Principles of Marketing Exam 1

Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups affected by their operations are said to have a ____ orientation. a. citizen b. stakeholder c. marketing d. production e. sales

b. stakeholder

Special K cereal is aimed at people concerned about their weight. These people represent the Special K: a. marketing tactic. b. target market. c. marketing mix. d. consumer advocates. e. marketing strategy.

b. target market

When using personality characteristics as a market segmentation variable, marketers generally a. use generic characteristics that all members of the population have. b. conduct personality assessments of their potential target market to determine which personality characteristics they possess. c. use a positively viewed characteristic they assume much of their target market has or would like to have. d. use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. e. conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

c. use a positively viewed characteristic they assume much of their target market has or would like to have.

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as a. regional commercialization. b. test market extension. c. competitive introduction. d. rollout. e. market development.

d. rollout

Product testing for reliability and quality helps to ensure a consumer's right to a. be informed. b. choose. c. be heard. d. safety. e. performance.

d. safety

Extended decision making is the type of consumer decision-making process that a. requires very little search-and-decision effort and is practiced when buying low-cost and frequently purchased products. b. requires a moderate amount of time for information gathering and search. c. involves no conscious planning but rather a powerful and persistent urge to buy something. d. is the creation and maintenance of a collection of products that satisfy a person's needs and wants. e. is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

e. is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

Who judges service quality? a. Employees b. Customers c. Marketers d. Independent raters e. The company

b. Customers

Which of the following products is most likely to be marketed using an undifferentiated approach? a. Bicycle b. Table salt c. Oscillating fan d. Notebook e. Computer

b. Table salt

The NAICS classification is based on a. production activities. b. country of origin. c. marketing activities. d. number of employees. e. customer size.

a. production activities.

_______ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. a. Brand b. Oligopolic c. Total budget d. Generic

a. Brand

Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization? a. Chief executive officer b. Vice president of marketing research c. Product manager d. Marketing manager e. Marketing employee

a. Chief Executive Officer

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? a. Screening b. Business analysis c. Evaluation of competitor's efforts d. Product development e. Idea generation

a. Screening

Problem recognition occurs when a consumer a. becomes aware that there is a difference between a desired state and an actual condition. b. recognizes a need and evaluates information to resolve a problem. c. searches for information to resolve a problem. d. is exposed to a television advertisement desired state and an actual condition. e. evaluates her or his purchase.

a. becomes aware that there is a difference between a desired state and an actual condition.

In addition to the proliferation of new organic brands, many conventional marketers have introduced organic versions of their products, including Gatorade, Kraft Heinz, and even Kroger. These firms are responding to changes in ______________: a. cultural values. b. technological forces. c. consumerism. d. demographics. e. federal law.

a. cultural values

Actions that promote human health and welfare address the ____ dimension of the pyramid of social responsibility. a. philanthropic b. economic c. ethical d. legal e. social

a. philanthropic

Consumers tend to remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective a. retention. b. exposure. c. information. d. distortion. e. interpretation.

a. retention.

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products. a. shopping b. convenience c. unsought d. service e. specialty

a. shopping

A service is usually offered as part of a bundled package of services with a core service and one or more ____ services. a. supplementary b. basic c. other core d. tangible e. auxiliary

a. supplementary

Which of the following is NOT a physical surroundings factor influencing buying decisions? a. Sounds b. Time c. Lighting d. Scents e. Weather

b. Time

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy. a. product-oriented b. concentrated or differentiated targeting c. integrated d. undifferentiated e. market-intensive

b. concentrated or differentiated targeting

The depth of a product mix is measured by the average number of: a. specialty products as compared with the number of convenience products. b. different products offered in each product line. c. different product lines offered by the company. d. convenience products as compared with the number of specialty products. e. product features that the company offers.

b. different products offered in each product line.

The first step in the target market selection process is a. developing market segment profiles. b. identifying an appropriate targeting strategy. c. evaluating relevant market segments. d. selecting specific target markets. e. determining which segmentation variables to use

b. identifying an appropriate targeting strategy.

Business markets are typically divided into four categories. These categories are a. reseller, retailer, government, and institutional. b. producer, reseller, government, and institutional. c. retailers, wholesalers, services, and nonprofit firms. d. producer, manufacturer, reseller, and government. e. manufacturer, wholesaler, retailer, and services.

b. producer, reseller, government, and institutional.

