MARKETING FINAL EXAM PART 1
Mama Vertalli's Bakery is a family-owned business with over $1 million in annual revenues and six locations. At Mama Vertalli's, decisions are sometimes slow in coming and top-level managers delegate very little authority to lower-level employees. Mama Vertalli's is a(n) ____ organization. A) centralized B) decentralized C) empowered D) marketing-oriented E) total quality management
A) centralized
Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in A) demographics. B) cultural values. C) income levels. D) consumerism. E) subcultures.
A) demographics.
Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix. A) distribution B) product C) exchange D) price E) promotion
A) distribution
The Lazy-Boy Furniture Company collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called A) environmental scanning. B) survey of environment. C) marketing. D) environmental analysis. E) marketing information processing.
A) environmental scanning.
A competitive advantage exists when a A) firm matches a core competency to opportunities it has discovered in the marketplace. B) firm does marketing better than its competitors. C) combination of circumstances and timing allow a firm to reach an attractive target market. D) firm observes a fit between the key requirements of a market and its own capabilities. E) firm has a strong marketing plan.
A) firm matches a core competency to opportunities it has discovered in the marketplace.
Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors. A) generic B) product C) total budget D) oligopolistic E) pure
A) generic
Darren uses Microsoft Excel to determine how much the responses to his survey about household decision making for toilet paper vary. Darren is in the ____ step of the marketing research process. A) interpreting research findings B) reporting research findings C) collecting data D) designing the research project E) developing a hypothesis
A) interpreting research findings
An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ____ question. A) open-ended B) dichotomous C) forced-sum-choice D) multiple-choice E) limited-choice
A) open-ended
Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle. A) prosperity B) depression C) recovery D) succession E) recession
A) prosperity
The process of dividing a total market into market groups because people within each group have relatively similar product needs is called A) segmentation. B) diversification. C) target marketing. D) concentration. E) customization.
A) segmentation.
Marketing activities are A) used by all sizes of organizations including for-profit, nonprofit, and government agencies. B) limited to use by larger for-profit and nonprofit organizations. C) implemented only to increase profits for the organization and to expand the scope of its customer base. D) used by all types and sizes of businesses but are not used by nonprofit organizations. E) used by small businesses and small nonprofit organizations the most.
A) used by all sizes of organizations including for-profit, nonprofit, and government agencies.
What is the primary factor contributing to the increasing difficulty associated with gathering primary data through surveys? A) Most companies do not have any funding for survey research. B) Fewer people are willing to participate in surveys. C) Laws significantly limit firms' ability to conduct surveys. D) Unreliable methods of distributing surveys make them difficult to conduct. E) Very little useful information is ever gathered from survey results.
B) Fewer people are willing to participate in surveys.
Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model? A) Gender and age B) Geographic location and family life cycle C) Income and geographic location D) Family life cycle and income E) Geographic location and gender
B) Geographic location and family life cycle
Decreasing sales, increasing expenses, or decreasing profits A) are to be expected during the marketing research process. B) are examples of symptoms that point to larger problems. C) usually have no effect on the marketing research process. D) are important considerations in designing the research project. E) should be carefully considered before collecting data.
B) are examples of symptoms that point to larger problems.
Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____ A) dog. B) cash cow. C) star. D) cash contributor. E) question mark.
B) cash cow.
A firm's unique symbols, personalities, and philosophies comprise its A) corporate persona. B) corporate identity. C) corporate character. D) CEO's identity. E) ethics.
B) corporate identity.
In addition to the proliferation of new organic brands many conventional marketers have introduced organic versions of their products, including Orville Redenbacher, Heinz, and even Walmart. These firms are responding to changes in A) federal law. B) cultural values. C) demographics. D) consumerism. E) technological forces.
B) cultural values.
Long-term relationships with profitable customers is the key objective of A) personal selling. B) customer relationship management. C) production oriented firms. D) e-marketing. E) distribution channels.
B) customer relationship management.
Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents. A) multiuse B) differentiated C) stratified D) undifferentiated E) concentrated
B) differentiated
A physical product you can touch is a(n) A) service. B) good. C) idea. D) concept. E) philosophy.
B) good.
