superior brand personality D) convenience

24) Although skills and resources are the sources of competitive advantage, they are translated

into a differential advantage only when the above that of the competition.

A) company B) management C) distribution channels D) customer

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25) The factors which Porter identified as determining the behaviour of costs in the value chain

are

.

A) cost drivers B) price controls C) fixed costs D) price differentials

26) The combined effect of economies of scale and learning, as cumulative output increases is

known as .

A) the U-bend B) experiential learning C) the experience curve D) the envelope curve

27) When the forces which determine the attractiveness of an industry are intense, the industry

performance is likely to be A) above average B) below average C) monopolistic D) oligopolistic

.

28) In Porter's model, what is the main function of high entry barriers?

A) To alleviate the threat of new competitors into the industry B) To reduce the number of customers of the industry C) To alleviate the threat of new suppliers into the industry D) To decrease the intensity of rivalry within the industry

29) Which of the following is a determinant of supplier power?

A) Industry growth B) Economies of scale C) Differentiation of inputs D) Product differences

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30) Which of the following is a determinant of buyer power?

A) Supplier concentration B) Access to distribution C) Economies of scale D) Price sensitivity

31) What is the impact of the Single European Market on entry barriers to markets?

A) No change B) They will disappear completely C) They will be increased D) They will be reduced

32) Having identified the competitors in your own market, what is usually the next stage in a

competitor analysis?

A) Estimate competitor response patterns B) Audit competitor capabilities C) Identify potential new entrants D) Identify differential advantages

33) Which of the following is a means of sustaining a differential advantage?

A) Patent-protected products B) Creating low entry barriers C) Capacity utilization D) Competing on low price

34) In terms of Porter's value chain, procurement can be described as A) a primary activity B) a secondary activity C) a support activity D) in-bound logistics

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35) In terms of Porter's value chain, examples of in-bound logistics are A) materials handling, inventory control and warehousing B) quality management systems C) installation, repair and customer training D) strategies for entering a new market

.

36) You are trying to negotiate with your suppliers for raw materials to be delivered on a JIT

basis. Which of the following would be one of the advantages of this to your firm?

A) Less vehicular congestion on site B) Lower inventory costs C) Bigger discounts D) Lower production costs

37) In most cases, differentiation and cost leadership strategies are A) concurrent with each other B) complementary to each other C) compatible with each other D) incompatible with each other

.

38) How can a competitive profile analysis best be used?

A) To rate the financial strength of competitors B) To identify possible competitive strategies C) To identify who the competitors are D) To target new markets

39) Managing for cost leadership or offering superior value through a differential advantage can

achieve .

A) strong brands B) intensity of rivalry C) competitive advantage D) industry growth

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40) An SBU is .

A) a small business unit B) a strategic business unit C) a small buyer/user D) a strategic buyer's unit

41) Once competitors have been identified and their capabilities audited, the next step in

competitor analysis is to .

A) cooperate with competitors B) concentrate on the product C) identify competitors' strategic objectives and thrust D) estimate competitor reaction patterns

42) Porter's model of competitive industry structure comprises the following forces A) buyers, sellers, customers and competitors B) suppliers, buyers, new entrants, substitutes and customers C) new entrants, suppliers, distributors and buyers D) new entrants, suppliers, substitutes, existing competitors and buyers

43) By designing standardized components, a firm is likely to A) reduce the bargaining power of suppliers B) reduce the threat of new entrants C) reduce the bargaining power of buyers D) increase the bargaining power of buyers

.

.

44) The presence of substitute products can lower industry attractiveness and profitability

because .

A) consumers are seldom 'brand-loyal' B) they reduce the bargaining power of buyers C) they increase the threat of new entrants to the industry D) they put a constraint on price levels

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45) The intensity of rivalry between competitors in an industry depends on the structure of the

competition, the structure of costs, the degree of differentiation, objectives and barriers.

A) loyalty; entry B) switching; exit C) manufacturing; control D) promotion; substitute

costs, strategic

46) A competitor audit .

A) can be obtained from the competitor's accountant(s) B) identifies relative strengths and weaknesses of competitors C) is a financial breakdown of the competitor's business D) profiles a competitors profitability

47) The strategy of 'cost leadership' involves .

A) the leading company being able to set the highest prices B) the achievement of the lowest cost position in an industry C) offering goods at discount prices D) extensive advertising and promotion

48) Which of the following is considered a 'support activity' in the value chain?

A) Service B) Marketing C) Firm infrastructure D) Outbound logistics

49) Which of the following is most likely to achieve a sustainable competitive advantage?

A) Low product price B) A strong brand personality C) Creating low entry barriers D) Scope

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50) The acronym PIMS stand for .

A) Profit Impact of Marketing Strategy B) Profit Impact on Market Share C) Price Increases and Market Share D) Profit and International Marketing Strategies

51) Which of the following is a key barrier to entry in an industry?

A) Brand identity B) Access to distribution C) Buyer profits D) Supplier concentration

52) In general, the bargaining power of buyers is greater when there are few dominant buyers and

many sellers and products are A) localized B) customized C) standardized D) new

.

53) Learning, linkages, integration and interrelationships are all examples of A) economies of scale B) staff training C) cost leadership D) cost drivers

.

