Markma Midterms Review Questions for Chapters 5, 10 & 15

1. MIDTERMS REVIEW QUESTIONS
FOR CHAPTERS 5, 10 & 15
GROUP#4

2. Review Questions for
Midterms
(from Chapter 5, 10 & 15)
Kristoffer Z. Jongco

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

4. There are 5 steps in the
customer value analysis:
 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

5. Step 1: 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

6. Step 2: Customer Value
Analysis
Assess the quantitative importance of the
different attributes and benefits- Customers
are asked to rate importance of different
attributes and benefits.

7. Step 3: 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

8. Step 4: 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)

9. Step 5: Customer Value
Analysis
Monitor customer values over time- Company
must periodically redo studies of customer
values and competitors’ standings as
changes happen

10. 1. The following are steps in the
customer value analysis except:
 Identify major attributes and benefits that
customer value
 Assess the quantitative importance of the
different attributes and benefits
 Maximize profitability for attracting, selling
and servicing customers
l 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

11. 2. Which of the following
statements is TRUE
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

12.  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

13.  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

14. 2. Which of the following
statements is TRUE
 Points-of-difference (POD) are those associations not
necessarily unique to the brand but perhaps shared with
other brands
 Points-of-parity (POP) are those associations unique to
the brand that are also strongly held and favorably
evaluated by consumers
 Category point-of-parity associations are associations
designed to negate competitor’s points-of-difference
 Competitive point-of-parity associations are associations
consumers view as being necessary to a legitimate and
credible product offering within a certain category
 None of the above

15. 3. The following are stages in
the market evolution EXCEPT
a) Emergence Stage
c) Growth Stage
e) Stability Stage
g) Maturity Stage
i) Decline Stage

16. Markets evolve through four
stages:
1. Emergence-where products are launched
3. Growth-new firms enter the market
5. Maturity-when competitors cover and serve
all the major segments
7. Decline-demand for current products will
begin to decrease

17. 3. The following are stages in
the market evolution EXCEPT
 Emergence Stage
 Growth Stage
 Stability Stage
 Maturity Stage
 Decline Stage

18. 4. Which of the following is NOT a
cause of channel conflict
a) Goal Incompatibility
b) Coercive channel distribution
c) Unclear roles and rights
d) Differences in perception
e) Intermediaries dependence on
manufacturer

19. Causes of channel conflict
may arise from:
 Goal incompatibility
 Unclear roles and rights
 Differences in perception
 Intermediaries’ dependence on the
manufacturer

20.  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)

21. 4. Which of the following is NOT a
cause of channel conflict
 Goal Incompatibility
 Coercive channel distribution
 Unclear roles and rights
 Differences in perception
 Intermediaries dependence on
manufacturer

22. Marketing Management V57
Midterm Exam Questions
Chapters 5, 10,15
Raymund C. Piñon

23. Match the sample application
to the correct CRM imperative
1. You’ve been able to target A. Learning to retain customers
your marketing effort more
efficiently B. Maximizing customer lifetime
value
2. You’ve captured relevant
product behavior data C. Motivating employees
3. You’ve invested in D. Monitoring satisfaction
automation to process
transactions faster E. Crafting the right value
proposition
4. You’ve tied employee
incentives to customer F. Instituting the best processes
satisfaction survey results
5. You study customer defection G. Delivering high customer value
and defection levels
H. Acquiring the best customers

24. CRM Imperatives
 Acquiring the right customers
 Crafting the right value proposition
 Instituting the best practices
 Motivating employees
 Learning to retain customers

25. Match the sample application
to the correct CRM imperative
1. You’ve been able to target  Learning to retain customers
your marketing effort more
efficiently - H  Maximizing customer lifetime
value
2. You’ve captured relevant
product behavior data - E  Motivating employees
3. You’ve invested in  Monitoring satisfaction
automation to process
transactions faster - F  Crafting the right value
proposition
4. You’ve tied employee
incentives to customer  Instituting the best processes
satisfaction survey results - C
5. You study customer defection
 Delivering high customer value
and defection levels - A
 Acquiring the best customers

26. 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 A. Point-of-Difference
consumers of soft-drink
B. Relevance
2. who have little time to
sleep, C. Customer need
3. Mountain Dew is the D. Brand and category
soft-drink membership
4. That gives you more E. Concept
energy than any other
brand F. Target segment
5. because it has the highest G. Believability
level of caffeine

27. Elements of a Positioning Statement
 Target segment
 Category membership
 Customer need
 Brand name
 Concept
 Point-of-Difference

28. 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  Point-of-Difference
of soft-drink - F
 Relevance
2. who have little time to sleep, -
C  Customer need
3. Mountain Dew is the  Brand and category
soft-drink - D membership
4. That gives you more energy  Distinctiveness
than any other brand - E
 Concept
5. because it has the highest
level of caffeine - A  Target segment
 Believability

29. Which of the following statements about managing
integrated marketing channels is false?
 Deciding which types of channels to use to reach customers calls for
analyzing customer needs, establishing channel objectives,
identifying and evaluating channel alternatives
 Effective channel management calls for selecting intermediaries, and
training and motivating them
 Three of the most important trends are the growth of vertical
marketing systems, horizontal marketing systems and multi-channel
marketing
 Channel conflict may result from goal incompatibility, poorly defined
roles and rights, perceptual differences, and interdependent
relationships
 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.

30. Which of the following statements about managing
integrated marketing channels is false?
 Deciding which types of channels to use to reach customers calls for
analyzing customer needs, establishing channel objectives,
identifying and evaluating channel alternatives
 Effective channel management calls for selecting intermediaries, and
training and motivating them
 Three of the most important trends are the growth of vertical
marketing systems, horizontal marketing systems and multi-channel
marketing
 Channel conflict may result from goal incompatibility, poorly defined
roles and rights, perceptual differences, and interdependent
relationships
 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.