Question 1

The attractiveness of a market segment depends on a number of factors, including its size and accessibility.

Accepted Answer

The attractiveness of a market segment is influenced by various factors such as its size, growth potential, accessibility, profitability, and the level of competition within the segment. These factors help businesses determine the viability and potential success of targeting a specific segment.

Question 2

Product is the total bundle of utilities or benefits attained by consumers in the exchange process.

Accepted Answer

A product encompasses not just the physical item but also the total benefits or utilities, including service, brand reputation, and experiences that consumers receive in the exchange process.

Question 3

Price is the total bundle of disutilities given up by consumers in exchange for a product.

Accepted Answer

Price can be seen as the total cost or disutilities (such as money, time, effort) that consumers are willing to give up to acquire a product or service.

Question 4

Having the lowest price is not as important as having the price fall in the range consumers expect to pay for the product.

Accepted Answer

Consumers have price expectations based on perceived value, quality, and market comparisons. A price within their expected range can be more appealing than simply the lowest price, as it often reflects a balance between affordability and perceived value.

Question 5

A successful brand strategy would provide an emotional connection between a firm and its customers.

Accepted Answer

A successful brand strategy often aims to establish an emotional connection with customers, as this can foster loyalty, differentiate the brand in the market, and influence purchasing decisions.

Question 6

The difference in value created by a brand less the cost of creating the brand is known as brand equity.

Accepted Answer

Brand equity refers to the value a brand adds to a product or service beyond the functional benefits it provides, calculated as the difference between the overall brand value and the cost associated with creating and maintaining the brand.

Question 7

Research indicates that consumers perceive products with prices ending in round numbers and $.00 to be of lower quality.

Accepted Answer

Research indicates that consumers often perceive products with prices ending in round numbers or $.00 as higher quality or more luxurious, while prices ending in odd numbers or $.99 are viewed as discounts or deals, suggesting lower quality.

Question 8

Excellent marketing strategy can overcome poor execution.

Accepted Answer

A successful marketing strategy cannot compensate for poor execution because the execution phase is where the strategy is implemented and value is delivered to the customer. Poor execution can lead to dissatisfied customers, damage to brand reputation, and ultimately, failure to achieve marketing objectives.

Question 9

Many firms in industrialized countries are focusing their attention on soliciting new customers rather than retaining their existing customers because it is usually cheaper to recruit new customers.

Accepted Answer

It is generally more expensive to acquire new customers than to retain existing ones. Retaining customers often involves maintaining satisfaction through good service and quality, which is usually more cost-effective than the expenses associated with marketing, sales efforts, and promotions needed to attract new customers.

Question 10

It is generally more expensive to attract new customers than to hold on to present ones.

Accepted Answer

It costs more to attract new customers due to the expenses associated with marketing, advertising, and promotions aimed at gaining their business, compared to the costs of maintaining and nurturing existing customer relationships.

Question 11

Customer loyalty programs such as frequent flyer miles are intended to reward consumers for their "good behavior."

Accepted Answer

Customer loyalty programs, including frequent flyer miles, are designed to reward consumers for their repeated business or "good behavior" towards a brand, encouraging them to continue purchasing from or using the services of the company.

Question 12

A company should "fire" its unprofitable customers.

Accepted Answer

A company should focus on retaining profitable customers and eliminating unprofitable ones to maximize profitability.

Question 13

The term "CLV"
stands for Company Lifetime Valuation.

Accepted Answer

CLV stands for Customer Lifetime Value, which is a prediction of the net profit attributed to the entire future relationship with a customer.

Question 14

Most U.S. companies in the export business are large corporations.

Accepted Answer

Most U.S. exporters are actually small or medium-sized enterprises, not large corporations.

Question 15

Cross-cultural analysis is the comparison of similarities and differences in behavioral and physical aspects of cultures.

Accepted Answer

Cross-cultural analysis involves examining the various facets of cultures, including both their behaviors and physical manifestations, to identify what they have in common and how they differ.

Question 16

Cultural empathy refers to the ability to understand the inner logic and coherence of other ways of life and refrain from judging other value systems.

Accepted Answer

Cultural empathy involves understanding and appreciating cultural differences without imposing one's own cultural values, thus avoiding judgment of other value systems.

Question 17

Ethnographics refers to written representations of the lifestyles and social nuances of groups.

Accepted Answer

Ethnographics involves documenting and analyzing the cultural practices, beliefs, and social interactions of different groups, often through written accounts.

Question 18

Intermarket segmentation is the identification of groups of customers who transcend traditional market or geographic boundaries.

Accepted Answer

Intermarket segmentation involves identifying customer groups that share similar needs and behaviors across different markets or geographic areas, allowing companies to target these segments more effectively.

Question 19

Intermarket segmentation involves segmenting a market based on where people live.

Accepted Answer

Intermarket segmentation involves segmenting consumers with similar needs and buying behaviors across different countries or markets, not based on geographic location.

Question 20

The primary challenge for international marketing programs is to build the core of the marketing strategy on the differences between countries.

Accepted Answer

The answer of The primary challenge for international marketing programs...

Quiz 2: Creating Marketing Strategies for Customer-Centric Organizations