54) Which of the following are examples of possible competitor responses to market and

competitive change?

A) Predictable and unpredictable B) Complacency and retaliation C) Active and passive D) Exit and entry

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55) Which competitor response pattern is most likely from market leaders?

A) Complacency B) Retaliation C) Unpredictability D) Selective

56) Which of the following does not represent an entry barrier?

A) Capital requirements B) Economies of scale C) Expected retaliation D) All of the above are entry barriers

57) The value chain is a useful method for A) analysing structure of competitors B) locating superior skills C) identifying competitors D) internal marketing

.

58) Performance is a differential advantage derived from which element of the marketing mix?

A) Product B) Distribution C) Promotion D) Price

59) Free demonstrations are a differential advantages derived from which element of the

marketing mix?

A) Product B) Distribution C) Promotion D) Price

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60) There are a number of generic strategies that companies can use to gain and hold a

competitive advantage. These are A) differentiation leader B) differentiation follower C) cost leader D) cost follower E) differentiation focuser F) cost focuser

. (Check all that apply)

61) Rivalry between firms does not always lead to conflict and aggressive marketing battles.

Competitive behaviour can take the form of A) conflict B) collusion C) co-existence D) concession E) concern

. (Check all that apply)

62) Which of the following increases the likelihood of collusion? (Check all that apply) A) There are a small number of suppliers in each national market B) There are a large number of suppliers in each national market C) The price of the product is a small proportion of the buyer's costs D) The price of the product is a large proportion of the buyer's costs E) Cross-national trade is restricted by trade barriers F) Cross-national trade is unrestricted by trade barriers

63) Which of the following are competitive defence strategies? (Check all that apply) A) Mobile B) Flanking C) Pre-emptive D) Prescriptive E) Fluid

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64) How is competition analysed? How might a company anticipate competitive responses?

65) How might a company estimate the attractiveness of a given market opportunity?

66) What factors give a firm a competitive advantage? How would you expect these factors to

interrelate for (say) a global toy manufacturer?

67) What is meant by the value chain? How does it differ from the distribution network?

68) What is differential advantage? How can it be maintained?

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Answer Key Test name: Chapter 18 1) D 2) D 3) B 4) A 5) A 6) D 7) D 8) A 9) C 10) A 11) C 12) C 13) B 14) A 15) C 16) A 17) D 18) A 19) D 20) A 21) D 22) A 23) B 24) D 25) A 26) C 27) B 28) A 29) C 30) D 31) D 32) B 33) A 34) C 35) A 36) B 37) D

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38) B 39) C 40) B 41) C 42) D 43) A 44) D 45) B 46) B 47) B 48) C 49) B 50) A 51) B 52) C 53) D 54) B 55) B 56) D 57) B 58) A 59) C 60) [A, C, E, F] 61) [A, B, C] 62) [A, C, E] 63) [A, B, C] 64) Essay 65) Essay 66) Essay 67) Essay 68) Essay

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Chapter 19 Product Strategy: Lifecycle, Portfolio and Growth Student name: 1) The situation where a company's new brand gains sales at the expense of its established

brand is called .

A) combination selling B) self-competitive selling C) compensation D) cannibalization

2) At the maturity stage of the product life cycle, companies normally engage in

distribution to increase their product's exposure and to extend the maturity stage for as long as possible.

A) exclusive B) intensive C) selective D) patchy

3) At the decline stage of the product life cycle, instead of engaging in harvesting or divestment,

a company may engage in a profitable remaining in a declining market.

A) survivor B) sustainable C) position D) resuming

strategy, becoming the sole company

4) Key decisions regarding portfolio planning involve decisions regarding the choice of which

brands or product lines to build, hold, harvest or A) propose B) maintain C) reduce D) divest

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5) Managers of products that are being built should be marketing-led and be rewarded for

improving sales and market share. Conversely, managers of harvested products should be more -orientated and rewarded by profit and cash flow achievement.

A) cost B) competitor C) sales D) production

6) The product portfolio planning models emphasize the point that different products should

have different roles in a product portfolio and different should be linked to them.

A) resource B) control C) cost D) reward

systems and managers

7) Which strategic marketing objective involves raising prices while slashing marketing

expenditure in an effort to boost profit margins?

A) Harvest B) Divest C) Hold D) Build

8) The GE Product Portfolio Planning Model is also known as the MA-CP Model. MA-CP

stands for .

A) Marketing Advantage-Cost Policies B) Market Accessibility-Cash Position C) Marketing Actions-Cost Position D) Market Attractiveness-Competitive Position

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9) Which of the following strategic objectives is suitable for weak products in low growth

markets?

A) Harvest B) Divest C) Niche focus D) All of the above

10) A useful model for a company to use when looking at growth opportunities is A) the Boston Box B) the MA-CP model C) the Ansoff Matrix D) Porter's model

.

11) 'Cash cows' are products which are .

A) a major drain on cash flow B) weak products in low growth markets C) market leaders in mature markets D) market leaders in high growth markets

12) Products identified as 'problem children' are most likely A) to build sales and/or market share B) to have positive cash flow balance C) to cause a drain of cash flow D) to produce low or negative cash flow

13) The GE portfolio model is based on the analysis of A) competitive strength and market attractiveness B) growth evaluation C) growth expectations D) goods evaluation

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14) The strategy of diversification occurs when .