Costco believes that most of its sales are to small businesses rather than consumers -- and that women are more likely to be making the purchasing decisions. This is an example of a(n) ____ that Costco could test through marketing research. A) descriptive sample B) hypothesis C) experimental question D) sampling error E) conceptual error
B) hypothesis
A target market A) involves a large number of customers. B) is a specific group of customers on whom an organization focuses its marketing efforts. C) already has several competitors vying for customers' business. D) is the same as a salesperson's prospective client list. E) is a customer group classified as people with similar demographic characteristics.
B) is a specific group of customers on whom an organization focuses its marketing efforts.
Eighteen-year-old students do not form a market for alcoholic beverages because they A) lack sufficient buying power to form a market. B) lack the authority to purchase this type of product. C) do not want to purchase this type of product. D) do not have sufficient experience with this type of product. E) lack the money to purchase this type of product.
B) lack the authority to purchase this type of product.
If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is A) lifestyle. B) motives. C) personality. D) benefit expectations. E) personality attributes.
B) motives.
While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk Soymilk has a(n) ____ approach to marketing environmental forces. A) inactive B) reactive C) proactive D) negative E) variable
B) reactive
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as A) marketing synthesis. B) relationship marketing. C) a marketing orientation. D) the marketing concept. E) strategic marketing.
B) relationship marketing.
Managers at the Longshore Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called A) marketing planning. B) strategic planning. C) marketing strategy. D) corporate strategy. E) strategic business planning.
B) strategic planning.
Distribution, price, promotion, and product are all elements of A) marketing strategy. B) the marketing mix. C) a target market. D) a consumer good. E) a business strategy.
B) the marketing mix.
Which of the following is not a component of a marketing plan? A) Environmental analysis B) Marketing strategies C) Product D) Executive summary E) Marketing implementation
C) Product
Why would a company use the undifferentiated strategy? A) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. B) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. C) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. D) The undifferentiated strategy is expensive to implement but tends to produce the most sales. E) When a market is made up of individuals or organizations with diverse need for products in a specific product
C) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.
In marketing research, a sample is best described as A) a small group that is a part of a larger group. B) all the elements, units, or individuals of interest to researchers for a specific study. C) a limited number of units chosen to represent the characteristics of a total population. D) a group that shares a common attribute within a population. E) a small portion of a product offered to customers to try a new product.
C) a limited number of units chosen to represent the characteristics of a total population.
Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using ____ segmentation. A) behavioristic B) product usage C) benefit D) end-purpose E) advantage
C) benefit
By offering both credit and financing through its GMAC division, General Motors is trying to help consumers A) expand future buying power at the expense of current buying power. B) expand disposable income at the expense of discretionary income. C) expand current buying power at the expense of future buying power. D) expand both disposable income and wealth. E) decrease both disposable and discretionary income.
C) expand current buying power at the expense of future buying power.
The percentage of a market which actually buys a specific product from a specific company is referred to as that product's A) strategic segment B) target market C) market share D) market cut E) market position
C) market share
Bart's Appliance Center owner Ron Bart feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Bart needs to develop a A) marketing research focus. B) marketing knowledge bank. C) marketing information system. D) marketing strategy. E) data-gathering system.
C) marketing information system.
The American automobile industry was historically dominated by "The Big Three," referring to General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ____ structure to a(n) ____ structure. A) monopolistic; oligopolistic B) oligopolistic; pure competition C) oligopolistic; monopolistic competition D) monopolistic competition; pure competition E) monopolistic; monopolistic competition
C) oligopolistic; monopolistic competition
Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike. A) price B) good C) product D) promotion E) distribution
C) product
Saks Fifth Avenue wants to learn about its consumers' attitudes toward on-line purchases. There are numerous studies that are available about consumers and on-line buying, but Saks believes its customers might be different from the usual on-line consumer profile, so they decide to conduct their own study. If Saks were to use the available data about consumer attitudes, it would be using ___ data; however, if Saks does its own study it would collect ______ data. A) descriptive; primary B) experimental; descriptive C) secondary; primary D) primary; secondary E) secondary; descriptive
C) secondary; primary
The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in A) legislation. B) lobbying. C) self-regulation. D) environmental scanning. E) trade restraint.
