Question 1
One of Wal-Mart's advertising campaigns featured a round smiling yellow decimal point that looked like a happy face. This ad concentrated on showing that the large retailer offered its customers the lowest possible prices. Wal-Mart is pursuing a(n) _____ strategy).
Question 1 options:
overall cost leadership
mass marketing
niche marketing
focus
Question 2
The program formulation step in the business strategic planning process immediately follows:
Question 2 options:
goal formulation
SWOT analysis
strategy formulation
assignment of resources
development of the business mission
Question 3
The business strategic planning process requires a feedback and control step because:
Question 3 options:
the firm's strategic fit with its environment will change
clear strategies and solid supporting programs are worthless without the support of top management
the firm's mission statement is too broad to be treated as a corporate directive
internal stakeholders accept and expect evaluation
time horizons for strategies tend to be very short
Question 4
In 2002, the Hispanic community's buying power in the state of Georgia grew to $4.7 billion as more Hispanics migrated to the state. This is an example of how changes in the _____ environment impact the _____ environment.
Question 4 options:
social-cultural; natural
demographic; economic
economic; social-cultural
political-legal; economic
natural; political-legal
Question 5
The U.S. is experiencing increasing ethnic diversity:
Question 5 options:
but the population growth has kept the size of the immigrant population at below three percent of the entire population
with a corresponding diversity of wants and buying habits
but a growing uniformity in buying habits
but with a declining representation of Latinos and Asians
with Asians soon to become the largest minority group
Question 6
Today, many people are opposed to blood transfusions due to concerns about diseases that can be transmitted in blood plasma. Yet, many people need transfusions to survive accidents and surgeries. After expensive research and development, Biopure Corporation has developed a product that is a safe and effective substitute for blood plasma. Biopure's product is already being used by veterinarians, but the U.S. government and the European Community have not given the product their approvals. This is an example of the _____ environment and the _____ working at cross-purposes.
Question 6 options:
technological; increased regulation of technological change
economic; technological
economic; political-legal
technological; social-cultural
political-legal; economic
Question 7
Ideas for new products can come from:
Question 7 options:
customers and channel members
scientists and engineers
examining competitors
top management
all of the above
Question 8
A potential marketer of new shower enclosures coated with Teflon asks consumers, "Do you understand how the addition of Teflon will benefit you?" and "Would this type of shower enclosure solve a cleaning problem for you?" This marketer is in the _____ stage of new-product development.
Question 8 options:
concept development and testing
business analysis
product development
idea generation
market testing
Question 9
A new-product department is excited about a new product idea for a suntan lotion that goes on blue, but fades away as the ability of the lotion to protect skin disappears. Projected sales, growth, and profit looked very promising. The idea has been passed to R&D to determine if the product could be feasibly made. At this point, the new-product department's idea is in the _____ stage.
Question 9 options:
marketing-strategy development
market testing
product-development
concept development
business analysis
Question 10
Which kind of consumer-goods market testing involve consumers who initially try the product at no cost then who are reoffered the product, or a competitor's product, at a slightly reduced price.
Question 10 options:
Sales-Wave Research
Simulated Test Marketing
Controlled Test Marketing
Test Markets
Alpha Testing
Question 11
Which of the following is the most expensive step of the new product development process?
Question 11 options:
concept testing
business analysis
product development
commercialization
idea generation
Question 12
A zero-level channel:
Question 12 options:
may also be called a backward channel
is the same as a direct marketing channel
has only one intermediary between producer and consumer
has three members
refers to intensive distribution channels where there are an indeterminate number of channel members
Question 13
A dog food that is only available at veterinarians' offices is an example of a product that is sold using _____ distribution.
Question 13 options:
geographic
intensive
restrictive
exclusive
invasive
Question 14
A highly respected manufacturer of a sought after perfume has retailers willing to carry the manufacturer's complete cosmetic product line. This is an example of _____ power.
Question 14 options:
legitimate
reward
referent
coercive
expert
Question 15
Channels need to be reviewed for possible modification when:
Question 15 options:
consumer buying patterns change
new competition enters the market
the product changes stages in the product life cycle (PLC)
the distribution system is not working as planned
any of the above occur
Question 16
Albert and Tania produce and sell vanilla, chocolate, lemon, peppermint, and strawberry flavor extracts for baking. They are debating over a description of the potential customers for their product. Albert and Tania are trying to define:
Question 16 options:
customer value
customer satisfaction
their target market
what constitutes an exchange
relationship marketing
Question 17
If a marketer seeks to retain customers' long-term preference and business through a win-win business style, the marketer is engaged in _____ marketing.
