Reference no: EM133259273

1. When wants are backed by purchasing power they become demands. TRUE

2. Market segmentation is the process of seeking fewer consumers and reduced demand for maximization of profit only. FALSE

3. In the cultural environment core values and beliefs and secondary values and beliefs differ in that core values and beliefs are more open to change. FALSE

4. When marketing manager Suzie Kwan discusses and forces outside marketing, such as political factors that affect marketing management's ability to build and maintain successful relationships with target customers, she is talking about external marketing concepts. FALSE

5. Marketing research firms, advertising agencies, media firms and marketing consulting firms are all referred to as marketing services agencies. TRUE

6. When a company positions its product, it should first identify possible customer value differences within a market segment that could be the basis of the competitive advantage of the product. TRUE

7. Trudie Jones works for a distribution company channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller. TRUE

8. The selling concept holds that the consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. TRUE 

9. Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be important to or overlooked by larger companies. TRUE 

10. Customer perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. TRUE

11. The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces. FALSE

12. At Trader Joe's, "Our mission is to bring customers the best food and beverage values to be found anywhere and the information to make informed buying decisions." This is a product-oriented business definition. FALSE 

13. Four marketing management functions are analysis, planning, implementation, and control. TRUE 

14. The marketing mix consists of product, place, positioning, and promotion. FALSE 

15. When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia. FALSE

16. There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits. TRUE 

17. When evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.TRUE

18. Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines. TRUE

19. The business analysis stage represents the large jump in financial investment in the new-product development process. FALSE

20. Jumbo Games is launching a new set of game toys in the commercial stages. The first decision to make is introduction timing and the second is where to launch the new product. TRUE

21. Many companies now use customer profitability analysis to identify and weed out unprofitable customers. TRUE

22. Fast Food Inc, views marketing as the science and art of finding, retaining, and growing profitable customers by providing them with the food they want. Fast Food Inc. practices social marketing. FALSE 

23. Your company wants to move away from Mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, market positioning, differentiation, and targeting. FALSE

24. The demographic environment is of major interest because it involves people, and people make up markets. TRUE

25. Up to 80 percent of all new customer products fail or seriously underperform. TRUE 

26. Sequential product development has the advantage of not only being a team-oriented approach but also of being faster in bringing products to market. FALSE

27. The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment. TRUE 

28. Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development. FALSE

29. Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume and unit manufacturing costs fall. TRUE

30. At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition. TRUE

31. When a company introduces a new brand name in the same product category, it is called line extension. FALSE

32. Dove marketers can go beyond the brand's cleansing cream properties and talk about the resulting benefit of softer skin. This is known as product attributes in brand positioning. FALSE 

33. Many companies now use customer profitability analysis to identify and weed out unprofitable customers. TRUE

34.To improve the delivery network, a company needs to examine the value chains of its suppliers and distributors. TRUE

35. A Company's product mix has four important dimensions: width, length, depth, and consistency. TRUE

36. A service is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. FALSE 

37. Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. TRUE

38. Style is a larger concept than design. The design describes the appearance of a product. FALSE 

39. The simplest pricing method is cost-plus pricing, which involves adding a standard markup to the cost of the product. TRUE

40. EDLP is very similar to high-low pricing. FALSE

41. If demand changes greatly with price, we say the demand is inelastic. FALSE 

42. Demand and consumer value perceptions set the floor for prices. FALSE 

43. Value-based pricing uses the company's perception of value. FALSE 

44. Value-based pricing is used when costs vary directly with the level of production. FALSE

45. Basing-point pricing means that a seller selects a given city as a 'basing point' and charges all customers the freight cost from that city to the customer. TRUE

46. The FOB-origin pricing strategy means that the goods sold are placed free on board a carrier. At that point the title and responsibility pass to the consumer who pays the freight from the factory to the destination. TRUE

47. When using product-bundle pricing, sellers combine several of their products and offer the bundle at an increased price for increased profits. FALSE 

48. The frequent use of promotional pricing can encourage customers to only buy when a brand is on sale. TRUE 

49. A seasonal discount is a price reduction to buyers who buy merchandise or services while they are in season. FALSE 

50. Segmented pricing takes several forms: two of the most common are psychological pricing and reference pricing. FALSE

51. Zone pricing is a strategy in which the company sets up two or more zones where customers within a given zone pay different prices. FALSE