MKTG 431 Practice Exam Review Questions

One of the ways personality is useful to marketers is to use ___________, or enduring characteristics such as innovativeness, self-confidence, sociability, which will vary from person to person; as segmentation variables. Select one: a. Personality traits b. Features c. Motivations d. National characters e. benefits

a. Personality traits

Research has shown that the influence of family on the consumer buying process is very strong. This is because many of the consumption patterns we have for products are formed by the time we are ____ years old? Select one: a. 16 b. 5 c. 24 d. 1 e. 35

a. 16

Why is an understanding of attitudes important to understanding consumer brands? Select one: a. A brand is essentially an attitude about a product b. A brand is an attitude that changes with each consumption experience c. A brand is an attitude created by advertising d. Brands are an important way for marketers to differentiate their products. e. A brand is an attitude that has no object

a. A brand is essentially an attitude about a product

What is the market for a specific product? Select one: a. All of the potential customers for the product. b. All of the people with the ability to purchase a product. c. All of these. d. All of the people who live in the geographic area served by the product's manufacturer. e. A physical space for conducting transactions.

a. All of the potential customers for the product.

Bruce went into an appliance store to purchase a 32" HD tv for $249 as advertised online. When he got to the store, he was told that all of the $249 tv's had been sold, but there was a 32" HD tv available for $299 that he could purchase today. Bruce may have been a victim of? Select one: a. Bait and switch pricing b. advertised pricing c. Price fixing d. Price discrimination e. Reference pricing

a. Bait and switch pricing

When goods and services are exchanged for other goods and services, rather than for money, it is referred to as __________? Select one: a. Barter b. Non-revenue c. B2B d. Trade e. Off-book.

a. Barter

Which of the following statements about Maslow's Hierarchy of Needs is TRUE? Select one: a. Basic needs such as Physiological and safety should be satisfied before higher-level needs become motivators. b. Ego-centric people are more concerned about their self image than whether they have enough to eat. c. Risk avoiders are motivated by safety needs rather than ego needs. d. All of these statements about Maslow's Hierarchy of needs are true. e. Risk takers are motivated by ego needs rather than by safety needs.

a. Basic needs such as Physiological and safety should be satisfied before higher-level needs become motivators.

The last group in the diffusion of innovations process, non-adopters, represent people who will never buy the new product. Why is it important to remember this group when dealing with new product introductions? Select one: a. Because you need to take these people into account in order to understand the true market potential for your new product. b. Because these people can be converted to late adopters if you change your advertising method. c. because these people may be converted to customers if the word of mouth or 'buzz' about the new product is good enough. d. Because these people will be the innovators for the next generation of the new product. e. Because it is fun to say there are 6 stages in a 5 stage process.

a. Because you need to take these people into account in order to understand the true market potential for your new product.

A(n) _____________ is a name, term, design, symbol, or any other feature that identifies one seller's goods or services as distinct from those of other sellers? Select one: a. Brand b. Patent c. Advertising slogan d. Attribute e. Copyright

a. Brand

In addition to determining the amount of money you will receive for your product, price serves as a __________ tool, signaling to customers where your product stands in relation to similar product offerings? Select one: a. Positioning b. Intangible c. Financial d. Value e. Advertising

a. Positioning

The VALS system identifies eight consumer segments based on (1) ____________ and (2) _______________? Select one: a. Primary motivation, resources b. Psychographics, buying patterns c. Primary motivation, secondary motivation d. Primary motivation, personality type e. Psychographics, demographics

a. Primary motivation, resources

A(n) ______________ targeting strategy develops more than one distinct marketing mix? Select one: a. Multisegment b. One-to-one c. Concentrated d. Pretentious e. Undifferentiated

a. Multisegment

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company be seeking input from customers, following up on complaints, listening to employees, analyzing market research and monitoring competitors? Select one: a. Screening and evaluation b. Business analysis c. Commercialization d. New-product strategy e. Market Testing f. Idea generation g. Technical development

f. Idea generation

A(n) ______________ is an organization created to provide a public or mutual benefit other than the pursuit or accumulation of profits for investors. Select one: a. Not-for-profit b. Service provider c. Small business d. Not-so-smart e. Informal organization

a. Not-for-profit

A(n) ________________ is the container used to protect, promote, transport, and/or identify a product. Select one: a. Package b. Master pack c. Instruction manual d. Box e. Wrapper

a. Package

The introductory stage pricing strategy that attempts to gain as much market share as possible, even though it may mean more time before the product becomes profitable is called? Select one: a. Penetration pricing. b. Skimming. c. Discounting. d. Cost-plus pricing. e. Introductory pricing.

a. Penetration pricing.

Last year, BruceCo sold 1000 coffee cups for $10 each. If the cost for each cup was $4.70, how much profit did BruceCo make? Select one: a. $5.30 b. $4,700 c. $5,300 d. $9,995.30 e. $10,000

c. $5,300

________________ is the basic unit of exchange? Select one: a. A legal contract. b. A share of common stock. c. A transaction d. Trust. e. Currency.

c. A transaction

Which of these is NOT an example of an intangible product? Select one: a. A sports hero b. A media celebrity c. All of these are intangible products d. A vacation destination e. A ballot initiative

c. All of these are intangible products

Which of the following is NOT part of the price of a credit card for college students? Select one: a. A monthly fee for the card b. A 3% charge for cash advances c. All of these are part of the price of a credit card for college students d. The interest rate charged on purchases e. Feeling depressed because of your credit card debt.

c. All of these are part of the price of a credit card for college students

When it comes to managing services, some people find it helpful to think of it as a service encounter with roles for both the service provider and for the customer. It is the role of the service provider to? Select one: a. Create a positive impression on the customer. b. Get information from the customer. c. All of these are the role of the service provider. d. Direct the customer through the service. e. Make the initial contact with the customer..

c. All of these are the role of the service provider.

Which of the following is NOT a source of internal data used in a marketing information system? Select one: a. customer service logs b. Sales data c. An information silo d. Tracking logs from the company website e. Ordering data

c. An information silo

The two components of quality are? Select one: a. Cost of obtaining the benefit, benefits received. b. Price, benefits received. c. Benefits received, consistency. d. Features, benefits. e. Reliability, warranty

c. Benefits received, consistency.

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company define the marketing strategy for and determine the projected income from a new product? Select one: a. Technical development b. Market Testing c. Business analysis d. Idea generation e. New-product strategy f. Screening and evaluation g. Commercialization

c. Business analysis

What is a customer? Select one: a. Someone who has the money to buy your product. b. Someone who has the authority to buy your product. c. Someone who benefits from your product. d. A customer is all of these. e. Someone who has the ability to buy your product.

d. A customer is all of these.

BruceCo is planning on selling backpacks for $100 each. The company can buy the backpacks for $30.00 and have them customized for $20.00 apiece. There is a one-time set up charge of $1,000 for customization. How many backpacks will BruceCo have to sell in order to break even? Select one: a. 34 b. cannot be determined with this information c. 10 d. 72 e. 20

e. 20

Bruce is planning on selling sandwiches in class for $5 each. Food costs are $4 per sandwich. He will also need to buy an insulated cooler to store the sandwiches. This cooler costs $10. Bruce needs to make a profit of $25 to make it worth his while. How many sandwiches does Bruce need to sell to make the project worthwhile? Select one: a. cannot be determined with this information b. 7 c. 10 d. 25 e. 35

e. 35

Price elasticity is the slope of the demand curve. When price elasticity is LOW? Select one: a. Demand will increase at all price levels b. Demand will decrease at all price levels c. A small change in price will lead to a large change in quantity demanded. d. A small change in price will have no effect on quantity demanded e. A large change in price will lead to a small change in quantity demanded

e. A large change in price will lead to a small change in quantity demanded

When we speak of a consumer, we are speaking of...? Select one: a. We are speaking of all of these when we speak of a consumer. b. The aggregate demand for a good or service. c. An individual who is exactly like every other individual who buys a specific product. d. A small business that purchases things for resale to other businesses. e. A person who purchases things for personal consumption.

e. A person who purchases things for personal consumption.

