exam 2 review questions

47. Which of the following questions is most important for product designers to consider while developing a product? a) Which specific features of the product do customers like most? b) How does the product appear to buyers? c) What are the product's technical specifications? d) How would customers use and benefit from the product?

d) How would customers use and benefit from the product?

42. Which of the following is true with regard to the same for less value proposition? a) Discount stores and "category killers" rarely use the same for less value proposition. b) The same for less value proposition is mostly offered by marketers who sell higher quality upscale products or services. c) The same for less value proposition cannot generate profits. d) Offering the same for less can be a powerful value proposition because everyone likes a good deal. e) The same for less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

d) Offering the same for less can be a powerful value proposition because everyone likes a good deal.

38. ________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions. a) Gap analysis b) Predictive buying c) Cluster analysis d) Perceptual positioning maps e) Cost-benefit analysis

d) Perceptual positioning maps

22. ________ measures the profits or other company value generated by investments in marketing activities. a) SWOT analysis b) A marketing audit c) Regression analysis d) Return on marketing investment e) Marketing budget evaluation

d) Return on marketing investment

53. The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance? a) service intangibility b) service inseparability c) service variability d) service perishability

c) service variability

29. A market segment that is large or profitable enough to serve is ________. a) measurable b) accessible c) substantial d) profitable e) worthwhile

c) substantial

52. A reputed cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________. a) lengthened its existing product line b) decreased its product line consistency c) widened its product mix d) engaged in market diversification e) engaged in social marketing

c) widened its product mix

21. Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________. a) channel intermediary b) line extension c) market segment d) product attribute e) brand personality

c) market segment

6. The set of marketing tools a firm uses to implement its marketing strategy is called the ________. a) promotion mix b) product mix c) marketing mix d) market offering e) marketing effort

c) marketing mix

43. Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers? a) growth b) decline c) maturity d) introduction e) adoption

c) maturity

56. Which of the following is the lowest level on which marketers can position their brands in target customers' minds? a) beliefs and values b) product benefits c) product attributes d) after-sale services e) brand equity

c) product attributes

41. Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here? a) channel differentiation b) service differentiation c) product differentiation d) people differentiation e) image differentiation

c) product differentiation

51. Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________. a) social marketing b) product line filling c) product line stretching d) internal marketing e) cannibalization

c) product line stretching

7. ________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers. a) Customer-perceived value b) Customer lifetime value c) Share of customer d) Customer-managed relationship e) Brand value proposition

a) Customer-perceived value

19. The marketing management philosophy that holds, that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than do competitors, is called. a) Marketing Concept b) Selling Concept c) Marketing Strategy d) Customer Orientation e) Capitalism

a) Marketing Concept

44. Marketing mix planning begins with ________. a) building an offering that brings value to target customers b) finding a suitable promotion strategy for the product c) setting a reasonable price for the product d) selecting the right channel for distribution of the product e) calculating the total costs involved in manufacturing the product

a) building an offering that brings value to target customers

37. Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition? a) growth b) decline c) maturity d) product development e) adoption

a) growth

50. Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of ________. a) line filling b) social marketing c) market diversification d) negative brand equity e) person marketing

a) line filling

5. A(n) ________ is the set of actual and potential buyers of a product or service. a) market b) control group c) subsidiary d) focus group e) audience

a) market

4. A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want. a) market offering b) value proposition c) brand positioning d) market segment e) market mix

a) market offering

28. When the size, purchasing power, and profiles of a market segment can be calculated, the market is ________. a) measurable b) profitable c) substantial d) actionable e) competitive

a) measurable

35. Texas Instruments, one of the first producers of handheld calculators, put a great deal of effort into expanding production of calculators to drive down the cost and thus expand the market. This is most indicative of the __________ concept: a) production b) product c) marketing d) societal e) satisfaction

a) production

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? a) production concept b) product concept c) selling concept d) marketing concept e) societal marketing concept

a) production concept

31. Different soft drinks target different personalities. This is an example of ________ segmentation. a) psychographic b) demographic c) occasion d) life-cycle e) benefits

a) psychographic

23. An American airline company started a grocery chain in Australia. This is an example of product development. a) True b) False

b) False

60. Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided. a) True b) False

b) False

2. ________ are human needs that are shaped by culture and individual personality. a) Necessities b) Wants c) Demands d) Values e) Exchanges

b) Wants

48. A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service. a) feature b) brand c) line extension d) package e) value chain

b) brand

12. Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________. a) share of customer b) customer satisfaction c) customer equity d) customer-perceived value e) customer lifetime value

b) customer satisfaction

3. When backed by buying power, wants become ________. a) social needs b) demands c) physical needs d) self-esteem needs e) exchanges

b) demands

36. GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance? a) mass marketing b) differentiated marketing c) individual marketing d) local marketing e) direct marketing

