Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. All of the following are accurate descriptions of modern marketing EXCEPT which one?
a. Marketing is the creation of value for customers.
b. Marketing is used by for-profit and not-for-profit organizations. c. Marketing is managing profitable customer relationships.
d. Marketing involves satisfying customers' needs.
e. Selling and advertising are synonymous with marketing.
2. Consumer research, product development, communication, distribution, pricing and service are all core activities.
a. management b. exchange
c. production
d. customer relationship management e. marketing
3. Which marketing orientation calls for aggressive promotional efforts and focuses on generating transactions to obtain profitable sales?
a. Product concept b. Selling concept
c. Marketing concept d. Production concept
e. Societal marketing concept
4. Which of the following reflects the marketing concept philosophy?
a. "We build them so you can buy them."
b. "You won't find a better deal anywhere."
c. "We don't have a marketing department; we have a customer department."
d. "We're in the business of making and selling superior products."
e. "When it's profits versus customers' needs, profits will always win out."
5. Building, keeping and growing profitable relationships by delivering customer value and satisfaction is called .
a. Customer relationship management b. Societal marketing
c. Customer perceived value d. Customer lifetime value
e. Database marketing
6. You are an assistant marketing director for a firm in a market with many low-margin customers.
What type of relationship would be most profitable for you to develop with these customers?
a. Basic partnerships b. Full partnerships
c. Club programs
d. Basic relationships
e. Selective relationships
7. Which of the following is the total combined customer lifetime values of all a company's current and potential customers?
a. Customer equity
b. Share of customer
c. Customer lifetime value d. Profitability
e. Share of market
8. Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing their future funeral needs and she must somehow first get their attention. Jolene's firm most likely practices the .
a. selling concept
b. social marketing concept c. marketing concept
d. production concept
e. societal marketing concept
9. The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the Nike Store is an example of which of the following?
a. A basic customer relationship b. A club marketing program
c. A structural benefit provided for top customers d. A frequency marketing program
e. A partner relationship
10. A church targeting different demographic groups to increase attendance is an example of
a. for-profit marketing
b. not-for-profit marketing
c. customer evangelism
d. caring capitalism e. societal marketing
11. Which of the following is NOT a step in the strategic planning process?
a. Planning marketing and other functional strategies b. Defining the company mission
c. Evaluating all members of the value chain d. Designing the business portfolio
e. Setting company objectives and goals
12. Which of the following can be a company division, a product line within a division or sometimes a single product or brand?
a. A PLC
b. A market c. The BCG
d. A value delivery network e. An SBU
13. Which of the following does NOT accurately reflect a problem with the BCG matrix approach?
a. It is difficult to define SBUs and measure market share and growth. b. It can be costly to conduct.
c. It focuses on classifying current businesses. d. It can be time consuming to implement.
e. It focuses on planning for the future.
14. In a basic SWOT analysis the "T" stands for . a. timing
b. trade c. trust
d. threats e. tangible
15. Saturn is "a different kind of company, a different kind of a car"; the Hummer is "like nothing else." Statements such as these reflect a firm's .
a. product portfolio b. marketing mix
c. positioning
d. target markets e. niche
16. You are directed to study the demographic, economic, natural, technological, political and cultural factors that are larger societal forces affecting your company. What are you studying?
a. The global environment b. The marketing mix
c. The internal environment d. The macroenvironment
e. The microenvironment
17. A(n) is defined as any group that has an actual or potential interest in, or impact on, an organization's ability to achieve its objectives.
a. competitor
b. intermediary c. public
d. team
e. market
18. Which type of market buys goods and services for further processing or for use in the production process?
a. Wholesale b. Reseller
c. Retail
d. Consumer e. Business
19. Of the following diversity segments in the American population, which is currently the largest?
a. Asian Americans
b. African Americans
c. Adults with disabilities d. Telecommuters
e. Hispanics
20. Value marketing is the strategy of offering consumers . a. little quality at a low price
b. luxury quality at a high price
c. reasonable quality at a fair price d. lesser quality at a low price
e. high quality at a high price
21. Many firms today use RFID technology to .
a. move toward environmental sustainability b. track patterns of consumer online behavior c. identify new target markets
d. track products through various points in the distribution channel e. analyze threats and opportunities in the macroenvironment
22. A company or association's is designed to help guide responses to complex social responsibility issues.
a. discretion in enforcing regulations b. core value system
c. cause-related marketing d. privacy policy
e. code of ethics
23. Watching the cultural trends of how people view society, observers have noted that since September 11, 2001, marketers responded to the increased of Americans with special products and promotions.
a. patriotism b. distrust
c. loyalty
d. belligerence
e. foreign intolerance
24. LandPort Transportation and Omega Warehousing move and store the products your company sells. The two businesses are examples of .