Which of the following pairs would NOT be considered to be complementary products? Select one: a. Keurig coffee maker, K cups b. remote controlled drone, batteries c. milk, cookies d. ink jet printer, ink cartridges e. All of these are complementary products

e. All of these are complementary products

Volunteers are a tool not-for-profits can use to promote the organization. Select one: True False

True

The fact that people feel short of time limits the effort they put into making purchases. Select one: True False

True

There is no such thing as a price that is too high if someone is willing to pay it. Select one: True False

True

Under the Robinson-Patman act, it is considered price discrimination to charge different customers different prices for the same product in consumer markets. Select one: True False

False

When making purchases, it really doesn't matter how you feel emotionally. Select one: True False

False

When retrieving memories, most people access the exemplar and up to two additional memories in the category. Select one: True False

False

There is no such thing as a purely tangible or a purely intangible product. Select one: True False

True

Buyer's remorse affects business customers as well as consumers Select one: True False

False

Customers control the features that are available in the products they buy. Select one: True False

False

During the idea generation stage of the new product development process, it is important to evaluate new product ideas as they come in to avoid being overloaded with unusable ideas. Select one: True False

False

Frontline users need technical training in order to get the most out of marketing analytics programs. Select one: True False

False

Most new products are successful, at least for a short while. Select one: True False

False

Once a consumer has started the consumer buying process, they are going to finish it. Select one: True False

False

People put a lot of effort into routine purchases, even though they would rather not. Select one: True False

False

Stereotyping is a useful tool to use when creating segments based on ethnicity. Select one: True False

False

A durable good is a consumer product that is expected to last three years or more. Select one: True False

True

A memorandum of understanding summarizes key points in a business agreement. Select one: True False

True

Companies that take a proactive approach to new product development see new product development as critical to their success. Select one: True False

True

Compared to the size of the business market in dollars, the consumer market is much smaller. Select one: True False

True

Every time you compare your product to a competitor's, you are promoting your competitor's product. Select one: True False

True

If you are the first to use a brand name in business you have the right to use that name even if another company later trademarks the same brand name. Select one: True False

True

In online marketing, atmospherics deals with the look and feel of the website. Select one: True False

True

It helps to keep your brand name from falling into the common usage if you use the brand name as an adjective, rather than as a noun or verb. Select one: True False

True

Many products don't make it past the introductory stage of the product life cycle because late stage buyers are not as forgiving as innovators when there are imperfections in the new product. Select one: True False

True

Marketing analytics is a general term that could be applied to any attempt to use data to inform decisions? Select one: True False

True

One of the advantages of the three circles positioning framework is that it shows you where your competitors are wasting their time. Select one: True False

True

One of the ways our perceptions are biased is that we see things that aren't really there. Select one: True False

True

The "look and feel" or design of an e-commerce website is especially important during the evaluate alternatives stage of the consumer buying process. Select one: True False

True

The "trickle up" theory suggests fashion trends originate with lower classes and migrate upward. Select one: True False

True

Adam had an idea for a new smartphone accessory. He showed his idea to ten of his friends. Three of them loved the idea, four of them thought it was OK, but nothing special and three of them hated the idea. If he develops the product, he will need to sell at least 10,000 in order to make money. He was wondering whether or not to develop the product when he remembered the law of large numbers from Professor Robertson's marketing class. Based on that, he decided to __________? Select one: a. Continue to develop the product knowing that because there are millions of smartphone users, there will probably be a large enough group who like the product for it to be successful. b. Modify the product so that seven or more of his friends like it and nobody hates it before introducing it to the market. This way there will be a larger group of potential customers for the product. c. Discontinue the product because if a large percentage of people dislike the product they will talk others out of buying it. d. Continue with the idea, but add two additional accessories so that each of his friends will have something they like. It will be easier to introduce a large number of products than just one. e. Find new friends because if they are too stupid to appreciate his great idea, they don't deserve to have him as a friend.

a. Continue to develop the product knowing that because there are millions of smartphone users, there will probably be a large enough group who like the product for it to be successful.

Niles is the marketing manager for Hang Five, a manufacturer of half-price surfboards. He just learned that the largest supplier of surfboard blanks has just declared bankruptcy and that in 30 days the supplier would no longer be able to provide surfboard blanks for Hang Five. Niles is likely to rely on the ___________ feature of the company's marketing information system to help solve this problem? Select one: a. Decision Support System b. Data mining c. Legacy systems d. Acquired databases/internet e. Exceptions reporting

a. Decision Support System

The goal at the ______________ stage of the product life cycle is to maximize profit without investing a lot of resources in the product. Select one: a. Decline b. Growth c. Introductory d. Maturity e. Rebirth

a. Decline

What is the most important stage of the market research process? Select one: a. Define the problem b. Answer specific questions c. Take action based on the findings d. Develop the research plan e. Set research objectives

a. Define the problem

Traditionally, which of the bases for segmentation was most frequently used by marketers? Select one: a. Demographic b. Geographic. c. Psychographic. d. Statistical e. Buying behavior

a. Demographic

Which of the following statements about the consumer buying process is FALSE? Select one: a. Different people will go through the stages of the consumer buying process in a different order. b. The consumer buying process deals with people who are purchasing things for personal consumption. c. The consumer buying process deals with human behavior. d. The consumer buying process deals with the way human beings solve problems. e. Not everybody who starts consumer buying process ends up buying a product.

a. Different people will go through the stages of the consumer buying process in a different order.

One of the strategies during the decline stage of the product life cycle is to sell the product to another company or simply to stop producing the product. This strategy is called? Select one: a. Exiting the market. b. Shaking the product. c. Harvesting the product. d. Milking the product. e. Leaving the scene of an accident.

a. Exiting the market.

Even if you have never seen a product before, you may have a sense of what it should sell for based on similar products that you have experienced in the past. Marketers need to be aware of this ___________ when they set prices for new products? Select one: a. Expected price b. Value indicator c. Premium price d. Penetration price e. Skimming price

a. Expected price

Which of the following is NOT a requirement for causal research? Select one: a. Focus group b. Independent variable c. Control group d. Theoretical framework e. Probability sample

a. Focus group

Bruce wanted to open a coffee shop. He knew his coffee was way better than anything Starbucks could do so he opened his first store across the street from a Starbucks Store. He ran advertisements in the local paper claiming "Bruce's Brew is better than Starbucks Stuff" and offered a money back guarantee to any Starbucks customer who was willing to try a cup of Bruce's Coffee. Bruce is using a _______________ positioning strategy. Select one: a. Head to head b. Different attributes c. Follow the leader d. Differentiation e. More is better

a. Head to head

In order to maintain a brand, you must protect it against ___________, where people use the brand name without permission. Select one: a. Infringement. b. Cannibalization c. Abuse d. Pasteurization e. Poaching

a. Infringement.

Jill has been sitting through Professor Robertson's class for almost an hour now. She didn't have time for breakfast because... well just because. It is now almost eleven o'clock and she realizes that she is very hungry. This is an example of _________ problem recognition? Select one: a. Internal b. Social c. External. d. Consumer e. Impulse

a. Internal

One common strategy to extend the life of a product in the maturity stage of the product life cycle is to ____________? Select one: a. Introduce incremental innovations b. Skim the product. c. Stop advertising the product. d. Divest the product. e. Harvest the product

a. Introduce incremental innovations

The goal at the ______________ stage of the product life cycle is to get people to try the product for the first time. Select one: a. Introductory b. Growth c. Maturity d. Rebirth e. Decline

a. Introductory

According to Ries and Trout, consumers organize products into categories in their minds. The goal of positioning is to? Select one: a. Make it so that your product is the first thing that comes to mind when a category is mentioned. b. Enter your product into as many categories as possible to increase the chance it comes up with a category. c. Convince consumers that other products in the category are not as good as yours. d. Find the strongest category in a consumer's mind and make sure your product has a position somewhere in that category. e. Cross-index the categories so consumers are reminded of your product when thinking of something else.

a. Make it so that your product is the first thing that comes to mind when a category is mentioned.

Grocery stores frequently put items such as candy bars or chewing gum next to the check-out lines. The reason is that simply seeing the candy display may make a consumer hungry for a candy bar. This tactic tends to affect consumers at the ________ stage of the consumer buying process. Select one: a. Problem recognition b. Internal motivation c. Time-sensitive d. External motivation e. Postpurchase behavior

a. Problem recognition

The four 'P's are? Select one: a. Product, price, place, and promotion b. Bashful, Doc, Dopey, Grumpy, Happy, Sleepy, Sneezy. c. Product, people, positioning, profits. d. Product, positioning, promotion and packaging. e. Product, potential, peripherals and purchase.

a. Product, price, place, and promotion

Sometimes it is not feasible to conduct causal research because meeting all of the conditions (for example a probability sample when you aren't sure how many people are in the population). In these cases researchers may conduct ____________ research which is almost as good. Select one: a. Quasi-experimental b. Bogus c. Stratified random sample d. Ethnographic e. Psuedo

a. Quasi-experimental

Bruce is afraid he is gaining weight. He got on the scale this morning and he was 10 pounds heavier than he was last night. He got on the scale again after breakfast and he had lost 10 pounds. Just before leaving for school he got on the scale again and he was 5 pounds lighter than he was after breakfast. Clearly, there is a problem with the _________ of Bruce's weight measurements? Select one: a. Reliability b. Trend c. Measurement d. Representativeness e. Validity

a. Reliability

Roxanne has completed her positioning analysis and believes she understands why her adult milk beverage has been performing so badly. Her product was the first product to use aseptic packaging, which allows milk to be stored at room temperature for long periods of time. Introduced in 1999, the product was positioned as a survival food because everybody was worrying about Y2K problems at the turn of the century. Today people are more concerned about nutrition and her aseptic milk is very low in fat. To take advantage of this, she changes her advertising slogan from "It will keep you alive in the next century" to "A healthy beverage, ready and waiting". Roxanne is trying to? Select one: a. Reposition her product against itself b. Reduce her production costs c. Reposition her product against the competition d. She is trying to do all of these things. e. Make people believe that the market leader is selling an unhealthy drink

a. Reposition her product against itself

Roxanne has completed her positioning analysis and has decided that she needs to reposition her product to a more attractive segment. In order to do this she needs to consider? Select one: a. She needs to consider all of these things. b. Whether the organization can support the new product position c. Does she have the money to make the change d. What are her competitors likely to do when they notice she is changing her strategy e. What changes she will need to make to the product

a. She needs to consider all of these things.

