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Marketing A Roadmap To Success 1st Edition Sirsi Test Bank
Marketing A Roadmap To Success 1st Edition Sirsi Test Bank
Marketing A Roadmap To Success 1st Edition Sirsi Test Bank
MULTIPLE CHOICE
1. In the 1970s, alternate channels like bank machines (ATMs) allowed banks to reduce
their
a. advertising costs.
b. personal selling costs.
c. cost to serve the customer.
d. media costs.
e. product development costs.
2. Inserting your company into your customers’ network of suppliers and customers is a
concept called
a. supply chain.
b. market share.
c. shareholder return.
d. advertising.
e. channel selection.
3. Zara, a popular fashion retailer, has developed a channel strategy that is successful
because it
a. relies on traditional advertising.
b. is very responsive to market information flowing through its channels.
c. has a single focus in its product offering.
d. enjoys lower production and distribution costs.
e. maintains a long production cycle and is unresponsive to trends.
7. In order to compete with companies that have larger advertising budgets or greater
resources, smart companies look to their
a. marketing mix.
b. advertising.
c. public relations.
d. product development.
e. channels.
8. To overcome weaknesses in its marketing mix, Papa John’s was one of the first pizza
companies to introduce
a. instantly redeemable coupons.
b. a two-for-one pizza offering.
c. excessive price drops.
d. front-door delivery.
e. online ordering.
12. Saturn made channel members its partners to offer excellent after-sales service,
resulting in increased
a. sales.
b. media coverage.
c. public relations.
d. brand awareness.
e. customer loyalty.
14. A company will likely lose market share if it does not closely align its channel mix to
a. customer needs.
b. supply chain needs.
c. retailer needs.
d. competitive activity.
e. its marketing communications strategy.
17. In some industries such as retail banking, offering more channels has
a. decreased customer value.
b. increased the cost to serve the customer.
c. decreased channel conflict.
d. increased customer dissatisfaction.
e. decreased the number of transactions.
19. The first step in determining the right channels for your business is to
a. focus on low-cost channels.
b. define a realistic channel range.
c. guide customers to channels.
d. touch customers at each point.
e. mitigate channel conflict.
20. Rather than taking a strategic approach to channel design, managers often spend the
majority of their time
a. guiding customers to channels.
b. touching customers at each point.
c. mitigating channel conflict.
d. defining a realistic channel range.
e. focusing on low-cost channels.
22. In addition to looking at the cost side of channel economics, businesses must also
look at channel
a. conflicts.
23. A failure to understand customer preferences for different channels as they move
through the purchase process may result in
a. a lower E/C ratio.
b. a lower E/R ratio.
c. over-serving customers.
d. conserved resources.
e. decreased channel costs.
24. The purchase is the ______ step in the customer purchase process.
a. first
b. second
c. third
d. fourth
e. final
26. The major problem associated with offering customers a choice of channels is that
customers will often
a. use multiple channels.
b. be exposed to competitive messages.
c. choose the lower-cost channel.
d. choose the higher-cost channel.
e. be confused.
27. To migrate customers to the preferred channel, ING, the Dutch online bank
a. offers multiple channels.
b. offers customers an incentive.
c. advertises only the lower-cost channel.
d. penalizes customers who use the lower-cost channel.
e. matches all competitive offerings.
28. Charles Schwab’s multi-channel strategy keeps costs down by using its branches to
acquire customers and its other channels to
a. charge them higher fees.
b. offer advice to them.
c. cross-sell products to them.
d. advertise to them.
e. keep them.
29. Companies that make it easy for customers to switch channels reap the benefits of
a. decreased channel conflict.
b. expanded channel range.
c. customer satisfaction.
d. a lower E/C ratio.
e. a lower E/R ratio.
30. Many airlines have been successful at migrating customers to self-serve check-in
counters by
a. making the process easy.
b. conducting customer research.
c. offering discounts.
d. using humour in their advertising.
e. ensuring airline personnel are scarce.
35. Sony reduces channel conflict among the various retail outlets for its products by
a. ensuring that club stores such as Costco have a higher markup.