A) existing products are developed for new markets B) new products are developed for new markets C) existing products are developed for existing markets D) new products are developed for existing markets

15) The PLC stands for the A) product line cycle B) product life cycle C) production line control D) production life control

.

16) The process of managing groups of brands and product lines is A) positioning B) portfolio planning C) the marketing mix D) corporate planning

.

17) The two axes on the BCG matrix are .

A) market growth rate and relative market share B) product growth rate and relative market share C) product status and relative market share D) cash flow and profit

18) According to the BCG matrix, 'dogs' are .

A) strong products in developing markets B) low share products in high growth markets C) weak products in low growth markets D) cash flow and profit

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19) The strategy when new products are developed for new markets is A) product development B) diversification C) market development D) innovation

.

20) Of the four strategies suggested by the Ansoff Matrix, which carries the greatest risk?

A) Market penetration B) Market development C) Product development D) Diversification

21) The best way of gaining market penetration is .

A) winning competitors' customers B) encouraging customers to use the brand more often C) encouraging customers to use a greater quantity of the brand when they use it D) all of the above

22) Which of the following is not a market attractiveness criterion?

A) Market size B) Market growth rate C) Beatable competitors D) Distribution capability

23) Your MD calls a meeting to discuss the 'problem children' in your company. What is this

likely to be about?

A) The unacceptable behaviour of younger members of staff B) Low share products in high growth markets C) Highly profitable but cash-draining products D) Highly profitable but low share products

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24) Products which are described as 'stars' are A) winning competitors' customers B) weak products in low growth markets C) market leaders in mature markets D) market leaders in high growth markets

_.

25) The appropriate strategic objective for 'cash cows' is A) a major drain on cash flow B) harvest C) divest D) hold

.

26) Which of the following group of products is likely to yield the highest excess cash for the

company?

A) Stars B) Cash cows C) Dogs D) Problem children

27) According to the BCG Matrix, companies may have four different types of brands in their

portfolio: stars, cash cows, problem children and _ A) dogs B) cats C) duds D) rats

.

28) Market penetration is .

A) increasing penetration of a new product in current markets B) increasing penetration of a new product in new markets C) increasing penetration of an existing product in an existing market D) increasing penetration of an existing product in new markets

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29) The strategy of product development involves .

A) improving or developing a new product for current markets B) improving or developing a new product for new markets C) improving or developing an existing product for an existing market D) improving or developing an existing product for new markets

30) The strategy of market development is used when A) new products are developed for new markets B) new products are developed for current markets C) current products are sold in new markets D) current products are sold in existing markets

.

31) Which of the following is least likely to follow the classic S-shaped curve of the PLC? A) White goods B) Brown goods C) Fast moving consumer goods D) Fads

32) Why is the PLC concept criticized for its unpredictability?

A) Because it can give no indication of the duration of each of the PLC stages B) Because it is difficult to adapt to new markets C) Because it is of little use to managers when setting objectives D) All of the above

33) Which of the following concepts is likely to be most useful for a manager when portfolio

planning?

A) The PLC B) The BCG Matrix C) Porter's model D) The 'S' curve

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34) The main assumption of the PLC is that .

A) the S-shaped curve should be followed in all strategy and planning B) the life of a product is a four stage process C) growth and harvest are the two most important stages of the model D) it is a very sharp tool to use for strategic planning

35) Rapid market acceptance is most likely to occur in which stage of the PLC? A) Introduction B) Growth C) Maturity D) Decline

36) Heinz baked beans and tomato sauce are examples of products which are at which phase of

the product life cycle?

A) Introduction B) Growth C) Maturity D) Decline

37) The product life cycle can be useful for product management as it can be used to determine

.

A) termination of a product B) growth projections C) marketing objectives for particular products D) all of the above

38) The BCG matrix has been criticized for distracting managers' attention away from which of

the following fundamentals of marketing?

A) Customer satisfaction B) Differentiation C) Sustainable competitive advantage D) Marketing orientation

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39) Which of the following strategies suggested by the Ansoff matrix is likely to be the lowest

risk?

A) B) C) D)

Market penetration Product development Market developments Diversification

40) For marketing managers the usefulness of the PLC concept is that .

A) it provides a real-time prediction of product behaviour in the market B) it acts as a valuable stimulus to strategic thinking C) it proves that all products follow the S-curve D) it removes the need for real-time monitoring

41) Which of the following objectives is likely to be best for maintaining market share and

ensuring consistent profits?

A) Build B) Hold C) Harvest D) Divest

42) Competitive shakeout is most likely to occur at the end of the

period of the

PLC. A) B) C) D)

introduction growth maturity decline

43) For products that are classified as 'cash cows', which of the following strategies is most

appropriate?

A) The appropriate strategic objective is to divest, which allows resources and managerial time to be focused elsewhere B) The appropriate strategic objective is to reposition the product into a defendable niche C) The appropriate strategic objective is to hold sales and market share D) The appropriate strategic objective is to harvest, to generate a positive cash flow for a time

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44) 'Stars' have a good chance of becoming which of the following in the future?