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union for a bowl of ice cream. All they had was Dreyers Ice Cream and Bruce was really in the mood for Haagen Daz. So he walked over to Stonestown mall in order to get a bowl of Haagen Daz Ice Cream even though he really didn't have the time. In terms of product classification, Haagen Daz ice cream could best be described as a(n) for Bruce? Select one: a. Specialty product b. Sought product. c. Shopping product d. Unsought product e. Convenience product

a. Specialty product

The last stage of the market research process involves all of the following EXCEPT? Select one: a. Submitting expense reports b. These are all activities associated with the last stage of the market research process. c. Evaluating the quality of the decision d. Evaluating the quality of the research e. Acting on the findings of the research

a. Submitting expense reports

The consumer buying process deals with how human beings __________ ? Select one: a. The consumer buying process deals with all of these. b. Buy products c. Solve problems d. Make decisions e. Feel about a purchase after buying something.

a. The consumer buying process deals with all of these.

Which of the following conditions make it favorable for a retailer to launch a store-brand? Select one: a. The retailer has a solid reputation for quality products b. The retailer has a very small advertising budget c. The retailer does not sell manufacturer's brands d. The retailer has filed for bankruptcy and can no longer afford national brands. e. The retailer also sells manufacturer's brands

a. The retailer has a solid reputation for quality products

A successful brand adds value to a product because...? Select one: a. These are all expressions of the value of brand equity. b. customers are willing to pay a premium price for the product. c. it is a barrier to entry for competitive products. d. of increased customer loyalty. e. it increases the value of a company's common stock.

a. These are all expressions of the value of brand equity.

Companies that have several products in the same category might use ____________ as a way to establish different positions for each product in the category in the mind of the consumer? Select one: a. a price line strategy b. prestige Pricing c. yield management pricing d. penetration pricing e. multiple pricing

a. a price line strategy

During the _____________ stage of the fashion cycle, new styles are sought by trendsetters? Select one: a. distinctiveness b. economic c. emulation d. excitement

a. distinctiveness

Last year, BruceCo sold 1000 coffee cups for $10 each. This year, the company is planning on selling 1500 coffee cups. In order to cover the additional investment they will charge $10.50 for the first 500 cups, $10.25 for the second 500 cups and $10 for the last 500. Each cup costs $4.70 to produce. What is the marginal profit for the 1125th cup? Select one: a. $10.25 b. $5.30 c. $10.50 d. $10.00 e. $4.70

b. $5.30

Last year, BruceCo sold 1000 coffee cups for $10 each. This year, the company is planning on selling 1500 coffee cups. In order to cover the additional investment they will charge $10.50 for the first 500 cups, $10.25 for the second 500 cups and $10 for the last 500. Each cup costs $4.70 to produce. What is the marginal profit for the 700th cup? Select one: a. $10.00 b. $5.55 c. $4.95 d. $10.50 e. $10.25

b. $5.55

A discontinuous innovation is? Select one: a. A product so new that customers may not understand how to use it. b. A discontinuous innovation is all of these things. c. An opportunity to gain a significant competitive advantage. d. A product that is "new to the world" e. A product so innovative that it can change the way we live.

b. A discontinuous innovation is all of these things.

Which of the following situations is probably illegal price discrimination as determined by the Robinson-Patman Act? Select one: a. A gasoline filling station charges customers who use a credit card or an ATM card three cents extra per gallon. b. A gasoline refinery sells gasoline to its dealers for 50 cents less than to independent dealers because it doesn't want independent dealers selling gasoline at lower prices than the company's dealer network. c. The Frito Lay company sells potato chips to Wal Mart for less money than to a local grocery store because Wal Mart buys in very large quantities in order to be able to offer low prices. d. A bank charges a lower fee for a checking account to customers who have agreed to have their paychecks deposited to the account automatically? e. These are all examples of illegal price discrimination.

b. A gasoline refinery sells gasoline to its dealers for 50 cents less than to independent dealers because it doesn't want independent dealers selling gasoline at lower prices than the company's dealer network.

What is the difference between a need and a want as described in class? Select one: a. A need describes desire at an individual level, a want describes desire of groups as a whole. b. A need is a perceived lack of something, a want is a culturally defined way to satisfy the need c. A need is a physical desire, a want is an intangible desire. d. A need is a desire for a socially desirable product, a want is a desire for a socially unacceptable product. e. A need is an actual lack of something, a desire is a perceived lack of something.

b. A need is a perceived lack of something, a want is a culturally defined way to satisfy the need

Which of the following situations describes a business customer? Select one: a. All of these are business customers. b. A person who buys yarn in order to knit baby clothes for sale on her "darned babies" website. c. A person who buys yarn in order to knit a sweater for himself d. A person who notices that her baby could use some new knitted baby clothes. e. A person who surfs the web looking for knitted baby clothes.

b. A person who buys yarn in order to knit baby clothes for sale on her "darned babies" website.

Desiree knows that she does not have very much money. Yet she dreams of being rich and famous like one of those Hollywood stars you see on television all the time. Her one luxury is to buy fashionable designer dresses just like those worn on her favorite television shows. In order to survive, she eats day old bread and lots of rice because it is very inexpensive. Desiree's desire to save money on food (which she eats alone) is motivated by her ____________? Select one: a. Ideal self-concept b. Actual self-concept. c. Fashion sense. d. Need for safety. e. External motivation.

b. Actual self-concept.

When would you be willing to spend money to develop new information to support a decision? Select one: a. When there is a lot at risk in making the decision. b. All of these are reasons to spend money to develop new information to support a decision. c. When the information you develop is better than guessing. d. When there is a high level of uncertainty about alternative outcomes. e. When the expected value of the decision increases with better information.

b. All of these are reasons to spend money to develop new information to support a decision.

Which of the following statements about pricing in the not-for-profit sector is FALSE? Select one: a. Financial goals are secondary to non-financial goals b. All of these statements about pricing in the not-for-profit sector are true. c. Embarrasment or sweat equity may be non-monetary componenets of the not-for-profit price to the customer. d. many not-for profits use "sliding scale" fees where people who can afford to pay more are charged higher fees. e. The price to the customer may be below the cost of providing the service with the difference made up by a third party.

b. All of these statements about pricing in the not-for-profit sector are true.

What would a reader expect to find in the limitations section of a research report? Select one: a. A recommendation based on the research b. Any compromises the researchers needed to make in order to complete the study c. The analysis methods used in the report. d. A one-page summary of the major findings. e. A description of the methods used to collect the data

b. Any compromises the researchers needed to make in order to complete the study

In the three circles positioning framework presented in class, what does "the bar" represent? Select one: a. A place to go to overhear conversations about your competitors' products. b. Areas where you need to be competitive, but will not give you a competitive advantage c. Opportunities to differentiate your product based on industry standards d. Areas that are more important to your customers than to your competitors' customers e. Products you do not need to carry because there are planty of businesses who will provide them

b. Areas where you need to be competitive, but will not give you a competitive advantage

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company introduce the new product into the company's overall product mix? Select one: a. Screening and evaluation b. Commercialization c. Idea generation d. New-product strategy e. Market Testing f. Business analysis g. Technical development

b. Commercialization

In a(n) _____________ situation, multiple suppliers are invited to submit proposals for a contract to supply a good or service to a business customer? Select one: a. Open outcry auction. b. Competitive bidding. c. Modified re-buy. d. Reciprocal selling. e. Environmental scanning.

b. Competitive bidding.

Which of the following research techniques is most likely to be used in Causal research? Select one: a. Case studies. b. Controlled experiment c. Focus groups d. Video observation e. Ethnography

b. Controlled experiment

Jiwon is thinking of developing a candy specifically for college students. She thinks that college students would buy candy if it had caffeine in it. Before she invests a lot of money in candy making equipment, she conducts ___________ research to find out if there is a relationship between caffeine and candy sales for college students? Select one: a. Causal b. Descriptive c. Exploratory d. Pseudo e. Experimental

b. Descriptive

Frodo was a massage therapist. He was very good at dealing with lower back pain. The walls of his waiting room were covered with framed documents. Some of them were diplomas from the massage schools he had attended. Others were copies of testimonial letters from well known people. Still others were reprints of favorable news articles that had been published in newspapers and magazines. Frodo was using the ___________ approach to making his service seem 'real'? Select one: a. Association b. Documentation c. Physical representation d. Visualization e. Word of mouth

b. Documentation

Campbell's soup has dozens of different flavors and packages of soup. All of them have the same distinctive red and white packaging. You have to read the label to tell the varieties of soup apart. This is an example of: Select one: a. Private branding. b. Family branding c. Excessive branding. d. Generic branding e. Individual product branding

b. Family branding

Which of the following is NOT one of the dimensions customers use to evaluate service quality? Select one: a. Responsiveness b. Price c. Empathy d. Assurance e. Reliability

b. Price

_________ is the amount of money or other consideration, which is exchanged or offered for a product, or other desired outcome. Select one: a. Value b. Price c. Revenue d. Barter e. Expense

b. Price

Bruce Company is a small startup with just enough money in the bank to get it through the end of the month. Which market entry strategy might work best for Bruce Company? Select one: a. Second mover strategy, it would be smarter to let a well capitalized company introduce the product and once it was established, Bruce Company could safely imitate it. b. First mover strategy, it is riskier and Bruce Company has little to lose if it doesn't work out. c. Testing the waters, Bruce Company should spend more time in the test market stage of the new product development process before attempting to commercialize an unproven product. d. Third mover strategy, Bruce company should wait until there are two competitors in the market and then pursue a niche strategy during the growth stage. e. Wait and see approach. Bruce Company cannot afford to make a mistake so they should wait until they are sure the product will be successful before entering the market.

b. First mover strategy, it is riskier and Bruce Company has little to lose if it doesn't work out.