Question 17 options:
relationship
transaction
transfer
reciprocal
give-and-take
Question 18
Texas Instruments, one of the first producers of handheld calculators, put a great deal of effort into expanding production of calculators to drive down the cost and thus, expand the market. This is most indicative of the _____ concept.
Question 18 options:
production
product
customer
marketing
societal
Question 19
The marketing concept assumes:
Question 19 options:
consumers will favor products that offer quality, performance, and innovation
a company has a social responsibility for the effects of its products
if left alone, consumers will ordinarily not buy enough of the organization's products
consumers do not have to be compelled by promotions to buy what a company is selling
the key to achieving organizational goals is the company being more effective than the competition at creating, delivering, and communicating to its target market
Question 20
Which of the following is NOT an example of a primary activity as described in Porter's value chain?
Question 20 options:
procurement
marketing and sales
operations
outbound logistics
service
Question 21
An intensive growth strategy of _________ would be when a firm develops or acquires new products for the current markets.
Question 21 options:
market-development
market-penetration
integrative growth
product-development
diversification
Question 22
One view of holistic marketing is that firms take a traditional view of the value-delivery process in which product design is primary and that marketing takes place only after the product is produced.
Question 22 options:
True
False
Question 23
Which of the following is NOT one of the three key management questions addressed in a holistic marketing framework?
Question 23 options:
Value Exploration
Value Creation
Value Delivery
Value Mining
All of the above
Question 24
At regular intervals, eBay.com, the largest Internet auction company, conducts intense all-day meetings with representative buyers and sellers. At these meetings, they discuss various aspects of the services eBay provides and what eBay could do to enhance those services. These meetings are part of eBay's _____ system.
Question 24 options:
sales reporting
marketing research
experiential research data
accountability information system (AIS)
marketing intelligence
Question 25
The first step in the marketing research process is the:
Question 25 options:
development of the research plan
survey of stakeholders to determine if problems exist
decision regarding the research tools and target group
collection of the available sources for needed information
definition of the problem and research objectives
Question 26
The manufacturer of Brother sewing machines wants to know the effect rebates have on sales. It plans on dividing its retailers into three regions. One group will offer consumers who buy a Brother sewing machine a $25 cash rebate. One will offer buyers of the machine $50 worth of "free" machine accessory parts. A third region will offer buyers a $40 store credit. The results of this market research will provide Brother with _____ data.
Question 26 options:
observational
survey
secondary
experimental
descriptive
Question 27
Respondents are asked to rate an attitude object on a number of multiple-point rating scales bounded at each end by one of two bipolar adjectives or phrases. This type of question is called:
Question 27 options:
dichotomous
a semantic differential
multiple choice
rating scale
a Likert scale
Question 28
The manufacturer of the line of Grote industrial meat slicers wants to identify all of the supermarkets, delis, and restaurants that are potential customers for its products in each of its market areas. Then, it wants to estimate which model each will need to buy. What method of assessing market potential will the manufacturer need to use?
Question 28 options:
the multiple-factor index method
the market-buildup method
the total market potential formula
the market-demand breakdown
a multi-regression analysis
Question 29
______________ is a large social, economic, political, and technological changes that are slow to form and, once in place, influence us for some time.
Question 29 options:
trends
fads
megatrends
fashions
styles
Question 30
Which of the following is the most influential primary reference group?
Question 30 options:
family
social class
friends
coworkers
celebrities
Question 31
Which of the following is NOT an example of a personal factor that affects consumer behavior?
Question 31 options:
family
age and stage in the life cycle
economic circumstances
lifestyle
self-concept
Question 32
The first step in the buying process is the:
Question 32 options:
information search
evaluation of alternatives
purchase decision
location of alternatives
recognition of the need or problem
Question 33
The first step in the needs-based market segmentation approach is:
Question 33 options:
mass marketing
market mix strategy
Needs-Based segmentation
market concentration
market positioning
Question 34
A(n) _____ market is characterized by a fairly narrowly defined market with a complete and distinct set of needs, and a willingness to pay a premium to meet those needs.
Question 34 options:
local
niche
individual
derived
homogeneous
Question 35
Which of the following is an example of a demographic segmentation variable?
Question 35 options:
social class
personality
attitude toward the product
lifestyle
user status
Question 36
Which of the following is an example of a psychographic segmentation variable?
