Bam 306 principles of marketing final examination a federal


Principles of Marketing Final Examination - Multiple Choice Questions

1) Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________.

A) research and development

B) innovation and creativity

C) manufacturing efficiencies

D) value creation and exchange

E) sales and revenue creation

2) Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

A) vendor lock-in

B) social loafing

C) value proposition

D) marketing myopia

E) conspicuous consumption

3) An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.

A) marketing mixes

B) market segments

C) value propositions

D) market offerings

E) marketing intermediaries

4) Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts. Jolene's firm most likely practices the ________.

A) production concept

B) marketing concept

C) selling concept

D) product concept

E) societal marketing concept

5) Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.

A) customer lifetime value

B) customer-perceived value

C) customer relationship management

D) partner relationship management

E) customer equity

6) The marketing world is most likely embracing ________ because consumers wield greater power now with many platforms for airing and sharing their brand views with other consumers.

A) partner relationship management

B) supply chain management

C) customer-managed relationships

D) market segmentation

E) consumer ethnocentrism

7) Which of the following is the first step in strategic planning?

A) setting short-term goals

B) developing the business portfolio

C) defining the organizational mission

D) formulating the key marketing strategies

E) identifying the organization's weaknesses and the threats it faces

8) Mission statements should be ________.

A) meaningful and specific, yet motivating

B) technology oriented

C) written solely for public relations purposes

D) focused on increasing sales or profits

E) strictly product oriented

9) The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________.

A) market segment

B) strategic business unit

C) question mark

D) prospect

E) product portfolio

10) The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm's current products. This is an example of ________.

A) market penetration

B) product development

C) mass marketing

D) market development

E) product adaptation

11) Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.

A) market penetration

B) market development

C) product development

D) niche marketing

E) diversification

12) The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system is known as the ________.

A) business portfolio

B) supply chain

C) marketing mix

D) value delivery network

E) internal value chain

13) Which of the following is a component of a firm's microenvironment?

A) customer demographics

B) economic recessions

C) population shifts

D) marketing intermediaries

E) technological changes

14) Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is most likely a ________.

A) financial intermediary

B) physical distribution firm

C) marketing services agency

D) reseller

E) wholesaler

15) Sparks Inc. has a growing ________ market in the U.S. consisting of individuals and households that buy Sparks' products for personal use.

A) consumer

B) government

C) business

D) international

E) financial

16) Among the generational groups in U.S population, the ________ are still the wealthiest generation in U.S. history.

A) baby boomers

B) Generation Xers

C) Millennials

D) echo boomers

E) Silent Generation

17) Which of the following is a trend that depicts the increasingly nontraditional nature of today's American families?

A) the low percentage of working women in the workforce

B) the low percentage of married couples with children

C) the sharply declining number of dual-income families

D) the sharply declining number of stay-at-home dads

E) the decreasing reliance on convenience foods and services

18) Which of the following situations is expected to enhance the use of targeted advertising messages by marketers?

A) increase in derived demand in the market

B) increase in ethnic populations

C) rising global inflation rates

D) inadequate quality control

E) low advertising budgets

19) With the recent explosion of information technologies, ________.

A) most marketing managers are overloaded with data and often overwhelmed by it

B) most marketing managers are concerned solely about the duplication of content

C) companies have ceased to feel the need for marketing information systems

D) companies have ceased to maintain internal databases

E) it has become more difficult and expensive to obtain primary data

20) Which of the following is a disadvantage of using information from internal databases?

A) Obtaining information from internal databases is both time-consuming as well as expensive.

B) It is not possible to verify information obtained from internal databases.

C) Using information from internal databases leads to biased research findings.

D) Internal information may be incomplete or in the wrong form for making marketing decisions.

E) Internal databases do not support highly sophisticated technologies that make it difficult to store large volumes of data.

21) Which of the following is the first step in the marketing research process?

A) developing a marketing information system

B) defining the problem and objectives of the study

C) developing the research plan

D) implementing the research plan

E) interpreting and reporting the findings

22) A company sent a trained observer to watch and interact with consumers in their natural environments in order to gain deeper insights on consumer needs. This is an example of ________.