Bruce is trying to contact the purchasing agent for Starbucks Coffee in order to sell them his new "Bruce's Blend" of coffee. However, each time he calls the buyer, he gets a receptionist who asks him his name and then forwards his call to the buyer's voice mail. This has happened several times now and Bruce is beginning to think that the buyer will never call back. The buyer's receptionist performing the role of _________? Select one: a. Buyer b. Gatekeeper c. Influencer d. Decider e. user

b. Gatekeeper

A ______________ or _______________ tries to create the perception of value by eliminating the advertising expense associated with many consumer products? Select one: a. Manufacturer's brand, producer's brand b. Generic brand, no-name brand c. Brand name, service mark. d. Distributor's brand, private-label brand e. Trade name, trademark

b. Generic brand, no-name brand

Which of the following is NOT one of the levels of attributes customers use to evaluate service quality? Select one: a. Search attributes b. Intangible attributes c. Experience attributes d. Credence attributes e. These are all dimensions of service quality.

b. Intangible attributes

The concept of ___________ recognizes that before an organization can effectively take care of customers' needs, it must focus on its employee's needs? Select one: a. Component branding b. Internal marketing c. Internal rate of return d. Positioning e. Empathy

b. Internal marketing

A ______________ or _______________ is usually the property of the business that manufactures a product? Select one: a. Private-label brand, distributor brand b. Manufacturer's brand, producer brand c. Brand name, service mark. d. Trade name, trademark e. Generic brand, no-name brand

b. Manufacturer's brand, producer brand

By definition, _____________ is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large? Select one: a. Advertising b. Marketing c. Selling d. Management e. Exchange

b. Marketing

One of the strategies during the decline stage of the product life cycle is to stop spending money on advertising continue to sell the product as long as customers are willing to buy it. This strategy is called? Select one: a. Skimming the product. b. Milking the product. c. Shaking the product. d. Repositioning the product. e. Divesting the product.

b. Milking the product.

Perla is trying to decide which of two big screen television sets she should purchase. One is more expensive than the other, but it has better resolution. Sound quality is the same on both television sets. They both come with remote controls, but Perla rarely uses a remote control so it is not a factor in her decision. Perla is using __________ to make the decision? Select one: a. Consideration set b. Multiple criteria c. Price d. Sound quality. e. Single criteria

b. Multiple criteria

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company typically determine the relative importance of new product development to the overall goals of the organization? Select one: a. Technical development b. New-product strategy c. Commercialization d. Idea generation e. Business analysis f. Screening and evaluation g. Market Testing

b. New-product strategy

One of the biggest differences between a for-profit service company and a not-for-profit service company is that? Select one: a. Not-for-profit companies receive tax dollars from the government while for-profit companies pay taxes to the government. b. Not-for-profit companies have multiple constituencies that could be considered to be customers. c. Not-for-profit companies are expected to lose money while for-profit companies are expected to make money. d. These are all differences between not-for-profit companies and for-profit companies. e. Not-for-profit companies satisfy a need in society while for-profit companies do not satisfy societal needs.

b. Not-for-profit companies have multiple constituencies that could be considered to be customers.

Nintendo chose a ___________ approach to pricing for a new game console because they felt the market for this product was price sensitive, there are major economies of scale to be achieved, and both Sony and Microsoft would be introducing new game systems shortly? Select one: a. Variable price b. Penetration c. Skimming d. Trial pricing e. Game theory

b. Penetration

What is the essence of the loss aversion principle? Select one: a. People will be angry if they find out they paid too much money for a product. b. People will work harder to avoid a loss than they will to achieve an equivalent gain. c. People prefer to discard obsolete products when newer products are available. d. People will enjoy spending money more if they earned it than if they received it as a gift. e. People will double their bet after taking a loss in order to win their money back.

b. People will work harder to avoid a loss than they will to achieve an equivalent gain.

A brand can be thought of as a promise you make to your customers. In order for the brand to be successful, the promise must be _____________? Select one: a. Legally binding b. Perceived as valuable to your customers. c. Printed on the package or in the instructions d. Changed as circumstances change. e. Implied

b. Perceived as valuable to your customers.

_________ utility exists when a product is readily accessible where potential customers need it Select one: a. Image b. Place c. Time d. Form e. Posession

b. Place

Mordred had been sued by a former business partner. The partner was seeking $1,000,000 in damages. Mordred felt that this claim was totally unfair. He went to the law firm of Merlin, Guinevere, and Arthur, LLC. He was told that a junior associate could handle his case for $300 and hour or a senior partner could handle the case for $700 and hour. When he asked why there was such a difference in the rates, he was told that the senior partners were in such high demand that they were trying to discourage new clients. This is an example of _____________? Select one: a. Automation b. Price rationing c. Productization d. Dive up window e. Visualization

b. Price rationing

_____________ include retail and wholesale businesses. Select one: a. Institutions b. Resellers c. Facilitators d. Governments e. Industrial Markets

b. Resellers

The four 'P's are? Select one: a. The final phase of the marketing concept b. The marketing mix variables we use to create need-satisfying offerings. c. A tool marketers use to create exciting advertising campaigns. d. A formula for creating successful new products. e. All of these.

b. The marketing mix variables we use to create need-satisfying offerings.

Which of the following is a condition necessary for an exchange to occur? Select one: a. A person must be at least 18 years old (in the United States) b. There must be at least two parties involved. c. Face to face meeting. d. The products must be of equal value. e. There must be a business relationship.

b. There must be at least two parties involved.

Which of the following is NOT a motive for a business customer to purchase a product? Select one: a. To maximize profits for the firm. b. To negotiate a price so low that the supplier actually loses money on each transaction. c. To be able to demonstrate she is the best purchasing agent in the company. d. To ensure that the products the firm uses meet the end user's quality requirements.

b. To negotiate a price so low that the supplier actually loses money on each transaction.

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union looking for a snack. On his way he noticed someone had set up a table with information on data plans for cellular phones. As he tried to walk past the table, a salesperson stopped him and asked him if he would like to buy a data plan for a very low introductory rate. In terms of product classification, a cell phone could best be described as a(n) for Bruce? Select one: a. Specialty product b. Unsought product c. Convenience product d. Sought product. e. Shopping product

b. Unsought product

Bruce is very frustrated. He trying to make copies of a handout for his 9:30 principles of marketing class and the copier is jammed. The copier is always jammed. He has complained to the purchasing agent several times, asking them to get a copier that works. Bruce is performing the buying center role of _________? Select one: a. Influencer b. User c. Buyer d. Decider e. Gatekeeper

b. User

Tracy is thinking of marketing a new energy drink. Her key selling proposition will be that her product tastes just as good at room temperature as it does when it is ice cold. She plans on testing whether or not students will like her new energy drink by showing pictures of her drink and the other leading brands to students outside the student union. If the majority of students prefer the picture of her product, she will go ahead with the product launch. Tracy may have a problem with the ___________ of her measurement in this market research project. Select one: a. Probability b. Validity c. Reliability d. Information e. Generalizability

b. Validity

Gandalf opened a tobacco shop in the Haight/Ashbury District. He wanted to create a distinctive brand personality for the store, so he insisted that all of the employees wear purple robes and long, pointed hats while they were on duty so they would all look like wizards to customers. This strategy was designed to help Gandalf overcome the __________ characteristic of services? Select one: a. Inseparability b. Variability c. Invisibility d. Intangibility e. Perishability

b. Variability

The first stage of the consumer buying process is: Select one: a. Where a consumer weighs the pros and cons of different products. b. Where a consumer realizes that there is something he or she lacks. c. Where a consumer regrets having made the purchase after it is over with. d. Where the consumer finds the resources to be able to make a purchase. e. Where a consumer looks for different ways to solve a problem.

b. Where a consumer realizes that there is something he or she lacks.

One of the disadvantages of bringing a discontinuous innovation to market is? Select one: a. You can develop a significant competitive advantage if it works. b. You may have to spend a lot of effort helping customers understand the value of the new product. c. There is less risk associated with discontinuous innovations than with incremental innovations. d. The product is so innovative that it may change the way we live. e. All of these are disadvantages of discontinuous innovations.

b. You may have to spend a lot of effort helping customers understand the value of the new product.

