51. Betsy, a teenager, uses most of her post school hours in either playing tennis or watching
movies. She barely manages to concentrate in her lessons for a couple of hours before term
exams. Being questioned about her substandard performance in the school, she points out the
teacher’s inability to complete the entire course during the school hours as the possible
reason. Betsy’s behavior is most likely to be associated with ______.
a. hedonic bias
b. discrimination
c. psychological repositioning
d. generalization
e. selective attention
52. ______are rules of thumb or mental shortcuts in the decision process.
a. Discriminations
b. Attitudes
c. Beliefs
d. Biases
e. Heuristics
53. ______accounting refers to the manner in which consumers code, categorize, and evaluate
financial outcomes of choices.
a. Cost
b. Behavioral
c. Financial
d. Factual
e. Mental
54. Ultimately, the amount of steel sold to General Motors depends on the consumers’ demand for
GM cars and trucks. From the standpoint of the steel manufacturer, which of the following
demand form is most pertinent?
a. inelastic demand
b. static demand
c. relational demand
d. derived demand
e. geographic demand
55. Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor
will they buy much less leather if the price rises unless they can find satisfactory substitutes.
This is an example of ______.
a. inelastic demand
b. a modified rebuy
c. the acceleration effect
d. direct purchasing
e. a straight rebuy
56. The new, more strategically oriented purchasing departments have a mission. Which of the
following most accurately describes that mission?
a. Make the most profit possible and remain independent of entanglements.
b. Seek the best value from fewer and better suppliers.
c. Abandon all strategies except for systems selling and buying.
d. Outsource the supply function.
e. Approach every purchasing opportunity as means to create interdependency.
57. Through its dedicated research team, CISCO Systems Inc. has developed new value-added
business solutions which enable its variant class-II capacitors to provide incremental
productivity of 10 to 20 percent over its competitors. This is an example of the ______form
of solution selling.
a. solutions to partnerships
b. solutions to decrease customer risks
c. solutions to enhance customer revenues
d. solutions to alter corporate culture
e. solutions to reduce customer costs
58. A ______plan establishes a long-term relationship in which the supplier promises to
resupply the buyer as needed, at agreed-upon prices, over a specified period of time.
a. stockless purchase
b. stock purchase
c. direct stock purchase
d. defined contribution
e. share purchase
59. Which of the following relationships is characterized by much trust and commitment leading
to a true partnership?
a. mutually adaptive
b. customer supply
c. basic buying and selling
d. collaborative
e. cooperative systems
60. In the ______category of buyer-supplier relationship, although bonded by a close,
cooperative relationship, the seller adapts to meet the customer’s needs without expecting
much adaptation or change on the part of the customer in exchange.
a. contractual transaction
b. customer is king
c. cooperative system
d. collaborative
e. mutually adaptive
61. According to research studies, the closest relationships between customers and suppliers
arise when ______.
a. the customer is highly price sensitive
b. the suppliers charge a premium for their products
c. supply is important to the customer and there were procurement obstacles
d. procurement is simple
e. there are many undifferentiated vendors in the marketplace
62. ______investments are those expenditures tailored to a particular company and value chain
partner.
a. Umbrella
b. Specific
c. Pooled
d. General
e. Diversified
63. A ______consists of a group of customers who share a similar set of needs and wants.
a. market level
b. market segment
c. market basket
d. market share
e. vertical marketing system
64. Those who favor localized marketing see national advertising as wasteful because ______.
a. it sends conflicting marketing messages
b. it gets too up close and personal with consumers
c. it fails to address local needs
d. it magnifies logistical problems
e. it drives up manufacturing and marketing costs by reducing economies of scale
65. A marketer is interested in segmenting a business market on ______if the marketer intends
to segment the market based on industries and geographical areas to serve.
a. personal characteristics
b. purchasing approaches
c. demographic variables
d. situational factors
e. operating variables
66. If your assignment was to create a value proposition and product-price positioning strategy for
each segment, based on the segment’s unique customer needs and characteristics, you would
be in which of the following steps of the segmentation process?
a. segment identification
b. segment positioning
c. segment attractiveness
d. needs-based segmentation
e. segment “acid-test”
67. If married and unmarried women respond similarly to a sale on perfume, these hypothetical
segments fail the ______criterion for useful market segments.
a. actionable
b. substantial
c. differentiable
d. accessible
e. measurable
68. Marketers usually identify niches by ______.
a. conducting VALS tests
b. dividing a segment into subsegments
c. examining the demographics section of the handbook of marketing
d. producing products that can be used in a variety of ways
e. allowing consumers to gravitate toward product brands
69. Christian Louboutin is a footwear designer who launched his line of high-end women’s shoes
in France in 1991. The brand caters to an elite clientele whose satisfaction with the brand
has always been evident. Apart from being high-end, Louboutin footwear signifies power in
elite social circles. Celebrities are often seen sporting “Loubs” at special occasions, such as
movie premieres. This has resulted in people associating Louboutin footwear with class and
power. In accordance with the brand asset valuator model, which of the following components
of brand equity has Louboutin fulfilled in the given scenario?
a. esteem
b. presence
c. energized differentiation
d. advantage
e. knowledge
70. According to the brand asset valuator model, which of the components of brand equity
measures the breadth of a brand’s appeal?
a. esteem
b. value
c. relevance
d. differentiation
e. knowledge
71. According to the BRANDZ model of brand strength, brand building involves people
progressing through a sequential series of steps. Which of these steps would address or
answer the question “Can this brand deliver?”
a. advantage
b. bonding
c. performance
d. relevance
e. presence
72. Which of the following “building block levels” corresponds to the branding objectives of
points-of-parity and difference?
a. judgment and feelings
b. resonance and salience
c. performance and imagery
d. salience and feelings
e. imagery and judgment
73. According to Ries and Trout, Cadbury suffered from ______when the company allowed its
brand to become diluted by putting their name on such variants as mashed potatoes,
powdered milk, and soups, apart from chocolates and candies.
a. line-extension trap
b. liquidity trap
c. branding fallout
d. cognitive dissonance
e. cannibalization
74. The result of positioning is the successful creation of ______, which provides a cogent
reason why the target market should buy the product.
a. a demand channel
b. an award-winning promotional campaign
c. employee value proposition
d. a customer-focused value proposition
e. everyday low pricing
75. The brand must demonstrate ______for it to function as a true point-of-difference.
a. clear profitability to the company
b. clear superiority on an attribute or benefit
c. technological advances for an attribute or benefit
d. clear similarity to the attributes of other brands
e. exploitation of competitors’ weakness