C) self-regulation.
Of all the federal regulatory units, the ____ most heavily influences marketing activities. A) Food and Drug Administration (FDA) B) Federal Communications Commission (FCC) C) Environmental Protection Agency (EPA) D) Federal Trade Commission (FTC) E) Federal Power Commission (FPC)
D) Federal Trade Commission (FTC)
Why are marketers interested in consumers' levels of disposable income? A) It accurately predicts future buying power. B) It increases current buying power. C) It is what is left after taxes and savings to buy luxuries with. D) It is a ready source of buying power. E) It is essential for forecasting future business trends.
D) It is a ready source of buying power.
Which of the following is not one of the major categories of consumer market segmentation variables? A) Demographic characteristics B) Geographic variables C) Psychographic dimensions D) Situational variables E) Behavioristic characteristics
D) Situational variables
The 1990 Nutrition Labeling and Education Act directly prohibits A) exaggerated claims made by health and fitness products. B) putting the words "cholesterol-free" on any food package. C) putting nutritional information on most food products. D) exaggerated health claims on food packages. E) the use of any health claim on food packaging.
D) exaggerated health claims on food packages.
A marketer that targets customers based on marital status and the presence and age of children is using A) behavioristic segmentation. B) lifestyle variables C) psychographic variables. D) family life cycle. E) phase of life segmentation.
D) family life cycle.
If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through A) focus groups. B) mail surveys. C) personal interviews. D) observation. E) mall intercepts.
D) observation.
Which of the following products is most likely to be marketed, using an undifferentiated approach? A) bicycle B) computer C) notebook D) seasoning salt E) oscillating fan
D) seasoning salt
If Weight Watchers is interested in collecting information about Americans' perceptions of dieting programs, and the company believes that significant regional differences may exist, the best type of sampling would be A) random. B) quota C) population D) stratified E) nonquota.
D) stratified
The use of marketing research is A) limited strictly to large corporations. B) limited to for-profit businesses of all sizes. C) controlled by the federal government. D) widespread throughout business and nonprofit organizations. E) carefully monitored by each state's trade agencies.
D) widespread throughout business and nonprofit organizations.
Nabisco learned that health-conscious consumers preferred lower fat snack and lower-carbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabisco's action? A) Environmental scanning B) Environmental marketing C) Demarketing D) Segmentation E) Environmental analysis
E) Environmental analysis
Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys? A) Total population surveys B) In-home (door-to-door) interviews C) Focus-group interviews D) Personal interview surveys E) Online surveys
E) Online surveys
In general, which of the following competitive structures is an organization least likely to operate? A) Monopoly B) Monopolistic competition C) Oligopoly D) Elastic competition E) Pure competition
E) Pure competition
Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship? A) Profits for the seller B) A good bargain on the product for the buyer C) Reducing the seller's inventory D) One party having to compromise in the exchange E) Satisfaction for both the buyer and seller
E) Satisfaction for both the buyer and seller
Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers. A) organizational opportunity advantage B) strategic window C) market requirement D) market opportunity E) competitive advantage
E) competitive advantage
In managing customer relationships, the three primary ways profits can be obtained are by A) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers B) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers. C) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers. D) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers. E) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
E) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct A) exploratory research. B) hypothesis development. C) survey research D) stratified sampling. E) experimental research.
E) experimental research.
The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the A) competitor sales potential. B) sales objective. C) forecasted sales. D) company sales potential. E) market potential.
E) market potential.
CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the A) profit plan. B) marketing program. C) strategic market program. D) strategic business plan. E) marketing plan.
E) marketing plan.
The element of the marketing mix used to increase awareness of a product or company is A) communication. B) product. C) price. D) distribution. E) promotion.
E) promotion.
Age, rate of product use, location, and gender are all examples of common A) demographic variables. B) geographic characteristics. C) targeting strategies. D) psychographic variables. E) segmentation variables.
E) segmentation variables.
Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____. A) opportunities; core competencies B) core competencies; strengths C) opportunities; strengths D) strengths; core competencies E) strengths; opportunities
E) strengths; opportunities
