MIDTERMS REVIEW QUESTIONS FOR CHAPTERS 5, 10 & 15

GROUP#4

Review Questions for Midterms

(from Chapter 5, 10 & 15)

Kristoffer Z. Jongco

a) Identify major attributes and benefits that customer value

b) Assess the quantitative importance of the different attributes and benefits

c) Maximize profitability for attracting, selling and servicing customers

d) Examine how customers in a specific segment rate the company’s performance against specific major competitor on an individual attribute

e) Monitor customer values over time

1. The following are steps in the customer value analysis except:

Identify major attributes and benefits that customer value

Assess quantitative importance of the different attributes and benefits

Assess company’s and competitor’s performances on customer values vs. their rated importance

Examine how customers in a specific segment rate the company’s performance against specific major competitor on an individual attribute

Monitor customer values over time

There are 5 steps in the customer value analysis:

Identify the major attributes and benefits that customer value- customers are asked which attributes, benefits and performance levels they look for in choosing a product

Step 1: Customer Value Analysis

Assess the quantitative importance of the different attributes and benefits- Customers are asked to rate importance of different attributes and benefits.

Step 2: Customer Value Analysis

Assess company’s and competitor’s performances on customer values vs. their rated importance- Customers describe where they see the company’s and competitor’s performances on each attribute/benefit

Step 3: Customer Value Analysis

Examine how customers in a specific segment rate the company’s performance against specific major competitor on an individual attribute- If company’s offer exceeds competitor’s offer, the company can charge a higher price (higher profits) or charge same price (gain market share)

Step 4: Customer Value Analysis

Monitor customer values over time- Company must periodically redo studies of customer values and competitors’ standings as changes happen

Step 5: Customer Value Analysis

a) Identify major attributes and benefits that customer value

b) Assess the quantitative importance of the different attributes and benefits

c) Maximize profitability for attracting, selling and servicing customers

d) Examine how customers in a specific segment rate the company’s performance against specific major competitor on an individual attribute

e) Monitor customer values over time

1. The following are steps in the customer value analysis except:

a) Points-of-difference (POD) are those associations not necessarily unique to the brand but perhaps shared with other brands

b) Points-of-parity (POP) are those associations unique to the brand that are also strongly held and favorably evaluated by consumers

c) Category point-of-parity associations are associations designed to negate competitor’s points-of-difference

d) Competitive point-of-parity associations are associations consumers view as being necessary to a legitimate and credible product offering within a certain category

e) None of the above

2. Which of the following statements is TRUE

Points-of-parity (POP) are those associations not necessarily unique to the brand but perhaps shared with other brands

Points-of-difference (POD) are those associations unique to the brand that are also strongly held and favorably evaluated by consumers

Competitive point-of-parity associations are associations designed to negate competitor’s points-of-difference

Category point-of-parity associations are associations consumers view as being necessary to a legitimate and credible product offering within a certain category

a) Points-of-difference (POD) are those associations not necessarily unique to the brand but perhaps shared with other brands

b) Points-of-parity (POP) are those associations unique to the brand that are also strongly held and favorably evaluated by consumers

c) Category point-of-parity associations are associations designed to negate competitor’s points-of-difference

d) Competitive point-of-parity associations are associations consumers view as being necessary to a legitimate and credible product offering within a certain category

e) None of the above

2. Which of the following statements is TRUE

a) Emergence Stage

b) Growth Stage

c) Stability Stage

d) Maturity Stage

e) Decline Stage

3. The following are stages in the market evolution EXCEPT

1. Emergence-where products are launched

2. Growth-new firms enter the market

3. Maturity-when competitors cover and serve all the major segments

4. Decline-demand for current products will begin to decrease

Markets evolve through four stages:

a) Emergence Stage

b) Growth Stage

c) Stability Stage

d) Maturity Stage

e) Decline Stage

3. The following are stages in the market evolution EXCEPT

a) Goal Incompatibility

b) Coercive channel distribution

c) Unclear roles and rights

d) Differences in perception

e) Intermediaries dependence on manufacturer

4. Which of the following is NOT a cause of channel conflict

Goal incompatibility

Unclear roles and rights

Differences in perception

Intermediaries’ dependence on the manufacturer

Causes of channel conflict may arise from:

Goal incompatibility- Goals may not be compatible (a manufacturer might be in contrast with that of the distributor which can be a source of conflict)

