Principles of Marketing Test 1
Sandy understands that even small businesses like her local catering business have certain responsibilities to society. She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other obligations Sandy should know about?
Ethical and philanthropic
You work in the marketing department of shoe firm Weasley Inc. Over the past month you have been working with management to revise the company's mission statement and set specific marketing goals for the upcoming year. Today you are meeting with your marketing team and discussing the next step in the strategic planning process. What is this next step?
Formulating corporate and business-unit strategies
Use the following to answer the questions. Lil Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Refer to Scenario 5.1. Which of the following best describes Lil Angels' current approach to the market?
It is segmenting the market according to demographic variables.
________ that can allow almost real-time measurement and evaluation should be embedded at the onset of a social media strategy.
Key performance indicators
Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?
Lanham Act
Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?
Market density
Communicating with the marketing unit, motivating marketing personnel, and coordinating marketing activities are part of the _____________ component of strategic planning.
Marketing implementation
Which of the following is true about marketing research?
Marketing research can help develop marketing mixes that match customer needs.
Internet sites that allow users to share photos, videos, and podcasts are called which of the following?
Media-sharing sites
The Internet has radically changed the way traditional marketing used the marketing mix to attract and retain customers. Now e-marketing strategies require the marketer to reexamine the characteristics of the four components of the marketing mix. With respect to e-marketing, which of the following statements about the four components of the marketing mix is true?
Most traditional promotions can be enhanced by using digital media.
According to the Boston Consulting Group, which of the following has a small share of a growing market and usually requires a large amount of cash to build market share?
Question marks
Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?
Sherman Antitrust Act
______ do not engage in paid Internet advertising as much due to smaller budgets.
Small businesses
Which of the following is not a dimension of social responsibility and marketing citizenship?
Technological
The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:
The variables should be based solely on demographic characteristics.
You are being quizzed on your knowledge of marketing. A question on the quiz asks, "What is the ultimate goal of marketing research for a firm?" Which of the following is the best answer to this question?
To improve organizational performance
Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can think of. At the forefront of this massive search is Google; accompanying Google are social media sites such as Facebook, Twitter, and Pinterest. Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and nonprofit agencies. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium. Refer to Scenario 9.2. Politicians could use _____, the ultimate type of social media for reaching those potential voters who want to stay connected to the latest information.
Toys-R-Us is almost finished building a new store and will soon be having a grand opening celebration. Management wants to build excitement and anticipation for the event. Which social networking site would Toys-R-Us use to post multiple updates each day on the store's progress?
______ allows marketing managers to understand the problems and requirements of lower-level employees.
Upward communication
When a business has a relatively small number of customers, a preferred method of forecasting is
a customer forecasting survey.
If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use
a focus-group interview
Micromarketing is
a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.
The ability to obtain digital information is referred to as
accessibility
Telluride Ski Resort in Telluride, Colorado, is a world-class ski destination. Taylor is a newly-hired manager of digital media and electronic marketing for Telluride. Taylor remembers reading about a new trend in video marketing, using _________ to engage and create a community of customers.
amateur filmmakers
Use the following to answer the questions. Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can think of. At the forefront of this massive search is Google; accompanying Google are social media sites such as Facebook, Twitter, and Pinterest. Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and nonprofit agencies. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium. Refer to Scenario 9.2. Political parties are also utilizing social media to connect with voters and to keep individuals informed about the up-to-the-minute activities in the political campaigns. If the politicians wanted to involve the potential voters in the campaign, they could utilize _______, a new trend in video marketing, and create input for their Facebook pages.
amateur filmmakers
Lowes has an iPhone icon that allows users to match colors in photographs with the store's selection of carpets. This is an example of a(n)
application (app).
The three major types of reference groups are
aspirational, dissociative, and membership.
