Final Marketing Exam Part 1

All of the following statements are reasons why consumer goods companies take a regional approach to marketing rather than a national approach EXCEPT:

A regional approach gives marketing managers control over the competitive environment. Correct

The foundation for the pyramid of corporate social responsibility is philanthropic responsibility. True of False?

FALSE

The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers. TRUE OR FALSE?

FALSE

The most popular technique for gathering primary data is by observation.

FALSE

The reseller market is the same as the retailer market.

FALSE

The single largest business customer in the world is the U.S. retailer Walmart. TRUE or False?

FALSE

The way to achieve customer satisfaction and value is to offer the lowest price. True or False?

FALSE

Typically, the development of the marketing mix starts with determining the promotion for a product. True or FALSE?

FALSE

When the Internet auction company eBay opened a version of the company called eBay France for the French market, it was an example of market penetration. True or False?

FALSE

Which of the following statements about bar codes is true?

Bar codes can read by optical scanners

Making sure products are available when and where customers want them is the job of which element of the marketing mix?

Distribution strategies Distribution strategies make products available when and where customers want them.

A market penetration strategy entails the creation of new products for current customers. TRUE OR FALSE?

FALSE

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender, age, and income levels. The study used psychographic segmentation variables. True or False?

FALSE

A newly hired employee at an advertising agency chose the clothes she purchased for work by observing the clothes she saw worn in The Apprentice, a popular television reality show. In this example, the women hoping to work for Donald Trump served as primary membership groups. True or False?

FALSE

A snowball same is a type of probability sample

FALSE

After Hal Li purchased and installed a wood-burning stove to heat his family home, the stove caught fire and damaged much of the house. He believes the stove had inadequate insulation. Li should voice his concerns to the Federal Trade Commission. TRUE or FALSE?

FALSE

As marketers gain more experience in marketing a product, costs tend to decrease, which is an example of the maturity effect. True or False?

FALSE

Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy. True or False?

FALSE

Fisher-Price employees were engaged in experimental research when they observed, from behind a mirror, children playing with soap bubbles and decided to build a toy lawn mower that spewed soap bubbles.

FALSE

Generation Y was the first generation of latchkey children--products of dual-career and/or divorced households. True or False?

FALSE

Martina was interested in how students perceive the health service provided by her university. To collect data on this issue, she interviewed the students in her evening class. Martina has used a random sampling procedure.

FALSE

Most business ethicists agree that multinational firms that expand into developing countries are acting ethically when they provide low-income work to the people in those countries, arguing that low-income work is better than no work. True or False?

FALSE

Niche competitive advantages are difficult to develop and consequently are quite rare. TRUE OR FALSE?

FALSE

On average, African Americans are nearly eight years older than all other American consumers.

FALSE

Rolex watches are very expensive and can only be purchased in high-end jewelry stores located in large metropolitan areas. Most buyers will accept no substitutes. Rolex watches are an example of a shopping product.

FALSE

Sustainability is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment. True or False?

FALSE

Sustainability refers to a business's concern for society's welfare. True or False?

FALSE

The first step in segmenting a market is to choose a basis or bases for segmenting the markets.

FALSE

The U.S. Postal Service (USPS) argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45 percent share of the express-delivery market. Which of the following statements describes this situation?

FedEx is perceived as offering greater customer value. Customer value is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

The majority of Hispanic Americans are of _____ descent.

Mexican Nearly 60 percent of Hispanic Americans are of Mexican descent. The next largest group, Puerto Ricans, make up slightly less than 10 percent of Hispanics. All others each account for less than 5 percent of all Hispanics.

Which of the following is an information source that is not associated with advertising or promotion?

Nonmarketing-controlled

Southern Fireworks Manufacture Company in Liuyang, China, provides fireworks for companies in America such as Premier Pyrotechnics in Richland, Missouri. This means that Southern is a(n):

OEM

The Beaumont Homeowner's Association had to replace its pool pump. They asked two local companies—Thompson Pools and Southern Pool and Spa Company—for quotes on replacing the pump. Beaumont negotiated with both companies and quickly decided to buy from Thompson Pools because its quote was $200 cheaper in its labor estimate. Which evaluative criterion appears to have been most important in making this purchase decision?

