Service An intangible offering involving a deed, performance, or effort that cannot be physically possessed Service Characteristics (IHIP) Intangible, Heterogeneous, Inseparable, Perishable Intangible Cannot be seen, touched, or stored; requires cues like

A U.S. company sells the exact same sneakers worldwide with no changes. What strategy is this?

Global standardization

A fast food chain changes its menu to include spicy options in India. What strategy is this?

Product adaptation

A company creates a low-cost product in a developing country and later sells it globally. What is this called?

Reverse innovation

A government places a tax on imported cars to protect local businesses. What is this?

Tariff

A country limits the number of foreign cars that can be sold each year. What is this?

Quota

A company studies income, education, and life expectancy before entering a country. What metric are they using?

Human Development Index (HDI)

A business compares the price of a Big Mac across countries to evaluate currency value. What concept is this?

Purchasing Power Parity (PPP)

A culture where employees rarely question their boss demonstrates what concept?

High power distance

A country prefers strict rules and structured environments with little risk. What cultural trait is this?

High uncertainty avoidance

An advertisement focuses on personal success and independence. Which cultural value is it targeting?

Individualism

A company uses ads, social media, and PR all with the same message. What is this called?

Integrated Marketing Communications (IMC)

A customer sees an ad for the first time and becomes aware of a product. What AIDA stage is this?

Awareness

A customer starts researching a product after seeing an ad. What AIDA stage is this?

Interest

A customer decides they really want a product after comparing options. What AIDA stage is this?

Desire

A customer finally purchases a product. What AIDA stage is this?

Action

A company runs TV commercials to introduce a brand new product. What type of advertising is this?

Informative advertising

A brand tries to convince customers it is better than competitors. What type of advertising is this?

Persuasive advertising

A soda company reminds customers to keep buying its product. What type of advertising is this?

Reminder advertising

A company offers coupons and limited-time discounts. What promotion tool is this?

Sales promotion

A salesperson helps a customer choose the right laptop in-store. What is this?

Personal selling

A company sends promotional emails directly to customers. What type of marketing is this?

Direct marketing

A brand gets featured in a news story without paying for it. What is this?

Public relations (PR)

A company advertises directly to consumers so they request the product from stores. What strategy is this?

Pull strategy

A manufacturer convinces retailers to carry its product using sales reps. What strategy is this?

Push strategy

A company highlights "Just Do It" to show what makes it unique. What concept is this?

Unique Selling Proposition (USP)

An ad reaches 1 million different people. What metric is this?

Reach

A person sees the same ad 5 times. What metric is this?

Frequency

Out of 1,000 ad views, 100 people click the ad. What is being measured?

Click-through rate (CTR)

A company spends $1,000 on ads and makes $3,000 in profit. What is this evaluating?

Return on investment (ROI)

A company sets its ad budget based on a percentage of sales. What method is this?

Percentage-of-sales method

A company sets goals first and then determines the cost to achieve them. What method is this?

Objective-and-task method

A company matches its competitors' advertising spending. What method is this?

Competitive parity

A grocery store gives free product samples to encourage trial. What promotion is this?

Samples

A company offers money back after purchase with proof of receipt. What promotion is this?

Rebate

A coffee shop rewards repeat customers with points. What promotion is this?

Loyalty program

A salesperson identifies potential customers before contacting them. What step is this?

Generate leads

A salesperson researches a customer before meeting them. What step is this?

Preapproach

A salesperson presents a product and handles objections. What step is this?

Sales presentation

A salesperson asks for the sale and completes the transaction. What step is this?

Closing the sale

A salesperson checks in after the purchase to ensure satisfaction. What step is this?

Follow-up

An ad claims a product is "the best in the world" without proof. What is this?

Puffery

A company makes false claims about a product's performance. What is this?

False advertising

A company is investigated for misleading ads. Which agency is responsible?

FTC (Federal Trade Commission)

A company enters a market where roads and internet are poor. What factor are they analyzing?

Infrastructure

A company studies transportation and communication systems before expansion. What are they evaluating?

Infrastructure and technology

A brand uses emotional storytelling to connect with consumers. What type of appeal is this?

Emotional appeal

A brand highlights product features and facts in an ad. What type of appeal is this?

Informational appeal

A company advertises on TV to reach a large general audience. What type of media is this?

Mass media

A company targets a small, specific audience with specialized content. What type of media is this?

Niche media

A company schedules ads continuously throughout the year. What schedule is this?

Continuous schedule

A company runs ads only during certain times of the year. What schedule is this?

Flighting schedule

A company runs ads all year but increases ads during peak seasons. What schedule is this?

Pulsing schedule