Marketing Test 1 MC

Which of the following statements is true of a positioning map?

It is a visual description of customers' perceptions of competitive products, brands, or models.

From a marketer's perspective, which of the following is a characteristic of direct marketing?

It is effective in generating sales leads.

Which of the following is true of the different stages in a product life cycle?

Profits increase and are positively correlated with sales during the growth stage of the product life cycle.

According to the VALS™ framework, consumers who are driven by a goal of demonstrating success to their peers and are motivated primarily by achievement can be best classified as _____.

Strivers

With regard to the objectives of advertising, identify the most accurate statement.

The ultimate goal of the business advertiser is to make sales and profits.

Which of the following statements is true of a venture team?

It is a cross-functional team responsible for all the tasks involved in the development of a new product.

Which of the following statements about product involvement is true? Product knowledge is unrelated to product involvement. The level of product involvement with a product requiring routine decision is same as that of a product requiring extensive decision making. Product involvement is independent of the group, marketing, and situational influences operating upon a potential consumer. A consumer's level of product involvement will determine how quickly a purchase is made.

A consumer's level of product involvement will determine how quickly a purchase is made.

50 Flags is a store that sells American flags and State Flags. Their advertisements clearly state that all their products are manufactured in the U.S. and carry the 'Made in USA' label. Which of the following psychographic groups of the VALS™ framework is the store targeting?

Believers

Vet Meds is the pharmaceutical branch of a large medical research center for animals. Vet Meds often conducts surveys at veterinary hospitals and private vet clinics to identify potential areas for improvisation and growth. The company noted that many domestic pet-owners reported finding it extremely difficult to give their dogs oral medications owing to the bitter taste of the medicines, which remained even when the medicines were mixed with food. In response to this finding, Vet Meds released oral medicines for dogs which came in various meat flavors. Which of the following segmentation approaches is used by Vet Meds to satisfy consumer needs?

Benefit segmentation

_____ are personalized journals where people and organizations can keep a running dialogue.

Blogs

Identify the stage of new product development process where emphasis is given to following up on elements that include bugs in design, production costs, quality control, and inventory requirements.

Commercialitzation

_____ are consumer goods that are purchased frequently with minimum effort.

Convenience goods

Which of the following is an organizational strategy based on competitive advantage? Cost leadership strategy Market differentiation strategy Market diversification strategy Product development strategy

Cost leadership strategy

Identify the correct statement about culture in the context of consumer behavior. Cultural antecedents affect everyday behavior and are determinant of certain aspects of consumer behavior. Absence of empirical evidence suggests that culture cannot predict consumer behavior. Marketing managers should avoid adapting their marketing mix to cultural values as they lead to biases. Cultural values of a domestic market are bound to remain uniform in the global market as well.

Cultural antecedents affect everyday behavior and are determinant of certain aspects of consumer behavior.

_____ refer to situational influences such as momentary moods and states that influence consumer behavior

Current conditions

What does the horizontal dimension of the VALS™ framework represent?

Primary motivation

Which of the following steps of the market segmentation process aids in determining objectives, opportunities, and constraints to be considered when selecting target markets and developing marketing mixes?

Delineating a firm's current situation

Which of the following segmentation bases of consumer markets includes income?

Demographic

According to the process of product adoption and diffusion, which of the following adoptive categories first begins to buy a product if the experience of innovators has been favorable?

Early adopters

Which of the following is an ethical and legal concern directly associated with advertising?

Encouraging materialism and excessive consumption

Which of the following is an example of social influences on consumer behavior? Eva purchases a mini skirt after reading Seventeen, a magazine for teens, where a fashion editor writes that any teen who wants to be considered "in vogue" must wear short skirts. The manufacturer of a line of aromatherapy candles markets its products through an exclusive chain of health and wellness stores across the country. Ernie decides against buying a new dress for Easter as she is saving up for a designer gown she wishes to purchase later that year for her wedding. Barath purchases a pair of Rough Terrain brand shoes instead of the Unisole brand because the Unisole shoes aren't within Barath's budget.

Eva purchases a mini skirt after reading Seventeen, a magazine for teens, where a fashion editor writes that any teen who wants to be considered "in vogue" must wear short skirts.

Which of the following sources of information regarding a purchase decision refers to handling, examining, and trying out a product while shopping? Internal sources Marketing sources Experiential sources Public sources

Experiential sources

A firm has chosen to create an organizational strategy based on differentiation. Which of the following is the firm's next step in the strategic planning process? Identifying the marketing mix Creating an organizational mission Setting organizational objectives Formulating an organizational portfolio plan

Formulating an organizational portfolio plan

Which of the following is a disadvantage of the all-you-can-afford approach to deciding advertising budget?

