Marketing: An Introduction, 13e, GE (Armstrong)

Chapter 1 Marketing: Creating Customer Value and Engagement

1) Imaginative Web sites, smartphone apps, and social media allow marketers to
deliver messages that are direct and personal so consumers can ________.
A) live the brand
B) sustain the brand
C) deliver the brand
D) enhance the brand
E) establish the brand
Answer: A

4) Marketing is primarily concerned with engaging customers and secondarily with

managing profitable customer relationships.
Answer: FALSE

6) ________ are defined as states of felt deprivation.

A) Needs B) Ideas C) Demands D) Values E) Exchanges
Answer: A

7) ________ are the form human needs take as they are shaped by culture and
individual personality.
A) Wants B) Necessities C) Services D) Benefits E) Risks
Answer: A

8) Consumers' needs and wants are fulfilled through ________.

A) value B) demand C) desire D) market offerings E) ideas
Answer: D

9) Abel now has the buying power to purchase the computer that he wanted to buy six
months ago. Abel's want has most likely become a ________.

A) need B) value C) demand D) market offering E) desire

Answer: C

10) The "Stop the Texts. Stop the Wrecks." campaign co-sponsored by the Ad
Council and the National Highway Traffic Safety Administration is an example of a
marketing offering for a(n) ________.
A) product B) person C) idea D) place E) organization
Answer: C

11) Marketers are said to suffer from marketing myopia when they ignore underlying
consumer needs and focus excessively on ________.
A) consumers' brand experiences
B) competitors' threats
C) consumers' existing wants
D) competitors' strengths
E) consumers' future demands
Answer: C

12) Mattel's American Girl Doll creates special ________ between the dolls and the
girls who adore them.
A) service offerings
B) benefits
C) wants
D) values
E) brand experiences
Answer: C

14) When backed by buying power, wants become needs.

Answer: FALSE

CHƯƠNG 4:

CHƯƠNG 6:
Ch 6 Customer value-driven marketing strategy

1. The process of marketing strategy planning is about ______.

A. identifying as many market opportunities as can be imagined
B. narrowing down possible market opportunities to the most attractive ones
C. creating products that managers like
D. choosing the most profitable market opportunity, regardless of the firm's current abilities
and resources
E. figuring out how to offer products at the lowest possible price
B:The marketing strategy planning process involves careful evaluation of the market
opportunities and then narrowing down to focus on the most attractive target market and
marketing mix.

75. A generic market

A. may include sellers who compete in different product-markets.
B. would probably be broader than the firm's target market.
C. might be composed of several different product-markets.
D. has sellers offering a more diverse set of products.
E. All of these are correct for a generic market.
E: A generic market is a market with broadly similar needs and sellers offering various, often
diverse, ways of satisfying those needs. It may be composed of several different product-
markets and its sellers may also compete in different product-markets. By definition, a
generic market is likely broader than the firm's target market.

116. The process of market segmentation involves:

A. identifying small target markets and expanding them into broad product markets.
B. identifying broad product markets and segmenting then into narrower target
markets.
C. identifying target groups with the fewest potential customers.
D. selecting a marketing mix to reach everyone.
E. identifying target markets based on consumers' gender alone.
B: Market segmentation is a two-step process of (1) naming broad product-markets and (2)
segmenting these broad product-markets in order to select target markets and develop suitable
marketing mixes.

124. The disaggregating step in market segmentation involves ______.

A. brainstorming about very different solutions to various generic needs
B. looking for similarities in needs
C. selecting target markets
D. developing suitable marketing mixes
E. selecting a target marketing approach
A: The naming—disaggregating—step involves brainstorming about very different solutions
to various generic needs and selecting some broad areas—broad product-markets—where the
firm has some resources and experience.

134. Given its interest in the broad product-market for "ready-to-eat, health-conscious
snack foods," which of the following should the Good Health Foods Co. do FIRST?
A. Develop a plan for getting support from intermediaries.
B. Develop each of the four Ps at the same time.
C. Segment the product-market to try to identify homogeneous submarkets and select
an attractive target market.
D. Determine whether to compete on a price basis.
E. Decide what low-fat product or products it will offer.
C: The segmenter wants to aggregate individual customers into some workable number of
relatively homogeneous target markets and then treat each target market differently.

