MKT 325 Exam Sample Questions

Which of the following could not serve as an unconditioned stimulus in an advertisement? All of the three answers could apply. A song A laughing baby Puppies

All of the three answers could apply.

Which of the folllowing statements demonstrates the formation of a segment based on benefits sought? A. Cambells Soup makes a spicer chili for its market in texas than it does for maine B. GE built a downsized microwave to hand under kitchen cabinets C. Kings Island offers a special discount to senior citizens D. P&G offers a 1.00 coupon when consumers buy 3 or more bottles E. Cengage published magazine called undergroumd, specifically for audiences that enjoy punk and alternative

B. GE built a downsized microwave to hand under kitchen cabinets

Abby is an education major in college. Abby eventually wants to settle down, get married, and have children, although she wants to work with children as a school teacher. Ideally, she would like to move back to her small-town home, where the rest of her family lives. She often goes home on the weekends because her strong Christian religion doesn't condone drinking and "partying." According to the VALS System segmentation model, to what segmentation group does Cindy most likely belong? Believers Makers Experiencers Survivors

Believers

Proctor and Gamble offers over 10 different diaper products. Unfortunately many of these products are similar and compete with eachother. This is a consequence of what segmentation?

Cannibalization

___ is when products offered by the same firm are so similar they compete among themselves

Cannibalization

What key factor is overlooked when a manager commits the majority fallacy

Competition

What key factor is overlooked when a manager commits the majority fallacy? -Market size -Competition -Customer attitudes -Geography

Competition

Jungle Jim's International Market, featured in the readings, uses a market aggregation strategy T or F

FALSE

Market size is a key factor that is overlooked when a manager commits the majority fallacy T or F

FALSE (Competition IS)

The opposite of micromarketing is mass customization T or F

FALSE (micro = focused on a small group of tightly targeted consumers, generally the same thing)

Because it is logical to assume that size of potential market segment is positively correlated to profit, pursuing the largest market segment makes sound business sense. T or F

FALSE (the biggest segment is NOT always the most profitable)

A market segment must have more than one person T or F

False

According to the readings, 7Up Soda has successfully competed in the soft drink product category by pursuing a "turn a disadvantage into an advantage positioning strategy T or F

False

Cannibalization is the phenomenon that as market segmentation increases, sales increase, but as market segmentation increases, cost also increase T or F

False

Demographic segmentation involves segmenting on the basis of cultural differences among consumers living different cities, states, regions, or countries T or F

False

Dividing groups of products into subgroups of products is the best way to segment a market T or F

False

In the US, as well as world wide, people no longer want to live in cities and are moving away from urban areas T or F

False

In the price segmentation model presented in your readings, the "convenience segment" is less concerned with price and wants to have a high level of value and/or product differentiation. T or F

False

One unfortunate consequence of market segmentation is that consumers spend more time in search, evaluation and purchase activities T or F

False

Procter and Gamble offers a $1.00 coupon when consumers purchase three bottles of Pantene brand shampoo. This strategy represents segments based on geo-demographics T or F

False

Targeting is the process of communicating our market segments through the use of marketing mix variables in such a way as to help consumers differentiate our product from our competition

False

The VALS system is a segmentation tool that uses behavioral based segmentation

False

The four main factors influencing market segmentation strategy are customer preference heterogeneity, cost trade-off, the majority fallacy, and psychographics T or F

False

The slogan "Close up toothpaste kissably fresh breath" is an example of positioning by product user. T or F

False

Within the VALS system, strivers have the fewest resources often feel powerless and are primarily concerned with safety and security

False

The four elements of the marketing mix are product, price, position, and place T or F

False (Price, product, promotion and place)

Market aggregation is the process of dividing the large and diverse market into subsets of consumers who share common needs, characteristics or behaviors T or F

False (aggregation is mass marketing more so)

PRIZM is a segmentation tool that uses psychographics T or F

False (PRIZM stands for Potential Rating Index for Zip Markets, and is built around geographic neighborhood data obtained through the United States Census.)