A) Problem Children B) Pigs C) Cash cows D) Dogs

45) The stages of the PLC are A) predictable B) unpredictable C) equal in duration D) equal in profit generation

.

46) The BCG matrix facilitates analysis based on A) cash flow B) profits C) inflation D) market size

47) Star products are likely to be profitable because _ A) they require low investment B) they are market leaders C) they are in stable low growth markets D) they have low support requirements

.

.

48) In an unbalanced product portfolio the mix of products can be described as A) few stars, many dogs, one cash cow and a few problem children B) few stars, many dogs, no cash cows and many problem children C) many stars, few dogs, many cash cows and a few problem children D) few stars, no dogs, many cash cows and a few problem children

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49) Which strategic objective is associated with zone 1 of the General Electric Market

Attractiveness—Competitive Position model?

A) Build B) Hold C) Harvest D) Divest

50) Dyson marketing a new model of its vacuum cleaner is an example of which of the

following?

A) A new to the world product line B) A new product that is an addition to an existing line C) Diversification D) Segmentation

51) Which of the following methods are widely used in portfolio planning? (Check all that apply) A) The BCG Matrix B) The GE Matrix C) The Product Positioning Matrix D) The Resource Allocation Matrix

52) In the GE Matrix, competitive strength is determined by considering factors such as A) B) C) D) E)

. (Check all that apply) market share cost advantages distribution capability market size market entry barriers

53) True or false: The portfolio planning models can be useful as an aid to managerial judgement

and strategic thinking, but should not supplant the judgement and thinking of management. ⊚ true ⊚ false

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54) True or false: The product life cycle is the result of marketing activities, not the cause. ⊚ true ⊚ false

55) All products follow the classic S-shaped curve of the product life cycle. ⊚ true ⊚ false

56) The duration of the PLC stages is unpredictable. For some products the life cycle continues

for many decades whereas others are only a couple of years. ⊚ true ⊚ false

57) The end of the maturity period is often associated with competitive shake-out whereby

weaker suppliers cease production. ⊚ true ⊚ false

58) Explain the product life cycle model. What is the effect of marketing activities on the PLC?

59) What options are available for marketers in managing declining products?

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60) Describe the Boston Consulting Group Matrix. How useful is it in managing product

portfolios?

61) Discuss how Ansoff's matrix can help develop product growth strategies.

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Answer Key Test name: Chapter 19 1) D 2) B 3) A 4) D 5) A 6) D 7) A 8) D 9) D 10) C 11) C 12) C 13) A 14) B 15) B 16) B 17) A 18) C 19) B 20) D 21) D 22) D 23) B 24) D 25) D 26) B 27) A 28) C 29) A 30) C 31) D 32) A 33) B 34) B 35) B 36) C 37) D

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38) C 39) A 40) B 41) B 42) B 43) C 44) C 45) B 46) A 47) B 48) B 49) A 50) B 51) [A, B] 52) [A, B] 53) TRUE 54) TRUE 55) FALSE 56) TRUE 57) FALSE 58) Essay 59) Essay 60) Essay 61) Essay

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Chapter 20 Global Marketing Strategy Student name: 1)

pricing refers to the price charged between the profit centres of the same company, sometimes used to take advantage of lower taxes in another country.

A) Transfer B) Parallel C) Counter-trade D) Reference

2) Competitive factors can often drive international expansion. As competitors expand

internationally, others may feel obliged to do so, particularly in A) oligopolistic B) monopolistic C) realistic D) symbolistic

industries.

3) Barriers may exist because of cultural disparities between the home country and the host

country. These differences in socio-cultural factors between countries are often termed distance.

A) psychic B) physical C) metric D) ethnic

4) The economic, socio-cultural and political legal influences on market choice are known

collectively as .

A) microenvironmental issues B) macroenvironmental issues C) internal marketing issues D) national marketing issues

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5) Micro environmental analysis focuses on the attractiveness of the particular international

market being considered and .

A) the economic influences B) the company capability profile C) trade barriers D) psychic distance

6) Profit potential and market access are factors of _ A) market attractiveness B) political legal influences C) company capability profile D) macro environmental issues

7) Two major costs of servicing foreign markets are A) distribution and resources B) profit and loss C) distribution and control D) salaries and commission

.

.

8) The role of domestic-based export merchants is to .

A) take title to the products and sell them abroad B) to sell (usually on a commission basis) on behalf of the exporter C) sell foreign products in the home market D) facilitate direct exporting

9) One disadvantage of using foreign based agents or distributors is .

A) staff will be negatively affected B) existing domestic markets may suffer C) it may be difficult and costly to terminate an agreement with them D) sales may be negatively affected

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10) Your MD says the company cannot afford an export management company to manage

overseas operations. What should you do?

A) Withdraw from all overseas operations B) Engage a qualified intermediary C) Set up a project using students from the local college D) Attempt to do the work yourself

11) The royalty paid by the licensee is usually based on A) sales volume B) production levels C) book publications D) service agreements

.

12) Which of the following is a type of franchising?

A) International and domestic agents B) Licensing and joint ventures C) Service and sales D) Product and trade name

13) The creation of a new company in which foreign and local investors share ownership and

control is known as .

