IBM 301 Study Review Exam 1

Fresh Samantha, a producer and distributor of fresh Juice, decided to operate primarily in the Eastern coast. Its customers are mostly college students and young professionals that are creative, whimsical, and fun-seeking in nature. Fresh Samantha emphasizes that its products are nutritious, healthy food that needs to be refrigerated even when the products are delivered by truck to retail stores. Choose a segmentation base that is least applicable to their target market. a. benefits sought b. behavioral pattern c. psychographic d. demographic e. geographic

B behavioral pattern

According to Geert Hofstede's seminal work (1980, 2001), world culture can be categorized into five dimensions. Which of the following is accurate about American culture? a. Long-term oriented b. High power distance c. High uncertainty avoidance d. Masculine e. Collectivistic

Masculine

Which of the following is NOT correct about the impact of the environment on marketing? a. When government increases income tax, consumers tend to spend less at retail stores. b. Companies do not have any control on the macro environmental factors. c. Technological advancements do not influence marketing much. d. Greater consumers' health consciousness poses greater challenges as well as opportunities for restaurant service industries. e. When apartment rents go up, the demand for houses tends to go up and the price of house also tend to go up if everything else is equal

Technological advancements do not influence marketing much.

Which of the following is NOT one of uncontrollable environmental influences? a. Company's target market strategies b. Competitive forces c. Political and legal forces d. Social and economic forces

a. Company's target market strategies

The two most basic elements of any marketing plan is a. Target market and marketing mix b. the mission statement and SWOT analysis c. organizational objectives and 4 P's d. 4 p's and assessment

a. Target market and marketing mix

Which of the following is true about marketing research using the experimental method? a. The researcher manipulates a test group (or groups) and compares the results with those from a control group. b. It is the least expensive of all marketing research procedures. c. It is a nonscientific investigation compared to survey research. d. Most marketing research experiments are conducted in the laboratory.

a. The researcher manipulates a test group (or groups) and compares the results with those from a control group.

Let's suppose that you are invited to lead a marketing campaign for Ford Fusion to change consumer attitude positively. As a consultant, you are considering a number of actions you would like Ford to consider. You also need to explain why each strategy will work by using one of the principles of attitude change. If you recommend them to introduce an electronic car that is similar to the current Fusion model in every respect, but is powered by a reliable, environmentally friendly battery, which strategy are you using? a. By discrediting competitor's claims. b. By changing evaluations of the importance of an attribute. c. By changing neutral or negative beliefs into positive ones. d. By adding new salient beliefs that are positive. e. By reinforcing existing positive beliefs.

By adding new salient beliefs that are positive.

Let's suppose that you are invited to lead a marketing campaign for Ford Fusion to change consumer attitude positively. As a consultant, you are considering a number of actions you would like Ford to consider. You also need to explain why each strategy will work by using one of the principles of attitude change. If you recommend them to launch an advertising in which you criticize Toyota's reliability, which strategy are you using? a. By changing neutral or negative beliefs into positive ones. b. By reinforcing existing positive beliefs. c. By adding new salient beliefs that are positive. d. By changing evaluations of the importance of an attribute. e. By discrediting competitor's claims.

By discrediting competitor's claims.

Let's suppose that you are invited to lead a marketing campaign for Ford Fusion to change consumer attitude positively. As a consultant, you are considering a number of actions you would like Ford to consider. You also need to explain why each strategy will work by using one of the principles of attitude change. If you recommend them to run an advertisement in which you show how much Ford has helped U.S. economy by creating jobs right here in America, which strategy are you using? (Assume that American car manufacturers have been seen as helping U.S. economy). a. By changing evaluations of the importance of an attribute. b. By changing neutral or negative beliefs into positive ones. c. By discrediting competitor's claims. d. By reinforcing existing positive beliefs. e. By adding new salient beliefs that are positive.

By reinforcing existing positive beliefs.

Select a statement that is NOT correct about the significance of the ethics in marketing. a. Companies practicing ethical or philanthropic corporate social responsibility (e.g., green mountain coffee) are more likely to have involved and committed employees. b. Companies that have high ethical standards often fail to obtain financial goals. c. Firms' commitment to ethical standards is highly correlated with their financial/non-financial performance. d. Without trust, relationship would hardly build up. Seeing your business partner behaving unethically, you would not trust him/her. Therefore, ethics is the foundation of relationship marketing. e. Multinational company's ethical capability is a sustainable source of competitive advantage.