It assumes a connection between liquidity and advertising opportunity

Candela Inc.'s marketing and product design involves identifying customer needs and then working backwards to devise products and services to meet those needs. Which of the following statements is most likely true about Candela Inc.? It does not adhere to the marketing concept. It demonstrates customer orientation. It aims to manipulate customers to increase sales. It has a production orientation.

It demonstrates customer orientation.

Which of the following describes the function of geodemographic segmentation?

It identifies the specific households in a market by focusing on local neighborhood areas and creates classifications of neighborhoods where people live and shop.

Identify the accurate statement regarding an effective mission statement. It should focus on the physical product that the organization is offering at present, not on the external forces that the organization is seeking to satisfy. It should focus on public relations as its primary purpose. It should not consider the critical characteristics and events of the past. It should provide guidance to employees and managers in geographically dispersed units.

It should provide guidance to employees and managers in geographically dispersed units.

Which of the following scenarios shows how a product was improved by modifying its marketing dimensions?

Liz Claiborne increased the number of retail outlets that carries its sportswear.

Which of the following organizational growth strategies aims to find new customers for its present products?

Market development strategy

_____ is an ethical and legal concern associated with public relations.

Paying lip service to worthwhile causes

Altron Herbals is trying to market a new sunscreen lotion. In order to identify their target market segment, they have prepared a questionnaire that asks potential consumers about their lifestyles, especially their activities, interests, and opinions. Based on their answers, the consumers will be grouped into separate categories. Which of the following market segmentation approaches has Altron used in this scenario?

Psychographic segmentation

_____ is a nonpaid form of nonpersonal communication about an organization and its products that is transmitted through a mass medium in the form of a news story.

Publicity

Which of the following is an advantage of magazines over newspapers as an advertising medium?

Quality of reproduction

Southern Elegance, a catering company, is planning to advertise its services to businesses in the area. It wants to use an advertising medium which is low in cost, geographically flexible, widely used, and has audience selectivity. Which of the following media is Southern Elegance most likely to use?

Radio

Which of the following is a disadvantage of using direct mail as an advertising medium?

Relatively high costs

The marketing department of Dimension Inc. notices a decline in the buying patterns of its customers. The company's sales for the month of November were low in comparison to its sales for the previous months. To address this issue and add value to its products, Dimension decides to offer coupons for its products and schedule a sweepstake for Christmas. Which of the following elements of the promotional mix is Dimension using in this scenario?

Sales promotion

Which of the following is the most market-oriented approach to segmentation?

Segmentation based on benefits that potential customers are seeking

Which of the following is a disadvantage of advertising through the Internet?

Short message life

Which of the following methods are commonly used for creating and managing project teams?

Skunkworks and rugby approach

Dawson & Peters' new line of leather boots are marketed as the hottest fashion trend of the season. The company puts up posters on billboards that featured several celebrities wearing the boots. The concept of the television ads was how wearing the boots could make you the envy of all those around you. According to the VALS™ framework, which of the following psychographic groups is Dawson & Peters targeting?

Strivers

According to VALS™, _____ are the type of consumers who have few resources, are more concerned with safety and security, and do not show a very strong primary motivation.

Survivors

Which of the following is a guideline for implementing the marketing concept? Define quality for the customers. Manage for sales volume, not profit. Target customers precisely. Make advertising the guiding star.

Target customers precisely.

Which of the following approaches of determining advertising spending is often used in conjunction with other approaches?

The competitive parity approach

Ursula, a conventional advertising manager, allocates a sizeable amount of funds toward advertising budgets. She is primarily concerned with the sales figures at the end of every quarter and calculates return on investment for her company's product portfolio. Based on these characteristics, which of the following approaches to advertising does Ursula follow?

The generalist viewpoint

Which of the following statements about market segmentation is true?

The logic of market segmentation is that a single product item can seldom meet the needs and wants of all consumers.

Which of the following statements best describes the role of marketing executives in the strategic planning process?

The marketing executives must always be aware of what the process of strategic planning involves as well as the results.

QUESTION 24 For which of the following purchases would a consumer most likely to be engaged in limited decision making? The purchase of a brand of candy bar without much deliberation The purchase of a shirt for a friend based on its eye-catching advertisement after comparing different brands The purchase of a six pack of beer and a bag of popcorn by a food gourmet The high priced renewal of a subscription to Hardware Age, a trade journal, by a hardware store owner

The purchase of a shirt for a friend based on its eye-catching advertisement after comparing different brands

In the context of determining how much to spend on advertising, which of the following statements is true about the per-unit expenditure approach?