One key assumption that underlies market segmentation is consumer preference homogeneity. T or F

False (When the customers have relatively the same kind of preferences in terms of their needs and wants, the market shows no natural segments EXAMPLE = grocery goods have no difference, look more for price)

Perceptual maps show how a company's products and competitors products are clustered by market share T or F

False (visual representation of the perceptions of customers or potential customers about specific attributes of an organization, brand, product, service, or idea.) -EX: when u pick two important attributes and place in 1 of the four quadrants (sweetness and fizzy soda example)

Which of the following is NOT a benefit of studying consumer behavior? -Helping businesses achieve a selling orientation -Influencing public policy -Improving business performance -Helping businesses achieve a selling orientation

Helping businesses achieve a selling orientation

The value that a brand accrues based on the goodwill attached to associations with the brand name is known as: None of the three options is correct asset value brand extension value diffusion rate

None of the three options is correct

__ is the measurement of lifestyle, typically defined in terms of activities, interests, and opinions

Psychographics

According to the Freudian view, what is the role of the psychotherapy? To improve the adaptive unconscious To eliminate automatic information processing To sharpen our thin slice abilities To uncover hidden thoughts that cause mental illness

To uncover hidden thoughts that cause mental illness

A target market is simply the segment(s) toward which a firm marketing efforts are directed T or F

True

An underlying assumption when using geographic-based segmentation is that consumers located in geographic proximity share similar product and service needs and preferences T or F

True

Consumers tend to use price as a guage of quality. This phenomenon is called price-quality heuristic. T or F

True

Delta Airlines now offers a preferred seating section on many flights (usually the front part of the coach section of the airplane) to appeal to and reward members of its frequent flyer club. This is an application of product usage segmentation. T or F

True

Demographic based segmentation is the most popular segment base T or F

True

Demographic bases for segmenting consumer markets include customers vital population statistics such as age, gender, income, and education T or F

True

Geo-demographic segmentation is sometimes called "zip-code marketing" T or F

True

Geographic bases for segmenting consumer markets are based on consumer's physical location T or F

True

Henry Ford, founder of Ford Motor Co, is generally considered the first mass marketer

True

Home Depot, a home-improvement retail chain, sells scorpion traps in its stores in New Mexico, Texas, Arizona, and California. This is an example of geographic segmentation. T or F

True

If all humans were the same in their preference and behaviors, market segmentation would not be needed. T or F

True

Market aggregation is the opposite of market segmentation T or F

True

Market aggregation strategies ignore difference among different groups of consumers T or F

True

Market segmentation allows a company to efficiently focus resources and efforts by avoiding those parts of the market it cannot satisfy well, thereby avoiding unwieldy competition

True

Market segmentation benefits consumers and has increased society's standard of living T or F

True

Mass customization is the targeting of large segments, or traditionally mass markets, with highly customized products T or F

True

Most pioneering brands position themselves as "standard of comparison" T or F

True

One strategy for positioning a follower brand is to separate the brand from the market leader by creating what appears to the customer as a new product category T or F

True

People that live near one another often become more alike over time. T or F

True

Premium pricing, which is sometimes called prestige pricing, is pricing a brand at the top end of the product category price range T or F

True

Retail operations, such as Pottery Barn Outlet Store, William-Sonoma Outlet Store, Designer's Store Warehouse and Overstock.com that aim at appealing to the value segment are segmenting the market based on price T or F

True

The Slogan "Subway is fresh" is an example of positioning by core benefit T or F

True

The majority fallacy suggests that consumers tastes are normally distributed T or F

True

The ultimate goal of market segmentation is better serving the consumer while improving profitability T or F

True

Donating your old clothes to The Salvation Army is classified as: -a consumer response -consumer behavior -a type of recycling -a disposal activity

a consumer response

Cindy, Bob and Tina are all college students. Cindy is a music major. While she enjoys composing and playing her own, she doesnt have strong ambitions towards a career. Ideally, she would like to find a nice guy, but not a business major, get married and move out of the country so she can have a garden and maybe even a horse and Teach piano lessons out of her home. Bob is currently a finance major, after recently changing from management. (He has also been polysci and engineering but none seem to hold his interest). Besides changing majors, Bob loves to play club sports, really enjoys hoing to bars and socializing with his frat brothers and considers himself to be hip and cool. Tina is an education major. Like cindy she wants to settle down get married and have children, although she wants to work with children as a teacher. Ideally she would like to move to her small home town, where the rest of her family lives. She often goes home on weekends because of her Strong Christian relihion and doesnt condone drinking or partying. Based on the descriptions provided above and according to the VALS system, which student most likely belongs to the makers section? a. Cindy b. Bob c. Tina d. none of the above e. all of the above