Companies that have high ethical standards often fail to obtain financial goals.

Which of the following statement is correct about the impact of economy on marketing a. When unemployment rate goes up, sales tend to go up as well. b. Consumer confidence has nothing to do with consumer spending in retail stores. c. During economic downturn, companies that make necessities tend to weather the storm better than companies that make luxuries. d. When economic outlook is not clear, companies tend to use extra cash (if they have) in hiring employees than in making capital investment (i.e., buying major equipments) e. Companies can control the impact of economy on marketing pretty well these days.

During economic downturn, companies that make necessities tend to weather the storm better than companies that make luxuries.

Select a statement that is correct about "Straight Rebuying" buying situations a. Usually many suppliers are reviewed b. Changes are desired in the original product c. A lot of time is required for decision making d. product is purchased for the first time e. It is analogous to routine response behavior for consumer buying decision making process

It is analogous to routine response behavior for consumer buying decision making process

" Attracting a new customer may be FOUR TIMES the cost of keeping an old customer" is the expression emphasizing the importance of relationship marketing. True False

True

Some people drink Mountain Dew because they like its taste. Others drink it to help stay alert and awake. This suggests an opportunity to segment the market based on: a. benefits sought b. psychographics c. demographics d. brand loyalty e. usage rate

a. benefits sought

When you buy 10 lattes from the local coffee house, the 11th latte is free. This is an example of which level of relationship marketing? a. first level (financial) b. third level (structural) c. All of the above d. second level (social)

a. first level (financial)

If one of your products has been classified as a "cash cow," the strategy marketing specialists would recommend that you pursue to a. maintain its present status for as long as possible and funnel profits to other SBU's. b. pull out of the market before costs are greater than revenues. c. aim for the lowest market share that will still keep you producing. d. push the product with extensive promotion to increase market share. e. go for high market growth through discounts and sales promotions.

a. maintain its present status for as long as possible and funnel profits to other SBU's.

Phrases such as "a good product practically sells itself," "build it and they will come," "supply creates its own demand" are all reflections of the ______ mentality. a. production b. marketing c. sales d. societal marketing e. proactive

a. production

__________________________ is one of probability-based sampling technique that can be used when elements in the population are expected to be different in one or two key areas of interest and diversity among population is likely to render random sampling inaccurate, in which cases, the population can be grouped into a few groups based on group member's similarity on a certain aspect (age, income, education, psychographic characteristics, etc.) that is expected to explain group differences on the matter of interest. Ideally, elements in the sample should be as homogenous as possible within the group but they should be heterogeneous as possible between the groups. a. stratified sample b. cluster sample c. simple random sample d. systematic sample

a. stratified sample

A relatively enduring, learned predisposition to act favorably or unfavorably toward a given object (e.g., a store, company, or brand). a. perception b. motivation c. behavioral learning d. attitude e. personality

attitude

Which of the following about marketing mix is wrong? a. It is meaningless to design marketing mix before target market decision is made. b. Its elements include product, price, prevention, and promotion. c. Marketing mix is also called 4 p's d. If the four elements of the marketing mix are well planned, companies can enhance customer value.

b. Its elements include product, price, prevention, and promotion.

Which of the following would suggest that the firm has avoided marketing myopia? a. We handle freight for our customers. b. We make our customers' dreams come true. c. We write computer software. d. We manufacture high quality machine tool

b. We make our customers' dreams come true.

What market practice is roughly analogous to the military principle of " divide and conquer?" a. Mass marketing b. Product positioning c. Market segmentation d. SWOT analysis e. Diversification

c. Market segmentation

On average, the proportion of the price involved in a product such as a Subway sandwich, an ounce of Safari Perfume, or even a European vacation that can be traced directly to marketing is roughly equal to a. around 33 percent b. around 66 percent c. around 50 percent d. around 25 percent

c. around 50 percent

The ultimate aim of customer relationship management is to produce ________. a. satisfied customers b. high current market share c. high customer equity d. a reliable database e. steady sales volume

c. high customer equity

An example of a "threat" to a firm discovered by a SWOT analysis might be a. cost advantages present because of advanced technology. b. the chance to acquire firms with needed technology. c. likely entry of new competitors in the industry. d. too narrow a product line for the firm.

c. likely entry of new competitors in the industry.