137. Marketing managers want market segments to have each of the following
characteristics EXCEPT:
A. As similar as possible within segments.
B. As different as possible between segments.
C. As numerous as possible.
D. Useful for identifying marketing mix variables.
E. Large enough to be profitable.
C: A "good" market segment meets the following criteria: Homogeneous (similar) within;
Heterogeneous (different) between; Substantial—the segment should be big enough to be
profitable; and Operational—should be useful for identifying marketing mix variables.

153. A large firm with ample resources wants to minimize the risk of "inviting"
competitors to "chip away" at its target market(s). It has segmented its broad product-
market and identified several homogeneous submarkets-each of which is large enough to
offer attractive sales and profit potential. Which of the following approaches should the
firm use?
A. Multiple target market approach
B. Mass marketing approach
C. Combined target market approach
D. Single target market approach
E. Niche market targeting approach
A: The firm should use the multiple target market approach. It means segmenting the market
and choosing two or more segments, and then treating each as a separate target market
needing a different marketing mix.

165. Having segmented its broad product-market, Blue Chip, Inc. feels that three segments
are similar enough that-together-they can be treated as one large target market and offered the
same marketing mix. Blue Chip, Inc. is following the ______________ approach.
A. mass marketing
B. multiple target market
C. combined target market
D. single target market
E. None of these alternatives is correct.
C: Combiners try to increase the size of their target markets by combining two or more
segments. They look at various submarkets for similarities rather than differences. Then they
try to extend or modify their basic offering to appeal to these "combined" customers with just
one marketing mix.

166. In segmenting the cell phone user product-market, cell phone maker Super Cellular
found one segment that valued sending text messages and another that wanted their phone to
play MP3 music files. The firm developed a single handset for both market segments and
used the same marketing mix in targeting both segments. For this product-market, Super
Cellular operated as a ___.
A. combiner
B. value operator
C. market leader
D. segmenter
E. multi-segmenter
A: Combiners look at various submarkets for similarities rather than differences. Then they
try to extend or modify their basic offering to appeal to these "combined" customers with just
one marketing mix.

168. A producer of electrical components combined electrical supply wholesalers and

manufacturers of electrical equipment into the same market segment-one of several segments
it was targeting. Soon it lost the manufacturers' business to a competitor. It seems that the
firm failed to consider the risk of ______.
A. too much aggregating
B. insulting the manufacturers by putting them in the same market segment with the
wholesalers
C. picking market segments based on qualifying dimensions
D. selecting market segments that were not substantial
E. using too many segmenting dimensions
A: Cost considerations usually encourage more aggregating and favor combining as costs
often drop due to economies of scale. However, many customers prefer to have their needs
satisfied more exactly and vulnerable to competitors who offer them more targeted
approaches.
169. Which of the following is a possible danger when using a combining approach to target
marketing?
A. Competitors may do a better job appealing to submarkets.
B. Coordinating the different marketing mixes for the different segments is difficult.
C. The target market may become larger over time.
D. Economies of scale may develop.
E. Effective product marketing mix variables are not achieved.
A: A segmenter that really satisfies the target market can often build such a close relationship
with customers so that it faces no real competition. However, combiners are always
vulnerable to competitors.

174. Segmenters, in contrast to combiners:

A. try to aim at homogeneous submarkets of larger product-markets.
B. see one aggregate demand curve for a generic market.
C. are accepting the likelihood of lower sales.
D. assume that everyone in a broad product-market has the same needs.
E. develop general-purpose marketing mixes that appeal to several submarkets.
A: Segmenters aim at one or more homogeneous segments and try to develop a different
marketing mix for each segment.

183. Segmenting dimensions

A. are useful for segmenting consumer markets, but not business markets.
B. help guide marketing mix planning.
C. are always demographic or geographic.
D. fall into two general categories: qualifying and purchasing.
E. may be called qualifying or non-qualifying.
B: Segmenting dimensions should help guide marketing mix planning.

