MKT 300 Practice Test #1 (Montavon)

Which of the following is true about social responsibility? a. Social responsibility improves marketing performance. b. Social responsibility will always be profitable. c. Social responsibility results in fewer marketing problems. d. Social responsibility will eliminate ethical issues in marketing. e. Social responsibility automatically reduces costs.

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Charles works as a marketer at Hewlett-Packard. He has just spent the last few weeks collecting information about environmental forces that will influence computer industry. The time has come to try and make sense of this data and gather insights which he hopes will improve the company's marketing strategy in relation to competitors. Which type of activity is Charles working on? a. environmental analysis b. technology assessment c. competitive scanning d. SWOT analysis e. environmental scanning

A

Internet privacy has become a major issue. In fact, in Europe there are privacy laws to limit how much information websites can collect from users without their permission. The United States does not have comparable laws to protect consumer privacy on the Internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit its users' needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place. Acme wants to hire a trusted third-party verification site that specializes in Internet security to view its site. This third party has strong privacy criteria. If Acme meets these criteria, they can display a special seal on its website. This seal will demonstrate to users that Acme's website meets high standards in Internet security. Acme thus will reassure consumers that their information is safe. What type of activity is Acme engaging in? a. self-regulation b. obedience to relevant laws c. philanthropy d. consumerism e. technology assessment

A

Jacob performed an experiment over and over again in his quest to understand buyer behavior. He always got similar results. Jacob went to his manager with his results and told her that this knowledge could help them improve the company's marketing strategy. However, the manager pointed out that Jacob's results do not prove an association between his outcomes and buyer behavior. In fact, the manager can think of a number of factors proven to be more effective in influencing buyer behavior. In this case, Jacob's results lacked _________. a. validity b. integrity c. reliability d. importance e. feasibility

A

Libby is part of an online group of people who act as sounding boards for new ideas from one of her favorite companies. Libby does not interact much with the other people in her group, but she provides her own insights about proposed products. Libby is part of a(n) _________. a. customer advisory board b. stratified sample c. online focus group d. online sample e. research design

A

Lobbying involves which type of force in the marketing environment? Please choose the best answer. a. political b. economic c. competitive d. legal and regulatory e. sociocultural

A

Marketers can influence the political process through political action committees that solicit donations from individuals and then contribute those funds to candidates running for political office. a. True b. False

A

Most of the largest marketing research firms derive a significant portion of their revenues from research conducted outside of the United States. a. True b. False

A

Shannon is driving in downtown Santa Fe. She is not very familiar with the area and is running late for her appointment. She heads to a nearby paid parking lot and is told that it costs $10 to park. Shannon is irritated by the price. Although there are likely other paid parking lots that are less expensive, Shannon pays the price to park there. Different cost considerations impacted Shannon's decision, but clearly one stood out over all the others. Which cost exerted the most influence over Shannon's decision to park in the $10 parking lot? a. the non-monetary cost of time b. the monetary cost of the effort involved c. the $10 monetary cost d. the monetary cost of time e. the non-monetary cost of risk

A

The degree of centralization falls under organizing the market unit—a major part of managing marketing implementation. a. True b. False

A

Which of the following is likely the most important decision a company makes during the strategic planning process? a. choosing a target market b. conducting a SWOT analysis c. creating the marketing mix d. developing a marketing strategy e. evaluating marketing performance

A

A marketing information system uses tools and methods to measure and interpret the effectiveness of a firm's marketing activities. a. True b. False

B

After locating and defining problems or issues, the next step in the marketing research process is to _____________. a. interpret research findings b. design the research project c. report research findings d. conduct surveys e. collect data

B

Conducting a SWOT analysis comes immediately before the establishment of corporate and business-unit strategies. a. True b. False

B

Customers consciously calculate the value of a product in benefits and costs for most purchases. a. True b. False

B

Exploratory studies use relatively large sample sizes. a. True b. False

B

Jessica is working on a SWOT analysis of a local Mexican restaurant Tres Tortillas in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, and strong management. She also writes that the market for salsa products is strong, and more people are eating out. On the other hand, one major complaint leveled against the restaurant is that its prices are high, and other casual-dining restaurants with less expensive menu offerings are opening in the city. Still, Jessica believes the restaurant's talented and well-known chef provides it with an advantage other restaurants do not have. Which of the following characteristics of the Mexican restaurant represents an opportunity? a. strong management b. greater demand for salsa products c. strong organizational resources d. talented and well-known chef e. customer loyalty

