MKT 340 Exam questions

Compared to the average company, firms with strong ethical climates tend to: employ more business development consultants. offer more goods and services. be more socially responsible. invest more in sales training software. have higher turnover.

- be more socially responsible

The decision-making metric includes: the publicity test. the business ethics test. the employee satisfaction test. the triple bottom line test. the critical observer test.

- the publicity test

When Derek's Hardware, a New Jersey-based discount hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

-misguided geographic segmentation.

Pat Stavol founded Glenders Leasing Company, three decades ago. Although he is now in his seventies, he still has a "hands on" management style. His employees have learned that there isn't much point in making purchase recommendations for new equipment, because Pat is going to choose whatever he thinks is best regardless of their views. Glenders has a(n) ________ buying center culture.

Autocratic

T or F: The purpose of conscious marketing is to make a product by selling products and services.

FALSE

T or F: A decrease in a company's product depth will always hurt its marketing efforts.

False

________ is the cash expenditure plus taxes that consumers have to pay for a good or service.

Price

________ plays an important part in protecting privacy and requires companies to disclose their privacy practices to customers on an annual basis.

The Federal Trade Commission

T OR F: In value cocreation, the customer participates in the creation of a good or service, which provides additional value to the customer.

True

T OR F: Social media ad spending is growing and increased by 32 percent in 2018.

True

T OR F: The marketing plan is broken down into various components—how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.

True

T or F: A small business may use a web portal as a means of forming a supply chain that can respond to its needs.

True

T or F: By paying close attention to customer needs and continuously monitoring the business environment in which it operates, a good marketer can identify potential opportunities.

True

T or F: Key corporate social responsibility (CSR) stakeholders include employees, customers, the marketplace, and society.

True

The United States imports more goods than it exports. This is known as

a trade deficit.

The proliferation of new media alternatives has led many firms to shift their promotional budgets from

advertising to direct marketing and website development.

An everyday low pricing strategy stresses the continuity of retail prices

at a level between the regular price and the deep-discount sale prices of competitors.

A major advantage of primary data collection is

it offers behavioral insights generally not available from secondary research.

Most firms maintain customer complaint services online, in the store, or over the telephone. Firms attempt to respond quickly to complaints, hoping to

minimize negative word of mouth.

The contribution per unit is

price minus variable cost per unit.

With access to the Internet nearly universal in the United States, many potential market segments have become more

reachable

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in

test marketing.

In the Circles for a Successful Value Proposition framework, the value proposition is represented by

the intersection between customer needs/wants and the firm's product's benefits.

Just as marketers create value by meeting the needs and wants of consumers, marketing researchers create value if

the results will be used in making management decisions.

In simple terms, the AIDA model is also known as the ________ model.

think, feel, do

________ represents all the activities necessary to get the product to the right customer when that customer wants it. Place Promotion Social media Value cocreation Supply chain marketing

- Place

T or F: Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

False

T or F: New product development adds value to a firm's products and services through innovation.

True

Developing pricing strategies for ________ is one of the most challenging tasks a manager can undertake.

new products

STP refers to segmentation, tendency, and preference. strategy, tenacity, and place. segmentation, targeting, and positioning. substance, traffic, and pattern. sustainability, targeting, and product.

segmentation, targeting, and positioning.

Bainbridge Wood Products decided to sell its dining sets around the globe. Which of the following would be an example of glocalization of these dining sets?

- The same product design and features in all countries, with variations in the promotional campaigns country by country.

Marketing communications managers usually state their media objectives in terms of ________, which represents reach multiplied by frequency.

GRP

The office policy and procedure states that any purchase requests that are $3,000 and over must be given to Dennis O'Donnell, who will obtain authorization from the chief financial officer. Dennis serves as a(n) ________ in the buying center.

Gatekeeper

________ price fixing occurs when competitors collude to control prices, and ________ price fixing occurs within a marketing channel to control prices passed on to consumers.

Horizontal; vertical

Which of the following is a characteristic of products in the maturity stage of the product life cycle?

Marketing costs increase as firms defend their market share.

The Big Mac Index is a novel measure of

purchasing power parity

A generational cohort is a group of people:

who are of the same generation.

The process of value ________, in which customers collaborate in product design, often provides additional value to the firm's customers. cocreation positioning delivery chain management based marketing

-cocreation

If a wireless company had 100 million subscribers at the end of the year, and 2 million of its subscribers left its service, it would have a churn rate of

2 percent

Which of the following markets is most likely to be characterized by oligopolistic competition in the United States? A.soybeans B.pens and pencils C.soft drinks D.men's clothing E. electrical services

Correct answer: Soft drinks a. Soybeans are a purely competitive market; b. pens and pencils have elements of pure competition (for basic pencils) and of monopolistic competition (for particular types of pens). c. The soft drink market is marked by a small number of companies; in particular, Coca-Cola and Pepsi-Cola dominate the market, with a few other players and some private label brands. d. Men's clothing exhibits monopolistic competition due to the large number of providers, and electrical service is often a monopoly.

T or F: Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years.

False

T or F: One way in which conscious marketing differs from corporate social responsibility (CSR) is that CSR takes a holistic, ecosystem view of business as a complex, adaptive system. Group startsTrue or False

False

T or F: Sustainability, health and wellness, and how to more efficiently utilize and distribute food are all considered political trends.

False

T or F: The expression "3/10, n/30" means that a business must pay 3 percent of the total invoice amount in 10 days, with the remainder due in 30 days.

False

What type of analysis does management use to evaluate the firm's various products and businesses and allocate resources according to which products are expected to be the most profitable for the firm in the future? portfolio analysis SWOT analysis situation analysis initial analysis positioning analysis

Portfolio analysis

What is the difference between prescriptive analytics tools and actions analytics tools?