a. geographic segments b. resellers
c. marketing intermediaries
d. marketing services agencies e. physical distribution firms
25. Innovations is a producer of electronic circuits that power a variety of technological devices produced by other companies. Innovations sells its products to markets.
a. consumer b. internal
c. financial
d. government e. business
26. With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on which of the following?
a. "Us and them" paradigms
b. Differing advertising messages c. Mass marketing
d. Geographic segmentation e. Tiered markets
27. Despite the data glut that marketing managers receive, they are most likely to complain that they lack which of the following?
a. Enough information of the right kind b. Primary information
c. Searchable information d. Timely information
e. Secondary information
28. A marketing information system (MIS) consists of people and procedures to assess information needs, , and help decision makers analyze and use the information.
a. critique the needed information b. develop the needed information c. test market the information
d. experiment to develop information e. question the needed information
29. The real value of a company's marketing research and information system lies in the
.
a. variety of contact methods it uses b. amount of data it generates
c. quality of customer insights it provides
d. efficiency with which it completes studies e. marketing information system it follows
30. is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization.
a. Causal research
b. The marketing information system c. Marketing research
d. Competitive marketing research
e. Competitive marketing intelligence
31. Observational research is best suited for gathering data.
a. primary
b. dependent c. secondary d. causal
e. competitive
32. What are the two main types of research instruments used to collect primary data?
a. Personal interviews and online marketing research b. Focus groups and online databases
c. Online panels and experiments
d. Questionnaires and mechanical devices e. Surveys and samples
33. Which of the following is the best advice about creating research questionnaires?
a. Use simple and direct language.
b. Avoid any personal questions that may make some respondents uncomfortable.
c. Ask difficult questions in the beginning to "weed out" uninterested respondents. d. Questions should not be arranged in any particular order.
e. Ask personal questions in the middle of the instrument.
34. You have been asked to locate secondary data for your small organization's research needs.
Which of the following is NOT a common source for this type of research?
a. Online surveys
b. The U.S. Small Business Administration c. The Bureau of Economic Analysis
d. The U.S. Census Bureau e. Competitors' Web sites
35. Nathan Zabalas owns a regional chain of drug stores. Before expanding nationwide, Nathan is conducting marketing research to determine the best options for opening new stores. He plans to start by collecting secondary data. Which of the following is NOT a source of secondary
data that Nathan might use?
a. Yankelovich's Monitor
b. Local chambers of commerce c. Commercial online databases d. Online questionnaires
e. Web search engines
36. Although more price-conscious than other population segments, consumers tend to be strongly motivated by quality and selection. Brands are important. They seem to enjoy shopping more than other ethnic groups do.
a. African American b. upper lower
c. Asian American d. upper middle
e. mature
37. are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday for the Los Angeles Lakers.
a. Aspirational groups b. Leisure groups
c. Leading adopter groups d. Membership groups
e. Social class groups
38. A consists of the activities people are expected to perform according to the persons around them.
a. lifestyle b. tradition c. life cycle d. role
e. motive
39. A is a need that is sufficiently pressing to direct a person to seek satisfaction. a. perception
b. motive
c. stimulus d. tradition e. culture
40. Maslow's theory is that can be arranged in a hierarchy. a. decisions
b. stimuli
c. beliefs and attitudes d. human needs
e. perceptions
41. People tend to interpret new information in a way that will support what they already believe.
This is known as:
a. selective attention. b. selective attitude. c. selective retention.
d. selective perception. e. selective distortion.
42. describes changes in an individual's behavior arising from experience. a. Cognitive dissonance
b. Perception c. Lifestyle
d. Learning
e. Attitude shift
43. According to one analyst, a Harley-Davidson motorcycle can make you feel like "the toughest, baddest guy on the block." Harley-Davidson promotes its motorcycles with images of independence, freedom and power. Harley-Davidson has created a(n) .
a. attitude
b. brand motivation c. brand personality d. life-cycle stage
e. brand self-image
44. Bob's job description has been changed. The rationale for the changes made no sense to
Bob when they were explained. Bob continued to perform most of his job duties as usual. He has engaged in .
a. subliminal attention b. selective attention
c. perceptual defense d. selective attitude
e. selective interpretation
45. An invitation to go skiing for the weekend forced Donna to look at her current wardrobe. She decided she needed a much warmer coat. Donna was in which stage of the purchase decision?
a. Information search b. Problem screening c. Product evaluation d. Need recognition
e. Situational analysis
46. Dips in the economy and the instant price comparisons made possible by the Internet have both contributed to .
a. increased consumer price sensitivity b. decreased consumer price sensitivity
c. a more direct relationship between supply and demand d. a less direct relationship between supply and demand e. decreased brand loyalty
47. Another name for systems selling is selling. a. blanket contract
b. negotiated contract c. solutions
d. vendor-managed inventory e. periodic purchase
48. Which of the following types of factors influencing members of a buying center are typically the most difficult for marketers to assess?