A) viral marketing

B) survey research

C) ethnographic research

D) experimental research

E) niche marketing

23) Which of the following contact methods is the most cost-effective?

A) telephone interviews

B) individual interviews

C) in-depth interviews

D) online surveys

E) group interviews

24) Which of the following is one of the other stimuli present in a buyer's environment apart from a marketing stimuli?

A) product stimuli

B) cultural stimuli

C) price stimuli

D) place stimuli

E) promotion stimuli

25) Many companies use ethnically specific themes in their mainstream marketing strategy because marketers have realized that insights gleaned from ethnic consumers can influence their broader markets. This type of marketing is known as ________ marketing.

A) cross-cultural

B) buzz

C) social network

D) word-of-mouth

E) life-style

26) Facebook and Second Life are both examples of ________.

A) brand alliances

B) opinion leaders

C) social networks

D) early adopters

E) market mavens

27) A marketer of women's hair care products targeting Chinese customers created an advertising message telling women their hair could be worn any way they wanted as opposed to wearing it straight. The message suggested the women did not need to conform to the mainstream media definition of beauty. It is most accurate to say this ad was based on an understanding of customers' ________.

A) social class

B) life-cycle stage

C) self-concept

D) status

E) role

28) ________means that consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands.

A) Selective attention

B) Selective retention

C) Cognitive dissonance

D) Selective distortion

E) Cognitive bias

29) The buyer decision process consists of five stages. Which of the following is NOT one of these stages?

A) need recognition

B) information search

C) conspicuous consumption

D) purchase decision

E) postpurchase behavior

30) Which of the following is NOT part of the business market?

A) Kruger Group sells interior security systems to resorts.

B) A country club buys safety equipment for its swimming pool.

C) Sue shops for her family's groceries at the local Whole Foods store.

D) A firm buys laptops from Dell for company salespeople to use when traveling.

E) Airmark sells a vinyl printing press to a manufacturer of plastic storage containers.

31) Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning supplies for her custodial staff, using the same vendor and ordering relatively consistent amounts of the same products on each purchase. This is an example of ________.

A) a modified rebuy situation

B) a new task

C) a straight rebuy situation

D) reverse auction

E) product differentiation

32) The United States Environmental Protection Agency (EPA) has mandated that, in order to reduce local pollution, all printing plants have to switch from oil-based inks to water-based inks. This will require entirely new printing presses and the procurement of a completely different printing plate technology. In this instance, the buying center of an organization using printing plants is most likely to face ________.

A) a need for market segmentation

B) a new task situation

C) a straight rebuy situation

D) a need for market diversification

E) delayed differentiation

33) Business buyers are heavily influenced by factors in the current and expected economic environment, such as ________.

A) level of primary demand

B) organizational objectives

C) group dynamics

D) individual motives

E) culture and customs

34) Which of the following is an example of an internal stimulus that would most likely lead to problem recognition?

A) A buyer gets a new idea from an advertisement.

B) A buyer gets a new idea at a trade show.

C) A buyer is unhappy with a current supplier's product quality.

D) A buyer receives a call from a salesperson offering better service.

E) A buyer learns about a new product at an industry convention.

35) Members of the buying center at Kid's World, a store for children's clothing, are drawing up a list of desired supplier attributes and their relative importance. Next, they intend to compare several suppliers' proposals to these attributes. In which step of the business buying process is the buying center at Kid's World involved in?

A) general needs description

B) proposal solicitation

C) supplier selection

D) order-routine specification

E) performance review

36) ________involves actually distinguishing the firm's market offering to create superior customer value.

A) Mass customization

B) Differentiation

C) Market segmentation

D) Diversifying

E) Targeting

37) Gilron Holidays runs a premium membership club catering to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

A) gender

B) income

C) occasion

D) benefit

E) geographic

38) Which of the following is true about multivariable segmentation systems?

A) Marketers using multiple segmentation bases tend to ignore smaller markets.

B) Marketers often use multiple segmentation bases to control inflation.