A) licensing B) equity joint venture C) equity marketing D) company joint venture

14) In a contractual joint venture .

A) two or more companies form a partnership B) contracts are formed between licenser and licensee C) two or more companies form a franchise D) contracts are not legally binding

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15) Which form of entry into international markets carries the greatest commitment of capital

and managerial effort?

A) Direct investment B) Direct exporting C) Licensing D) Joint ventures

16) The main potential disadvantage of direct investment as a means of entering international

markets is .

A) the lack of head office control B) the expense involved C) the existence of trade barriers D) fluctuating currency rates

17) Your company has a considerable risk of losing proprietary information by entering a foreign

market. Which entry mode would you suggest as the most appropriate in this case?

A) Joint venture or exporting by own staff B) Licensing or exporting using a middleman C) Licensing or joint venture D) Direct investment

18) Which of the following is one of the attractions of opting for a standardized international

marketing mix?

A) A more cohesive foreign investment portfolio B) Local brands C) A compact product range D) Economies of scale

19) Your company is faced with multi-million pound R&D costs for a new product. When it is

finally launched worldwide, you would recommend that, as far as possible, it is A) fully adapted B) fully branded C) fully integrated D) fully standardized

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20) Barter, compensation deals, counter purchase and buy-backs are forms of _ A) barriers to price switching B) trade-offs C) counter trade D) transfer pricing

.

21) A tariff is .

A) an exchange rate fee B) a fee charged when goods are brought into one country from another C) a barrier to stop illegal exports D) a pricing action to undermine competitor activities

22) Your company is hoping to sign an important long-term contract with a firm which is based

in a country which has a widely fluctuating exchange rate. Which would be the most appropriate settlement to negotiate?

A) Parallel importing B) Bartering C) Trade-offs D) Forward hedging of future payments

23) A company may protect itself from the threat of parallel importing by A) increasing the price differentials B) changing the product packaging for different countries C) bartering D) disguised price reductions

.

24) One advantage of indirect exporting is .

A) the exporting organization is domestically based B) it uses foreign based agents or distributors C) it has a higher profit potential D) it requires no changes to existing advertising and packaging

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25) Your MD has returned from a 2-week holiday in St Lucia and decided the company should

immediately start exporting your product there. Which of the following would you try to persuade him to do first?

A) Invest in new machinery so the product can be modified B) Undertake detailed market research C) Embark on an advertising and promotion campaign in St Lucia D) Forget the whole idea

26) Which of the following foreign market entry strategies is likely to be most attractive in order

to avoid substantial capital investment in the host country?

A) Direct investment B) Joint ventures C) Licensing D) Standardization

27) Which of the following is one advantage of using standardized advertising campaigns for

home and overseas markets?

A) It allows more creative presentation B) It is easier to overcome media rules and regulations C) It avoids having to adapt the product for each market D) It can realize cost economies

28) One of the problems of bartering as a means of payment for goods is A) fluctuating exchange rates B) the transfer price C) the vendor being able to sell on the bartered goods D) it can only be done in third world countries

.

29) Which of the following is an example of a political factor influencing market entry?

A) Exchange rates B) Psychic distance C) Parallel importing D) Trade barriers

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30) Product

works well where a global market segment of like-minded people can be exploited. This has been the basis for the success of such products as Swatch and Rolex watches.

A) standardization B) adaptation C) regulation D) decentralization

31) Which of the following may trigger a company into competing in international markets?

A) Saturated domestic markets B) Saturated international markets C) Global advertising D) Satellite communications facilities

32) You feel your company does not have all the necessary skills to market abroad. Which of the

following may best compensate for any shortfalls?

A) Foreign-based agents and distributors B) A more buoyant home market C) An interpreter D) Product adaptation

33) The role of domestic based export agents is .

A) to take title to the products and sell them abroad B) to sell (usually on a commission basis) on behalf of the exporter C) to act as 'agent provocateur'

34) Your company currently prints all services, sales and guarantee messages in English, but is

exporting many products to Eastern Europe. What should you do?

A) Leave it - most people probably speak some English anyway B) Employ a UK languages student to rewrite the literature C) Employ foreign nationals to translate the literature into local languages D) Send a delegation to each country to explain everything

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35) A foreign licenser provides a local licensee with _ .

A) access to local markets B) access to foreign markets C) access to technology or know-how in exchange for financial compensation D) access to joint ventures

36) Two types of joint ventures are .

A) equity and franchising joint ventures B) equity and contractual joint ventures C) franchising and licensing joint ventures D) company and supplier joint ventures

37) Which of the following is an advantage of wholly owned investments?

A) Less risky B) Greater control C) Less risk D) Less resources

38) What are the two main forms of wholly owned investment into overseas markets?

A) Stocks and shares B) Acquisition and new facilities C) Building and bonding D) Building and licensing

39) Your company has a high level of resources. Which mode of entry into foreign markets

would you suggest as most appropriate in this case?

A) Exporting using own staff B) Licensing or exporting using a middleman C) Licensing or joint venture D) Direct investment

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40) In order to achieve lower manufacturing, advertising and packaging costs, which is likely to

be the most appropriate marketing strategy to adopt?