This method is popular with higher-priced merchandise.

Which of the following products can be classified as an organizational good?

Timber purchased by the owner of a furniture store to make chairs

Which of the following is a reason behind companies' efforts to cut back on trade and other promotions?

To improve efficiencies in manufacturing and distribution systems

Which of the following is an ethical and legal concern associated with direct marketing communications?

Using consumer database information without consumers' authorization

According to the VALS™ framework, consumers driven by a desire for social or physical activity, variety, and risk taking are motivated primarily by _____.

self-expression

Bonuses, meetings, and portfolios are examples of sales promotion activities primarily aimed at:

a company's own sales force.

The per-unit expenditure method of determining advertising budgets is best exemplified by:

a television manufacturer spending a fixed monetary amount on advertising for each unit of the product expected to be sold

The reinforcement of unfavorable ethnic or racial stereotypes through mass media is a legal concern directly associated with:

advertising

A company changes the packaging of one of its existing products to make it more attractive to consumers. The company has improved its product by modifying its _____.

attributes. Attributes refer mainly to product features, design, package, and so forth.

Whizzle Corp. first introduced a line of toothpastes under the Whizzle brand name. A few years later, it introduced two different products, a mouthwash and a chewing gum, using the same brand name. Whizzle is using a _____ strategy to market its products.

brand extension

In a _____, a manager is responsible for everything from marketing research and package design to advertising for a single product or a very small group of new and existing products.

brand-manager system

The occurrence of postdecision anxiety is related to the concept of _____. marketing myopia cognitive dissonance sole sourcing need recognition

cognitive dissonance

Convenience goods, shopping goods, and specialty goods are the three classes of _____.

consumer goods

A cross-functional team responsible for the creation of its company's marketing plan had to make adjustments to the marketing plan since the plan failed to meet the determined objectives. This implies that the cross-functional team is: controlling the marketing plan. redefining the organizational mission. implementing the marketing plan. altering the organizational portfolio plan.

controlling the marketing plan.

Lauren is a brand manager at a company that manufactures toothpaste. She wants to increase the sales of an existing brand of toothpaste. To do so, she calls for a meeting with a team comprising of members from the administrative department, the human resource department, and the finance department. All these members work together to come up with ways to improve the company's toothpaste brand positioning. Such a team is an example of a _____.

cross-functional team

Price deals are a form of consumer promotion where:

customers are offered discounts from the product's regular price.

Executives commit the error of "marketing myopia" when they _____.

define their company's product too narrowly

The final step of marketing planning is _____.

developing the market mix

Alcove Inc., a computer hardware manufacturer, provides post-installation technical support to its customers by issuing free newsletters that contain tips on enhancing the performance of a product and dealing with common performance-related issues. In this scenario, Alcove is marketing _____.

extended products

A high degree of product involvement typically encourages _____ decision making by consumers. optional limited extensive routine

extensive

Sapphire Corp., a manufacturer of perfumes, decides to use its well-established corporate image to enter a new product class. It does so by attaching the Sapphire corporate name to its new line of clothing and accessories. From the information provided in the scenario, it is evident that Sapphire is using a _____ strategy to market its products.

family branding

Market development strategies involve: increasing the sale of existing products to present customers. finding new customers for its present products. directing new products to present customers. leading an organization into entirely new and unrelated businesses.

finding new customers for its present products.

A product that is viewed in terms of the essential benefits that a buyer expects to receive from it is called a:

generic product

In the process of market segmentation, determining customer needs and wants is immediately followed by:

grouping consumers on the basis of one or more similarities and treated as a homogeneous segment of a heterogeneous total market.

According to the VALS™ framework, consumers driven by knowledge and principles are motivated primarily by

ideals

In the context of the diffusion of innovation, _____ refer to the buyers who are the first to purchase a product

innovators

Establishing progress goals that facilitate the go or no-go decisions regarding continuation of projects is an integral part of managing the _____ risk of new product development.

internal

When weekend gardeners think of mulch to put around their plants and keep away the weeds, they tend to think in terms of pine bark, wood chips, or pine straw. Slatescape has developed mulch made out of crushed slate rock. The company first targeted landscape businesses and was successful in marketing to these businesses and to government agencies. However, in order to expand its business, the company must now educate consumers about its product. Slatescape will be implementing a _____. market penetration strategy market differentiation strategy diversification strategy market development strategy

market development strategy

Kelly, who wants to buy an exercise machine, sees an advertisement in the local newspaper for a fitness equipment store. She notices that the store showcases the model she wants. This is an example of _____ on product knowledge. group influence situational influence marketing influence product influence

marketing influence

The first step in controlling an implemented marketing plan is:

measuring the results of the marketing plan.

