CDECA Marketing Exam Questions
Why should marketing researchers use more than one method to acquire data? A. Because multiple methods will give a more accurate picture of customer behavior B. Because customers may not like certain methods of marketing research C. Because certain methods of marketing research are known for being inaccurate D. Because individual marketers may not like certain methods of marketing research
A. Because multiple methods will give a more accurate picture of customer behavior. If marketing researchers want to have the most accurate results possible, it is wise to use multiple methods of marketing research. If a certain method of marketing research is known for being inaccurate, then researchers should not use that method. Customers or researchers not liking a certain method of marketing research does not necessarily affect its accuracy.
Which of the following is an example of an intangible product that an advertising agency might provide a client: A. Creative idea for an ad B. Point-of-purchase display C. Banners for a retail store D. Promotional sales literature
A. Creative idea for an ad. Advertising agencies often provide both tangible and intangible products. Intangible products are those that are not capable of being detected through the senses, such as a creative idea for an ad. The idea might be the theme that the agency is recommending for an overall advertising campaign such as the "Just Do It" promotion for Nike. Once an agency develops the idea, which is intangible, it usually develops tangible products to support the idea. These tangible products might be point-of-purchase displays, banners for retail stores, or promotional sales literature.
Many customers second-guess their purchasing decisions during which stage of purchasing? A. Post-purchase B. Pre-purchase C. During-purchase D. Before the need for a product is identified
A. Post-purchase. It is common for customers to question their purchasing decisions after they purchase goods. Most consumers do not second-guess their decisions before the need for a product is identified or during the pre-purchase or during-purchase stages, because they have not yet purchased any goods.
A print ad photograph that shows tents erected in a forest is focusing on the: A. product in an appropriate setting. B. benefits of using the product. C. product actually being used. D. details and features of the product.
A. Product in an appropriate setting. There are many ways that illustrations in advertisements can be used to attract attention and create desire for products. One way is to use illustrations that focus on the product in an appropriate setting. A photograph of tents in a forest shows the product in a setting in which it would normally be used. Illustrations showing the positive results of using the product are focusing on the benefits of using the product. Illustrations showing someone actually using the product are focusing on the product in use. Illustrations showing specific details or features rather than the product as a whole are focusing on the product's details and features.
The largest store you sell to wants to exchange the merchandise it purchased four months ago because it hasn't sold any of the items from that shipment. Your company's selling policy states that refunds or exchanges must be made within 90 days. How should you handle this situation? A. Talk to your supervisor regarding the situation. B. Tell the client that you did not set the policy. C. Enforce the current policy. D. Spend time trying to sell the client something else.
A. Talk to your supervisor regarding the situation. Selling policies are general rules established to guide the selling effort, and they need to be a bit flexible so an occasional exception can be made. In this situation, being flexible may help you satisfy your largest customer and keep their business. By stating that you did not set the policy, you are not offering the client assistance at all. Spending time selling the client something else does not resolve the current problem. Enforcing the current policy offers no type of solution or assistance to the client.
Which of the following is a reason that many products go into decline: A. The market is saturated. B. Customer tastes stay the same. C. No better products are available. D. They are outlawed by the government.
A. The market is saturated. Many products go into decline because the market is saturated. This means that almost all of the product's potential customers have been reached, and the only opportunity for increased sales comes with population growth or a shift in market share. If a product were to be outlawed by the government, it would happen earlier in the product life cycle. Customer tastes shift, and superior products become available. These are both common reasons that older products go into decline.
An individual returns a marketing research survey that contains unanswered questions. This is an example of a(n) A. nonresponse error. B. interviewer oversight. C. mathematical miscalculation. D. rating mistake.
A. nonresponse error Errors can occur during any phase of the marketing research process and can affect the validity of the results. A nonresponse error occurs when a member of the sample population does not answer all of the questions in a survey. Respondents fail to answer questions for many reasons—they may not understand the question, they may feel uncomfortable answering the question, or they may not see the question on the survey. Unanswered questions on a survey are not examples of interviewer oversight, mathematical miscalculation, or rating mistakes.