Use the following to answer the questions. Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Kate has asked several of her friends and family members where they have their cars repaired, since she has experienced a problem starting her car when the weather is cold. Kate has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. Steve, one of Kate's friends, had a very poor experience with Skola's. However, once he complained to them, they fixed the situation and now he prefers their auto repair shop over others. Refer to Scenario 6.1. Positive feelings generated by satisfaction with Skola's response will become part of Steve's
attitude
Cognitive, affective, and behavioral are the three major components of
attitudes
According to the consumer bill of rights, the idea that consumers' interests should receive full and sympathetic consideration in the formulation of government policy is known as the right to
be heard
Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are possible when taking that particular drug. The consumer right to ____ most applies to these commercials.
be informed
Problem recognition occurs when a consumer
becomes aware that there is a difference between a desired state and an actual condition.
Barnes and Noble sells online through its website, while also selling through physical store locations. This type of retailing is referred to as
brick-and-clicks
Routinized response behavior is what a consumer does when
buying frequently purchased, low-cost items that need little search effort.
The problem with using an undifferentiated strategy to market a "universal car" is that
car buyers have heterogeneous needs.
____ involves the use of digital networks to provide linkages between information providers and users.
connectivity
In the process of conducting marketing research, marketers should allow for
continual evaluation of the data during the entire collection period.
Use the following to answer the questions. The Walt Disney Company is a master at incorporating all the unique characteristics of digital media into their website. They know how to appeal to all types of consumers and utilize the full potential of digital media. The Disney website immediately catches your attention with sights and sounds that come alive. Not only can you catch a glimpse of an upcoming movie, but it also connects you with your favorite characters from movies past. The website offers age-appropriate games and activities, including the ability to create a fairy-tale cottage. The Disney Parks have their own links, of course, along with Radio Disney, the Disney Store, family vacation packages, and an educator's corner. An adult or child can enjoy navigating through the electronic marketing of Disney. Refer to Scenario 9.1. Visitors to the Disney website have the ability to regulate the information they view and the activities they participate in. This is an example of
control
Which of the following companies would probably be most interested in tracking discretionary income levels?
BMW automobiles
Your company is in the final stages of deciding whether to launch a new product that you have been testing for the last six months. While the CEO of your company is very optimistic about the potential for the product, he is a skeptic by nature. He has asked you to conduct one last round of market research that will give him greater confidence in the product's prospects. Which of the following types of marketing research should you conduct to satisfy the CEO's concerns?
Conclusive research
____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.
Corporate
Eric works as a manager in the marketing department of a pharmaceutical firm. The time has come to develop sales forecasts for the next year. This year the company wants to increase the reliability of the sales forecast. Eric was asked to participate in this process because of his extensive market knowledge. He joins a group of other experts in the area. Individuals in Eric's group all submit their own forecasts. These forecasts are then averaged, and the results are given back to the group so they can refine them. The intent is to reach a consensus by working separately on these forecasts. What type of forecasting technique is this?
Delphi technique
Instacart is a service similar to Uber in that it uses an app and promotes the sharing economy concept. Consumers can use the app to contact independent contractors, who will travel to grocery stores and pick up groceries. They will then travel to the consumers' homes to deliver the groceries. Groceries are often marked up to account for the delivery, and customers often pay the drivers tips. However, they receive the benefit of not having to worry about grocery shopping. This service capitalizes on which variable of the e-marketing mix?
Distribution
Primary data are best described as the
data that are observed, recorded, or collected directly from subjects.
Tiana knows her business has a problem because of an increasing number of consumer complaints received recently. She has decided how to make this problem a precise, researchable statement and should next move on to
designing the research project.
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is
determining which segmentation variables to use.
A survey question that requires a yes or no answer is called a
dichotomous question.