Price

_____ is characterized by low involvement, a short time frame, an internal-only information search, and low costs.

Routine response behavior

_____ is how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations.

Self-concept

Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts, Tips, and Advice for Dads-to-Be.. It is an advice book for men whose partners are expecting a baby. The market for this book is based on demographics.

TRUE

According to the American Marketing Association, marketing is 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. True or False?

TRUE

By keeping the blue triangle in the corner and the Nabisco name on several similar Nabisco snack products, Nabisco is attempting to capitalize on stimulus generalization. True or False?

TRUE

For a product to be called a business product, it must be used to manufacture other products, become part of another product, or aid the normal operations of an organization.

TRUE

In the United States, women tend to be the key household decision-makers for many products, such as home furnishing purchases, vacations, and autos. True or False

TRUE

In the portfolio mix, notebook computers would be an example of a star. True or False

TRUE

OEM stands for original equipment manufacturer

TRUE

Some "green" products have an easily recognizable benefit to consumers and the environment. TRUE OR FALSE?

TRUE

Stuart Marketing Research is gathering information on the way people wrap gifts specifically for a large manufacturer of gift wrap paper that is considering introducing reusable wrapping paper with Velcro fasteners. The information gathered would be an example of primary data.

TRUE

The average teen earns about $45.00 per week. True or False?

TRUE

In contrast to marketing research problems, management decision problems are:

action oriented

Campbell's can talk about its soups being "Mm! Mm! Good!" and promote its entire line. This is an example of:

advertising economies

A consumer who consistently and repeatedly purchases the same brand is said to have:

brand loyalty

The well-known Nike "swoosh" is an example of a:

brand mark

Corporate social responsibility is defined as the:

business's concern for society's welfare

A new buy situation refers to the:

c. purchase of a product or service when a new demand arises. Correct

A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers who sell replacement lenses. In order for this segmentation scheme to be successful, all of the following criteria must be met EXCEPT:

complexity

Kathy is driving Chaz, her young son, home from soccer practice when Chaz says, "Mom, I'm thirsty." Kathy immediately pulls the car into the nearest gas station and buys Chaz a Coke. For Kathy, the Coke is best described as an example of buying a _____ product.

convenience

For every home built by Habitat for Humanity, Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family. This donation of appliances is an example of how companies assume their:

corporate social responsibility

Tyson Foods launched a campaign in Austin, Texas, in which it agreed to donate 100 pounds of chicken to the Capital Area food Bank of Texas for every comment posted on its blog.. This campaign is an example of:

corporate social responsibility

96% of USAA home insurance policy holders report that USAA representatives meet their commitment in calling back customers quickly about claims. The most likely result of USAA's effort is:

customer satisfactions

When Eurasia restaurant, serving Eurasian cuisine, first opened along Chicago's Michigan Avenue, its novelty brought many diners. However, it turned off the important business lunch crowd, and sales went into decline. Before conducting any marketing research to explain the declining sales, management needs to:

define the problem to be researched

A firm with a production orientation is most likely to survive if:

demand for the product it produces exceeds supply

The study of people's vital statistics, such as age, race and ethnicity, and location, is called:

demography

Procter & Gamble manufactures Tide laundry detergent, the best-selling brand in the United States. But is also offers Tide to Go, which is a stick product consumers can use to clean a spot on their clothing between washings, and small travel packets of Tide detergent. These other products are part of Tide's product line:

depth

Recession, inflation, and consumers' incomes are the _____ factors of greatest concern to most marketers.

economic

Many American businesses are expanding their operations into developing countries. These businesses are often finding that:

ethical standards are often overlooked by governments hungry for jobs or tax revenues. Correct