a. Cindy

___ is the process of dividing the large and diverse market into subsets of consumer who share common needs, characteristics or behaviors a. Market segmentation b. Market aggregation c. Branding d. Advertising e. Positioning

a. Market segmentation

When marketing practice benefits the consumer and the marketer alike by encouraging the efficient use of marketing resources and information, thus improving societys standard of living a. Segmentation b. Word of mouth Marketing c. Branding d. Advertising e. Positioning

a. Segmentation

What factor is NOT relevant influence when choosing between aggregation versus segmentation strategies a. intuition trap b. customer preference heterogeneity c. sales cost trade off d. majority fallacy e. all of the above are relevant

a. intuition trap

Which of the following related to positioning is true? a. the first brand to enter and define a market is known as a pioneering brand b. according to reis and trout, positioning is something you do to your product and competitors products c. Tylenol, the first word in relief" is an example of positioning by usage ocassion d. Perceptual maps show how our products and our competitiors product are clustered by market share e. none

a. the first brand to enter and define a market is known as a pioneering brand

Consider the product "Miller Lite Beer." When you think of Miller Lite, key features emphasized in Miller's advertising may come to mind, namely "tastes great" and "less filling." If you thought a bit longer, other concepts, like alcohol and calories, might also come to mind. Together, all of these pieces make up what is known as: a vicarious memory an associative network mere exposure effect an episodic memory

an associative network

The relationship between arousal and a person's ability to pay attention is: a U-shaped curve linear and positive an inverted U-shaped curve linear and negative

an inverted U-shaped curve

The PRIZM segmentation model discussed in your readings is based in what market segmentation strategy? a. Demographic segmentation b. Geo-demographic segmentation c. Pyschographic segmentation d. Behavioral-based segmentation e. Price segmentation

b. Geo-demographic segmentation

__ occurs when an organizaiton chooses to aggregate the market and offer the same product or service and marketing mix to all consumers a. Niche marketing b. Mass marketing c. Market consolidation d. Micromarketing e. Mass Customization

b. Mass marketing

What phenomenon recognizes that market segmentation increases, sales increase but as market segmentation increases, cost also increase? a. Cannibalization b. Sales-cost trade off c. Customer preference heterogenity d. Majority fallacy e. Expenses to sales ratio

b. Sales-cost trade off

The price segmentation model divides customers into four broad categories on the customers perceived pain of paying a high price and the perceived value of product differentiation. A customer who is in a value segment is best characterized by which of the following .. a. this customer wants the lowest price and will not make tradeoffs for value added product benefits, getting the lowest price is priority b. This customer wants both the lowest price possible and the largest combination of value added product benefits. This person "wants it all" and will search for the best combination c. this customer is not voerly concerned with price or value added product benefits but is mainly concerned with minimizing product search and evaluation d. This customer is less concerned with price and wants to have a high level of product differentiation e. This customer is highly brand loyal, perceiving value in his / her favorite brand and will pay any price

b. This customer wants both the lowest price possible and the largest combination of value added product benefits. This person "wants it all" and will search for the best combination

Movers and Shakers, City Roots and Domestic Duos are: a. psychographic profiles of urban consumers b. groups is PRIZM system c. segments in the VALS system d. types of positioning e. none of the above

b. groups is PRIZM system

According to marketing experts, positioning is not something you do to a product, its something you do: a. to your competitors b. in mind of a potential customer c. to your organization and products d. to your competitors product e. All of the above

b. in mind of a potential customer

According to the price segmentation model in your readings, which segment represents a combination flow "perceived pain" and high "perceived value" and is highly desirable segment to marketers a. the price segment b. the loyal segment c. the value segment d. the convenience segment e. the brand segment

b. the loyal segment

During the growth phase of the product life cycle, the marketing manager should focus primarily on: -harvesting -building and holding share -production process improvement -creating awareness and stimulation of trial

building and holding share

Which of the following statements demonstrates the formation of a segment based on demographics? a. local resturant is open for breakfast and lunch then close at 3 b. GE has developed a microwave that runs on batteries c. "University Park" is a new set of student apartments rented exclusively to graduate students d. Procter and Gamble offers a 1.00 coupon when consumers purchase three bottles of Pert Shampoo e. Cengage Publishing publishes a magazine called taste of living specifically for audience who enjoy cooking and trying new recipes

c. "University Park" is a new set of student apartments rented exclusively to graduate students