C) Multiple segmentation rarely involves the use of demographic data.

D) Multiple segmentation is ineffective in large markets.

E) Multiple segmentation bases help identify smaller, better-defined target groups.

39) When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.

A) measurable

B) profitable

C) substantial

D) actionable

E) competitive

40) Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

A) individual marketing

B) one-to-one marketing

C) mass marketing

D) concentrated marketing

E) trigger-based marketing

41) ________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.

A) Product diversification

B) Micromarketing

C) Mass customization

D) Differentiated marketing

E) Local marketing

42) Which of the following exemplifies a service?

A) candy

B) laptop

C) retail

D) car

E) laundry detergent

43) ________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

A) Shopping products

B) Unsought products

C) Specialty products

D) Capital items

E) Convenience products

44) ________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

A) Brand equity

B) Product quality

C) Product labeling

D) Brand image

E) Brand personality

45) Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________.

A) social marketing

B) product line filling

C) product line stretching

D) internal marketing

E) cannibalization

46) Service ________ means that the quality of services depends on who provides them as well as when, where, and how they are provided.

A) intangibility

B) inseparability

C) variability

D) perishability

E) heterogeneity

47) An increasing number of retailers and wholesalers have created their own ________, also called store brands.

A) national brand

B) support brand

C) private brand

D) generic brand

E) manufacturer's brand

48) Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.

A) new product development

B) acquisition

C) joint venture

D) licensing contract

E) divestment

49) Which of the following is an external source for ideas?

A) project managers

B) engineers

C) salespeople

D) manufacturing staff

E) suppliers

50) Which of the following statements is NOT true?

A) The purpose of the idea screening stage is to create a large number of ideas.

B) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.

C) A product concept is the way consumers perceive an actual or potential product.

D) The test marketing stage is the stage at which the product and its proposed marketing program are introduced into realistic market settings.

E) All of the above are false.

51) A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a _________.

A) prototype

B) concept test

C) product concept

D) product image

E) product idea

52) Introducing a new product into the market is called ________.

A) test marketing

B) simulation

C) co-marketing

D) commercialization

E) segmentation

53) The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s. This is an example of a ________.

A) style

B) fashion

C) fad

D) subculture

E) norm

54) Which of the following is true with regard to price?

A) Historically, price has had the least perceptible impact on buyer choice.

B) Price is the least flexible element in the marketing mix.

C) Unlike product features and channel commitments, prices cannot be changed quickly.

D) Price is the sum of all the values customers give up to gain the benefits of having a product.

E) Prices only have an indirect impact on a firm's bottom line.

55) When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing.

A) break-even

B) target profit

C) good-value

D) cost-plus

E) target return

56) The total production costs at Kellner Machine Works are $87,000 out of which $45,000 represent fixed costs. Which of the following is representative of the variable costs incurred by the company?

A) $35,000

B) $42,000

C) $45,000

D) $87,000

E) $132,000

57) Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

A) $275

B) $280

C) $295

D) $300

E) $335

58) Price setting is usually determined by ________ in small companies.

A) the top managers

B) the marketing department

C) the sales department

D) divisional managers

E) product managers

59) In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

A) have become more value conscious

B) have become less value conscious

C) exhibit great interest in prestige pricing

D) show no interest in price cutting

E) rarely endorse value-for-money deals

60) A market-skimming pricing strategy should NOT be used for a new product when ________.

A) the product's quality and image support its higher price

B) enough buyers want the products at that price

C) competitors are unable to enter the market

D) competitors can undercut prices easily

E) producing a smaller number of goods is feasible

61) Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product?

A) inclusive product pricing

B) exclusive product pricing

C) by-product pricing

D) product bundle pricing

E) optional-product pricing

62) Which of the following companies uses product bundle pricing?

A) Photo Genie, which sells inexpensive cameras that run only on their own, expensive, batteries

B) Tune Zone, which launched a range of mp3 player models, each priced according to its features

C) Penguin's Parlor, which offers customers a 20 percent discount on their birthdays

D) Green Thumb, which gives away free watering cans with the purchase of certain potted plants

E) Panizza, whose combo meals are priced lower than its individual components sold together

63) Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 allowing the customer to visit the salon multiple times in a year. This is an example of a(n) ________.