In the three circles positioning framework presented in class, what area of the chart indicates how you are currently differentiated in the marketplace? Select one: a. The "bar" b. Your unique position c. Competitor unique position d. Customers' needs e. Your products

b. Your unique position

_____________ are factors that limit the range of prices a firm may set for its products? Select one: a. social responsibilities b. organizational constraints c. price heuristics d. price/value continuum e. pricing objectives

b. organizational constraints

Hewlett Packard makes a variety of inkjet printers for personal computers. You can buy a basic 'all in one' printer that scans, copies and prints for less than $99. Replacement ink cartridges from Hewlett Packard cost between $30 and $60 depending on whether it is black and white or color ink. This is an example of _____________? Select one: a. Yield management pricing. b. Prestige pricing c. Captive pricing d. Convenience pricing e. Price bundling

c. Captive pricing

BruceCo's marketing information system is powered by a Tianhe-2 supercomputer and features a wireless intranet that is available 24/7 for any manager equipped with a company-issued smartphone. This is an example of the ___________ component of a marketing information system? Select one: a. Routine reporting b. Internal information c. Computer hardware and software d. Decision makers e. Acquired databases/internet

c. Computer hardware and software

What do we mean when we say demand for industrial goods is derived? Select one: a. Many business customers use contracts to establish purchase quantities. b. Transportation issues make a significant difference in a company's ability to use industrial goods in its products. c. Consumers buy industrial goods indirectly when they purchase consumer goods that use industrial goods as components. d. Business customers consider other things than simply price when deciding to purchase an industrial good. e. A product can be considered to be either a consumer product or an industrial product depending on how it is used.

c. Consumers buy industrial goods indirectly when they purchase consumer goods that use industrial goods as components.

Which of the following typically a responsibility of the marketing function in an organization? Select one: a. Prepare the organization's financial statements. b. All of these. c. Create need-satisfying offerings d. Create the organization's mission statement. e. Maintain an accurate mailing list of the company's stockholders.

c. Create need-satisfying offerings

Which of the following is NOT information that is available categorized by NAICS codes? Select one: a. Employment data b. Salary data c. Current price data d. Industry sales data e. Number of firms in an industry

c. Current price data

Doc Robertson Designs is a high end fashion boutique for professional men. As part of their data mining program, they identified customers who had spent more than $1,000 on merchandise in the past and who had not made a purchase in the past 18 months. These customers were invited to an invitation-only sales event where they could purchase anything in the store for 35% off. This is an example of using data mining for _________? Select one: a. New product development b. Customer acquisition c. Customer retention d. Market basket analysis e. Customer abandonment

c. Customer retention

Lands End was traditionally a mail order catalog company. In order to expand their business, they decided to open retail outlets where customers could visit and actually see the merchandise. By analyzing the zip codes from past mail order shipments, they were able to locate new stores in areas where many of their customers already lived. This is an example of? Select one: a. Exception analysis b. GIGO c. Data Mining d. Environmental scanning e. Data manipulation

c. Data Mining

A(n) ___________ is a conscious choice from among two or more alternatives? Select one: a. Dilemma b. Inference. c. Decision d. Option e. Research finding

c. Decision

One of the main DISADVANTAGES of interactive data collection is? Select one: a. You have the ability to restate the question if the participant doesnt understand it. b. It is much less expensive than other data collection techniques. c. Different interviewers may be inconsistent in how they ask the questions. d. Response rates tend to be very low. e. You are unable to follow up with specific questions

c. Different interviewers may be inconsistent in how they ask the questions.

Zach hates the sport of soccer. He especially dislikes the Brazilian national team. He makes it a point never to wear anything that looks like soccer clothing, especially if it is in the colors of the Brazilian team. For Zach, the Brazilian soccer team is a(n) ____________? Select one: a. Aspirational group b. Membership group c. Dissociative group d. Consideration set e. Conformity group

c. Dissociative group

____________ are the costs of production that do not change with the number of units produced? Select one: a. Marginal costs b. Opportunity costs c. Fixed costs d. Variable Costs e. Total costs

c. Fixed costs

The goal at the ______________ stage of the product life cycle is to build market share and differentiate the product. Select one: a. Maturity b. Rebirth c. Growth d. Decline e. Introductory

c. Growth

Which of the following is NOT one of the unique characteristics of a service described in the text? Select one: a. Intangibility b. Perishability c. Invisibility d. Variability e. Inseparability

c. Invisibility

The major advantage of secondary data is that? Select one: a. Gives you control over the methodology b. It is external to the organization c. It is immediately available. d. It answers your specific research question e. It is up to date

c. It is immediately available.

One of the main ADVANTAGES of observational data collection is? Select one: a. It is easy to interpret observational data. b. Observational data is less expensive than questionnaire data c. People frequently are unaware or unable to say what their true motivation is. d. You have the ability to ask follow up questions. e. The data collection is done by machines such as a video camera or tape recorder.

c. People frequently are unaware or unable to say what their true motivation is.

Frodo was a massage therapist. He was very good at dealing with lower back pain. He gave his clients a book that they could use to keep a record of their visits to his practice and record their thoughts and feelings about the therapy. In the front of the book was a beautiful picture and an inspiring poem that would remind his clients that lower back pain can be treated with a visit to Frodo. By using the book, Frodo's patients could benefit from his practice even if he wasn't with them personally. Frodo was using the ___________ approach to making his service seem 'real'? Select one: a. Visualization b. Association c. Physical representation d. Documentation e. Word of mouth

c. Physical representation

A(n) _____________ specifically excludes things, such as damage caused by the customer, from warranty coverage? Select one: a. lack of accountability b. express warranty c. limited warranty d. liability e. implied warranty

c. limited warranty

Huyen wanted to answer the research question, "What causes students to be unhappy with Marketing 431?" Although no one had conducted research on marketing 431, there were hundreds of studies that had been done about why students are unhappy with college classes. Huyen was able to take advantage of this __________ data to answer her research question? Select one: a. Experimental b. Random c. Secondary d. Pseudo e. Primary

c. Secondary

Confirmation bias recognizes that people will be more likely to believe someone who agrees with what they already think than someone who disagrees with what they think. This is the result of: Select one: a. Selective retention b. Selective cognition c. Selective interpretation d. Selective attention e. Natural selection

c. Selective interpretation

Which of the following sampling techniques is a nonprobability sample? Select one: a. Stratified random sample b. Random sample c. Snowball sample d. Iceberg sample e. Systematic sample

c. Snowball sample

What did your instructor mean when he mentioned the concept of cognitive miserliness? Select one: a. That people naturally seek the lowest cost alternative. b. That people carefully evaluate all of the information available in order to make the best decision. c. That people do as little 'thinking' as possible when making a decision. d. That people are unwilling to share information when they have discovered a real bargain. e. That many consumers who spend money freely actually perceive themselves to be misers.

c. That people do as little 'thinking' as possible when making a decision.

What do marketers mean when they speak of involvement as it relates to the consumer buying process? Select one: a. The number of friends a person will ask for advice before making a purchase b. Once a person has begun the consumer buying process, that person is committed to making a purchase. c. The financial, social and physical risk of the purchase to the person d. The amount of time the person is likely to spend making the decision e. When a person chooses to shop in person for a product rather than shopping online or choosing from a catalog.

c. The financial, social and physical risk of the purchase to the person

What is the relationship between the law of truly large numbers and market segmentation? Select one: a. The law of large numbers deals with people while market segments deals with products. b. The law of large numbers determines how many market segments will be possible. c. The law of large numbers is an abstract concept that helps us understand why market segmentation works. d. The law of large numbers is the same thing as market segmentation. e. There has to be a large number before you can have a market segment.

c. The law of large numbers is an abstract concept that helps us understand why market segmentation works.

Warranties can be either express or implied. An implied warranty means that? Select one: a. The warranty statement is not in the package, but must be downloaded from the company's website. b. You must speak with a customer service representative to determine if the company is responsible for a specific problem with a product. c. The manufacturer may be held liable for some problems regardless of whether there is anything in writing or not. d. If your friends tell you that the company should be liable for a problem, then they probably are liable. e. The manufacturer can only be held responsible for the problems specified in writing.

c. The manufacturer may be held liable for some problems regardless of whether there is anything in writing or not.

What do marketers mean when they speak of a "consideration set" ? Select one: a. The feelings of remorse a consumer may have following a major purchase involving multiple items. b. The set of criteria used to evaluate alternatives. c. The subset of the alternatives identified during the identify alternatives phase that the consumer evaluates before making a decision. d. The amount of time a consumer spends evaluating each alternative in the 'awareness set' e. Fashion-forward thinkers who people ask for advice when purchasing socially consumed goods.

c. The subset of the alternatives identified during the identify alternatives phase that the consumer evaluates before making a decision.