A research error that occurs when a sample somehow does not represent the target population because original people selected to be interviewed either refused to cooperate or were inaccessible in a survey, is called a a. measurement error b. sampling frame error c. non-response error d. random sampling error

c. non-response error

Mystery shoppers engage in a form of: a. In-depth interview b. experiential study c. observation research d. survey e. mall intercept study

c. observation research

___________ is a group of people chosen to participate in a marketing research from the population a. population b. sampling frame c. sample d. census e. hyperthetical group

c. sample

Your company wanted to investigate what attitude people in the metropolitan area have towards your product. You determined that you will do telephone survey for this project. To get a list of people who live in the metropolitan area, you used a telephone book published although it may not list all the people living in the area. The telephone book is an example of ___________ a. hypothetical group b. census c. sampling frame d. sample e. population

c. sampling frame

Data that have been collected previously for other purposes, not specifically for the research being conducted presently are called ________ data a. objective b. primary c. secondary d. experiential e. observational

c. secondary

As the perceived risk (the likelihood of making a mistake) involved in buying a product increases, so does the post purchase likelihood of a. affective distress b. post purchase analysis c.evaluative dissonance d. cognitive dissonance

cognitive dissonance

Which of the following might be an example of the so-called "societal marketing concept?" a. Pizza Hut places its logo on a Russian rocket. b. L'n Oreal creates a new cosmetic line especially for teenage consumers. c. All of the above could be examples of societal marketing. d. Burton started Chill program to share snowboarding with poor and at-risk kids. e. GE, faced with a saturated domestic market for refrigerators, focuses on exporting.

d. Burton started Chill program to share snowboarding with poor and at-risk kids.

Assume you want to increase the number of customers by applying the marketing concept. Which of the following strategies would be most consistent with that approach? a. Increase your advertising budget. b. Offer products that are inexpensive to produce. c. Offer a larger selection of products than your competitors. d. Find out what the customers' needs are and offer products to meet those needs.

d. Find out what the customers' needs are and offer products to meet those needs.

If you are invited to help with Cal Poly Pomona's Master of Marketing Research or Certificate in Marketing Research, which of the following is NOT correct? a. The consulting team needs to understanding strengths and weaknesses of CBA and IBM department. b. The consulting team should understand mission and objective of the College of Business Administration. c. The consulting team should understand everything about similar programs offered within the CBA and nearby universities such as University of La Verne, CSU Fullerton among others. d. Programs' curriculum issues are one of the "promotion" issues. e. If CBA uses classrooms and other infrastructure managed by College of Extended University at Cal Poly Pomona to deliver the proposed program content taught by IBM faculty, this is a "channels of distribution" issues.

d. Programs' curriculum issues are one of the "promotion" issues.

Customers may be classified into four relationship groups, according to the customers' profitability and projected loyalty. ________ are the customers with the highest profit potential and strong loyalty. a. Butterflies b. Big fish c. Barnacles d. True friends e. Strangers

d. True friends

Which of the following is NOT one of the reasons why you may want to use observation as a method of data collection? a. because certain types of data can be collected only by observation b. because there will be no reporting or interviewing bias. c. because it does not rely on respondent's willingness to provide data d. because motive, beliefs, attitudes, and preferences of the subjects can be easily assessed.

d. because motive, beliefs, attitudes, and preferences of the subjects can be easily assessed.