Question 36 options:
occupation
education level
readiness stage
lifestyle
usage rate
Question 37
Which of the following is an example of a behavioral segmentation variable?
Question 37 options:
generation
user status
personality
religion
social class
Question 38
A marketer who selected a _________ segmentation strategy would find
this segmentation strategy has the greatest amount of risk associated
with it despite firms typically having a strong knowledge of the
segment's needs and operating economies.
Question 38 options:
selective specialization
single-segment concentration
full market coverage
market specialization
product specialization
Question 39
Which of the following statements is true about positioning strategies?
Question 39 options:
Not all products can be differentiated.
A product that is not positioned as superior, distinctive, preemptive, or affordable will succeed if it is implemented correctly.
The end result of positioning is the successful creation of a customer-focused value proposition.
Positioning strategies must stress real benefits or they will fail.
All brand differentiation strategies are meaningful and worthwhile.
Question 40
_____ is the act of designing the company's offerings and image so they occupy a meaningful and distinct competitive position in the target customers' minds.
Question 40 options:
Product differentiation
Positioning
Image differentiation
Maximarketing
Integrated marketing
Question 41
Profits improve substantially during the _____ stage of the product life.
Question 41 options:
introduction
repositioning
growth
maturity
decline
Question 42
The stage of the life cycle characterized by low sales, heavy promotion, low profit, and minimal competition is the _____ stage.
Question 42 options:
introduction
growth
repositioning
maturity
decline
Question 43
The first thing any business should do when setting pricing policy is to:
Question 43 options:
determine demand
estimate costs
determine their target market
select a pricing method
select a pricing objective
Question 44
When Gillette introduced the MACH 3 shaving system, Gillette charged 35 percent more than was currently being charged by its nearest competitor to communicate a quality image for the product. Because Gillette had patents that prevented competitors from quickly imitating the shaving system, a high initial price was placed on the product. Gillette used a _____ pricing strategy.
Question 44 options:
cost-oriented
market-skimming
value-oriented
market-penetration
product-quality leadership
Question 45
When Rooms-to-Go furniture store offers customers "Nothing down, and no payments until 2008!" in order to entice customers to buy now, the furniture chain is using:
Question 45 options:
cash discounts
promotional pricing
trade allowances
functional discounts
loss-leader pricing
Question 46
A _____ combines successive stages of production and distribution under single ownership.
Question 46 options:
horizontal marketing system
conventional marketing system
corporate vertical marketing system
multichannel marketing system
contractual vertical marketing system
Question 47
Zoe was reading the newspaper while she watched television. An article in the newspaper on the new women's football league caused Zoe to miss commercials for Mountain Dew, Claritin, and KFC. In terms of the communication process for the ads, the article that caught Zoe's attention is an example of:
Question 47 options:
a feedback inhibitor
an unanticipated decoder
encoding
noise
a reception barricade
Question 48
The first step in the development of effective communication is:
Question 48 options:
identifying the target audience
determining the communication objectives
designing the message
setting the budget
selecting the communication channels
Question 49
The ________ is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots.
Question 49 options:
production concept
selling concept
product concept
holistic marketing concept
marketing concept
Question 50
In ____consumers may share a strong need that cannot be satisfied by an existing product.
Question 50 options:
negative demand
latent demand
irregular demand
declining demand
non-existent demand
Question 51
The most formal definition of marketing is ________.
Question 51 options:
improving the quality of life for consumers
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
meeting needs profitably
the 4Ps (Product, Price, Place, Promotion)
identifying and meeting human and social needs
Question 52
________ marketing has the aim of building mutually satisfying long-term relations with key parties such as customers, suppliers, distributors, and other marketing partners in order to earn and retain their business.
Question 52 options:
Relationship
Direct
Synthetic
Holistic
Demand-based
Question 53
Today, the "mass-market" is actually splintering into numerous ________, each with its own wants, perceptions, preferences, and buying criteria.
Question 53 options:
customer cliques
market targets
micromarkets
macromarkets
demographic units
Question 54
A good way to describe the ________ would be discuss all the activities involved in building deeper understanding, relationships, and offerings to individual customers.
Question 54 options:
customer prospecting process
customer acquisition process
customer relationship management process
customer equity process
customer fulfillment management process
Question 55
The first phase of the value creation and delivery sequence is ________ that represents the "homework" marketing must do before any product exists.
Question 55 options:
target marketing
market research
choosing the value
service consideration
projective thinking
Question 56
The ________ is a tool for identifying ways to create more customer value.