Subcultures can be powerful segmentation variables because people have more choice about the subcultures they choose to identify with. This means? Select one: a. The law of supply and demand does not apply to a subculture. b. Everyone who is a member of a subculture will want similar products. c. They are more likely to seek out products that affirm their membership in the subculture d. They will only buy goods and services from members of their subculture. e. They are more likely to have money to spend on luxury products.

c. They are more likely to seek out products that affirm their membership in the subculture

eference groups are important to Marketers because... Select one: a. They are realtively stable over time b. Reference groups are important to marketers for all of these reasons. c. They serve as information sources and influence opinions d. They are an important market segment e. Aspriational groups tend to have more disposable income

c. They serve as information sources and influence opinions

The ____________ approach to new product pricing sets prices low for a while in order to encourage people to try the product and then raises the price once the new product gained traction in the marketplace? Select one: a. Penetration b. new and improved c. Trial pricing d. Variable price e. Skimming

c. Trial pricing

Which of these is NOT one of the four "V's" of Big Data? Select one: a. Variety (multiple data sets) b. Velocity (real-time) c. Visibility (can be displayed graphically) d. Variety (data from multiple sources) e. Veracity (reliable and valid)

c. Visibility (can be displayed graphically)

It has been said that no two people on an airplane pay the same price for a ticket. Prices tend to be lower if you are willing to book you trip well in advance and tend to be much higher if you have to book your trip on short notice. A non-refundable ticket costs less than a refundable ticket. Airlines use this ___________ in order to maximize the revenue they earn from each flight? Select one: a. Prestige pricing b. Flexible pricing c. Yield management pricing. d. Price bundling e. Captive pricing

c. Yield management pricing.

A feature is...? Select one: a. something that is determined by the customer b. permission to manufacture a specific product c. an attribute of a product or offering d. a major motion picture e. the most important part of a product

c. an attribute of a product or offering

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union and bought a big bowl of ice cream. In terms of product classification, ice cream could best be described as a(n) for Bruce? Select one: a. durable good. b. High calorie product c. non-durable good d. Impulsive product e. Business good.

c. non-durable good

Which of the following is tactics is most likely to encourage customers to pay your asking price for a product. Select one: a. A professionally printed price tag with the price crossed out and a lower price written in. b. A Professionally printed price tag with the actual price hand-written in a blank provided for the price. c. A price tag that says no reasonable offer refused. d. A price tag that looks like it was professionally printed. e. A handwritten price tag with the price and the date that the tag was written on it.

d. A price tag that looks like it was professionally printed.

The value of the levels of the product concept is that the actual product can be thought of as? Select one: a. The linkage between the core benefit and the market segment. b. Unfinished until the product has been enhanced by offering a service guarantee. c. The only way to deliver the core benefit to the customer. d. A way to deliver the core benefit to the consumer. e. The second step in a marketing program.

d. A way to deliver the core benefit to the consumer.

Which of the following is NOT a functional benefit of packaging? Select one: a. Keeping the product dry. b. Meeting intermediary needs. c. Protecting the product d. Acting as a silent salesperson e. Allowing the retailer to display the product on store shelves

d. Acting as a silent salesperson

Which of these is a constraint to consider when developing a research plan? Select one: a. The shelf-life of the market opportunity addressed by the research. b. Fees paid to an outside market research firm. c. The time managers spend discussing the project with researchers. d. All of these are constraints to be considered when developing a research plan. e. The salaries paid to in-house market researchers.

d. All of these are constraints to be considered when developing a research plan.

Which of these is NOT a good source of new product ideas? Select one: a. Suppliers b. People who complain about your current product offerings. c. Existing customers d. All of these are good sources of new product ideas. e. Consultants

d. All of these are good sources of new product ideas.

Why is it so important to take complaints about service so seriously? Select one: a. Because it will tell you which products you need to discontinue. b. Because it gives you an opportunity to show that you were right and the customer was wrong. c. Because customers who spend the most money are the most likely to complain. d. Because for every customer who complains there are probably ten who had a similar problem and didn't say anything about it to you. e. Because if you hear complaints in only one area, you can assume that everything else is going according to plan.

d. Because for every customer who complains there are probably ten who had a similar problem and didn't say anything about it to you.

Time has an impact on purchase behavior both from a "ticking clock" perspective and from a ____________ perspective? Select one: a. Terms of service b. Egg timer c. Annual d. Calendar e. Punctuality

d. Calendar

Companies frequently develop new products by combining two different technologies to come up with a product that represents a dynamically continuous innovation. This is known as _____________? Select one: a. Brainstorming b. Continuum c. Feature creep d. Convergence e. Construction.

d. Convergence

Roxanne has completed her positioning analysis and has decided that there is an opportunity to create an adult milk beverage that is enhanced with vitamins. Currently, her company does not make such a product, nor for that matter do any of her competitors. Roxanne has the opportunity to? Select one: a. Reposition the industry around vitamin enhanced milk beverages. b. Charge higher prices because there are no competitors in this segment c. Save on advertising costs because there are no competitors in her segment. d. Create a new category by introducing a product that is different from anything else on the market. e. She can do all of these things.

d. Create a new category by introducing a product that is different from anything else on the market.

The __________ to setting prices weighs consumer tastes and preferences more heavily than costs and profits. Select one: a. Cost-based approach b. Qualitative approach c. Competition based approach d. Demand-based approach e. Subjective-approach

d. Demand-based approach

Which of the following is NOT a way perceptual maps can help you with your positioning strategy? Select one: a. Understand where your products are positioned relative to competitive produtcts. b. Determine how crowded a market position might be. c. Identify areas where there unmet needs d. Determine which of two alternative products your customers will prefer. e. Identify changes that can be made to product attributes to improve your competitive position

d. Determine which of two alternative products your customers will prefer.

_____________ looks at how new products are adopted by entire populations. Select one: a. Adoption process b. Cognitive dissonance c. New product development process d. Diffusion of innovations e. Trickle across theory

d. Diffusion of innovations

One of the dimensions customers use to evaluate service quality is _____________, or caring, individualized attention to customers? Select one: a. Responsiveness b. Assurance c. Price d. Empathy e. Reliability

d. Empathy

Yuli is the California regional manager for a suntan lotion company. Each morning a routine report identifies cities whose sales are 15% below projection for the previous day. This ____________ report allows Yuli to focus on stores that may need personal attention. Select one: a. Ad-hoc b. Progress c. Quarterly d. Exception e. Decision support

d. Exception

Rafael is applying to graduate schools for admission to the MBA program. If he goes part time, it will take four years and cost several thousand dollars. Rafael believes that he needs the advanced degree to get a promotion at his job. Rafael is likely to engage in _________ problem solving as he makes this decision? Select one: a. Routine b. Low effort c. Limited d. Extensive e. Consumer

d. Extensive

Huyen wanted to conduct market research to find out why students were unhappy with Marketing 431, probably the finest course ever to be offered by a university. In order to do this she needed to find people who were unhappy with the course. Figuring that these people would talk to each other, she used a sampling technique where she found one person who was unhappy with the course and, after asking her research questions, asked this person for the name of another person who was unhappy with the course. This technique is called _____________ sampling? Select one: a. Focus group b. Random c. Stratified random. d. Snowball e. Probability

d. Snowball

The three steps for developing a market position (or for developing any strategy, really) are? Select one: a. Determine which positions look attractive, select the position you want to achieve, develop a plan to achieve the position. b. Determine your current situation, do a cost/benefit analysis of the desirability of changing, implement and evaluate the plan. c. Ready, fire, aim. d. Figure out where you are now, figure out where you want to end up, develop a plan to get you from where you are to where you want to be. e. Define the problem, hire consultants, implement their recommendations.

d. Figure out where you are now, figure out where you want to end up, develop a plan to get you from where you are to where you want to be.

A(n) ______________ targeting strategy focuses on one specific marketing segment with one marketing mix? Select one: a. Multisegment b. Pretentious c. One-to-one d. Focus e. Undifferentiated

d. Focus

_____________ are business customers who purchase goods to incorporate them into other products for other businesses to use. Select one: a. Governments b. Facilitators c. Resellers d. Industrial Markets e. Institutions

d. Industrial Markets

_________ affects the amount of time and effort a buyer invests in the consumer buying process. Select one: a. Cognitive Dissonance b. The legal/political environment c. Decision making d. Involvement e. Market potential

d. Involvement

_________ is a function of the social, financial and safety risk associated with a purchase decision. Select one: a. Market potential b. The legal/political environment c. Income d. Involvement e. Competition

d. Involvement

What do we mean when we speak of a "defensible" decision? Select one: a. A decision taken in response to a competitor's action. b. These are all what we mean when we speak of "defensible" decisions. c. There is a written record of the decision and who is responsible for it. d. It was the best alternative given the information available at the time. e. A decision that ends up being a "good" decision

d. It was the best alternative given the information available at the time.

A brand can be thought of as a promise you make to your customers. In order for the brand to be successful, the promise must be _____________? Select one: a. A warranty b. Implied c. Changed as circumstances change. d. Kept. e. In writing

d. Kept.

____________ in the diffusion of innovations process are less influenced by advertising and more likely to consider word of mouth information when deciding to adopt a new product. Select one: a. Late adopters b. Laggards c. Innovators d. Late majority e. Early majority

d. Late majority

People may not be conscious of their true motivation for purchasing a specific product. This is especially true for socially consumed products such as luxury cars and designer fashions. They may say they are purchasing these products because they are of high quality or an excellent value. The real reason is more likely to be: Select one: a. They are on a company expense account and don't have to purchase these products with their own money. b. They are not aware of how expensive these products actually are. c. They perceive these products to be investments that will be much more valuable in the future than they are right now. d. Luxury products are a way for them to maintain their self image. e. They know that many people will lose their jobs if nobody purchases luxury products.

d. Luxury products are a way for them to maintain their self image.