A) Adaptation B) Standardization C) Market penetration D) Diversification

41) Full standardization of the marketing mix is difficult because of which of the following?

A) Language B) Regulations C) Media availability D) All of the above

42) What kind of internationalization strategy was IKEA following when they produced a

wardrobe especially for the USA market with deeper drawers?

A) Standardization B) Adaptation C) Variation D) All of the above

43) Which of the following is an example of an external factor likely to affect a company's

choice of market-entry method when moving into international markets?

A) Lack of market information B) Perceptions of risk C) Barriers to imports D) Limited resources

44) Which of the following is an example of an internal factor likely to affect a company's choice

of market-entry method when moving into international markets?

A) Barriers to imports B) Geocultural distances C) Psychical Distances D) Limited experience

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45)

reaps economies of scale and provides an integrated marketing profile to channel intermediaries that, themselves, may be international, and customers that are increasingly geographically mobile.

A) Centralization B) Decentralization C) Regional responsiveness D) None of the above

46) Which of the following is a trigger for internationalization?

A) Saturated domestic market B) Small domestic market C) Low-growth domestic market D) All of the above

47) There are a number of different forms of counter-trade that can be used in international

marketing. These include A) barter B) compensation deals C) commitment deals D) buy-backs E) buy-forwards

. (Check all that apply)

48) What are the main triggers for entering foreign markets?

49) Describe the main market entry methods for foreign markets. When should each be used?

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50) To what extent, and under what circumstances, should companies adapt their products and/or

promotion to enter a foreign market?

51) Explain why companies decide to operate in foreign markets.

52) Discuss how companies decide which foreign markets they should enter.

53) Describe two strategic approaches a company might adopt when aiming to enter a foreign

market.

54) Discuss the difference between standardization and adaptation. Illustrate your answer with

examples.

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55) Identify important considerations for a company planning a marketing mix to use in an

international market.

56) Hofstede worked on cultural and national differences and found dimensions important to

understanding variance in culture-based behaviour. These have implications for leadership styles. What can be considered an implication of the individualism vs collectivism dimension?

A) Self-interest vs strong ties in group membership B) Organizational members expect and accept unequal distribution of power vs organizational members take part of democratic decision-making C) Members of an organization tolerate an unpredictable and uncertain future vs they do not tolerate an unpredictable and uncertain future D) Members of an organization value achievement in tasks, money, performance and purposefulness vs they value an emphasis on individuals, quality of life, preserving the environment and modesty.

57) Hofstede worked on cultural and national differences and found dimensions important to

understanding variance in culture-based behaviour. These have implications for leadership styles. What can be considered an implication of the uncertainty avoidance dimension?

A) Self-interest vs strong ties in group membership B) Organizational members expect and accept unequal distribution of power vs organizational members take part of democratic decision-making C) Members of an organization tolerate an unpredictable and uncertain future vs they do not tolerate an unpredictable and uncertain future D) Members of an organization value achievement in tasks, money, performance and purposefulness vs they value an emphasis on individuals, quality of life, preserving the environment and modesty.

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58) Which of the following problems arise when using full standardization of the marketing mix?

A) Culture and consumption patterns B) Language C) Regulations D) Economic issues

59) Which creative presentation defines the brand as a symbol of a given global culture?

A) global consumer positioning B) transnational consumer postioning C) foreign consumer culture positioning D) local consumer culture positioning

60) In their advertising campaign in the United States Louis Vuitton incorporates cultural

elements such as gracious women and French buildings. Which creative presentation positioning do they use?

A) global consumer positioning B) transnational consumer postioning C) foreign consumer culture positioning D) local consumer culture positioning

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

Answer Key Test name: Chapter 20 1) A 2) A 3) A 4) B 5) B 6) A 7) C 8) A 9) C 10) B 11) A 12) D 13) B 14) A 15) A 16) B 17) D 18) D 19) D 20) C 21) B 22) D 23) B 24) A 25) B 26) C 27) D 28) C 29) D 30) A 31) A 32) A 33) B 34) C 35) C 36) B 37) B

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Test Bank for Principles and Practice of Marketing 10th Edition by Jobber David and Chadwick Fiona Ellis.

38) B 39) D 40) B 41) D 42) B 43) C 44) D 45) A 46) D 47) [A, B, D] 48) Essay 49) Essay 50) Essay 51) Essay 52) Essay 53) Essay 54) Essay 55) Essay 56) A 57) C 58) [A, B, C] 59) A 60) C

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Chapter 21 Managing Marketing Implementation Student name: 1) An inappropriate marketing strategy, together with good marketing implementation leads to

.

A) profit loss B) roulette C) failure D) trouble

2)

control systems focuses on company strengths, weaknesses, opportunities and threats and allows a process of control through a marketing audit.

A) Strategic B) Tactical C) Operational D) Planning

3) Pettigrew states that resistance to marketing implementation and change is likely to be

when when a company is faced with a crisis. When an organization is threatened with extinction, the organization is more likely to act to overcome inertia against change.

A) low B) high C) contolled D) uncontrolled

4) If managers are faced with poor business/company performance they should .