Question 56 options:
promotion channel
customer survey
supplier database
value chain
brand loyalty index
Question 57
________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
Question 57 options:
A marketing intelligence system
A promotional campaign
A marketing research system
A marketing database
A marketing information system
Question 58
Marketing managers rely on internal reports. By analyzing this information, they can spot ________.
Question 58 options:
macro-markets
micro-markets
opportunities and problems
consumer demographic units
competitive strategies
Question 59
The heart of the internal records system is the ________.
Question 59 options:
service consideration
database
order-to-payment cycle
asset acquisition process
information liquidity ratio
Question 60
A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.
Question 60 options:
marketing intelligence system
product management system
marketing information system
marketing research system
vertical system
Question 61
________ is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.
Question 61 options:
Demographics
MIS (marketing information system)
Marketing management
Marketing intelligence
Marketing research
Question 62
Which of the following types of marketing research firms would best be described as being one that gathers consumer and trade information which they sell for a fee (e.g., Nielsen Media Research)?
Question 62 options:
General-line marketing research firms.
Non-profit marketing research firms.
Specialty-line marketing research firms.
Custom marketing research firms.
Syndicated-service research firms.
Question 63
The first step in the marketing research process is to ________.
Question 63 options:
analyze the internal environment
contact a professional consultant
develop a research plan
define the problem and research objectives
read marketing research journals
Question 64
________ are data that were collected for another purpose and already exist somewhere.
Question 64 options:
Tertiary data
Ordinate
Inordinate
Secondary data
Primary data
Question 65
The aim of customer relationship management (CRM) is to maximize customer ________.
Question 65 options:
value
satisfaction
loyalty
profitability
equity
Question 66
In which stage of the Product Life Cycle is there a slowdown in sales growth and profits stabilize or decline due to increased competition?
Question 66 options:
Maturity
Growth
Decline
Introduction
mass customization
Question 67
A customer touch point in the airline industry would include an item such as ________.
Question 67 options:
the value of air travel versus surface transportation
competency of a travel agent
reservations
mechanics ability to service the airplanes
ease of access to the airport
Question 68
Another term for high customer ________ is customer churn.
Question 68 options:
belief
value
retention
defection
perception
Question 69
A(n) ________ is a descriptive thought that a person holds about something.
Question 69 options:
belief
feeling
attitude
desire
emotion
Question 70
The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their ________.
Question 70 options:
brand beliefs
desires
needs
consuming attitudes
wants
Question 71
Customer value analysis reveals the company's strengths and weaknesses relative to various competitors. Which of the following would be considered to be the first step in this process?
Question 71 options:
Assess the company and competitors' performances on customer values.
Monitor customer values over time.
Examine customer ratings of the company and competitors.
Assess the quantitative importance of the different attributes.
Identify the major attributes customers value.
Question 72
With respect to consumer purchase intention, all of the following would be among the sub-decisions made by consumers EXCEPT ________.
Question 72 options:
payment method
emotional value
timing
dealer
brand
Question 73
A ________ consists of a group of customers who share a similar set of needs and wants.
Question 73 options:
market group
market target
market segment
market level
market slice
Question 74
Procter & Gamble has many soap brands. One reason for this is that soap users tend to group together in terms of preferences such as bleaching action, softness, stain-removal, et cetera. Which of the following preferences pattern would most likely apply to P&G's method of response to market needs?
Question 74 options:
Psychological preferences.
Homogeneous preferences.
Clustered preferences.
Diffused preferences.
Cultural preferences.
Question 75
Marketers usually identify niches by ________.
Question 75 options:
conducting VALS tests
dividing a segment into subsegments
allowing consumers to gravitate toward product brands
producing products that can be used in a variety of ways
examining the demographics section of The Handbook of Marketing
Question 76
When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?
Question 76 options:
Grassroots marketing
Differentiated marketing
Partner marketing
Consumer marketing
Instructional marketing
Question 77
From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand?
Question 77 options:
Associations indirectly transferred to the brand by linking it to some other entity.
The product and all accompanying marketing activities and supporting marketing programs.
The initial choices for the brand elements or identities making up the brand.
The service and all accompanying marketing activities and supporting marketing programs.
The profitability associated with brand development.
Question 78
________ are those trademarkable devices that serve to identify and differentiate the brand.
Question 78 options:
Brand image
Brand elements
Brand perception
Brand tracks
Brand value
Question 79
If a brand element can be used to introduce new products in the same or different categories, the brand element is said to be ________.