Because "same store sales" stagnate, Wal-Mart started targeting at more affluent consumer groups by upgrading their product assortments (e.g., more fancy apparels and organic food). This effort is an example of: a. reimaging b. resegmenting c. market segmentation d. repositioning e. perceptual mapping

d. repositioning

Which of the following primary data collection technique is the most popular and useful for obtaining characteristics, facts, opinions, and attitudes from people or target market? a. projective techniques b. observational research c. experimental design d. survey research

d. survey research

This demand in business markets is called ________ demand because demand for business products results from demand for consumer products. a. Inelastic b. Derived c. Joint d. Fluctuating

derived

" Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing _______________ in ways that benefit the organization and its stakeholders" a. Promotion b. Sales c. Values d. Exchanges e. Customer relationship

e. Customer relationship

This type of research is best in explaining data (meaning that it can uncover causal relationship between two variables). a. focus group b. projective techniques c. trend analysis d. survey e. Experimental design

e. Experimental design

Which of the following is most accurate about strategies for selecting appropriate segment(s)? a. Multi-segment strategy usually reduces firms' profitability because increase in costs associated with modification of the products designed to target different segments more than offset the increases in sales. b. Multi-segment strategy is always best for all the firms. c. Undifferentiated strategy is likely to lead to the most appealing product for customers. d. Large firms are likely to favor concentrated strategy. e. For small firms, concentrated strategy makes sense as they can focus on a niche market with their limited resources.

e. For small firms, concentrated strategy makes sense as they can focus on a niche market with their limited resources.

Choose a statement that is NOT correct about positioning. a. The act of putting a product in the minds of the customers. b. It may sometimes require physical alteration to be effective. c. Features of the product should be congruent with the intended position of the product. d. The act of designing the company's offering and image so that they occupy a meaningful and distinct position in the target customers' minds. e. It is a way to make our products similar to those offered by competitors.

e. It is a way to make our products similar to those offered by competitors.

When does it make sense to segment a market? a. When segments cannot be accessed b. When a segment is small c. When all segments are responsive in a similar fashion d. When segments cannot be identified e. When segments are homogenous within, heterogeneous between

e. When segments are homogenous within, heterogeneous between

While discussing an upcoming marketing research study of how the home decorating industry is affected by the teenage consumer, you emphasize the necessity of having a sample that is representative of the population. What type of sample must be used? a. a convenience sample b. a field service sample c. a nonprobability sample d. a quota sample e. a probability sample

e. a probability sample

Which one of the following statements is correct about qualitative research methods? a. With focus group and indepth interview, managers cannot get insights into an issue quickly and inexpensively. b. Focus group and indepth interview are good when marketers want to test hypotheses. c. Projective techniques are inexpensive because it doesn't require highly trained interviewers. d. with projective techniques such as third party questions, participants are less likely to reveal their thoughts and latent motivations. e. projective techniques are good when participants might be unwilling or unable to answer.

e. projective techniques are good when participants might be unwilling or unable to answer.

When the __________ goes up, the amount of information consumers search for externally would go down a. level of perceived risk b. level of the social visibility of the product c. level of interest d. level of knowledge

level of knowledge

What is the underlying basis for all action; the driving force behind all consumer behavior? a. attitude b. behavioral learning c. perception d. personality e. motivation

motivation

Companies often reward heavy users of their products or service by giving rebate or frequent-flyer miles. This strategy is supposed to reinforce their positive behavior. This is an example of how companies utilize. a. Classical conditioning b. Self-concept c. Operant conditioning d. Attitude e. Personality

operant conditioning

Ralph played mediocre golf for over 20 years. Then he retired and vowed to improve his golf game by buying one of the new golf clubs that promise increased distance and have a $700 price tag. According to Maslow's hierarchy of needs, Ralph is most likely trying to satisfy his _____ needs. a. social b. safety c. physiological d. psychological e. self-actualization

self-actualization

Select a statement that is NOT correct about business vs. consumer markets a. Business buyers tend to be concentrated, while consumers tend to be dispersed b. Distribution is more direct in business market than in consumer market c. Negotiations are usually more complex and reciprocity exists in business market d. More people are involved in transactions of business products than in those of consumer products e. The major promotional tool in business market is advertising, while that in consumer market is public relations

the major promotional tool in business market is advertising, while that in consumer market is public relations

Which of the following cannot be considered business products? a. Those that are used to manufacture other products (e.g., major equipment or accessory equipment) b. Those that become part of another products (e.g., raw materials, processed materials, and component parts) c. Those that are purchased to be used by consumers d. Those that aid the normal operations of an organization (e.g., supplies and business services) e. Those that are acquired for resale

those that be purchase to be used by consumers