185. Target market dimensions should influence all the following strategy decisions except:
A. what product features and assortments will be offered.
B. what prices should be set.
C. where products will be available for purchase.
D. which types of advertising and promotion to be utilized.
E. which industry a firm should choose.
E: Target market dimensions (whether geographical, demographic, or behavioral) guide
marketing mix planning including decisions about the four Ps of product, price, place, and
promotion.
193. BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include:
A. type of problem-solving.
B. kind of shopping.
C. brand familiarity.
D. benefits sought.
E. All of these are behavioral dimensions.
E: Behavioral segmenting dimensions include types of problem-solving (routinized response,
limited, extensive), kind of shopping (convenience, comparison shopping, specialty, none
(unsought product)), brand familiarity (insistence, preference, recognition, non-recognition,
rejection), and benefits sought (situation specific—to satisfy specific or general needs).

201. Coorgs Coffee, Inc. has substantial market share in South America but seeks growth. Its
managers want to expand into North America and target cities with populations of 50,000-
99,999. Identify the segmenting dimension most probably being used by Coorgs Coffee.
A. Geographic
B. Behavioral
C. Urgency to get need satisfied
D. Demographic
E. Attitudes of consumers
A: Geographic segmenting dimensions include region of world/country, region in country,
and size of city.

204. When major airlines target business travelers because they travel often and typically pay
at least three times the price for a ticket as leisure travelers, these airlines are segmenting the
market primarily on:
A. income.
B. education.
C. rate of use.
D. ethnicity.
E. age.
C: The airlines are segmenting the market primarily on rate of use (heavy, medium, light, and
nonusers).

211. ______________segmenting dimensions are those which actually affect a person's

purchase of a specific product type or brand in a product-market.
A. Operational
B. Qualifying
C. Customer-related
D. Determining
E. Situation-related
D: Determining dimensions are those that actually affect the customer's purchase of a specific
product or brand in a product-market.

228. A cluster analysis of the "toothpaste market" would probably show that ______.
A. the broad product-market can be served effectively with one marketing mix
B. most consumers are mainly concerned about brightness of teeth
C. factors such as taste, price, and "sex appeal" are not important
D. different market segments seek different product benefits
E. pricing strategies of the competitor products do not matter
D: Each market segments calls for a different marketing mix. Although some of the four Ps
may be similar.

231. Alpine Auto Repair keeps a record of customer oil changes and sends a reminder
postcard to its customers when it's time for the next oil change. This is an example of a
______ system.
A. customer relationship management
B. qualifying dimensions
C. a positioning matrix
D. geographic targeting
E. clustering
A: With customer relationship management (CRM), the seller fine-tunes the marketing effort
with information from a detailed customer database. This usually includes data on a
customer's past purchases as well as other segmenting information.

234. When a customer orders a book at Amazon.com, the online retailer recommends related
books that have been purchased by other customers who bought that book. Amazon is using
a(n):
A. aggregating approach.
B. CRM database.
C. clustering approach.
D. disaggregating approach.
E. generic market.
B: CRM system at the website recommends related books that have been purchased by other
customers who bought that book. A CRM system usually includes data on a customer's past
purchases as well as other segmenting information.
246. "Positioning" is a marketing management aid that refers to:
A. how closely existing products match customers' ideal preferences.
B. how customers think about proposed and/or present brands in a market.
C. whether some products are viewed as very similar.
D. All of these are true.
D: Positioning refers to how customers think about proposed or present brands in a market.
Positioning issues are especially important when competitors in a market appear to be very
similar. Managers ask consumers to make judgments about different brands including their
"ideal" brand.

249. Ford Motor Co. asks members of its target market to rate its cars and those of General
Motors and Chrysler on a 7-point scale in terms of two dimensions (comfortable seats and
engine power) so that it can establish a quadrant-grid map of these ratings. What type of
analysis is Ford conducting?
A. Positioning
B. Combining
C. Qualifying
D. Dimensional
E. Insight management
A: Positioning maps are based on customers' perceptions—the actual characteristics of the
products might be different.