If a manager wants to be sure they correctly interpret their employees' nonverbal cues, how should they communicate with them? A. By email B. By phone C. Face-to-face D. Through an office-wide memo
C. Face-to-face. With face-to-face communication, a manager would be able to observe their employees' nonverbal communication. This is not possible when communicating via phone, email, or office memo.
Which of the following examples is most likely to stimulate ethical controversy in terms of promotion: A. A manufacturer works with its dealers to develop a national sweepstakes promotion. B. A television station runs several beer commercials during prime-time viewing hours. C. A retailer places advertisements in newspapers announcing early-bird specials during a sale. D. A radio station broadcasts public service announcements that inform the public about health issues.
B. A television station runs several beer commercials during prime-time viewing hours. Prime-time viewing hours on television are considered time slots that are geared to families. As a result, offensive, violent, and sexual content are often limited at these times. Some might find promoting beer to families and/or minors during this time unethical. The examples consisting of a sweepstakes promotion, advertisement placements, and public service announcements do not provide enough information to determine if unethical behavior has been exhibited.
An important activity performed by a business's public relations staff is: A. market segmentation. B. crisis management. C. territory development. D. talent acquisition.
B. Crisis management. Crisis management is a public relations strategy that involves the ongoing managing, planning, and coordinating of resources to handle undesirable situations or circumstances. Market segmentation is the process of dividing a total market into smaller, specific groups. Territory development refers to the expansion of a selling area. Talent acquisition is the process of finding and hiring employees.
Marcy would like to learn more about VaccuFresh vacuum cleaners, so she goes to the company's website and begins a live chat with a service representative. From VaccuFresh's perspective, Marcy's online chat is a(n): A. marketing strategy. B. customer touchpoint. C. customer analysis. D. advertising success.
B. Customer touchpoint. A customer touchpoint is any encounter in which a business and a customer engage. In this example, Marcy's live chat with a service representative would be considered a customer touchpoint to VaccuFresh—not a marketing strategy, customer analysis, or advertising success.
Which of the following components of the selling process is most likely to help reduce the amount of selling time required: A. Prescribing possible solutions B. Discovering customer needs C. Establishing relationships with customers D. Creating a good impression of the business
B. Discovering customer needs. The second phase of the selling process involves discovering customer needs and wants. When customers do not know precisely what they are looking for, a salesperson must be prepared to discover their needs. Assessing customer needs is important because it often reduces the amount of selling time required. Establishing relationships with customers is the first phase of the selling process and may include creating a good impression of the business. Prescribing possible solutions is the third phase of the selling process and takes place after salespeople have discovered customer needs.
Krista works at a pool supply store. One of the products she sells is a waterproof speaker system. The speaker system is popular because customers don't have to worry about getting it wet when they are using it by the pool. The ability to get the speakers wet is a(n) __________ benefit. A. exclusive B. obvious C. hidden D. unfamiliar
B. Obvious. Obvious or apparent benefits are advantages that need little explanation by the salesperson. The customer already knows, or can easily recognize, the benefit. A speaker system that is waterproof has the obvious benefit of being able to get wet, and salespeople do not necessarily need to inform customers of this benefit. Unique or exclusive benefits are advantages that are available only from your good, service, or business. Krista's waterproof speakers are probably not the only speakers that are waterproof, so this example does not demonstrate an exclusive benefit. Hidden benefits are advantages that cannot be seen or understood without the assistance of a salesperson. In this example, the benefit of waterproof speakers is clear and easily understood. "Unfamiliar" is not a term generally used to describe types of product benefits.