Many television infomercials advertise a product at a very low price. After you order the product, you find there is a fairly substantial shipping and handling charge. When you figure in the extra charges, the product may be more expensive than other, similar products that you were considering. This is an example of a ________tactic? Select one: a. Flexible price b. Single price c. Captive price d. Multiple price e. Discount price

d. Multiple price

One way to segment markets for business customers is by industry type. This approach is attractive because of __________ which makes it cost effective to measure the number of potential customers in an industry? Select one: a. Local media. b. Zip codes c. Cable television d. NAICS codes e. Salespeople

d. NAICS codes

For companies operating in an oligopoly market structure, prices tend to be very stable. In these situations, the company with the largest market share might raise its prices in hopes that other, smaller companies will follow. If this happens, the price will increase. This is called the ____________ to setting prices? Select one: a. Customary pricing approach b. loss-leader approach c. Above or below approach d. Price leadership approach e. Price line approach

d. Price leadership approach

A _____________ sample means that every person in the population of interest has a known chance of being included in the research. Select one: a. Snowball b. Intercept c. Biased d. Probability e. Convenience

d. Probability

The _________________ is a concept that explains how products go through four distinct stages from birth to death. Select one: a. Diffusion process. b. marketing perspective c. Heimlich maneuver d. Product life cycle. e. Adoption process.

d. Product life cycle.

Yuli is the California regional manager for a suntan lotion company. Tomorrow morning she must meet with her supervisor for her annual performance review. In preparation for the meeting, she prints a copy of a routine ____________ showing her performance for the year compared to her goals. Select one: a. Colbert report b. Decision analysis c. Ad-hoc analysis d. Progress report e. Exception report

d. Progress report

Which of the following research techniques is most likely to be used in exploratory research? Select one: a. Longitudinal research. b. Survey questionnaire c. Quasi-experiment d. Qualitative data collection e. Mail survey

d. Qualitative data collection

The three circles positioning framework presented in class suggests using all of the following EXCEPT ___________ to help clarify a market position? Select one: a. Competitor offerings b. Customer needs c. Company's offerings d. Related industries e. Points of difference

d. Related industries

Why is it important to understand the assumptions that went into the research when you are making recommendations? Select one: a. Because if you understand the assumptions, you can use them as excuses if the results dont come out the way you had hoped. b. Because assumptions allow you to make inferences beyond what is indicated by a strict analysis of the data. c. All of these are reasons why it is important to understand the assumptions that go into a research project. d. So you don't overgeneralize - or read more into the data than is actually there e. Because you can't use assumptions with advanced statistical techniques

d. So you don't overgeneralize - or read more into the data than is actually there

Which of the following is an example of a source of data you might acquire in marketing analytics? Select one: a. All of these are sources of data you might acquire in marketing analytics. b. Customer service history c. Location data d. Syndicated research e. Customer data

d. Syndicated research

Which of the following statements about professional buyers is FALSE? Select one: a. Professional buyers are frequently trained in negotiation techniques. b. Professional buyers are people and have personal as well as professional reasons for making decisions. c. Professional buyers may know more about the product they are buying than the person selling it to them. d. The goal of the professional buyer is get the lowest purchase price. e. Professional buyers usually deal with a limited range of products.

d. The goal of the professional buyer is get the lowest purchase price.

For prestige products - products that are consumed socially and confer status on their owners? Select one: a. Demand increases when consumer income decreases b. Demand elasticity is inverted. c. An increase in price will increase unit sales and decrease average revenue. d. Unit sales of the product can decrease if prices are lowered. e. Value can be increased by reducing price.

d. Unit sales of the product can decrease if prices are lowered.

What is the hard way to become the category leader? Select one: a. To close your eyes and wish really, really hard that you are the category leader; then open your eyes and see if you have become the category leader. b. Find an attribute that nobody else is talking about and develop a market position featuring that unique attribute. c. Spend money on advertising to make consumers think your product is superior when, in fact, it is not. d. Use the marketing mix to improve your position in an existing category. e. To acquire the leading products in the category through merger and acquisition.

d. Use the marketing mix to improve your position in an existing category.

____________ are the costs of production that are tied to and vary with the number of units produced? Select one: a. Fixed costs b. Marginal costs c. Total costs d. Variable Costs e. Opportunity costs

d. Variable Costs

A _____________ is a statement that a product is fit for the purpose being claimed and describing what the seller will do if the product performs below expectations or is defective? Select one: a. Label b. Warning. c. Brand promise d. Warranty e. Liability

d. Warranty

The _________________ is the customer's perceptions of, and interactions with the brand? Select one: a. brand name b. brand extension c. family brand d. brand experience e. brand expression

d. brand experience

A benefit is...? Select one: a. determined by the market place b. part of your employment package c. negotiated between buyer and seller d. the usefulness a customer receives from using your product e. determined by the producer of a product

d. the usefulness a customer receives from using your product

Based on what you understand about the consumer buying process, why is it a good idea for Toyota to feature fuel economy in the advertisements for its hybrid Prius automobile. Select one: a. Because it encourages consumers to use fuel economy as an evaluation criterion. The Prius compares very favorably to other cars on the basis of fuel economy. b. Because the Prius is more expensive than comparable cars that are not hybrids so it would not appear to be as favorable if a customer chose price as the evaluation criterion. c. Because one of the advantages of owning a hybrid car is that you use less gasoline. d. Because the company naturally wants customers focus on attributes where their product has an advantage over competitive products. e. All of these are reasons why it is a good idea for Toyota to feature fuel economy in advertisements for its hybrid Prius automobile.

e. All of these are reasons why it is a good idea for Toyota to feature fuel economy in advertisements for its hybrid Prius automobile.

Which of these statements about the introductory stage of the product life cycle is true? Select one: a. Unprofitable products should be divested at the introductory stage. b. The introductory stage corresponds to the late majority in the diffusion process. c. Competition in the introductory stage is usually very intense. d. Penetration pricing allows you to earn back your initial investment more rapidly. e. All products start the introductory stage start by losing money.

e. All products start the introductory stage start by losing money.

pictures of the team and wears the Brazilian team colors during world cup soccer matches. He hopes to be good enough to play on the Brazilian soccer team some day. For Zach, the Brazilian soccer team is a(n) ____________? Select one: a. Membership group b. Dissociative group c. Consideration set d. Conformity group e. Aspirational group

e. Aspirational group

Which of the following statements about attitudes is FALSE? Select one: a. Attitudes can be favorable or unfavorable b. Attitudes are learned c. Attitudes must have an object d. Attitudes are relatively stable e. Attitudes become more favorable over time

e. Attitudes become more favorable over time

Which of the following assumptions about using ethnicity as a segmentation variable is correct? Select one: a. Stereotyping is a useful tool to use in making assumptions about consumption patterns of ethnic groups. b. It is easy to create products that meet the needs of different ethnic groups c. Ethnic segmentation is not economically viable. d. People within an ethnic group are generally similar to each other. e. Both race and culture play a role in consumption patterns.

e. Both race and culture play a role in consumption patterns.

The LOWER the ___________ the more likely people will be to adopt your new product? Select one: a. Trialability b. Observability c. Relative advantage d. Compatibility e. Complexity

e. Complexity

A person's food preferences, rituals, and even a sense of what is right and what is wrong can be strongly influenced by his/her ___________? Select one: a. Advertising b. Fashion sense c. Decision d. Market e. Culture

e. Culture

Sandra is running an online bookstore. Her market research shows her that many people visit the site, look at several books, add one or more books to the shopping cart but never actually purchase anything. Based on what she learned about the consumer buying process, Sandra decided to offer free delivery. She felt that this would make it easier for the customer in the ___________ stage of the consumer buying process. Select one: a. Problem recognition stage. b. Impulse purchase stage. c. Evaluate alternatves stage. d. First stage. e. Decision stage

e. Decision stage

The first step in using the levels of the product concept is to: Select one: a. Decide which of the four "p's" will be the primary focus of this product b. Develop a market-product grid to determine which segments to target with this product c. Decide on the packaging that will be used with the product. d. Develop an advertising campaign that will reach the largest number of market segments. e. Determine what is the core benefit the consumer will receive from the product.

e. Determine what is the core benefit the consumer will receive from the product.

Sometimes technology can make it difficult to create organizational intelligence. For example? Select one: a. Department databases have huge egos and refuse to cooperate with other databases. b. Computer databases can be designed to make data entry simple and fast. c. Computers can make mistakes processing data. d. Database consolidation can eliminate legacy systems. e. Different departments may have different databases that are independent of each other.

e. Different departments may have different databases that are independent of each other.

Which of the following is NOT a requirement of a market segment? Select one: a. Similar to each other with respect to your product b. Different from everybody else with respect to your product c. Economically viable d. Reachable e. Environmentally responsible

e. Environmentally responsible

In automating a manufacturing plant, which of these would definitely increase in the short run? Select one: a. Total revenue b. Variable cost c. Price d. All of these would increase e. Fixed cost

e. Fixed cost

Grocery stores frequently put new products in high visibility locations such as the end of an aisle or near the checkout lanes. This makes consumers who might be thinking about buying a similar product aware of the new product. This tactic affects consumers who are in the _________ stage of the consumer buying process? Select one: a. Getting hungry. b. Internal or memory based search strategy. c. Decision. d. Problem recognition. e. Identify alternatives.

e. Identify alternatives.