Miss Moo produces a line of milk products that are lactose-free. The milk comes in pint, quart, and half-gallon cartons, as well as 18-ounce glass bottles. Miss Moo sells its pint cartons to school systems, its quart and half-gallon cartons to grocery stores, and its glass bottles to vending machine operators. Miss Moo appears to use a(n) _____ strategy in marketing its product to a target market that is likely to be _______.
differentiated; homogeneous
Caleb is a football enthusiast. He watches all the big games, collects football memorabilia, and knows everything there is to know about football history. His best friend Shang is not a football fan. However, he does enjoy watching the Super Bowl every year because of all the excitement. He even finds that he gets really into the game. Usually the Super Bowl is the only football game Shang watches, but he still looks forward to it every year. Caleb has a(n) ____________ involvement with football, whereas Shang has more of a(n) _____________involvement.
enduring; situational
Information from the U.S. Census Bureau is commonly used as ____ by a variety of agencies and organizations.
external secondary data
An opinion leader is likely to be most effective under all of the following conditions except when the
follower has attitudes and values that are different from those of the opinion leader.
Marketers can influence consumers' evaluations by describing alternatives to products and their attributes in a certain manner, a practice known as
framing
Cyril has to decide whether to travel to New York by train or airplane. Traveling by train would take longer, giving him potentially less time to spend in New York. However, traveling by air would be much more expensive. The train as a form of transportation is what type of competitor to air travel?
generic
When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using
guota sampling
For which of the following products would a consumer most likely use limited decision making?
hair dryer
The Walt Disney Company is a master at incorporating all the unique characteristics of digital media into their website. They know how to appeal to all types of consumers and utilize the full potential of digital media. The Disney website immediately catches your attention with sights and sounds that come alive. Not only can you catch a glimpse of an upcoming movie, but it also connects you with your favorite characters from movies past. The website offers age-appropriate games and activities, including the ability to create a fairy-tale cottage. The Disney Parks have their own links, of course, along with Radio Disney, the Disney Store, family vacation packages, and an educator's corner. An adult or child can enjoy navigating through the electronic marketing of Disney. Refer to Scenario 9.1. The Disney website has a special link for educators that allows them to download educational videos pertaining to various subjects and grade levels. Educators are asked to register online with further information about their needs. This is an example of
interactivity
Assignment of meaning to organized information inputs is called
interpretation
Archer Appliances owner Chris Archer feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Chris needs to develop a
marketing information system.
The ____________ section of the marketing plan states what the company wants to accomplish through marketing activities, using a(n) ___________ of where the firm stands in the market.
marketing objectives; SWOT analysis
Strategic planning requires ________________ to facilitate the process of assessing opportunities or threats from competitors.
marketing research
A marketing objective should be expressed in clear, simple terms; be _____________; specify a time frame for completion; and ensure the marketing objective is _____________ with both business-unit and corporate strategies.
measurable; consistent
What type of competitive structure exists when a firm produces a product that has no close substitutes?
monopoly
A positive review of a product or service posted on a(n) ____________ can result in a substantial increase in sales of the product or service.
popular blog
Mina Patel is running for Congress from the Fifth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study's
population
During which stage of the business cycle is unemployment low and total income relatively high?
prosperity
In reporting marketing research findings, the researcher should
provide explanations in language that those who use the report to make decisions can understand.
After doing considerable shopping, Kai has just decided what brand and type of athletic shoes to buy and where he's going to buy them. In what stage of the consumer buying decision process is Kai?
purchase
As digital communication technologies have advanced, it is possible for marketers to
reach markets that were previously inaccessible.
Consumers tend to remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective
retention
While shopping at a local grocery store, Brandon sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as
routinized response behavior.
When evaluating market segments, assessment of competitors is important because
sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.
Market segment profiles are used to describe _____________ members of a market segment, and to explain ______________members in separate market segments.
similarities among; differences between
Johnson & Johnson learns about consumer needs by understanding the environment in which a product is used and the different applications of the product. The company uses ____ as a research tool to gain this information.
social networking
Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)
stakeholder
According to the text, ____ interpretation focuses on what is typical or what deviates from the average.
statistical
Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.
strategic business
Consumerism is
the efforts of independent individuals, groups, and organizations to protect the rights of consumers.
One of the biggest mistakes a marketer can make when engaging in digital marketing is to
treat it like a traditional marketing channel.
Technology assessment is
trying to foresee the effects of new products and processes on the firm's operation and on society in general.