250. "Positioning" might cause a marketing manager to:

A. introduce a new product for a segment with unsatisfied needs.
B. change a product's promotion to make its image fit more closely with the needs and
attitudes of the target market.
C. shift attention to another market segment where competition is weaker.
D. physically change his or her product to compete more effectively with a competitor
aiming at the same target market.
E. Any of these could be true.
E: Physical changes to a product, or image changes based on promotion, could be a result of
positioning. Also, introducing a new product or shifting attention to another less competitive
segment are possible moves.

252. Which of the following statements about positioning is FALSE?

A. Positioning often makes use of techniques such as perceptual mapping.
B. Positioning refers to how customers think about proposed or present brands in a market.
C. Positioning issues are especially important when competitors in a market are
highly dissimilar.
D. Positioning helps marketing managers know how customers view the firm's offering.
E. Managers make graphs for positioning decisions by asking consumers to make
judgments about different brands.
C: Positioning analysis usually focuses on specific product features and brands that are close
competitors in the product-market.

256. Positioning analysis

A. helps managers understand the actual characteristics of their products.
B. is not a product-oriented approach.
C. is a visual aid to understanding a product-market.
D. shows that managers and customers usually view present brands similarly.
E. always leads a firm to segmenting and not combining.
C: A positioning analysis is a product-oriented approach that helps managers understand how
customers see products. The actual characteristics of the products may be quite different from
customer perceptions, and managers and customers may view the brands quite differently.
Positioning analysis is a visual aid. It may lead to combining rather than segmenting.
258. When PepsiCo asked its advertising agency to develop an advertising program for its
Mountain Dew soft drink, it gave the agency a statement describing the age and fun-loving
spirit of its target market and the one-of-a-kind citrus flavor of the new product, what type of
statement was this?
A. Clustering
B. Determining
C. Combining
D. Positioning
E. Qualifying
D: A positioning statement concisely identifies the firm's desired target market, product type,
primary benefit (or point of differentiation), and the main reasons a buyer should believe the
firm's claims.

CHƯƠNG 7:
Ch. 7 Product, Services, and Brands: Building Customer Value
115. _____ means a product's ability to satisfy a customer's needs or requirements.
A. Quality
B. Service
C. Trademark
D. Brand
E. Assortment
A: Product quality refers to a product's ability to satisfy a customer's needs or requirements.

119. "Product" means:

A. A physical good or service that offers potential customer satisfaction.
B. A physical good with all its related features.
C. The entire physical output of a firm.
D. All of the elements in a firm's marketing mix.
E. Something that has been produced, packaged, branded, and given a warranty.
A: A product may be a physical good, a service, or a blend of both. The idea of "Product" as
potential customer satisfaction or benefits is very important.

127. Services
A. are tangible.
B. often have to be produced in the presence of the customer.
C. are easy to store.
D. are usually produced before they are sold.
E. all of these choices are correct.
B: Services are not physical products, they are intangible. They cannot be stored, but only
experienced, used, or consumed. They often have to be produced in the presence of the
consumer.

133. A large U.S. firm produces potato chips, shortening, dishwasher detergent, laundry
detergent, shampoo, disposable diapers, and facial tissues. These are the firm's

A. product classes.
B. product assortment.
C. individual products.
D. marketing mix.
E. product line.
Feedback: A product assortment is the set of all product lines and individual products that a
firm sells.

145. Words, symbols, or logos that are legally registered for use by a single company are
called ______.
A. trademarks
B. brand names
C. brand marks
D. service marks
E. watermarks
A: A trademark includes only those words, symbols, or marks that are legally registered for
use by a single company.

146. A trademark
A. has no legal meaning.
B. includes those words, symbols, or marks that are legally registered for use by a single
company.
C. is any word, letter, or a group of words or letters.
D. is the value of a brand to its current owner or to a firm that wants to buy it.
E. is protected by the Magnuson-Moss Act.
B: A trademark includes only those words, symbols, or marks that are legally registered for
use by a single company.

152. Why is brand rejection a big concern for service-oriented businesses?

A. Customers don’t buy a brand unless its image is changed.
B. Target customers usually choose one brand over others.
C. It is hard to control the quality of service.
D. Copy-cats in the market that make the product obsolete.
E. Customers want a personal touch.
C: Brand rejection means that potential customers won’t buy a brand unless its image is
changed—or if the customers have no other choice. Brand rejection is a big concern for
service-oriented businesses because it’s hard to control the quality of service.