Unclear roles and rights- If roles & rights are unclear, it can create channel conflict. Territory boundaries & credit for sales often produce conflict

Differences in perception- Some have perception differences (e.g. Manufacturer can be optimistic while dealers may be pessimistic) resulting to conflict

Intermediaries’ dependence on the manufacturer- This can create a high potential for conflict (e.g. Fortunes of exclusive dealers are profoundly affected by manufacturer’s product & pricing decisions)

a) Goal Incompatibility

b) Coercive channel distribution

c) Unclear roles and rights

d) Differences in perception

e) Intermediaries dependence on manufacturer

4. Which of the following is NOT a cause of channel conflict

Marketing Management V57 Midterm Exam Questions

Chapters 5, 10,15

Raymund C. Piñon

Match the sample application to the correct CRM imperative1. You’ve been able to target

your marketing effort more efficiently

2. You’ve captured relevant product behavior data

3. You’ve invested in automation to process transactions faster

4. You’ve tied employee incentives to customer satisfaction survey results

5. You study customer defection and defection levels

A. Learning to retain customers

B. Maximizing customer lifetime value

C. Motivating employees

D. Monitoring satisfaction

E. Crafting the right value proposition

F. Instituting the best processes

G. Delivering high customer value

H. Acquiring the best customers

CRM Imperatives

Acquiring the right customers Crafting the right value proposition Instituting the best practices Motivating employees Learning to retain customers

Match the sample application to the correct CRM imperative1. You’ve been able to target

your marketing effort more efficiently - H

2. You’ve captured relevant product behavior data - E

3. You’ve invested in automation to process transactions faster - F

4. You’ve tied employee incentives to customer satisfaction survey results - C

5. You study customer defection and defection levels - A

A. Learning to retain customers

B. Maximizing customer lifetime value

C. Motivating employees

D. Monitoring satisfaction

E. Crafting the right value proposition

F. Instituting the best processes

G. Delivering high customer value

H. Acquiring the best customers

To communicate a positioning, marketing plans often include a positioning statement. Match the contents of the statement to the appropriate elements of a positioning statement

1. To young, active consumers of soft-drink

2. who have little time to sleep,

3. Mountain Dew is thesoft-drink

4. That gives you more energy than any other brand

5. because it has the highest level of caffeine

A. Point-of-Difference

B. Relevance

C. Customer need

D. Brand and category membership

E. Concept

F. Target segment

G. Believability

Elements of a Positioning Statement

Target segment Category membership Customer need Brand name Concept Point-of-Difference

To communicate a positioning, marketing plans often include a positioning statement. Match the contents of the statement to the appropriate elements of a positioning statement

1. To young, active consumers of soft-drink - F

2. who have little time to sleep, - C

3. Mountain Dew is thesoft-drink - D

4. That gives you more energy than any other brand - E

5. because it has the highest level of caffeine - A

A. Point-of-Difference

B. Relevance

C. Customer need

D. Brand and category membership

E. Distinctiveness

F. Concept

G. Target segment

H. Believability

Which of the following statements about managing integrated marketing channels is false?

1. Deciding which types of channels to use to reach customers calls for analyzing customer needs, establishing channel objectives, identifying and evaluating channel alternatives

2. Effective channel management calls for selecting intermediaries, and training and motivating them

3. Three of the most important trends are the growth of vertical marketing systems, horizontal marketing systems and multi-channel marketing

4. Channel conflict may result from goal incompatibility, poorly defined roles and rights, perceptual differences, and interdependent relationships

5. Companies can manage channel conflict by striving for super-ordinate goals, exercising coercive and reward power, exchanging employees, co-optation, joint membership in trade associations, exercising legitimate power, charisma, diplomacy, mediation, arbitration, legal recourse, etc.

Which of the following statements about managing integrated marketing channels is false?

1. Deciding which types of channels to use to reach customers calls for analyzing customer needs, establishing channel objectives, identifying and evaluating channel alternatives

2. Effective channel management calls for selecting intermediaries, and training and motivating them

3. Three of the most important trends are the growth of vertical marketing systems, horizontal marketing systems and multi-channel marketing

4. Channel conflict may result from goal incompatibility, poorly defined roles and rights, perceptual differences, and interdependent relationships

5. Companies can manage channel conflict by striving for super-ordinate goals, exercising coercive and reward power, exchanging employees, co-optation, joint membership in trade associations, exercising legitimate power, charisma, diplomacy, mediation, arbitration, legal recourse, etc.