A) separate strategic issues and implementation activities, and diagnose the problem B) divest C) harvest D) invest more into capital resources in the short term

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5) How are people most likely to react initially to adverse change in their company?

A) With numbness B) With self doubt C) With relief D) With resignation

6) As people begin to adapt to major changes in their company, they are likely to A) leave the company B) begin testing new behaviours and approaches C) experience self doubt and uncertainty D) feel angry and frustrated

.

7) Your company is going through a period of adverse change. Which of the following factors is

likely to be the most important for the overall success of implementation?

A) Suggesting that redundancies may occur unless people cooperate B) Hinting about a pay rise or bonus C) Implementing all changes simultaneously D) Allowing time for personnel to adapt

8) Internal marketing is primarily aimed at A) customers B) suppliers C) employees D) competitors

.

9) The principal aim of internal marketing is to .

A) keep customers happy B) achieve successful marketing implementation C) integrate departments within a company D) issue regular internal newsletters

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10) The group who feel they are most likely to lose out when marketing change is implemented

are

.

A) the lower wage earners B) the no-hopers C) the opposers D) the neutrals

11) The understanding of 'office politics' is based on A) the sources of power B) manipulating employees' personal lives C) negotiation D) a democratic work culture

.

12) The potential problem in using coercive power to implement changes in a company is that it

may lead to .

A) staff shortages B) a meritocratic hierarchy C) a breakdown in communications D) compliance rather than commitment

13) Which of the following could be used as a persuasion tactic?

A) Communication and training B) Bribery C) Witholding benefits D) Withholding a shared vision

14) The Production Manager refuses to implement the changes proposed in your marketing plan.

Which of the following is most likely to make him co-operate?

A) Antagonism B) Compliance C) Persuasion D) Suggestion

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15) The business outcome of 'roulette', as argued by Bonoma is likely to occur with A) good implementation but inappropriate strategy B) bad implementation but an appropriate strategy C) bad implementation and an inappropriate strategy D) good implementation and an appropriate strategy

16) A successful business outcome, as argued by Bonoma, is likely to occur with A) good implementation but an inappropriate strategy B) bad implementation but an appropriate strategy C) bad implementation and an inappropriate strategy D) good implementation and an appropriate strategy

17) Bonoma's business performance matrix is based on a combination of A) profit and loss B) success and failure C) strategy and implementation D) application and effects

.

.

.

18) The implementation of a marketing strategy move is usually associated with the need for

people to .

A) undergo intensive training B) accept voluntary redundancy C) become multi-skilled D) adapt to change

19) You overhear a group of sales staff discussing the imminent replacement of a field sales

force by a telemarketing team. They appear to be joking and trivializing the news. At what stage on the transition curve are they likely to be?

A) Internalization B) Denial and disbelief C) Construction and searching for meaning D) Numbness

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20) At what stage on the transition curve is it most likely that some staff may decide to leave

their company?

A) Acceptance and letting go B) Internalization C) Adaptation and testing D) Self-doubt and emotional

21) On the ladder of support, which of the following is not one of the levels of support?

A) Compliance B) Acceptance C) Resistance D) Coercion

22) When developing a marketing implementation strategy, the two levels of implementation

objectives are .

A) theoretical and practical objectives B) would-like and must-have objectives C) expenditure and income objectives D) positive and negative objectives

23) Internal marketing is important in developing implementation strategies. Originally the idea

of internal marketing was developed within to include marketing to all employees.

A) services B) external C) mass D) financial

marketing but now has been expended

24) In terms of internal politics, the source of power whereby people identify with and respect

the architect of change is known as A) legitimate power B) referent power C) reward power D) expert power

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25) In terms of internal politics, the source of power whereby the implementer is able to provide

benefits to members in the organization is known as A) legitimate power B) referent power C) reward power D) expert power

.

26) In terms of internal politics, the source of power whereby the implementer is able to punish

those who resist or oppose implementation is known as A) coercive power B) referent power C) reward power D) aggressive power

.

27) When using concession analysis as a means of negotiation, the key is to value the

concessions the implementer might be prepared to make from the viewpoint of the A) supporter B) opponent C) neutrals D) suppliers

.

28) Which of the following is not one of the stages normally associated with a plan of action to

manage the implementation of change?

A) Mission B) Strategy C) Evaluation D) Execution

29) The product element of the internal marketing mix comprises the marketing plan and

strategies, together with .

A) a reward system B) communication C) the required values, attitudes and actions D) the goods produced by the company

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30) Which of the following is most likely to select a product-based management structure?

A) Service industries B) Manufacturing industries C) Fast moving consumer goods companies D) Telecommunications companies

31) Which of the following structures is best suited to an organization selling products to diverse

markets?

A) Functional B) Product based C) Hierarchical D) Market-centred

32) Marketing control provides .

A) staff development opportunities B) strict pricing policies C) a support to production control D) a review of how well objectives have been achieved

33) Which of the following can be used as a strategic control system?

A) A marketing audit B) The 'airport' plan C) Tighter sales force control D) The retrograde grid system

34) Analysis of sales and market share, and cost and profitability are key methods of A) forecasting share prices B) operational control C) determining customer satisfaction D) purchase behaviour prediction

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35) Sales analysis is .

