MKT exam 1

What is most likely to happen when inflation increases?

*A- Consumers buy lower-priced foods B- Off-price and discount retailers suffer from lower sales. C- Consumers buy more discretionary merchandise. D- Consumers buy fewer personal care and home entertainment products. E- Consumers buy less food.

One example of a customer loyalty program is

*A- a "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases. B- seasonal sales on top-selling items. C- a quantity discount offered for large purchases at an office supply store. D- an "everyday low price" policy on all products at a grocery store. E- an extensive customer service training program for new employees at a hair salon.

When Volkswagen owners began to report problems with rear coil springs, Volkswagen at first ignored or rejected the claims. Eventually, the company evaluated the issue and issued a recall. Which of the four steps of the ethical decision-making framework was Volkswagen performing when it recalled several of its models?

*A- choose a course of action B- brainstorm and evaluate alternatives C- identify issues D- gather information and identify stakeholders E- assess risk

The "Milk Life" advertising campaign, designed to increase awareness of the health benefits of milk, was intended to help market a(n)

*A- industry. B- firm. C- specific product. D- organization. E- service.

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though they could charge much more due to the huge increase in demand. These firms probably recognize that

*A- lifetime profitability of relationships matters more than profits from a particular transaction. B- none of their competitors would be raising prices. C- if they raised prices they would be in violation of Commerce Department regulations. D- they can make more money from government contracts than from sales to customers. E- a transactional orientation is the key to long-term profitability.

Andy decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Andy is pursuing a ________ growth strategy.

*A- market penetration B- diversification C- segment development D- market development E- product development

Which element of the marketing mix is most relevant to the activity "creating value"?

*A- product B- priceIncorrect C- promotion D- purchasing E- place

If a firm adopts a CRM business philosophy, it most likely has a(n) ________ orientation with its customers.

*A- relational B- transactional C- divisional D- internal E- external

Cliff sells construction equipment. Whenever he calls on his building contractor customers, he asks if they are having any problems. In doing so, Cliff is addressing which of the following core aspects of marketing?

*A- satisfying customer needs and wantsCorrect B- creating value C- making product, place, promotion, and price decisions D- completing the exchange function of marketing E- making decisions about the setting in which marketing takes place

Juanita studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Juanita most likely operates in the ________ era of marketing.

*A- value-based marketing B- market-oriented C- sales-oriented D- production-oriented

Dana has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Scott, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Scott's approach is based on

*A-value cocreation B- premium pricing. C- special incentives from tour operators. D- his seniority at the firm. E- transaction-oriented marketing.

Which of the following is an example of greenwashing?

A- A company charges more for a hybrid car than for a similar gas model. *B- A company donates money to a school reading project so it can advertise itself as environmentally friendly C- The Smiths installed energy-saving lightbulbs in their rental apartment buildings. D- The corner Laundromat stocks only phosphate-free detergent in its vending machines. E- A company markets a product made from recycled glass bottles.

entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services.

A- Corporate social responsibility *B- Conscious marketing C- Marketing analytics D- The four Ps E- Triple bottom line

To promote their greener practices, nearly 60 private-sector companies have partnered with the ________, which seeks to reduce the deforestation caused by the production of many consumer products that rely on palm oil, soy, tree pulp, and paper.

A- Greenpeace B- World Wildlife Foundation *C- Tropical Forest Alliance D_ EarthShare E- Environmental Protection Services

Conscious marketing encompasses which of the following overriding principles?

A- The recognition of marketing's focus on sales at any cost. B- Ignoring the company's bottom line. C- The lack of consideration for stakeholders and their interdependence. D- The understanding that decisions are solely based on economics. *E- The presence of corporate leadership, creating a corporate culture.

Sharon has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Sharon's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Sharon's attitude toward the salon is an example of

A- a customer retention program. *B- customer loyalty C- a sustainable competitive advantage. D- the benefits of a locational excellence strategy. E- an opportunity, in SWOT analysis.

As a retail clothing store manager, Ricardo frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Ricardo's efforts will likely help him

A- achieve cost savings. B- implement just-in-time marketing promotions. C- avoid the need to understand regional culture. D- avoid cognitive dissonance. *E- identify potential opportunities.

As owner of a retail franchise food store, Elena purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of

A- balancing customers' benefits and costs. B- building relationships with customers. C- evaluating strategic competitive partnerships . D- keeping prices below those charged by competitors. *E- sharing information across the organization.

For corporate leaders, their firm's ability to ________ must be of paramount importance.

A- benefit shareholders only B- balance profits and expenses C- make a profit D- balance employees' needs with the needs of the environment *E- balance shareholder interests with the needs of society

Gerard has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. The first thing Gerard should do is to

A- brainstorm alternatives. B- gather information and identify stakeholders. C- promote the firm's corporate social responsibility efforts. *D- identify issues that need to be addressed. E- choose a course of action.

In the ________ stage, a firm will decide what level of commitment to its ethical policies and standards it is willing to declare publicly and how the firm plans to balance the needs of its various stakeholders.

A- brainstorming B- evaluation C- implementation D- control *E- planning

The marketing goal of getting the "right quantities to the right locations, at the right time" relates to

A- capturing value. B- communicating the value proposition. C- managing price and performance. *D- managing the supply chain E- performing service marketing.

Which of these is a macroenvironmental factor?