Which of the following is not a demographic characteristic? a. Population age distributions b. American family composition c. Changing likes and dislikes of Americans d. Average income of a single American e. All of the above

c. Changing likes and dislikes of Americans

Air Walk is a brand of athletic shoe that is marketed to appeal to individuals who engage in skateboarding. This is an example of what kind of segementation strategy?

c. Pyschographic

___ is the segment(s) toward which a firm's marketing efforts are directed a. Mircromarket b. Nichemarket c. Target Market d. Marketing Mix e. None of the above

c. Target Market

Consumers cannot attend to all stimuli to which they are exposed, primarily because is limited. adaptation sensation cognitive capacity perception

cognitive capacity

For years, Campbells soup ran ad campaigns showing chilly kids and parents coming home for lunch to a steaming bowl of soup. This is an example of what type of positioning? a. Positioning by doing the opposite b. Positioning by turning a disadvantage into an advantage c. Positioning as a leader d. Positioning in respect to usage situation e. Positioning by user

d. Positioning in respect to usage situation

Which of the following about positioning is FALSE a. when a product benefit are difficult to communicate, positioning on price may be a good choice b. Characters like "Betty Crocker" help companies position by user c. All marketing activities influence positioning and vice versa d. Positioning on price is usually only used for luxury items e. One advantage of using price to position is that consumers often use price to guage quality.

d. Positioning on price is usually only used for luxury items

Marketers use perceptual maps as a means to display or graphs the location of products or brands: a. with respect to the geographic areas where they are manufactured b. as they are clustered by retailer, normally in major metropolitan areas c. within the distribution channels d. in the minds of the consumer e. in terms of the utility created by each product attribute

d. in the minds of the consumer ???? would it not be based on attribute

Volvo manufactures a station wagon to meet all of the governments strictest safety ratings, and Volvo emphasizes this in its advertising, claiming it to be "the safest car on the road". From this info, it appears Volvo may be engaging in what type of segmentation strategy. a. Geographic b. Price c. Pyschograhpic d. demographic e. Benefits sought

e. Benefits sought

For Years, Secret brand deodorant ran the slogan "Strong enough for man but made for a woman" this is an example of what type of positioning? a. Positioning by doing the opposite b. Positioning by turning a disadvantage into an advantage c. Positioning as a leader d. Positioning in respect to use into an advantage e. None of the above

e. None of the above

The first brand to enter a new market often enjoys a long-term consumer preference advantage over follower brands. This phenonmenon is known as what? a. Diversification effect b. Repositioning c. Majority fallacy d. Cannabilization e. Pioneering advantage

e. Pioneering advantage

Politicians often market themselves by emphasizing situations in which their opponent their opponents exercised poor judegement in an attempt to get voters to change how the opponent is judged. This is an example of what type of positioning? a. User b. Attribute/benefit c. Usage situation d. Positioning a leader e. Repositioning the competition

e. Repositioning the competition

The fact that some people prefer mint flavored toothpaste, while others prefer cinnamon flavored is known as: a. pyschographics b. stereotyping c. Cannibalization d. majority fallacy e. customer preference heterogeneity

e. customer preference heterogeneity

Penturbia refers to: a. remote suburbs b. large town/cities that have decreased in population by 10% C. remote suburbs that have decreased in population by 10% d. clusters of suburbs encircling cities e. none of the above

e. none of the above

__ is segmentation based on consumer preference for specific product attributes or benefits, usage occasion, user status, rate of product usage, OR loyalty a. demographic based segementation b. ethnographic based segementation c. psychographic based segementation d. geo-demographic based segementation e. none of the above

e. none of the above **REMEMBER THIS ONE BC IT SAID CHALLENGING

__ is the tendency for a company to focus exclusively on large, average market segments and neglect small, less typical segments ___

majority fallacy

The four elements of the marketing mix are

place, price, product, promotion

An exurb is...

remote suburb

Research shows that people are more likely to impulse shop: when they are shopping for some specific item when they make a shopping list when they are pressed for time when they are hungry

when they are hungry