B

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. Refer to Scenario 1.4. What type of orientation has Jim adopted? a. market b. production c. marketing concept d. sales e. customer

B

Many marketers collecting information turn to LexisNexis. LexisNexis contains articles on a variety of topics as well as cases and news documents. LexisNexis would most likely be considered which of the following? a. single-source data b. a database c. a marketing information system d. a marketing analytics tool

B

Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. At what stage of the strategic planning process is Margie? a. developing marketing strategies b. evaluating marketing strategies c. assessing organizational resources and opportunities d. developing a marketing plan e. managing marketing implementation

B

Marketers have complete control over marketing mix variables. a. True b. False

B

Marketing research is the systematic design, collection, ______________, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities. a. construction b. interpretation c. testing d. development e. review

B

REI has a 100% satisfaction guarantee on its items. It allows customers to return products up to one year after purchase. This is an attempt by REI to reduce what type of cost? a. time b. risk c. quality d. effort e. monetary

B

Soda companies are worried because sales have fallen flat. People today are more concerned about their sugar intake and want to be healthier. This reflects a change in _____. a. consumerism b. cultural values c. diversity characteristics d. demographics e. ethical values

B

The marketing research process differs from country to country. a. True b. False

B

Valerie works at a pharmaceutical firm that develops medicines for rare diseases. The company develops a new medication for a disease that very few people have. In fact, less than 100 people are said to have this disease in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Her friend Rick, who is taking business classes, tells her that this is too small to be a target market. Is Rick's statement true? a. True b. False

B

What is the significance of the 2010 Supreme Court decision, Citizens United v. Federal Election Commission? a. It ruled that the government has the authority to place limits on corporate spending in candidate elections. b. It ruled that the government is not authorized to ban corporate spending in candidate elections. c. It ruled that citizens have the right to sue firms for donating large sums to candidates. d. It ruled that politicians must cap the donations they receive from companies. e. It ruled that individuals are authorized to donate as much money as they like to candidate elections.

B

Which of the following is the final step in establishing an implementation timetable? a. separating the activities to be performed in sequence from those to be performed simultaneously b. assigning responsibility for completing each activity to one or more employees, teams, or managers c. organizing the activities in the proper order d. identifying the activities to be performed e. determining the time required to complete each activity

B

_______________ uses tools and data to measure and interpret the effectiveness of a firm's marketing activities. a. Marketing information systems b. Marketing analytics c. Big data d. Single-source data

B

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. From the information provided about Apple and its marketing strategies, Apple most likely embraces a _______________. a. Sales orientation b. Promotion orientation c. Market orientation d. Marketing concept orientation e. Production orientation

C

Consumers are most likely to remain anonymous through which survey method? a. mall-intercept surveys b. e-mail surveys c. mail surveys d. telephone surveys e. personal-interview surveys

C

Jessica continues to work on the marketing strategy for Tres Tortillas. Tres Tortillas was successful in selling 16 ounce jars of salsa in its restaurant. In fact, demand for the jars of salsa is so high that Jessica believes Tres Tortillas should try to expand and start selling in stores. She believes Tres Tortillas salsa has the potential for enormous growth, perhaps even more so than the actual restaurant. Jessica's manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Jessica maintains that Tres Tortilla's secret salsa recipe is a core competency. The market for salsa is also strong. She believes this provides Tres Tortillas with a chance to match its core competency to market opportunities, otherwise known as a(n) ___________________. a. strategic window b. first-mover advantage c. competitive advantage d. optimal fit e. late-mover advantage

C

Susan works for Procter & Gamble. She has been told that the company wants to test a new product idea on some of its consumers. The budget she is given is way more than she thinks she will need, so she does not feel that money will be an issue. Susan would like to get highly accurate data. She wants to encourage respondents to be as detailed as possible in their responses. Which survey method would work best for Susan? a. mail surveys b. crowdsourcing c. personal interview surveys d. telephone surveys e. online surveys

C

The marketing environment includes _________________, economic, political, legal and regulatory, technological, and ____________________ forces. a. global; marketing b. community; ethical c. competitive; sociocultural d. monetary; sociocultural e. customer; cultural

C

Which of the following is a disadvantage of being a first-mover in the market? a. inability to accurately predict performance standards b. high switching costs consumers may experience c. large outlays associated with creating a new product d. the chance that products will be protected by patents costs of marketing plan implementation

C

Which of the following products most closely resembles pure competition? a. televisions b. cereal c. table salt d. mobile homes e. candy bars

C

After designing the research project, the next step for the marketing researcher is to _________________________.