a. Political
b. Organizational c. Economic
d. Technological e. Interpersonal
49. Status, empathy and persuasiveness are all examples of influences on business buyer behavior.
a. organizational b. individual
c. cultural
d. interpersonal e. environmental
50. B-to-B e-procurement yields many benefits. These include all of the following EXCEPT:
a. elimination of much of the paperwork associated with traditional ordering procedures. b. elimination of inventory problems.
c. reduced transaction costs.
d. reduced order processing costs.
e. more efficient purchasing for both buyers and sellers.
51. Sage, Inc. provides food services to schools, hospitals and nursing homes in the Midwest.
Management at Sage is involved in the market.
a. institutional b. global
c. local
d. government e. not-for-profit
52. All of the following are difficulties associated with selling to government buyers EXCEPT:
a. low sales volume.
b. considerable paperwork. c. bureaucracy.
d. regulations.
e. large group decision making.
53. Most newspapers use so they do not need to rely on only one supplier to provide the tons of paper that they use annually.
a. blanket contracting b. multiple sourcing
c. vendor-managed inventory d. single sourcing
e. cross-docking
54. Which of the following is the most popular method for segmenting markets?
a. Demographic b. Behavioral
c. Gender
d. Psychographic e. Geographic
55. When Positive Image, Inc. caters to clothing, cosmetics and toiletries markets, it most likely uses which type of segmentation?
a. Gender
b. Readiness c. Geographic d. Behavior
e. Occasions
56. When a business market segment is large or profitable enough to serve, it is termed .
a. actionable b. measurable c. substantial d. accessible
e. differentiable
57. Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?
a. Micromarketing
b. Undifferentiated marketing c. Target marketing
d. Concentrated marketing e. Differentiated marketing
58. The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) .
a. niche market b. target market
c. market segment
d. undifferentiated market e. micro market
59. A product's position is based on important attributes as perceived by . a. competitors
b. managers c. consumers
d. market conditions e. suppliers
60. Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price?
a. less-for-much-less b. more-for-the-same c. more-for-less
d. same-for-less e. all-or-nothing
61. "Less-for-much-less" positioning involves meeting consumers' .
a. lower quality requirements in exchange for a lower price b. high quality requirements at the lower possible price
c. high quality requirements at a discounted rate
d. quality performance requirements at a lower price
e. lower quality requirements at the lowest possible price
62. Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the , which addresses the question, "What is the buyer really buying?"
a. core customer value b. co-branding
c. actual product
d. augmented product e. exchange
63. Which of the following capital items is NOT considered accessory equipment?
a. buildings b. hand tools c. desks
d. chairs
e. lift trucks
64. In recent years, product safety and environmental responsibility have become major
concerns.
a. packaging
b. product line c. service
d. branding
e. product mix
65. A is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.
a. convenience product b. private brand
c. product bandwidth d. product line
e. line extension
66. An alternative to product line stretching is , adding more items within the present range of the line.
a. co-branding
b. service marketing
c. interactive marketing d. product mixing
e. product line filling
67. A company can increase its business in four ways. Which is NOT one of these ways?
a. It can add new product lines, thus widening its product mix. b. It can lengthen its existing product lines.
c. It can add more versions of each product and thus deepen its product mix. d. It can increase the consistency of its product mix.
e. It can discontinue some of its lines.
68. All of the following are methods for developing a differentiated service offer, delivery or image
EXCEPT .
a. increasing the quantity of service by giving up some durability b. having more reliable customer-contact people
c. designing a superior delivery process d. developing symbols and branding
e. offering innovative features
69. The total financial value of a brand is estimated through the process of brand . a. equity
b. positioning
c. differentiation d. extension
e. valuation
70. A involves the use of a successful brand name to launch new or modified products in a new category.
a. private brand b. line extension c. brand symbol
d. brand extension e. product line
71. Under what circumstances might it be wise for a company to do little or no test marketing?
a. When the product has no substitutes and is new in its category
b. When the costs of developing and introducing the product are low c. When a new product requires a major investment
d. When management is not sure of the product
e. When management is not sure of the marketing program
72. The team-based new-product development approach uses cross-functional teams that overlap the steps in the process to achieve which of the following goals?
a. Save time and increase effectiveness
b. Speed product to market and reduce costs
c. Increase effectiveness and employee satisfaction d. Save time and eliminate errors
e. b and d
73. is the product life cycle period when sales fall off and profits drop. a. Decline
b. Growth
c. Introduction d. Development e. Maturity
74. All of the following are stages in the PLC EXCEPT . a. growth
b. decline c. maturity
d. introduction e. adoption
75. Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the stage of the PLC.