It is important for a mission statement to be _____ because it provides a shared sense of purpose outside the various activities taking place within the organization. internally-focused product-oriented motivational generic

motivational

A group of university students are asked to fill a survey which requires them to rank five different television advertisements on mobile software in the market in order of their preference. The survey mentions that the parameters on which the advertisements are to be rated include their credibility, the interest-level they generate, and their attractiveness. The survey the students fill out is a typical example of a(n):

opinion test.

Major and minor equipment, such as basic machinery, tools, and other processing facilities, can be categorized as:

organizational goods

If the product of a firm is a new complex technology that requires a great deal of explanation, the promotional mix will likely focus heavily on _____ so that potential buyers can have their questions answered.

personal selling

Irene considers herself to be an expert on gourmet cuisine, and she has dined at many of the finest restaurants in the United States. On a recent trip to New Orleans, she refused to eat at a restaurant that was reported to have some of the best Cajun food because she thought the décor was tacky and outdated. Which situational influence explains Irene's refusal to eat at the restaurant? Marketing mix Task features Reference groups Physical features

physical features

According to Maslow's hierarchy, _____ will dominate when all needs are unsatisfied, and in such situations, none of the other needs will serve as a basis for motivation. physiological needs safety needs esteem needs self-actualization needs

physiological needs

Jake is the marketing manager at Z-T athletic shoes manufacturers. Jake wanted to know how consumers perceive Z-T shoes when compared to all other athletic shoes currently in the market. He develops and administers a survey which indicates that the important attributes consumers look for in athletic shoes include price, durability, fit, and support. In this case, Jake could determine how Z-T ranks against other brands by using a _____.

positioning map

MNM Foods Inc. manufactures jelly made out of gelatin in various fruit flavors. However, the sale of its current line of flavored jelly has significantly fallen. To recover losses, the company conducts market research and identifies that a significant amount of health benefits can be attributed to the consumption of the food jelly. The firm incorporated new promotion strategies so that consumers would retry the product owing to its projected health benefits. This is an example of:

product repositionings

Midas Corporation is a sporting goods manufacturer. Most of its energies and resources are devoted to manufacturing and selling one line of sporting shoes that has been a reasonable hit in the past. The company rarely undertakes any marketing research studies to assess consumer wants and needs and seldom devises new advertising or promotional strategies. The company is mostly exhibiting _____.

production orientation

Midas Corporation is a sporting goods manufacturer. Most of its energies and resources are devoted to manufacturing and selling one line of sporting shoes that has been a reasonable hit in the past. The company rarely undertakes any marketing research studies to assess consumer wants and needs and seldom devises new advertising or promotional strategies. The company is mostly exhibiting _____. investor orientation market orientation customer orientation production orientation

production orientation

Distribution allowances are typical examples of _____.

push strategies

An advertisement for a Fast Rationale Emergency Dialer states, "In a life-threatening emergency, 73 percent of people misdial 911." In terms of Maslow's hierarchy, this advertisement was designed to appeal to a consumer's _____. social needs esteem needs safety needs self-actualization needs

safety needs

According to the VALS™ framework, consumers categorized as Experiencers and Makers are motivated primarily by:

self-expression

An organization's focus on devising methods to attract customers to current products is called _____. customer orientation production orientation selling orientation non-profit orientation

selling orientation

Marketers can create brand equity by: selling the product in prestigious outlets that are exclusive. ensuring ready availability of the product through retail chains. collecting comparative information about competitive brands. making the product available at all convenience stores.

selling the product in prestigious outlets that are exclusive.

Bates Inc. is an enterprise comprising three parts. Its biotech section, which is working to develop crops that are pest and disease-resistant, provides about half of its sales. Pharmaceuticals from its B.D. Feller subsidiary contribute a third of its revenues; and food products, dominated by the artificial sweetener NutroSweet, make up less than fifteen percent of its total revenue. These three divisions represent Bates's _____. strategic business units buying centers venture teams cross-functional units

strategic business units

An advertising expenditure approach that initially formulates the advertising goals and defines the tasks to accomplish these goals is known as a(n) _____.

task approach

An organization's mission statement is described as not ruling out any opportunity management might wish to pursue. This mission statement is most likely to be _____. too distinctive incomplete too broad too specific

too broad

The _____ dimension of the VALS™ framework segments people based on the degree to which they are innovative and have resources such as income, education, intelligence, and energy.

vertical