Collect data

________________________ involves organized efforts by individuals, groups, and organizations to protect consumers' rights.

Consumerism

What is the major focus of the marketing concept?

Customer satisfaction

During what period in the business cycle are firms first likely to cut their marketing budgets? a. depression b. economic standstill c. recovery d. recession e. prosperity

D

Every year since 2010 Jersey Mike's has hosted an annual one-day-event where 100% of their sales are donated to a charity of the store owner's choice. In 2016, 180+ charities were supported nationwide by raising more than $4 million from the sales of the store's 1,500 locations. These events that Jersey Mike's funds every year are best described as which of the following? a. marketing ethics b. stakeholder orientation c. strategic philanthropy d. cause-related marketing e. sustainability

D

Google has written down the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's ___________________. a. corporate strategy b. marketing plan c. marketing objective d. mission statement e. strengths

D

Jessica's manager believes that Tres Tortillas can gain an advantage over competing Mexican restaurants in the area by capitalizing on the growing demand for salsa. He believes the firm's top secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-oz jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Jessica has been tasked with the determining the feasibility of this strategy. What type of competitive growth strategy is Jessica's manager discussing? a. market penetration b. product penetration c. market development d. product development e. diversification

D

The savings in your savings account would fall under which of the following? a. credit b. discretionary income c. disposable income d. wealth e. prosperity

D

Which agency has the most influence over marketing activities? a. Federal Communications Commission b. Food and Drug Administration c. Environmental Protection Agency d. Federal Trade Commission e. Consumer Financial Protection Bureau

D

Justin is part of a group of students who are working with a bakery to collect marketing research. The bakery wants to determine whether a new type of pastry would be successful. Justin's group decides to conduct a taste test and then have respondents fill out a survey about their thoughts. Questions would include whether they liked or disliked the pastry, what they liked or disliked about it, and whether they would purchase it at certain price points. Justin and his team were hoping to conduct their tests in a grocery store. However, they could not receive permission to do so. In the end, they set up a booth in the student union building and asked passers-by to participate. To be more representative, they tried to divide by age and race to ensure they got enough from both genders and from different ethnicities. For instance, they know that roughly 5 percent of the student population at the school is Hispanic. Since its goal is to get 200 responses, they set a goal to ask 10 Hispanic individuals to take the taste test. This is most likely an example of _______________. a. stratified sampling b. probability sampling c. random sampling d. crowdsourcing e. quota sampling

E

Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. Margie believes this is the optimal time to seize upon this opportunity. Through the bike's patented design, her company has capabilities that fit the unique demands of this growing market. Margie wants to capitalize on this opportunity before these market trends have a chance to change. This period for Margie's firm is known as a ______. a. sales boost b. core competency c. competitive advantage d. product opportunity e. strategic window

E

Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. What method of analysis is Margie using? a. strategic analysis b. performance assessment c. performance comparison d. marketing cost analysis e. sales analysis

E

Principles and standards that define acceptable conduct in marketing as determined by various stakeholders are known as ___________________. a. strategic philanthropy b. cause-related marketing c. social responsibility d. marketing citizenship marketing ethics

E

Procter & Gamble's Tide laundry detergent has a predominant share of the detergent market in the United States. It makes $4.5 billion in sales of this detergent brand. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group's market growth/market share matrix? a. pig b. question mark c. star d. dog e. cash cow

E

Which of the following marketing mix variables has Walmart generally emphasized in its marketing activities? a. distribution b. marketing concept c. product d. promotion e. price

E

Which of the following statements describes a benefit that marketing offers? a. it results in lower prices for customers b. it eliminates cultural barriers c. it gets customers the best deals d. it offers heightened job security e. it enhances consumer awareness

E

Which of the following statements is true about marketing? a. Marketing activities are relatively stable over time b. It always creates value for the firm c. It is the best paying job in management d. Marketing prevents the consumption of harmful products All types of organizations need marketing

E

_________________ research allows marketers to make causal deductions about relationships.

Experimental

A ___________________________ states what is to be accomplished through marketing activities.

Marketing objective

Many marketing managers attempt to influence and shape environmental forces. This is known as the ___________________ approach.

Proactive

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing new product months before they are launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. Apple's emphasis on marketing research is used to enhance the _________________ variable of the marketing mix, while its skills at creating buzz for its newest product offering months before its release is an example of the __________________ variable.

Product; promotion

Denise works as a direct seller for Avon. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Which variable of the marketing mix does this issue involve? ___________________.

Promotion

Through the process of ______________________ , a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy.

Strategic planning