A) sample

B) promotional allowance

C) product bundle

D) discount

E) product line

64) Segmented pricing is only effective when________.

A) the segments show similar degrees of demand

B) the cost of segmenting does not exceed the revenue obtained from the price difference

C) the segmented prices do not reflect real differences in customers' perceived value

D) the customers of different socio-economic classes are treated according to their rank

E) companies make their services and products accessible exclusively to wealthy patrons

65) With which pricing strategy does the seller take responsibility for part or all of the actual freight charges in order to acquire the desired business?

A) FOB origin pricing

B) freight-absorption pricing

C) basing-point pricing

D) location-based pricing

E) uniform-delivered pricing

66) The term supply chain is considered limited because it ________.

A) ignores the make-and-sell aspect of the market

B) suggests that planning begins with raw materials and factory capacity

C) takes a step-by-step, linear view of purchase-production-consumption activities

D) takes a sense-and-respond view of the market

E) suggests that planning starts with identifying the needs of target customers

67) A marketing channel that consists of one or more intermediaries is known as a(n) ________ marketing channel.

A) cyclic

B) upstream

C) looped

D) direct

E) indirect

68) The management of two Panizza restaurants has an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict.

A) intensive

B) selective

C) exclusive

D) horizontal

E) vertical

69) Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country.

What distribution strategy does Giant Beanstalks use?

A) inclusive distribution

B) exclusive distribution

C) selective distribution

D) intensive distribution

E) extensive distribution

70) Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of ________ distribution.

A) exclusive

B) selective

C) intensive

D) indirect

E) corporate

71) Which of the following is true of using trucks as a transportation mode?

A) Transportation via trucks is costlier than by rail or air.

B) Trucks are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets.

C) Trucks provide in-transit services, such as the diversion of shipped goods to other destinations en route.

D) Trucks are highly flexible in their routing and time schedules.

E) Trucks are the slowest mode of transportation and most affected by the weather.

72) ________is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.

A) Limited-service

B) Self-service

C) Full-service

D) Specialty-service

E) Wholesaling

73) Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store?

A) category killer

B) convenience store

C) factory outlet

D) warehouse club

E) off-price retailer

74) Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.

A) specialty store

B) off-price retailer

C) factory outlet

D) wholesale club

E) category killer

75) In-store demonstrations, displays, sales, and loyalty programs are examples of ________.

A) direct marketing

B) sales promotion

C) public relations

D) personal selling

E) affinity marketing

76) Most shopping centers are ________.

A) strip malls

B) regional shopping malls

C) community shopping centers

D) lifestyle centers

E) power centers

77) The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________.

A) promotions

B) target

C) atmosphere

D) services mix

E) product assortment

78) ________includes all activities involved in selling goods and services to those buying for resale or business use.

A) Wholesaling

B) Retailing

C) Franchising

D) Discounting

E) Showrooming

79) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________.

A) sales promotion

B) advertising

C) direct marketing

D) personal selling

E) public relations

80) Consumers today receive commercial messages from a broad range of sources. However, consumers ________the way marketers do.

A) don't distinguish between message sources

B) never pay attention to sales promotions

C) don't care about buzz marketing

D) are not able to block out messages

E) block out all media messages

81) Which of the following is one of the four major communication functions?

A) coordination

B) distribution

C) noise

D) response

E) preference

82) A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________.

A) noise

B) encoding

C) feedback

D) response

E) decoding

83) An appeal that attempts to stir up either negative or positive sentiments that can motivate purchase is called a(n) ________ appeal.

A) rational

B) structural

C) emotional

D) moral

E) standard

84) A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new products. This is an example of ________.

A) a reverse marketing activity

B) nonpersonal marketing

C) sales promotion

D) buzz marketing

E) direct marketing

85) While using the ________ method for setting an advertising budget, a company starts with total revenues, deducts operating expenses and capital outlays, and then devotes some portion of the remaining funds to advertising.