ABC Corporation recently held a series of executive meetings where company leaders discussed several "big-picture" questions about the business's future. These questions included "Is the company headed in the right direction?" and "Is the company likely to experience long-term success?" Which primary business activity were the company leaders a part of? A. Financial analysis B. Strategic management C. Human resources management D. Information management
B. Strategic management. Strategic management is the process of planning, controlling, and organizing an organization or department. Strategic management helps a business determine how it can succeed and reach its goals over time. Holding a series of executive meetings to answer "big-picture" organizational questions is an example of strategic management, not financial analysis, human resources management, or information management. Financial analysis is the process of planning, maintaining, monitoring, controlling, and reporting the use of financial resources. Human resources management is the process of planning, staffing, leading, and organizing employees. Information management is the process of accessing, processing, maintaining, evaluating, and disseminating business knowledge, facts, or data.
Which of the following businesses is most likely to violate antitrust laws if it insists on an exclusive dealing agreement: A. The buyer B. A small startup C. Horizontal business partners D. A firm with dominant market power
D. A firm with dominant market power. Dominant firms may be held to a higher standard under antitrust laws due to their monopolistic potential. Small startups are less likely to violate competitive laws, as are buyers who are being locked into the agreement. Exclusive dealing only pertains to vertical business partners.
Carly is inventive, imaginative, and innovative. In other words, she is able to develop something original, see something that's "not there," and make changes or improvements to old ways of doing things. Carly could best be described as A. a troublemaker. B. independent. C. a rule-follower. D. creative.
D. Creative. Creativity is the ability to generate unique ideas, possibilities, and solutions. People who are creative usually possess inventiveness, imagination, and innovation. Based on the information given, Carly can best be described as creative—not necessarily independent, a rule-follower, or a troublemaker.
Rossi is buying a new computer for $363 with his credit card. The credit card has a rate of 24% and uses an adjusted balance method to calculate interest. The credit card company begins charging interest on Rossi's purchase during the first billing period. If Rossi makes a payment of $200 for the first billing period and pays the remaining amount for the second billing period, how much total interest will Rossi pay? A. $7.26 B. $14.52 C. $10.67 D. $12.31
C. $10.67 Credit card companies using the adjusted balance method to charge interest only charge it on the principal balance that remains each month. To calculate how much total interest Rossi will pay during the initial two billing periods, first calculate the monthly interest rate by dividing the APR by the number of months in a year (24% [or 0.24] / 12 = 0.02). Then, multiply the monthly interest rate by the principal amount to determine the amount of interest charged for the first month (0.02 X $363 = $7.26). For the following month, you first need to determine the new principal amount. Subtract the interest amount charged during the initial month from last month's repayment to determine the payment amount applied to the principal ($200 − $7.26 = $192.74). Next, subtract the payment amount applied to the principal amount at the end of the first month from the original balance to determine the new principal amount to be charged interest for the second month ($363 − $192.74 = $170.26). Calculate the interest charged for the second month (0.02 X $170.26 = $3.41). Add together the interest paid each month to determine the total interest Rossi will pay during the first two billing periods ($7.26 + $3.41 = $10.67).
If a consumer feels that an automobile company's promotional materials have exaggerated a car's safety features, what type of government agency should they contact? A. A government agency that regulates highway safety B. A government agency that regulates product safety C. A government agency that regulates advertising D. A government agency that regulates financial products
C. A government agency that regulates advertising. Since promotional materials are a form of advertising, a government agency that regulates advertising is most likely to have laws in place to protect the consumer. Product safety agencies help ensure the safety of products by setting safety standards and requiring manufacturers to test products and provide safety warnings. Highway safety agencies regulate the safety of automobiles by investigating safety defects and recalling vehicles with safety problems. Agencies regulating financial products work to make financial products safe for consumers by educating them and by supervising banks and financial service providers.