A ____ is a type of software that creates an interface that enables users to add or edit the content of some types of websites.
wiki
A forecasting method that predicts sales based on relationships between past sales and other variables is called
regression analysis
The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace is called
late-mover advantage.
Which of the following requires hiring professionals to create initial forecasts, submit them to the company for averaging, and then use those results to make individual refined forecasts?
Delphi technique
Ethan Hathaway recently graduated from an East Coast university and has joined a small start-up based in New York City. One of his first assignments is to work collaboratively with other members of the marketing team to draft the marketing plan for the next fiscal year. Ethan is highly skilled in conducting secondary research and, as an alumnus of his university, he continues to have complimentary access to the university's library resources. He's now realizing how important data analysis is to firms and is glad he took a marketing research course. Ethan is utilizing the library resources to uncover information about a variety of external factors that could provide opportunities or threats and is exploring such factors as competitive, economic, political, legal, regulatory, technological, and sociocultural. Which section of the marketing plan would be most appropriate for the information that Ethan is obtaining through secondary market research?
Environmental analysis
Which of the following statements about how a consumer organizes inputs that reach awareness is most accurate?
Inputs that reach awareness are organized to produce meaning, and this meaning is interpreted in light of what is familiar to the individual.
Which of the following is true about the development of a marketing plan?
It should be unique to the organization for which it was created.
To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied?
Locating and defining problems
The American Heart Association has been using the campaign Go Red for Women to raise awareness and education about heart attack symptoms in women. Several companies including Merry Maids have partnered with the American Heart Association and prominently display the logo on their product packaging. Merry Maids left each of their customers a donation box to fill with coins and dollars with the campaign slogan "Raise the Roof" to support the American Heart Association. In one month they raised over $100,000 in donations. Merry Maids' "Raise the Roof" campaign illustrates a practice known as
cause-related marketing.
Gracie wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Gracie most likely feels her consumer right to ____ has been violated.
choose
Purposeful actions to take advantage of or harm others during a transaction is best described as
consumer fraud
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Blue Waters Adventures had been in operation for five years and was located in an ideal area. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business. While the business appeared to be ideally located, sales were extremely disappointing. Refer to Scenario 4.2. Colin decided to apply some of the things he had learned in his marketing research class to his business. The first thing he should do is to ___________ which will help him ______.
define the problem to be researched; determine his data needs
Cadbury wants to know why sales of its new dark chocolate product is soaring in one country but not in another. After extensive research, Cadbury believes the answer lies in demographic and cultural differences among the populations. It conducts in-depth research that asks consumers in each country about their ages, occupations, eating habits, as well as how often they purchase its chocolate bars. It uses statistical analysis and predictive tools to come up with strong conclusions. Although Cadbury is fairly certain about its research, it realizes that it is still limited in providing evidence to definitively link demographic and cultural differences to being the cause of why sales differ so significantly among the two countries. Cadbury has most likely conducted _________________ research.
descriptive
After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is
developing market segment profiles
After purchasing a product, postpurchase evaluation may result in cognitive dissonance. Cognitive dissonance is
doubts that occur because the buyer questions whether the decision to purchase the product was right.
Sonya wants to buy a new car. She turns to her friend who is a car enthusiast for his recommendation. He tells her Toyota is by far the best brand. Sonya goes to a Toyota dealership. She notices a Toyota Corolla that is at a reasonable price point. However, she likes the fact that the Toyota Camry is a mid-sized car, but it is more expensive. Sonya tries to remember what her friend told her but is having trouble. She starts weighing the benefits of both vehicles in an attempt to make her final decision. The fact that Sonya sought advice from her friend is an example of _________________. Her attempt to weigh the benefits of the vehicles against one another is _______________.
external information search; evaluation of alternatives
A marketer that targets customers based on marital status and the presence and age of children is using
family life cycle
If Campbell were to offer single-serving "Soup for One" packages to household markets, it would be using segmentation based on
family life cycle
Meyers Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. The financial director asked the marketing department if they knew what the Soljur skateboards cost at competing sporting goods stores, to see if they too were likely hit with a higher cost. The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at Meyers. The financial director found that Soljur Sports was selling a similar number of skateboards to one of Meyers' competitors for $10 less per skateboard. The attorney for Meyers Sporting Goods immediately filed a complaint with the Federal Trade Commission. Refer to Scenario 3.1. If the Federal Trade Commission believes that Soljur Sports is acting in violation of the law, the first move for the FTC is to
issue a complaint stating that the business is in violation of the law.