154. Branding:
A. is especially helpful with a low quality product.
B. is handled by manufacturers, but not intermediaries.
C. helps consumers, but it is bad for the firm because it increases expenses.
D. is more likely to be successful if demand for the general product class is strong enough
to allow a profitable price.
E. None of these alternatives is correct.
D: If demand is so strong that the market price can be high enough to make the branding
effort profitable, it can prove to be a condition favorable to successful branding.

157. Which of the following would NOT be favorable to successful branding?

A. The product offers superior customer value
B. Product quality fluctuates due to variations in raw materials
C. Dependable and widespread availability
D. Economies of scale in production
E. Favorable shelf locations are available
B: Being able to maintain product quality and price is a condition favorable to successful
branding.

164. ______ means potential customers won't buy a brand-unless its current image is
changed.
A. Brand preference
B. Brand rejection
C. Brand insistence
D. Brand recognition
E. Brand nonrecognition
B: Brand rejection means that potential customers won't buy a brand unless its image is
changed. Rejection may suggest a change in the product or perhaps only a shift to target
customers who have a better image of the brand.

171. ______________ means potential customers remember a particular brand.

A. Brand preference
B. Brand nonrecognition
C. Brand insistence
D. Brand recognition
E. Brand rejection
D: Brand recognition means the ability of customers to remember a brand.

173. Target customers choosing a particular brand over other brands, because of habit or
favorable past experience have a brand familiarity level of ______.
A. brand preference
B. brand knowledge
C. brand insistence
D. brand recognition
E. brand positioning
A: Brand preference means that target customers usually choose the brand over other brands;
maybe because of habit or favorable past experience.

176. Carlotta Issa is shopping for a new pair of jeans. She has had good experiences with
Jordache jeans in the past and is looking for Jordache now. She probably will buy Jordache if
she finds some that are at least as good-looking as competitive jeans. This is a good example
of:
A. brand rejection.
B. brand recognition.
C. brand remembrance.
D. brand preference.
E. brand insistence.
D: Brand preference means that target customers usually choose the brand over other brands,
perhaps because out of habit or favorable past experience.

177. ______ means potential customers insist on a firm's branded product and are willing to
search for it.
A. Brand insistence
B. Brand preference
C. Brand nonrecognition
D. Brand rejection
E. Brand recognition
A: Brand insistence means customers insist on a firm's branded product and are willing to
search for it.

179. Darrell Everwine read a review about a new computer program that appealed to him
very much. He decided to try to find the program. However, the new program was in short
supply-although other brands with similar features were available. Darrell had to try seven
shops before he finally found the program in stock. For Darrell, this program achieved brand
______.
A. preference
B. insistence
C. rejection
D. nonrecognition
E. recognition
B: Brand insistence means customers insist on a firm's branded product and are willing to
search for it.

183. The value of a brand to its current owner or to a firm that wants to buy it is called
______.
A. brand preference
B. brand equity
C. brand identity
D. brand positioning
E. brand reference
B: The value of a brand to its current owner or to a firm that wants to buy it is called brand
equity, in other words, the value of a brand's overall strength in the market.

193. When a company decides to use the same brand name for several products, it is a(n)
A. individual brand.
B. family brand.
C. dealer brand.
D. private brand.
E. select brand.
B: When several products have the same brand name, the brand is known as a family brand.

204. Manufacturer brands are also called ___________.

A. dealer brands
B. global brands
C. national brands
D. private brands
E. store brands
C: Manufacturer brands are sometimes called national brands because the brand is promoted
all across the country or in large regions.

205. A "dealer brand" is sometimes called a __________ brand.

A. national
B. local
C. manufacturer
D. private
E. regional
D: Dealer brands are also called private brands (or private label) and are created by
intermediaries.

216. Packaging
A. can serve as a useful enhancement tool.
B. can increase costs to the consumer.
C. can serve as a useful promotional tool.
D. is concerned with protecting the product in shipping and on the shelf.
E. All of these alternatives are correct.
E: Packaging involves promoting, protecting, and enhancing the product. It can make a
product more convenient to use or store. It can prevent spoiling or damage. Good packaging
makes products easier to identify and promotes the brand at the point of purchase and even in
use.