A) integrated

B) moving-average

C) competitive-parity

D) percentage-of-sales

E) affordable

86) Which of the following statements is true of direct marketing?

A) Direct marketing is also referred to as referral marketing.

B) Salespersons are compensated for other salespeople they recruit.

C) Direct marketing offers sellers a low-cost alternative for reaching their markets.

D) Direct marketing involves two or more intermediaries.

E) In direct marketing, consumers earn a commission every time they buy a product.

87) ______are designed to engage consumers in interactions that will move them closer to a direct purchase or other marketing outcome.

A) Online magazines

B) Marketing Web sites

C) Search engines

D) Digital catalogs

E) Podcasts

88) After selecting a sweater on the Land's End Web site, Kelly was asked to fill in details for the customer database. Kelly was given a form that required her to fill in her name, date of birth, and e-mail address. Kelly then checked a box that was next to the following statement: "Yes, I would like to receive weekly promotional information from Land's End online." Which of the following practices is evident from this scenario?

A) e-mail hosting service

B) e-mail spoofing

C) catalog marketing

D) contextual advertising

E) permission-based e-mail marketing

89) Which of the following is NOT a reason companies use social media?

A) cost effectiveness

B) engagement and social sharing capabilities

C) ease of creating content

D) immediacy and timeliness

E) interactiveness

90) Why are historically online shops such as Zappos.com adding catalogs to their marketing methods?

A) to meet the increased demand in print catalogs

B) to reduce the costs involved in online marketing

C) to connect with customers in hard-to-reach places

D) to drive online sales and services

E) to reduce the need for telemarketers

91) Using interactive TV can allow consumers to perform all the following tasks during a company's ad EXCEPT ______.

A) see what other sizes or colors are available

B) identify a nearby location at which the product is available

C) access additional product information

D) order the product

E) send product information to another device

92) TRUSTe, a nonprofit self-regulatory organization, works with other companies to audit online privacy and security measures. It lends its TRUSTe privacy seal to all the following communication channels that meet its privacy and security standards EXCEPT ______.

A) mobile apps

B) e-mail marketing

C) telemarketing

D) Web sites

E) social media

93) The ______ concept is specifically focused on future company needs.

A) societal marketing

B) strategic planning

C) direct marketing

D) telemarketing

E) consumer business

94) A federal agency ordered a fast food chain to stop running ads with false claims that its fried chicken is compatible with certain weight loss programs. Which agency had the authority to issue this order?

A) the Federal Trade Commission

B) the Food and Drug Administration

C) the Consumer Product Safety Commission

D) the Environmental Protection Agency

E) the American Marketing Association

95) The following quote best describes ______: "The marvels of modern technology include the development of a soda can which, when discarded, will last forever, and a car, which when properly cared for, will rust out in two or three years."

A) planned obsolescence

B) product failure

C) deceptive promotions

D) deceptive packaging

E) excessive markups

96) In response to charges of ______, marketers point out that because of ads, many television and radio sites are free to users and also keep down the cost of magazines and newspapers.

A) deceptive pricing

B) creating false wants

C) creating materialism

D) high promotion costs

E) cultural pollution

97) Which of the following is a traditional sellers' right?

A) the right to create a monopoly in the market

B) the right to acquire competitors to prevent competition

C) the right to promote any product to any audience

D) the right to add additional taxes if necessary

E) the right to introduce any product in any size and style

98) ______ involves thinking ahead in the design stage to create products that are easier to reuse, recycle, or recover.

A) DSS

B) DFE

C) Sustainability vision

D) New clean technology

E) Pollution prevention

99) Critics charge that a company's marketing practices can harm other companies and reduce competition. One of the problems critics identified was ______.

A) pollution

B) barriers to entry

C) unfair discrimination

D) bait-and-switch advertising

E) fair packaging and labeling

100) Some firms define their purpose in narrow product terms. Others that define their purpose in broad social terms follow ______.

A) societal marketing

B) sense-of-mission marketing

C) consumer-oriented marketing

D) customer-value marketing

E) consumerism.

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