Acme Corporation saw an opportunity in the electric car industry. The company had studied major electric car brands such as the Chevrolet Volt and the Nissan Leaf. It believed it could avoid many of the challenges these companies had encountered with a new technology that would reduce costs. Acme also knew from watching competitors that it would have to work hard to convince skeptics that the electric car was a viable and dependable method to get around. By avoiding these mistakes and using its technology, Acme quickly gained market share once it began launching its vehicles. What type of advantage did Acme have?
late-mover advantage
The three most widely recognized types of consumer decision making are
limited problem solving, extended problem solving, and routinized response behavior.
K. Winter Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. K. Winter's competitive environment would best be characterized as
monopolistic competition
Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least basic to survival. These needs, in order from most to least basic to survival are
physiological, safety, social, esteem, self-actualization.
A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. Which type of barrier does this situation represent?
political
In which of the following sampling designs do all members of a population have an equal chance of being selected?
random
The process of dividing a total market into market groups because people within each group have relatively similar product needs is called
segmentation
The fact that technology acts as a catalyst to spur even faster development is referred to as
self-sustaining
Marketers help consumers learn through free samples, sometimes coupled with coupons, to reduce purchase risk, through a practice called
shaping
In 2000, two childhood friends began working together to create a line of cleaning products that were beautifully designed, didn't smell like chemicals, and could be a design element rather than hidden in someone's kitchen cabinet. The company, Method, was established in 2001 and made its first sale of cleaning sprays to a local grocery store. The company founders, Adam Lowry and Eric Ryan, are committed to sourcing products that come from plants—not chemical plants. They never test their products on humans or animals and ensure that they make products that are safe for every surface, especially Earth's surface. In 2004, Method was the first company to mass market a concentrated laundry detergent in the United States that provided consumers with the opportunity to reduce the amount of packaging and waste associated with the packaging. Method emphasizes the _________ issue of social responsibility as a strategy to connect with customers and generate sales.
sustainability
Relying on executive judgment for forecasting may be adequate when
the executive has considerable experience and product demand is relatively stable.
The major disadvantage of a mail survey versus a telephone or personal survey is
the failure of respondents to return the questionnaire.
The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is
time series analysis
Sherwin-Williams Company provides paint and supplies to businesses and individuals through its network of company-owned retail outlets. Sherwin-Williams employs outside sales representatives who make personal calls with prospects and customers in order to gain insight about their needs and persuade them to utilize Sherwin-Williams for their painting projects. Typically, a Sherwin-Williams sales representative will focus his or her efforts on specific customers such as hospital facility managers, apartment complex managers, painting contractors, or education institution facility managers. Sherwin-Williams is utilizing the ______ variable for segmenting business markets.
type of organization
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.Refer to Scenario 2.2. The fact that college enrollments have been increasing at a fast rate the past few years is an example of ____ and creates a ____ for EXperience Limited.
an environmental factor; marketing opportunity
Marketers understand that the best marketing strategy in the world is doomed to fail if it is not properly implemented. With that in mind, an effective implementation strategy
begins with identifying the activities to be performed, and ends with assigning responsibility for each activity to one or more team members.
The reputation and well-known brand name of Rolex watches represents a ____ for Rolex.
core competency
The process of putting marketing strategies into action is called
marketing implementation.
An expected level of performance against which actual performance can be compared is a
performance standard.
The Boston Consulting Group's matrix is based on the
philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.
Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are
stars
Harley-Davidson's Harley Owner's Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) ____ over other motorcycle manufacturers.
sustainable competitive advantage