Alanna is looking into purchasing a scooter as gas prices continue to rise. She needs a reasonably priced, comfortable, and safe scooter with room to store her books. She is not familiar with scooters, and this is a major purchase for her. The purchase will probably involve:

extensive decision making

A product is defined as a business product rather than a consumer good on the basis of its:

intended use

The marketing research problem:

is information oriented

China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese, who consume 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The requirement for Chinese manufacturers of wooden chopsticks to pay the 5 percent tax is a _____ factor in their external environment.

legal

The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category is referred to as:

limited decision making

Heinz is introducing 400 new products in the next two years. To know which markets to reach, Heinz should first perform a:

market opportunity analysis An market opportunity analysis (MOA) is the description and estimation of the size and sales potential of market segments that are of interest to the firm.

Soon after the Chenault Military Museum expanded its hours and began charging a small fee to pay for the extra help needed to keep it open longer, attendance decreased. To determine why this decrease in attendance occurred, the museum staff could rely on:

marketing research

A _____ is a company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms.

marketing research aggregator

Caterpillar, Inc., a manufacturer of earthmoving equipment, uses completed drivetrains (engines/transmissions/axles), drivetrain components, electronic controls, hydraulic and electrohydraulic components and systems, cooling systems, and undercarriage track systems produced by other organizations in its manufacturing process. Caterpillar is an example of a(n):

original equipment manufacturer

Labels that contain standard promotional claims like "new," "improved," and "super" are examples of _____ labels.

persuasive

Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

production

Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation.

production

A product line is a group of products that are closely related because the

products all function in a similar manner and provide similar benefits

Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on cars. The device beams signals to dealers who can remotely diagnose or spot trouble, allowing car dealerships to maintain a closer bond with their customers by offering maintenance before a problem leaves customers with an inoperable or possibly dangerous car. With the device, dealers can better engage in:

relationship marketing Relationship marketing is a strategy that entails forging long-term partnerships with customers.

Colorado Silversmith creates and markets silver and turquoise jewelry, which it sells to retailers in the western United States. The company's management believes its retail customers will stock more jewelry if its salespeople use aggressive marketing techniques, so the company provides strong incentives for salespeople and promotional allowances to resellers to get distribution for its jewelry. In other words, the company has a _____ orientation.

sales

The _____ orientation assumes people will buy more if aggressive selling techniques are used.

sales

What is the best generator of repeat sales?

satisfied customers

Military Spouses is the only publication in the world that targets readers who are "married to the military." Its content reflects the unique set of challenges, hardships, and rewards to those whose spouses are in the military. The marital status that has been used to distinguish the market for this magazine is an example of a(n):

segmentation base

Consumers' concern for health issues affects the way food is marketed. For example, marketers must now list the number of grams of transfat on a product's nutrition label because it has recently come to light that this type of fat is harmful. Consumers' concern for health issues is a(n) _____ factor.

social

Many airlines offer passengers the option to purchase carbon offsets as an environmentally friendly compensation for their carbon footprint. For example, Delta customers can pay $10 to a fund that plants trees as a way to offset the carbon emissions from the airplane. Some would say Delta is:

socially responsible

All of the following are roles found within a buying center EXCEPT:

supplier

Sure Fit, Inc. has begun a rebranding strategy to let customers know it no longer only produces slipcovers but now also carries a line of rugs, window treatments, and bedding. Its _____ is described as women with average annual household income of $60,000 or more.

target market

The debate over gay marriages is causing a great deal of furor, but it has done little to deplete the importance of the affluent gay market to businesses. Georgia Pacific and Mitchell Gold, a furniture manufacturer, are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays. To these companies and others, lesbians and gays are a desirable:

target market

Diversity is emerging as a priority goal because:

the United States is becoming a truly multicultural society.

Which of the following activities is most likely to be an example of routine response behavior?

the purchase of toilet paper

When Henry Ford made the Model T, he said that consumers "can have their car in any color they want, as long as it's black." This was a case of:

undifferentiated targeting

The way a consumer goes about addressing a need is called a:

want

The imbalance between actual and desired states is sometimes referred to as the :

want-got gap