Question 79 options:
meaningful
transferable
memorable
likeable
adaptable
Question 80
With respect to powerful brand elements, a ________ is an extremely efficient means to build brand equity. The element can function as useful "hooks" or "handles" to help consumers grasp what the brand is and what makes it special.
Question 80 options:
slogan
patent
spokesperson
promotional descriptor
product shape
Question 81
All marketing strategy is built on STP segmentation, targeting, and ________.
Question 81 options:
positioning
product
planning
promotion
performance
Question 82
The result of positioning is the successful creation of ________, a cogent reason why the target market should buy the product.
Question 82 options:
strategic window of opportunity
an award winning promotional campaign
every-day-low-pricing
a customer-focused value proposition
a demand channel
Question 83
Which of the following is NOT one of the ways to convey a brand's category membership?
Question 83 options:
announcing category benefits
comparing to exemplars
None of the above address the main ways to convey a brand's category membership
Points-of-difference
relying on the product descriptor
Question 84
Associations that make up points-of-difference may be based on _____________.
Question 84 options:
brand specifications
brand categories
brand attributes or benefits
brand partitions
brand values
Question 85
A company's costs take two forms. ________ are costs that do not vary with production or sales revenue.
Question 85 options:
Adjusted
none of these
Attributed
Fixed
Variable
Question 86
Today's companies try to adapt their offers and terms to different buyers. ________ accounting tries to identify the real costs associated with serving each customer. It allocates indirect costs to the activities that use them and are tagged back to each customer.
Question 86 options:
Experience cost
Cost accounting
Target costing
Activity-based cost
Direct product profitability
Question 87
Value pricing is not a matter of simply setting lower prices; it is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality; and lowering prices significantly to attract a large number of ________ customers.
Question 87 options:
price-orientated
product-orientated customers
expert customers
value-conscious
none of these
Question 88
When a firm charges the same, more, or less than its major competitors do, it is using a pricing strategy that is called ________.
Question 88 options:
everyday low pricing
high-low pricing
perceived value pricing
value pricing
going-rate pricing
Question 89
Intermediaries who buy, take title to, and resell the merchandise are called ________.
Question 89 options:
facilitators
agents
marketers
merchants
retailers
Question 90
Transportation companies, independent warehouses, banks, and advertising agencies assisting in the distribution process but neither take title to goods nor negotiate purchases or sales are called ________.
Question 90 options:
marketers
agents
facilitators
merchants
none of the store
Question 91
A ________ strategy involves the manufacturer using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users.
Question 91 options:
push
pull
provide
none of these
promote
Question 92
Generally speaking, the use of peripheral cues, such as a celebrity endorser, would best attract what kind of shopper?
Question 92 options:
Variety-loving shoppers
Low-involvement shoppers
High value deal seekers
High-involvement shoppers
Habitual shoppers
Question 93
Communication tools vary in cost-effectiveness at different stages of buyer readiness. ________ and publicity play the most important role in the awareness-building stage.
Question 93 options:
"buzz"
publicity
direct marketing
advertising
sales promotion
Question 94
The appeal of public relations and publicity is based on three distinctive qualities. These include, ________, the ability to catch buyers off guard, and dramatization.
Question 94 options:
low cost
high credibility
invitation
"free"
exposure
Question 95
Many companies set promotion expenditures at a specified percentage of sales (either current or anticipated) or of the sales price. This method of budgeting is called ________.
Question 95 options:
competitive parity method
affordable method
objective-and-task method
none of these
percentage-of-sales method
Question 96
Any discussion about the effectiveness of mass communication has to take into account the dramatic changes that have ________ the effectiveness of the mass media.
Question 96 options:
supplemented
all of these
eroded
expanded
increased
Question 97
What kind of creative strategy would attempt to stir up emotions to motivate purchase?
Question 97 options:
transformational appeals
none of these
informational appeals
objective and task appeals
reverse engineering
Question 98
What aspect of designing the communication would be focused on deciding what celebrity to use in advertising?
Question 98 options:
creative strategy
Choice of personal communication channels
message source
none of these
communication objectives
Question 99
The new-product development process starts with the search for ________.
Question 99 options:
overseas products
new concepts
ideas
strategy
products that can be improved upon
Question 100
A ________ occurs when the company dismisses an otherwise good idea.
Question 100 options:
product failure
DROP-error
brand failure
dual error
GO-error