A) a comparison of actual and target sales B) conducted bi-annually by the retailer C) a comparison between production costs and profit D) carried out prior to a major promotional campaign

36) Profitability analysis involves focusing on two main metrics: profit and return on A) expenditure B) investment C) profit D) sales

.

37) What is the major advantage of the market-centred approach in an organization?

A) It provides focus on specific customer requirements in each sector B) It is likely to generate higher profits C) It provides a focus on competitors' activities D) It addresses most directly issues around supply and demand

38) One advantage of a product-based organizational structure is that .

A) it encourages innovation B) it ensures that the product matches customer needs C) it concentrates capital on resources more efficiently D) adequate attention is given to developing a coordinated marketing mix for each brand

39) As a recent marketing graduate, you are in the enviable position of having many job offers to

consider. In which of the following organizational structures are you most likely to receive training and experience in the widest range of business activities?

A) Product-based organization B) Market-centred organization C) Matrix organization D) Functional organization

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40) As part of your marketing control procedure, you are evaluating one specific performance

against standards. It becomes clear that performance has failed to come anywhere near the required standard. What is the likely reason for this?

A) Individuals have performed badly B) The marketing objectives were unrealistic C) Failure in another objective has directly brought about failure in this one D) All of the above

41) Despite their very best efforts, certain individuals in your company have failed through poor

performance to reach the required performance standards. In the long-term interests of the company, what is likely to be the best course of action to avoid this?

A) Arrange appropriate training courses for them B) Give them a pay rise as an incentive C) Immediately terminate all their contracts D) Drastically revise the marketing objectives to accommodate their shortcomings

42) In which of the following ways can potential conflict in a matrix organization best be

avoided?

A) By establishing trade marketing teams B) By adopting a more functionally-based structure to the organization C) By drawing up clear lines of decision-making authority D) All of the above

43) Which of the following is not a step on the ladder of support?

A) Acceptance B) Compliance C) Resistance D) Implementation

44) Trouble within a business is likely to be an outcome if there is A) good implementation but an inappropriate strategy B) bad implementation and an inappropriate strategy C) an appropriate strategy but bad implementation D) neither a strategy nor implementation

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45) The emotional stages that people pass through when confronted with adverse change in a

business is known as A) the J-curve B) the Roulette curve C) the envelope curve D) the transition curve

.

46) Ansoff argues that the level of resistance to marketing implementation and change will

depend on how much the proposed change is likely to disrupt the culture and structure of the organization and the speed at which the change is introduced.

A) control B) reporting C) change D) power

47) The greatest level of opposition and resistance to marketing implementation and change will

come when the proposed change is implemented _ politics of the organization.

A) quickly B) slowly C) internally D) externally

and is a threat to the culture and

48) Which of the following usually form the internal marketing mix?

A) Communications, distribution, product and promotion B) Communications, distribution, product and price C) Product, price, promotion and distribution D) Product, price, promotion and packaging

49) The price element of the internal marketing mix refers to .

A) pay bargaining procedures B) the ratio of employees' wages to production C) internal costs D) what internal customers pay as a result of accepting the marketing plan

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50) Concession analysis and proposal analysis in internal marketing terms are aspects of

.

A) reward B) negotiation C) coercive power D) persuasion

51) In general terms, marketing implementation focuses on A) ideas B) results C) actions D) rhetoric

.

52) Your company's overall performance is poor and you are having problems analysing whether

it is due to poor performance or poor strategy. What should you do?

A) Revise the implementation immediately B) Revise the strategy immediately C) Address implementation problems first D) Address strategy problems first

53) Measuring customer satisfaction can be achieved through A) a barometer B) sales and market share analysis C) market research D) product testing

.

54) Why are control mechanisms an important aspect of marketing organization?

A) To ensure staff toe the line B) To check the effectiveness of marketing strategies and implementation C) To monitor production levels D) To maintain high levels of security and safety

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55) What barriers might be raised to implementing the marketing concept? How might a

marketer address this problem?

56) Explain the role of a change master in developing implementation strategies.

57) Describe the main organizational structures in current use. Explain the strengths and

weaknesses of each.

58) Discuss the marketing metrics used in UK firms.

59) Explain the stages of the transition curve.

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60) Which elements are part of the McKinsey's 7-S model approach to explain the determinants

of the outcome of change (descriptive approach to change management)?

A) Strategy B) Structure C) Shared values D) Skills

61) Change management typically falls within two categories. Which type uses a planned method

to implement change?

A) Procedural approach B) Descriptive approach C) Management approach D) Centralized approach

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Answer Key Test name: Chapter 21 1) B 2) A 3) A 4) A 5) A 6) B 7) D 8) C 9) B 10) C 11) A 12) D 13) A 14) C 15) A 16) D 17) C 18) D 19) B 20) C 21) D 22) B 23) A 24) B 25) C 26) A 27) B 28) A 29) C 30) C 31) D 32) D 33) A 34) B 35) A 36) B 37) A

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38) D 39) A 40) D 41) A 42) C 43) D 44) C 45) D 46) D 47) A 48) B 49) D 50) B 51) C 52) C 53) C 54) B 55) Essay 56) Essay 57) Essay 58) Essay 59) Essay 60) [A, C] 61) A

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