a. introduction b. adoption
c. growth d. decline e. maturity
76. It's What's Hip, a chain of 18 music and CD stores, has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?
a. Takes up much of management's time
b. Requires advertising and sales force attention c. Frequent price and inventory adjustment
d. Negatively affects the company's reputation
e. Requires too much focus on new-product development
77. Price is the only element in the marketing mix that produces . a. variable costs
b. stability
c. outfixed costs d. expenses
e. revenue
78. Walmart is famous for using what important type of value pricing?
a. Cost-plus pricing
b. Competition-based pricing c. Penetration pricing
d. Everyday low pricing e. Break-even pricing
79. Costs that do not vary with production or sales level are referred to as . a. target costs
b. variable costs c. fixed costs
d. total costs e. unit costs
80. With target costing, marketers will first and then .
a. determine a selling price; target costs to ensure that the price is met b. use skimming pricing; penetrating pricing
c. design the product; determine its cost
d. build the marketing mix; identify the target market e. identify the marketing mix; determine product cost
81. A company should set prices that will allow to receive a fair profit.
a. producers
b. competitors c. the market d. consumers e. resellers
82. In the case of services, captive product pricing is called pricing. a. segmented
b. by-product c. two-part
d. bundle
e. optional product
83. Companies involved in deciding which items to include in the base price and which to offer as options are engaged in pricing.
a. optional product b. skimming
c. product bundle d. captive product e. by-product
84. What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?
a. Promotional pricing b. Basing-point pricing c. Referent pricing
d. Segmented pricing
e. Psychological pricing
85. Which of the following is NOT an effective action that a company can take to combat a competitor's price cut on a product?
a. Raise perceived value
b. Launch a low-price "fighter brand" c. Improve quality and decrease price d. Reduce price
e. Improve quality and increase price
86. Intermediaries play an important role in matching .
a. manufacturer to product b. product to region
c. dealer with customer
d. information and promotion e. supply and demand
87. Companies today are placing greater emphasis on . a. profitability
b. logistics
c. co-op advertising d. efficiency
e. conflict reduction
88. logistics controls the movement of products from points of production to consumers. a. Outbound
b. Reverse c. Inbound
d. Horizontal e. Vertical
89. Which of the following is the best example of a direct channel?
a. A farmer in Columbia sells flowers to an international broker who makes sure the flowers reach consumers in the United States.
b. Family Dollar Store sells modeling clay to school-age children.
c. A wholesaler sells candy to convenience stores who then sell it to store patrons.
d. J&L Manufacturing Company sells drapery hardware to The Home Depot's Design
Center and the Design Center then sells it to consumers.
e. Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
90. Specialty stores carry with within them. a. narrow product lines; shallow assortments
b. wide product lines; deep assortments
c. narrow product lines; deep assortments d. convenience items; mostly staples
e. wide product lines; shallow assortments
91. In-store demonstrations, displays, contests and visiting celebrities are examples of .
a. broker promotions b. agent promotions c. sales promotions d. franchises
e. product life-cycling
92. Most shopping centers are containing between 5 and 15 stores; they are close and convenient for consumers.
a. community shopping centers b. lifestyle centers
c. strip malls
d. power centers e. factory outlets
93. are the largest group of wholesalers. The group can be divided into the two broad types of full-service and limited-service.
a. Merchant wholesalers b. Specialty wholesalers c. Agents
d. Manufacturer sellers e. Brokers
94. The use of short-term incentives to encourage the purchase or sale of a product or service is called .
a. personal selling b. public relations c. sales promotion d. publicity
e. direct marketing
95. To communicate effectively, a marketing communicator must the consumer's field of experience.
a. reference b. share
c. create
d. compete with e. understand
96. The six buyer-readiness stages include all of the following EXCEPT .
a. conviction b. hesitation c. awareness d. knowledge e. liking
97. All of the following are strategies a marketer would use to lead consumers into making the final step toward a purchase EXCEPT which one?
a. Use extensive "teaser" advertising b. Offer rebates
c. Offer add-on features
d. Offer special promotional prices e. Offer premiums
98. An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of the communication model, the sender of this message is .
a. Ladies' Home Journal
b. the target market to whom Melina Kanakaredes appeals c. readers who redeem the $1-off coupon
d. Maybelline
e. Melina Kanakaredes
99. Mercy University's initial ads for the school's new MBA program are most likely intended to create .
a. conviction b. awareness c. insistence d. liking
e. preference
100. All of the following are examples of cultural pollution EXCEPT . a. billboards marring beautiful scenery
b. spam in an e-mail inbox c. ads in magazines
d. commercials during serious programs e. street signs in an urban area