217. Which of the following qualities of packaging would not be likely to turn a casual
customer into a loyal buyer?
A. Makes the product easier or safer to use
B. Makes a product convenient to store
C. Prevents spoiling or damage
D. Makes products easier to identify
E. Promotes the brand at the point of purchase
E: Packaging can make the key difference in a new marketing strategy when it meets
customers' needs better. For example, a package that makes the product safer to use, more
convenient to store, more resistant to spoilage, or easier to identify delivers important value to
customers. The fact that a package may promote the brand at the point of purchase, while
good promotion, would not likely enhance the customer experience in a way that fosters
brand preference or brand insistence.

232. Warranties inspire customer confidence and trust for all the following reasons except:
A. they make legally enforceable promises about product performance.
B. they show that marketers stand behind their products.
C. some reduce the responsibility a producer would have under common law.
D. they offer refunds or replacement for defective products.
E. they are clearly written and included with products for easy access.
C: U.S. common law says that producers must stand behind their products—even if they don't
offer a specific warranty. A written warranty provided by the seller may promise more than
the common law provides. However, it may actually reduce the responsibility a producer
would have under common law.

241. Product class is based on the type of ______.

A. customer
B. manufacturing process
C. marketing mix
D. marketing strategy
E. shopping strategy
A: All products fit into one of two broad groups, consumer products or business products,
based on the type of customer that will use them.

243. Which one of the following is NOT a consumer product class?

A. Specialty
B. Unsought
C. Derived
D. Shopping
E. Impulse
C: Consumer product classes are divided into four groups: (1) convenience, (2) shopping, (3)
specialty, and (4) unsought.

248. Convenience products are products

A. a consumer needs but is not willing to spend much time or effort shopping for.
B. which consumers are aware of but not interested in.
C. meant for use in producing other products.
D. toward which consumer attitudes may be negative.
E. that consumers want because they are easy to use or consume.
A: Convenience products are products a consumer needs but isn't willing to spend much time
or effort shopping for. These products are bought often, require little service, don't cost much,
and may even be bought by habit.

251. Which of the following would be a convenience product for most consumers?
A. Gold jewelry
B. Butter
C. Stereo TVs
D. Dress shoes
E. Bicycles
B: Convenience products are products a consumer needs but isn't willing to spend much time
or effort shopping for. These products are bought often, require little service, don't cost much,
and may even be bought by habit. Butter is an example.

253. If a consumer product is used regularly and usually bought frequently and routinely with
little thought (although branding may be important), this product is ______.
A. a routine product
B. a specialty product
C. a homogeneous shopping product
D. a staple product
E. a casual product
D: Staples are products that are bought often, routinely, and without much thought like
breakfast cereal, canned soup, and most other packaged foods used almost every day in
almost every household.
256. What is an accurate definition of impulse products?
A. Products that potential customers do not want yet or know they can buy
B. Bought quickly-as unplanned purchases-because of a strongly felt need
C. Any products that consumers search for because of a strongly felt craving
D. Any convenience products that are bought often and routinely
E. Any product bought for an immediate need or requirement.
B: Impulse products are products that are bought quickly as unplanned purchases because of a
strongly felt need. True impulse products are items that the customer hadn't planned to buy,
and decides to buy on sight.

265. When selling ______ products, a marketing manager should recognize that consumers
have low price sensitivity and the product should have widespread distribution near the
probable point of need.
A. homogeneous
B. specialty
C. emergency
D. impulse
E. regularly unsought
C: While purchasing emergency products, a customer does not have the time to shop and is
not very sensitive to price. A marketing manager should identify these factors and ensure that
the product has widespread distribution near the probable point of need.

271. When some customers see all competitors' offerings as basically the same and are
willing to spend much time and effort to buy the item at the lowest price, the item is:
A. an analysis product.
B. a specialty product.
C. a staple product.
D. a heterogeneous shopping product.
E. a homogeneous shopping product.
E: Homogeneous shopping products are shopping products the customer sees as basically the
same and wants at the lowest price. For example televisions, washing machines, etc.