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a. inflation. b. recession. c. expansion. d. prosperity. e. recovery.

b. recession

____ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability. a. Strategic b. Value c. Vendor d. Cost e. Buying center

c. Vendor

Inelastic demand simply means that a. buyers will not make a new-task purchase. b. buyers will not make a modified rebuy purchase. c. a price increase or decrease will not significantly change the demand for an item. d. when supply is reduced, the price will increase. e. when price goes up, demand goes down.

c. a price increase or decrease will not significantly change the demand for an item.

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets. a. consumer b. international c. business d. institutional e. government

c. business

By installing automated check-in kiosks in some airports, airlines have increased production capacity and reduced the number of personnel. This results in a decrease in a. customer service. b. intangibility. c. customer contact. d. inseparability. e. perishability.

c. customer contact

Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of a. manufacturing. b. product. c. pricing. d. promotion. e. distribution.

c. pricing

Making modifications to packaging or brand names involves the ____ component of the marketing mix. a. price b. promotion c. product d. market e. distribution

c. product

​A group that has the willingness, ability, and authority to buy a product is a a. strategic business unit. b ​business customer. c. market. d. strategic window. e. consumer.

c. ​market.

The marketing mix is built around the: a. company b. employee c. retail outlet d. customer e. product

d. customer

An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person? a. Trial b. Evaluation c. Adoption d. Awareness e. Interest

d. Awareness

Which of the following is NOT a service product? a. Overnight stay at an Aloft Hotel b. Flight on Southwest Airlines c. Ariana Grande concert d. Tennis racket e. Dry cleaning of a suit

d. Tennis racket

Although they become part of a larger product, ____ can often be easily identified and distinguished on the larger product. a. accessory parts b. process materials c. MRO supplies d. component parts e. raw materials

d. component parts

The heterogeneity characteristic of services provides marketers with tremendous opportunity to a. create standardized packages that will appeal to many customers. b. hold down the cost of providing services to customers. c. offer the same service as all of their competitors. d. customize their services to meet unique individual needs. e. develop relationship marketing with their customers

d. customize their services to meet unique individual needs.

Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix. a. price b. promotion c. product d. distribution e. exchange

d. distribution

​The first step in the strategic performance evaluation is to a. take corrective action. b. evaluate actual performance. c. reduce the difference between actual and desired standards. d. establish performance standards. e. compare actual performance and standards.

d. establish performance standards.

Marketers can influence consumers' evaluations by describing alternatives to products and their attributes in a certain manner, a practice known as a. selective exposure. b. selective retention. c. bracketing. d. framing. e. selective distortion.

d. framing.

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications. a. formal b. aesthetic c. quality d. functional e. package

d. functional

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) ____ structure exists in the competitive environment. a. oligopolistic competition b. oligopoly c. pure competition d. monopolistic competition e. monopoly

d. monopolistic competition

According to the marketing concept, an organization should try to: a. consider short-run objectives and cash flow needs before developing new products. b. ​define its business as "making a product." c. put most of its emphasis on marketing activities and be less concerned with finance, accounting, and personnel. d. provide products that satisfy customers' needs and allow the organization to achieve its goals. e. view selling activities as the major means of increasing profits.

d. provide products that satisfy customers' needs and allow the organization to achieve its goals.

Convenience products are: a. items that require some purchase planning and for which the buyer often will not accept substitutes. b. frequently purchased items that are found in certain retail outlets. c. items that are expensive but are easy to purchase. d. relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. e. frequently purchased items for which buyers are willing to exert considerable effort.

d. relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.

An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets. a. market opportunities b. organizational resources c. activities and responsibilities d. strengths and weaknesses e. ​opportunities and threats

d. ​strengths and weaknesses

Marketers primarily focus their environmental analysis on ____ competitors. a. generic b. regional c. product d. primary e. brand

e. brand

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called a. test marketing. b. idea analysis. c. screening. d. customer response testing. e. concept testing.

e. concept testing.

​The Boston Consulting Group's matrix is based on the a. business position and market attractiveness of the firm. b. idea that a firm's market share and market attractiveness are the important factors for a marketing strategy. c. idea that a product's market growth rate and market attractiveness determine the marketing strategy. d. assumption that a firm's actions have a profitable impact on marketing strategy. e. philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.

e. philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.

A marketing plan a. produces plans that are short term in orientation. b. always increases the marketing manager's operating costs. c. restricts the marketing manager's future options. d. is characteristic of production-oriented firms and other mass producers. e. provides a framework for implementing and evaluating marketing activities.

e. provides a framework for implementing and evaluating marketing activities.

The group of people within a business who are involved in making business buying decisions is referred to as a. purchasing agents. b. deciders. c. negotiators. d. the new-task team. e. the buying center.

e. the buying center.