36. With changing customer needs and market conditions, channel strategies have to
a. be driven by costs.
b. add additional channels.
c. have buy-in from the sales force.
d. remain unchanged over time.
e. evolve.
37. Despite focusing on the brand, innovation, and product quality, the Lego Group of
Denmark was in trouble because its channel strategy
a. offered too many channels.
b. focused only on low-cost channels.
c. had not kept pace with the changing environment.
d. did not have buy-in from the sales force.
e. didn’t touch customers at each point.
38. A lesson learned from the Lego Group of Denmark is that it is better to think of
supply chain, innovation, and product quality as
a. separate topics.
b. connected.
c. low priorities.
d. top priorities.
e. competitive advantages.
41. A value chain is a supply chain, but its emphasis in on examining how value
a. is perceived by the customer.
b. is created or destroyed by a channel member.
c. is compared to the competition.
d. can be added at the point of purchase.
e. can be added during the product development phase.
TRUE - FALSE
1. Channel strategies impact every aspect of a business.
4. The direct channel model allows Dell to practice just-in-time (JIT) inventory
management, thus keeping its inventory costs at a minimum.
5. Devices alone are not enough anymore; consumers want a complete experience.
6. While channels may be used to improve customer satisfaction levels, they cannot be
used to build brand loyalty.
7. The cost of going to market (the combined cost of sales and marketing expenses
across all channels) is often a company’s single largest expense.
11. The first step in channel design is to realistically define a set of channels.
12. Even if a channel is a good fit with the product and certain customer segments may
use it, it should be rejected if it is not a good fit with the firm’s overall strategy.
13. Mitigating channel conflicts consists of examining channel profitability and the
channel’s capacity for generating sales.
14. A typical customer goes through four steps in the purchase process: brand awareness,
product knowledge, purchase, and post-sale service.
15. Left to their own devices, customers will usually choose a lower-cost channel, mainly
due to habit.
16. ING, the Dutch online bank, uses the proverbial “carrot-and-stick” approach, offering
customers a higher savings rate if they use the preferred internet channel and
"punishing" them with long lineups if they choose to conduct a transaction face to
face with a teller.
17. Companies that make it easy for customers to switch channels reap the dual benefits
of channel migration and customer satisfaction.
19. Formulating channel strategy often results in conflict among channel members.
20. To reduce channel conflict, Sony makes it hard for the consumer to comparison shop
by tweaking features on each item so different channels are not really competing to
sell the “same” product.
21. It is not necessary for a channel strategy to keep pace with changing customer needs
and market conditions.
22. Channel strategies can help a business focus on the potential product.
23. The sequence from raw material to sale is known as the supply chain.
24. A value chain is a supply chain, but its emphasis is on examining how value is created
or destroyed by a channel member.
25. Given its low cost, the internet is always a great channel to reach customers.
3. If channel decisions are so important, why not simply add more channels to serve the
customer?
Answer: Multi-channel marketing is much harder than it appears. Also, adding more
channels may actually decrease a company’s profits by increasing the cost to serve the
customer.
Answer: Customer channel preferences and needs must be considered when choosing the
right channel. ING, a Dutch financial services company that pioneered online banking,
succeeded because it focused on one channel. When the company tried to duplicate its
success with its insurance company, it found that while customers will bank online, they
prefer to buy insurance through a broker. Accordingly, it provides two channel options
for insurance customers, online and brokers.
Answer: A typical customer goes through four steps in the purchase process: brand
awareness, product knowledge, purchase, and post-sale service.
8. Explain how a company can successfully migrate customers to the right (preferred)
channel?
Answer: Sony sells the same item (for example, a DVD player) through multiple
channels such as club stores, department stores, specialty electronics retailers, the
internet, and Sony stores. Sony must ensure that consumers don’t browse a high-cost
channel like the Sony store and then buy the same item through a low-cost channel like
the internet. To reduce channel conflict, Sony tweaks product features so that each of the
different channels is selling a different product.
Answer: A firm’s marketing strategy has to be dynamic. It has to change with changing
customer needs and market conditions. Channel strategies are no exception. When a
company's channel strategy hasn’t kept pace with the changing environment, it could
experience a drop in sales, market share, and profit.