Shaggy Dog Deli creates a Twitter hashtag, #shaggydogdeli, to get customers to share reviews and promote the business. This is an example of __________ marketing. A. cause B. organic word-of-mouth C. amplified word-of-mouth D. opt-in email
C. Amplified word-of-mouth. Amplified word-of-mouth marketing occurs when a marketer launches a campaign to accelerate or encourage existing word-of-mouth marketing. Organic word-of-mouth marketing is natural promotion and publicity for a business provided by customers who tell others of their satisfaction with the business. Cause marketing involves cooperation with a nonprofit organization and benefits both parties. Opt-in email marketing takes place when a company sends electronic promotional messages with a recipient's permission, allowing the recipient to request removal from the subscriber list at any time.
What type of marketing data can a business obtain by reviewing its inventory reports and customers' invoices? A. Product quality B. Customers' credit limits C. Customers' product preferences D. Actual market share
C. Customers' product preferences. Internal records provide businesses with information about their customers' buying habits and product usage. By reviewing inventory reports, a business can determine which products are selling well and which products are moving slowly. This information may prompt the business to phase out the slow-moving product and increase promotional efforts for the products that are selling well. Customers' invoices provide information about an individual customer's buying preferences and habits. For example, invoices might reveal that certain customers buy a certain quantity of a particular product four times a month. By knowing this type of information, the business can customize promotions for its customers and take steps to ensure that it has sufficient product on hand when it is needed. Financial reports provide information about customers' credit status and limits. Customer invoices do not provide information about a product's level of quality. Businesses need to analyze industry and competitors' data and compare them with internal data to evaluate their market share.
Chadwell's Toy Palace is planning a "buy one, get one free" sale for some popular toys. What will the store need to do to ensure that there are enough products available to meet the changing demand? A. Change the distribution strategy from selective to intensive B. Hire additional warehouse staff for the duration of the sale C. Purchase higher quantities of the sale items in a timely manner D. Send copies of the promotional literature to the store's vendors
C. Purchase higher quantities of the sale items in a timely manner. Channel management is the process by which marketers ensure that products are distributed to customers efficiently and effectively. Coordinating channel management with other marketing activities is important because the store must have items available to sell to the customers. This involves ordering the appropriate amount of items and ensuring that the items are delivered to the store before the promotional event or sale. Stores that promote goods they do not have in stock often annoy the customers who want to buy the items. A selective distribution strategy is a distribution pattern in which a producer sells a product through a limited number of intermediaries in a geographic location. An intensive distribution strategy involves a producer selling a product through every available intermediary. A business would not change its overall distribution strategy for a single promotional event. Hiring additional warehouse staff and sending copies of promotional literature to vendors will not ensure that the store has enough products available to meet the demand for the items during the sale.
Why are government regulations that control how businesses use natural resources developed? A. To stabilize the economy B. To encourage workplace safety C. To protect the environment D. To seize business property
C. To protect the environment. Governments pass and enforce laws to protect consumers, businesses, and other resources. Many of these laws address business practices. The government passes and enforces environmental laws to protect our natural resources such as water, air, botanical life, and wildlife from the potentially unhealthy and unsafe outcomes of production processes. Environmental laws regulate how much and what type of chemicals can be used in the environment. The laws also regulate the ways in which the chemicals can be disposed. Labor and safety laws protect employees and consumers who enter the workplace. Monetary and fiscal policies regulate and stabilize the economy. Governments do not develop regulations that control how businesses use natural resources so they can seize business property.
A furniture store released an ad in the weekly paper, but readers complained that it was too busy and made it difficult to know where to focus. The advertisement should have included more: A. logos. B. fonts. C. white space. D. graphics.
C. white space. White space is essential because it separates images on the page, keeps the page from looking cluttered and messy, and makes the advertisement clearer. White space could help the furniture store's ad look less busy. More fonts would probably make the ad look busier and would not necessarily help the readers know where to focus. Logos and graphics would not necessarily help the ad be less busy.