A- company B- corporate partners C- competition *D- culture E- competencies

Macroenvironmental factors include culture, demographics, social trends, and the

A- company. B- physical environment. *C- economic situation. D- competition. E- corporate partners.

Parties that work along with the focal firm to provide goods and services to consumers are viewed as

A- cultural cohorts. B- customers. *C- corporate partners. D- cartels. E- cooperatives.

In the immediate marketing environment, the first factor that affects the consumer is

A- demographics. *B- the company's capabilities C- social trends. D- cultural values. E- technological advances.

Which of the following is likely to provide a sustainable competitive advantage?

A- developing a strong mission statement *B- creating an efficient supply chain that lowers your costs C- using standard technology D- temporarily laying off staff E- lowering prices

The U.S. Centers for Disease Control and Prevention (CDC) estimates that approximately 87.5 percent of U.S. adults are

A- diabetic. B- healthy. C- unhealthy. *D- obese. E- athletic.

When a sweatshirt manufacturer states, "We sell it only in gray because that way we can buy plenty of gray fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing?

A- economics-oriented B- sales-oriented C- market-oriented D- value-based marketing *E- production-oriented

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all parties relevant to the decision should

A- engage in legal discourse. B- reidentify the issues. *C- brainstorm for alternatives. D- choose a course of action. E- vote, with the majority deciding the best course of action.

The ________ for natural skin care company Burt's Bees is to "create natural, Earth-friendly personal care products formulated to help you maximize your well-being and that of the world around you."

A- executive summary B- company description C- financial plan *D- mission statement E- market analysis

In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on ________ value creation

A- financial *B- place C- product D- promotion E- price

When integrating conscious marketing into a marketing strategy, a key task is to ensure that all managers are evaluated on their actions from a conscious marketing perspective. This action would take place during which stage of the strategic marketing planning process?

A- implementation phase B- brainstorming phase C- planning phase *D- control phase E- revision phase

If a firm wants to develop a sustainable competitive advantage, it should

A- increase its marketing budget so that it outspends its competitors. B- copy the innovative features of other firms that are attractive to customers. C- arrange to meet with competitors to discuss how to avoid direct competition. *D- examine its operations and customer relations to identify significant things competitors cannot easily copy. E- begin an aggressive campaign to buy up competitors.

The persistent increase in the prices of goods and services is known as

A- interest rates. B- macroeconomics. C- purchasing power. *D- inflation E- global competition.

Marvel was among the first content providers to launch dedicated series on Netflix, such as Jessica Jones, The Defenders, Iron Fist, and Luke Cage. It then decided to create a new channel for getting new offerings to consumers. The company was pursuing a(n) ________ strategy.

A- market development *B- product development C- market penetration D- customer excellence E- operational excellence

Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to

A- marketers' general perceptions. B- cultural expectations. C- male domination in corporate boardrooms. C- multiyear advertising contracts that cannot be broken. *D- differing demographic data for potential and past viewers.

Generally, to build a sustainable competitive advantage, companies should

A- only address pricing issues. B- only be concerned about supply chain issues. C- focus on a single strategy. *D- use multiple approaches to solidify their position. E- solely focus on lean manufacturing operations.

Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's ________ in an attempt to create value for students and recent graduates.

A- place strategy *B- product value C- segmentation strategy D- diversification strategy E- locational excellence strategy

Marketing channel management is related to which of the four Ps?

A- product B- promotion C- price *D- place E- production

Avery's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in

A- product design excellence. B- producer excellence. *C- a sustainable competitive advantage D- mission statement satisfaction. E- sustainable price decreases.

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that

A- product excellence is the only true source of a sustainable competitive advantage. *B- no single strategy is likely to be sufficient to build a sustainable competitive advantage C- innovation is pointless because competitors will develop copycat offerings. D- a situation analysis does not accurately predict a firm's strengths. E- customer excellence cannot be achieved.

When marketers work in controversial or polluting industries such as tobacco or fossil fuels, their central activities largely bar them from becoming

A- profitable. B- ethical human beings. C- successful. *D- conscious marketers E- recognized.

The ethical decision-making framework includes

A- promote the firm's corporate social responsibility efforts. *B- identify issues. C- hiring a marketing firm. D- adding people to the board of directors. E- describe the firm's business ethics.

The basic difference between a good and a service is that a good

A- provides intangible benefits. B- is always less expensive than a corresponding service. *C- can be physically touched. D- generates greater interest among consumers. E- is more quickly forgotten by consumers.

A competitive advantage based on location is often sustainable because

A- the Internet has diminished the importance of brick-and-mortar stores. *B- it is not easily duplicated. C- real estate prices have been dropping. D- few marketers are aware of its importance yet. E- mobile marketing has not yet proven its value for most customers.

The decision-making metric includes

A- the employee satisfaction test. B- the critical observer test. C- the business ethics test. D- the triple bottom line test. *E- the publicity test.

The four Ps make up the marketing mix, which is the __________ set of decisions or activities that the firm uses to respond to the wants of its target markets.

A- unpredictable B- external C- internal D- global *E- controllable

One of the UN Sustainable Development Goals is to

A- use only natural ingredients in foods. B- eliminate artificial dyes from food. *C- reduce hunger. D- reduce stress through yoga. E- promote healthy meals.

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups

A- will disappear as ethnicity becomes a stronger cultural determinant. *B- creates opportunities to provide value to each group. C- is attributable to technological expertise of immigrant groups. D- will vanish once the recession ends. E- will create inflationary expectations.