276. When final consumers are willing to spend much time and effort comparing quality and
style-with brand and price being less important-the product is ______.
A. an inspection product
B. a heterogeneous shopping product
C. a homogeneous shopping product
D. a specialty product
E. an emergency product
B: Heterogeneous shopping products are shopping products the customer sees as different and
wants to inspect for quality and suitability. Quality and style matter more than price.

285. A specialty product

A. may not require much searching to find it, but the customer would be willing to search if
necessary.
B. may carry a well-recognized brand.
C. may be frequently purchased.
D. need not be an expensive item.
E. All of these alternatives are correct.
E: Specialty products are consumer products that the customer really wants and makes a
special effort to find irrespective of cost or brand. The frequency of purchase depends on how
bad a consumer wants a given product.

294. Consumer products which consumers do not yet want or know they can buy-and
probably would not buy without special promotion even if they saw them-are called ______.
A. new brands of well-accepted staples
B. unsought products
C. heterogeneous shopping products
D. emergency products
E. homogeneous shopping products
B: Unsought products are products that potential customers don't yet want or know they can
buy so they don't search for them at all.

311. When the economy is sluggish, final consumers have less money to buy their favorite
computer gadgets, and this causes touch-screen manufacturers to sell less product to computer
makers like Apple. This illustrates the concept of ______.
A. "Product" as potential customer satisfaction
B. derived demand
C. brand non-recognition
D. brand rejection
E. unsought products
B: The touch screen component maker is unable to sell products due to derived demand - the
concept that demand for business products derives from the demand for final consumer
products. Since customers are not buying as many mobile devices in a sluggish economy,
mobile device brands aren't willing to buy as many components from component parts
suppliers.

CHƯƠNG 4:

Chapter 4 Managing Marketing Information to Gain Customer Insights

1) Which of the following demonstrates the real value of a company's marketing

research and information system?
A) the amount of data it generates B) the variety of contact methods it uses
C) the tools it uses to gather information D) the quality of customer insights it
provides
E) the type of sampling plan it follows
Answer: D

3) Which of the following is true of a good marketing information system?

A) It focuses solely on maximizing the amount of data generated irrespective of
relevance.
B) It typically uses only external sources of data in marketing research.
C) It balances the information that a firm would like to have against what they really
need.
D) It develops a way of offering information about future plans of action that might
not be very feasible or cost-effective.
E) It eliminates the time-consuming task of assessing the information needs of a firm.
Answer: C

7) Susan Hart, the manager of a children's boutique, collects data from her monthly
records of sales, costs, and cash flow. In this case, Susan is making use of ________
databases.
A) external B) secondary C) historical D) internal E) dialog
Answer: D

8) Which of the following sources constitutes the internal database of a company?

A) commercial online databases B) conversations on social media
C) the company's sales records D) reports sold by market research firms E) the Web
Answer: C

11) Which of the following statements regarding marketing intelligence is true?

A) Marketing intelligence typically involves sensitive and confidential information
kept out of the public domain.
B) The advantage of using competitive intelligence is negligible as it is based only on
internal sources of data.
C) All marketing intelligence inputs are available at no cost to any potential users.
D) Marketing intelligence is the systematic collection, monitoring, and analysis of
publicly available information.
E) Marketing intelligence efforts are more focused on gaining insights into a firm's
consumers rather than its competitors.
Answer: D

21) The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over
the last two months. The manager decides to conduct marketing research to identify
potential causes for the drop in sales. Which of the following should the manager do
first?
A) develop a research plan B) determine a research approach
C) define the problem and objectives D) select a research agency to collect data
E) conduct exploratory and descriptive research
Answer: C

24) Causal research is used to ________.