Which of the following is NOT a concern during the decision stage of the consumer buying process? Select one: a. How do I take possession of the product. b. How do I pay for the product. c. Which product will best serve my needs. d. Can I trust the person who is selling me the product. e. Identifying all of the alternative products available.

e. Identifying all of the alternative products available.

The law of demand (which is the basis of the demand curve) says? Select one: a. If prices increase, customers will buy elsewhere b. If prices increase, customers will spend less c. If prices decrease, customers will spend less d. If prices increase, customers will buy more e. If prices increase, customers will buy less

e. If prices increase, customers will buy less

A ___________ is a distinctive mode of presentation or performance? Select one: a. Fashion b. Attitude c. Attribute d. Feature e. Style

e. Style

A major disadvantage of _________________ is that it can be very expensive to create a unique brand identity for each product. Select one: a. Generic branding b. Private branding. c. Family branding d. Excessive branding. e. Individual product branding

e. Individual product branding

Bruce is trying to sell his new "Bruce's Blend" of coffee to Starbucks. He met with the buyer and the buyer arranged for Bruce to serve a sample of his new blend to a group of 'tasters' who will taste the coffee and tell the buyer whether or not they think it is any good. These tasters are performing the role of ___________? Select one: a. Gatekeeper b. Buyer c. Initiator d. Decider e. Influencer

e. Influencer

When you are dealing with the ___________ characteristic of a service, one approach to marketing services is to make the service seem 'real' ? Select one: a. Derogatory b. Perishability c. Variability d. Inseparability e. Intangibility

e. Intangibility

One of the questions you need to ask when identifying the data needed for a research project is? Select one: a. All of these are questions that should be asked when identifying the data needed for a research project. b. Which segments will we use for a probability sample? c. Should we conduct an experiment, or a quasi-experiment? d. Who will be responsible for collecting the data? e. Is the information worth what it will cost us to obtain it?

e. Is the information worth what it will cost us to obtain it?

The Trethaway Study showed profit leaders generate 39% of sales from new products while profit laggards generate 23% of sales from new products. What would this tell you as you develop your own business? Select one: a. You should aim to have between 23% and 39% of your revenue from new products based on these benchmarks. b. The vast majority of new product ideas fail. c. It is important for students to be able to critically evaluate research. d. Businesses would be even more profitable if they didn't waste a lot of time and effort developing new products. e. It is really important for businesses to develop new products.

e. It is really important for businesses to develop new products.

Younjin is a purchasing agent for Acme Enterprises. One of the products she is responsible for is copier paper for the company's copiers. The company makes lots and lots of copies so they use more than 60 cases of copier paper each week. Recently, one of her colleagues, Bruce has been complaining that the copiers are jamming a lot. She thinks it might be because the paper is the wrong kind for the company's copiers. Also, the chairman of the board made a speech to all of the employees stating that the company is going to become environmentally sensitive and there will be bonuses for people who can improve the company's environmental record. Younjin had heard that some recycled paper is as good or better than standard copier paper. She decides to re-think where she is buying her copier paper. Younjin will probably treat copier paper as a __________ decision? Select one: a. Don't fix if it's not broken b. New task buy c. Make or buy d. Straight rebuy e. Modified rebuy

e. Modified rebuy

In many market situations, such as an oligopoly or monopolistic competition, there is a very strong expectation of what the price for a product should be. In these situations, many businesses engage in ____________ by using advertising, free-product offers or bonus packaging to differentiate their product. Select one: a. Oligopoly pricing. b. Loss-leader pricing c. Price line pricing d. Above or below pricing e. Non-price pricing

e. Non-price pricing

The reason people experience buyer's remorse after making a major purchase is because? Select one: a. People naturally dislike making decisions. b. People are so happy with their new purchase that they regret no longer being able to shop for something new. c. People frequently spend more money than they can afford to on major purchases, especially when they buy using credit cards. d. All of these are reasons people experience buyer's remorse. e. Once you have made a choice between two attractive alternatives, you experience a sense of loss over the alternative that you didn't choose.

e. Once you have made a choice between two attractive alternatives, you experience a sense of loss over the alternative that you didn't choose.

A ______________ is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then take marketing action? Select one: a. Brand family b. Mental picture c. Point of purchase display d. Market position e. Perceptual map

e. Perceptual map

The basic issue when you are dealing with the __________ characteristic of services is that the time or capacity to provide services is limited and fixed? Select one: a. Intangibility b. Variability c. Insufferability d. Invisibility e. Perishability

e. Perishability

Typically, ______________ is done by the retailer of a product rather than by the manufacturer. Select one: a. Individual product branding b. Family branding c. Generic branding d. Excessive branding. e. Private-label branding.

e. Private-label branding.

Each of the individual ____________ in a product line are frequently assigned a unique SKU number. Select one: a. Price ranges b. Customer segments c. Categories d. Attributes e. Product items

e. Product items

Hermione was the office manager for a small business in the city. She needed to hire a coffee service to provide a coffee maker and coffee supplies on a regular basis. She went online and searched for several coffee services. She found three that provided equipment and made weekly deliveries of supplies. She chose the supplier that advertised the lowest price. Hermione used ___________ to evaluate the quality of this service? Select one: a. Intangibles b. Experiential attributes c. Credence attributes d. Credence Clearwater Revival e. Search attributes

e. Search attributes

A dynamically continuous innovation is? Select one: a. A product that represents a major change to the way we live. b. Frequently characterized by the words "new and improved" on a familiar package. c. A way to create distance between your product and a competitor's product position. d. A dynamically continuous innovation is all of these things. e. Somewhere in the middle of the new product continuum.

e. Somewhere in the middle of the new product continuum.

Which of the following was NOT one of the bases for market segmentation discussed in class? Select one: a. Behavior b. Demographic c. Geographic d. Psychographic e. Statistics

e. Statistics

Which of the following is a condition that must be met before you can consider a group of people to be a market segment? Select one: a. There must be a large number of people in the segment. b. They must be the same as each other. c. They must be from a similar ethnic background.. d. They must be able to communicate with each other. e. The market potential of the group must be large enough to make it economically viable.

e. The market potential of the group must be large enough to make it economically viable.

How many segments should a company target? Select one: a. You should determine what is the normal number of segments targeted by companies sharing the same NAICS code with you and use that at a guideline for how many segments to target. b. As many segments as you can afford to target with existing financial resources. c. You can only 'target' one segment. The rest are secondary markets. d. You should target one market segment for each product the company offers. e. The number that allows you to maximize profits with the resources available to you.

e. The number that allows you to maximize profits with the resources available to you.

Raul purchased a microwave oven. He brought it home, plugged it in and nothing happened. Bummer. So he immediately returned it. The customer service representative was unwilling to let Raul return the microwave saying that they did not allow returns on electronic merchandise. Raul pointed out that even though there is nothing in writing, _________________ means that if the microwave doesn't work he can return it. Period. End of story. Select one: a. The express warranty b. The principle of informed consent c. The squeaky wheel principle d. Common sense. e. The warranty of merchantability

e. The warranty of merchantability

Which of the following is a condition that must be met before you can consider a group of people to be a market segment? Select one: a. They must be wealthy. b. They must appreciate your product for different reasons. c. They must be the same as each other. d. They must be geographically close to each other. e. There must be a way to communicate with them.

e. There must be a way to communicate with them.

For new products that have a major benefit to the customer, but the benefit is not obvious by casual inspection, ____________ becomes an important factor in whether customers will adopt the new product? Select one: a. Relative advantage b. All of these are important when a major benefit is not obvious by casual inspection. c. Compatibility. d. Observability e. Trialability

e. Trialability

_________ is the usefulness or the benefit that a customers receive when they use your product. Select one: a. Cost b. Exchange c. Need d. Satisfaction e. Utility

e. Utility

Which of the following is a condition necessary for exchange to occur? Select one: a. The ability to handle either cash or credit purchases. b. No more than two parties involved. c. Face to face meeting. d. A defined market space. e. Voluntary participation.

e. Voluntary participation.

One of the reasons the examples in class may seem obscure to you is that your instructor was born between 1946 and 1964 and most of the students in marketing 431 are members of ______________, born between 1995 and 2012? Select one: a. Baby boomers b. Generation X c. Co-generation d. The Republican Party e. iGen

e. iGen

In general, you have more flexibility in setting your prices in the _________ stage of the product life cycle than in the _________ stage of the product life cycle? Select one: a. maturity, introductory b. decline, disaster c. growth, introductory d. maturity, growth e. introductory, maturity

e. introductory, maturity

For many products such as candy bars, there is a price consumers expect to pay for the product. Retailers using the _____________ to setting prices will offer the product at a very low price in order to attract customers into their store? Select one: a. Customary pricing approach b. Above or below approach c. Price line approach d. Price leadership approach e. loss-leader approach

e. loss-leader approach

Value is a function of ___________ and ___________? Select one: a. perceived benefits, actual cost b. Output, input c. Observed benefits, perceived cost d. Benefits, cost e. perceived benefits, perceived cost

e. perceived benefits, perceived cost