RunRight and QuickStride both sell the same type of running shoes and apparel at similar prices. Jamie, however, prefers QuickStride because the employees always offer to help her find the correct size for her feet. She rarely shops at RunRight. QuickStride is using its __________ to beat its competition. A. employee discipline B. product quality C. price matching D. customer service
D. Customer service. You may think that if you offer a product with the best price and the best quality, you'll beat all the competition. Unfortunately, price and quality can be easily matched among competitors. Customer service is where the real competition among businesses begins. This example demonstrates the importance of excellent customer service, not product quality, price matching, or employee discipline.
Alex is an 18-year-old high school student who enjoys soccer and music. Both of his parents are highly educated and have professional careers. Which of the following details about Alex is an example of psychographic information: A. He is 18 years old. B. His parents are highly educated. C. He is a high school student. D. He enjoys soccer and music.
D. He enjoys soccer and music. Lifestyle interests such as soccer and music are examples of psychographic information; all of the other details given relate to demographics (e.g., age, gender, life stage, socioeconomic status).
When you're assigned a project, your boss takes the time to clearly explain the instructions to you. As a result, you're able to finish your project much sooner and with fewer mistakes. Which benefit of open and honest communication are you experiencing? A. A good reputation B. Increased sales C. Better ideas D. Increased productivity
D. Increased productivity. When people are able to communicate openly with each other, they will be more productive. If your boss gives you clear instructions, you will be able to complete your project more quickly and with fewer mistakes. Increased sales, better ideas, and a good reputation are all benefits of transparency, but they are not illustrated in this example.
Decisions about positioning a company's corporate brand are significantly influenced by its: A. trademark. B. trade character. C. buyers. D. products.
D. Products. A corporate brand is all the combined customer impressions and experiences associated with a particular company. Positioning involves creating the desired image or impression in the minds of consumers. Many factors affect positioning decisions. An important factor to consider is the type of products that the company offers. For example, a service business offers intangible activities, so it might position itself by emphasizing its employees' knowledge and expertise. On the other hand, a manufacturer offers tangible goods, so it might consider the quality of the materials that it uses to produce the goods. Trade characters and trademarks are branding elements that companies use to reinforce brand awareness. Buyers are employees who purchase merchandise and/or supplies for their employers. A company's positioning goals influence the type of merchandise that the buyers purchase.
What can businesses do to reduce risks associated with personal injuries and product damage due to improper product use? A. Use recyclable packaging B. Offer a service guarantee C. Implement a return policy D. Provide detailed written instructions
D. Provide detailed written instructions. To protect customers, businesses must advise customers about how to use their products safely. Complex products that require assembly or that have multiple functions should provide detailed written instructions to help the customer assemble or use the product correctly. When the product is assembled or used correctly, there is less risk of injury to the product user and less risk associated with product damage. Offering a service guarantee, implementing a return policy, and using recyclable packaging are not actions that will help reduce the risk of personal injuries and product damage.
Which of the following statements correctly describes a difference between advertising and sales promotions: A. Sales promotions and advertising are two words used to describe the same thing. B. Sales promotions can be subtle and indirect, whereas advertising is more to the point. C. Advertising is a short-term activity, whereas sales promotions are typically long-term activities. D. Sales promotions typically have a limited time frame, whereas advertising is ongoing.
D. Sales promotions typically have a limited time frame, whereas advertising is ongoing. Sales promotions are generally short-term in nature and are intended to sell as many products as possible within a specific time frame. Advertising, on the other hand, is a long-term activity that takes place in various places and at various times to communicate a desired message. Advertising can be subtle and indirect, whereas promotions are generally to the point and clear. While similar, advertising and sales promotions are not the same thing.
The bait-and-switch tactic of luring customers with low-priced products with the intention of trading the customers up to higher-priced versions is A. ethical and illegal. B. unethical and legal. C. ethical and legal. D. unethical and illegal.
D. Unethical and illegal. Deceptive pricing practices such as bait-and-switch are designed to attract the price-conscious consumer. Not offering a reasonable amount of the advertised product is an example of a business taking unfair advantage of the customer's willingness to buy and violates the guidelines of the Federal Trade Commission. These tactics are illegal as well as unethical.