b) differentiated marketing

20. Market segmentation can be best described as the process of ________. a) assigning specific human attributes to a given brand b) dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs c) evaluating each market segment's attractiveness and selecting one or more segments to enter d) turning marketing plans into marketing actions to accomplish strategic marketing objectives e) maintaining a strategic fit between organizational goals and changing marketing opportunities

b) dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

10. An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________. a) marketing mixes b) market segments c) value propositions d) market offerings e) marketing intermediaries

b) market segments

39. When it first opened stores across the United States, Bateman's, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman's captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman's most likely use? a) more for the same b) more for less c) same for less d) less for much less e) more for more

b) more for less

54. Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem? a) intangibility b) perishability c) inconsistency d) variability e) inseparability

b) perishability

57. An increasing number of retailers and wholesalers have created their own ________, also called store brands. a) manufacturers' brands b) private brands c) national brands d) generic brands e) multibrands

b) private brands

8. The portion of the customer's purchasing that a company gets in its product categories is known as ________. a) customer-perceived value b) share of customer c) customer insight d) consumption function e) induced consumption

b) share of customer

30. Once the marketer has developed the appropriate segmentation bases for analyzing the overall market potential, the next step, _________, is critical because it assists in focusing the firm's limited resources on providing value to a select group of customers. a) positioning b) targeting c) localizing d) implementing e) executing

b) targeting

59. ________ involves the use of a successful brand name for new or modified products in a new category. a) A line extension b) A product line c) A brand extension d) Co-branding e) Cannibalization

c) A brand extension

55. ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing. a) Brand differentiation b) Brand knowledge c) Brand equity d) Brand personality e) Brand relevance

c) Brand equity

58. Which of the following is an advantage offered by co-branding? a) Manufacturers do not have to invest in creating their own brand names with co-branding. b) Co-branding allows retailers to sell exclusive products that cannot be purchased from competitors. c) Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone. d) Co-branding dilutes brand equity and increases the appeal of store brands. e) Co-branding does not involve complex legal contracts and licenses.

c) Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone.

49. ________ involves adding more items within the present range of the product line. a) Market diversification b) Brand extension c) Product line filling d) Upward product line stretching e) Downward product line stretching

c) Product line filling

14. The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company. a) SWOT analysis b) benchmarking c) business portfolio analysis d) breakeven analysis e) prospecting

c) business portfolio analysis

45. Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the ________, which addresses the question, "What is the buyer really buying?" a) actual product b) augmented product c) core customer value d) co-branding e) exchange value

c) core customer value

9. Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers? a) share of customer b) marketing mix c) customer equity d) target market e) customer-perceived value

c) customer equity

13. The extent to which a product's perceived performance exceeds a buyer's expectations is called _______ . a) transaction value b) relationship satisfaction c) customer satisfaction d) market value e) customer equity

c) customer satisfaction

11. FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________. a) brand loyalty b) customer equity c) customer-perceived value d) customer lifetime value e) a societal marketing campaign

c) customer-perceived value

17. Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________. a) mass customization b) niche marketing c) diversification d) prospecting e) product adaptation

c) diversification

40. Which of the following states the product's membership in a category and then shows its point of difference from other members of the category? a) a mission statement b) a vision statement c) a general need description d) a positioning statement e) an order-routine specification

d) a positioning statement

34. Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies? a) individual marketing b) one-to-one marketing c) mass marketing d) concentrated marketing e) trigger-based marketing

d) concentrated marketing

25. Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here? a) geographic segmentation b) benefit segmentation c) occasion segmentation d) demographic segmentation e) psychographic segmentation

d) demographic segmentation

32. A segment is less attractive if ________. a) it is difficult for new entrants to enter b) it is substantial c) it is actionable d) it already contains many strong and aggressive competitors e) it contains weak suppliers

d) it already contains many strong and aggressive competitors

16. Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. This exemplifies ________. a) product differentiation b) product development c) diversification d) market penetration e) market segmentation

d) market penetration

24. When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________. a) occasion segmenting b) local marketing c) market diversification d) market targeting e) product positioning

d) market targeting

18. Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________. a) benchmarking b) diversification c) mass customization d) product development e) downsizing

d) product development

26. Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals. a) demographic segmentation b) geographic segmentation c) benefit segmentation d) psychographic segmentation e) occasion segmentation

d) psychographic segmentation

46. Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a ________ product. a) convenience b) unsought c) specialty d) shopping e) exclusive

d) shopping

33. ________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. a) individual marketing b) local marketing c) niche marketing d) undifferentiated marketing e) segmented marketing

d) undifferentiated marketing

15. Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________. a) marketing plan b) product mix c) business portfolio d) marketing mix e) mission statement

e) mission statement

27. An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation. a) occasion segmentation b) geographic segmentation c) income segmentation d) benefit segmentation e) psychographic segmentation

e) psychographic segmentation