A) test hypotheses about cause-and-effect relationships
B) gather preliminary data to define problems and their underlying causes
C) collect information on the demographics of customers
D) collect information on the attitudes of consumers
E) generate hypotheses about the causes of a marketing problem
Answer: A
Diff: 2

25) Vernon Inc. would like to set the best price for a new product. The firm conducts
an experimental study by selling the new product at two different prices in two
different locations keeping other factors constant to see if a lower price results in
better sales. This is most likely an example of ________ research.
A) exploratory B) descriptive C) causal D) focus group E) ethnographic
Answer: C

26) Coolers Inc. has decided to launch a new energy drink that will have the fewest
calories among its competitors. To understand the market potential for the new drink
and the demographics and attitudes of consumers who are likely to buy the product,
Coolers should most likely use ________.
A) exploratory research B) archival research C) causal research D) experimental
research
E) descriptive research
Answer: E

27) In most marketing research projects, what type of research is conducted first?
A) causal B) descriptive C) remedial D) corrective E) exploratory
Answer: E

28) Brooke's Boutique plans to launch a new clothing line. For this purpose, the firm
first conducts a survey to understand its target audience and identify the demographics
of potential buyers. It then conducts experimental research to test whether customers
associate discounted prices with lower product quality. Which types of research has
the boutique employed in this case?
A) exploratory followed by causal B) exploratory followed by descriptive C)
descriptive followed by exploratory D) descriptive followed by causal E) causal
followed by descriptive
Answer: D

30) ________ data consist of information collected for the specific purpose at hand.
A) Primary B) Secondary C) Derived D) Archival E) Historical
Answer: A

31) Which of the following is an advantage of primary data?

A) They are less expensive to obtain than secondary data.
B) They can be obtained more quickly than secondary data.
C) They can be accessed from existing information D) They are more relevant than
secondary data.
E) They are more reflective of past problems.
Answer: D

32) Information collected from commercial online databases or through Internet

search engines are examples of ________ data.
A) primary B) secondary C) first-hand D) experimental E) ethnographic
Answer: B
33) Annie Carson, the owner of Annie's Dairy Bar, is considering opening a second
location. She evaluates several potential sites by assessing traffic patterns,
neighborhood conditions, and the locations of competitors. Annie is engaging in
________.
A) observational research B) focus groups C) personal interviews D) Internet-based
surveys
E) experimental research
Answer: A

34) Which of the following is a quantitative approach to research?

A) observational research B) online focus groups C) ethnographic research
D) in-depth interviews E) marketing surveys
Answer: E

39) Which of the following is true of survey research?

A) It is the most widely used method for gathering primary data.
B) It is the most suitable method for establishing causal relationships.
C) It is the best method to use when people are unwilling to answer questions.
D) It is not suitable for collecting data for descriptive research.
E) It is inflexible and cannot be used in many different situations.
Answer: A

42) Experimental research is best suited for gathering ________ information.

A) exploratory B) causal C) ethnographic D) interactive E) descriptive
Answer: B

43) A(n) ________ is best suited for exploratory research.

A) mail survey B) questionnaire C) observation D) online survey E) focus group
Answer: C

45) A market researcher wants to find the cause-and-effect relationship between using
organic ingredients in food and the subsequent consumption by customers. He invites
ten respondents to his research firm and asks them to taste two identical dishes. The
dishes were prepared in a similar manner, but one has natural herbs for flavoring, and
the other has artificial flavors. This is an example of ________.
A) descriptive research B) ethnographic research C) experimental research
D) online research E) exploratory research
Answer: C
49) Which of the following is true of focus group discussions?
A) They usually employ large samples. B) Consumers' facial expressions are hidden.
C) Results can be easily generalized to an entire population.
D) The quantitative data can be evaluated quickly and economically.
E) Consumers are not always honest and open about their opinions.
Answer: E

59) Which of the following is true of question formats in questionnaires?

A) Closed-ended questions allow respondents to answer in their own words.
B) A scale question is an example of an open-ended question.
C) Open-ended questions allow respondents to choose among the best answer options
available.
D) Closed-ended questions are difficult to evaluate when compared to open-end
questions.
E) Open-ended questions are useful in exploratory research to find out what people
think.
Answer: E

88) Which of the following is true about customer relationship management (CRM)?
A) It eliminates the need for primary research.
B) It minimizes the need for costly marketing analytics.
C) It relies on the use of exploratory and causal research.
D) It consists of sophisticated software and analytical tools.
E) It excludes data on existing customers to focus on potential customers.
Answer: D