Prescriptive analytics tools use simulations, which ask a series of what if-type questions, while action analytics tools use artificial intelligence to analyze input gathered.

T or F: Firms that disingenuously market products or services as environmentally friendly, with the goal of gaining public approval and sales rather than actually improving the environment, are engaging in greenwashing.

True

T or F: Generally, people buy one product or service instead of another because they perceive it to be a better value.

True

T or F: Integrated marketing communications (IMC) represents the promotion dimension of the six Ps. It encompasses a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media.

True

T or F: Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

True

T or F: Sales of private-label brands continue to increase, particularly in big-box stores such as Costco and Trader Joe's.

True

T or F: Today, large retailers dictate to their suppliers what should be made.

True

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?

because the Super Bowl offers an opportunity to create significant brand awareness

The purchase information from each individual store is typically aggregated by the retailer as a whole, which creates an order for new merchandise and sends it to the manufacturer. This is an example of information flowing from the

buyer to the manufacturer.

Tesla Motors, manufacturer of luxury electric automobiles, represents a(n) ________ because it manufactures its own cars in Fremont, California, and it operates its own retail stores in high-foot-traffic locations such as malls and shopping streets.

corporate vertical market system

Nazira would like to know which, if any, of her firm's IMC efforts are working. She could use ________ to provide feedback from her efforts.

coupon redemption rates

Traditional demand curve economic theory is used by marketers to understand ________ in the five Cs of pricing.

customers

A weakness associated with cost-based pricing methods is that they

do not recognize the role consumers or competitors' prices play in the marketplace.

Zoe recently bought Voice over Internet Protocol (VoIP) phone service. A few of Zoe's friends bought VoIP before she did, but many other friends were interested in Zoe's opinions of the new phone service. Zoe is a(n) ________ in this product category.

early adopter

The definition of corporate social responsibility addresses employee salaries. the golden bottom line. the profit motive. environmental impact social media.

environmental impact

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is not one of these factors? ethical cultural political technological demographic

ethical

Ambyah Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is handcrafted, and production volumes will be very low. To emphasize the unique nature of this jewelry, Ambyah Fashions will most likely choose ________ distribution.

exclusive

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand

facilitates purchasing.

By producing cars that do more than get riders to their destinations and back, Mercedes-Benz is addressing consumers' ________ needs.

functional and psychological

The phrase "birds of a feather flock together" captures the idea of ________ segmentation.

geodemographic

Marketers love consumers who engage in ________, buying their company's product with little thought or consideration of alternatives.

habitual decision making

Which of the following is a social trend listed in the text?

health and wellness

Which of the following is the third step in the marketing planning process? define the business mission identify and evaluate opportunities evaluate using a matrix implement marketing mix and allocate resources perform situation analysis

identify and evaluate opportunities

In a(n) ________ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers.

indirect

A competitive advantage based on location is often sustainable because: mobile marketing has not yet proven its value for most customers. real estate prices have been dropping. few marketers are aware of its importance yet. it is not easily duplicated. the Internet has diminished the importance of brick-and-mortar stores.

it is not easily duplicated.

What is a particularly important feature of sustainable packaging?

less of a negative impact on the environment

A long-standing staple of ______ has been major league sports teams that play in the MLB, NBA, NFL, or NHL as well as various collegiate sports teams. rights.

licensing

While JIT systems have many benefits, they

make the logistics function more complicated.

When selecting a target market, firms will be most successful if they

match the firm's competencies with a market segment's attractiveness.

A(n) ________ situation in B2B marketing is similar to limited problem solving in the B2C process.

modified rebuy

Elena knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' ________ change(s) over time.

needs, wants, and ability to purchase

The greater the discrepancy between a consumer's ________, the greater the consumer's need recognition will be.

needy state and desired state

Julius is developing a budget for his firm's IMC program. First he sets objectives. Then he chooses media, and finally he determines the cost for each product to be promoted. Julius is using the ________ method of establishing an IMC budget.

objective-and-task

Fisher-Price wanted to determine if a new toy would appeal to preschoolers, so it put six 4-year-olds in a room with several toys and waited to see which ones they played with. What form of research is this?

observation

From the consumer's perspective the individual elements of an IMC strategy can be viewed on two axes: ________ and

passive and interactive; offline and online.

Value-oriented marketers constantly measure promotional effectiveness against ethical advertising standards. the problem of price maximization against cost-efficiency. perceived customer benefits against the costs of their offerings. the desire to achieve against the need for a stable source of supply. the goal of efficiency against the price charged by competitors.

perceived customer benefits against the costs of their offerings.

American visitors to the Indonesian island of Bali are often aghast when they see the sign for the Swastika resort. Americans associate the swastika symbol with Nazi Germany while Indonesians associate the symbol with the four major elements on Earth. The two groups have different

perceptions.

Tandy's Styles involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. Tandy's is pursuing a ________ growth strategy. diversification market development market penetration product development product penetration

product development

Which of the following is considered part of the augmented product?

product warranty

A wholesaler is an example of a

reseller

Unlike manufacturers, ________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

resellers

Another name for physiological risk is

safety risk.

Customers interacting with omnichannel retailers most desire a(n) ________ experience.

seamless

In which of the following categories would a dry cleaning business be placed?

services retailer

The percentage of a customer's purchases made from a particular retailer is referred to as

share of wallet.

Viola is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Viola, this backpack represents what type of product?

shopping

The most common form of a quantity discount for consumers is a

size discount.

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how ________ impacts demand for products.

the income effect

Marissa is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying, "South of the Border Restaurant and Motel is just 100 miles away." Marissa has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of

the lagged effect.

GDP is defined as

the market value of goods and services produced in a country in a year.

Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know

where their target customers expect to find their products.