Marketing 370 Midterm

Which of the statements below would describe a firm's weakness? 1)The firm's failure to pay its taxes on time leading to a poor reputation in the market 2)A ban imposed on the use of animals for testing cosmetics 3)A negative demographic trend resulting in decreasing target market 4)A competitor planning to open a new branch close to the firm's place of operations 5)A bill passed by the government regarding the work timings of all organizations

1) The firm's failure to pay its taxes on time leading to a poor reputation in the market

If you ever flied with FinnAir, you would no doubt like the food they serve during the flight, the friendliness of the crew, and the comfortable surroundings. From this description, one can conclude FinnAir creates customer value by providing its customers with 1) The best service 2)The most convenient flights schedule 3)The best price 4)The best airport experience 5)All of the Above

1) The best service

A rummage sale in a driveway is an example of C2C marketing 1) True 2) False

1) True

Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing 1)True 2)False

1) True

Marketing of ideas can also create value for consumers 1)True 2) False

1) True

Other companies that work with the focal firm are its corporate partners 1) True 2) False

1) True

SmilingCow is a local manufacturer that has introduced a new range of low-fat dairy products for its present customers. Here, SmilingCow executes product development strategy 1) True 2) False

1) True

Steve cant start his day without a cup of coffee and always stops at Dunkin Donuts because it is on his way to work. Steve is being affected by the Place component of the marketing mix. 1)True 2)False

1) True

Understanding consumer needs and wants is critically important to marketers. 1)True 2)False

1) True

The political/regulatory environment relates to political parties and governmental offices, as well as 1)legislation and laws 2)interest groups 3)international influences 4)for profit and nonprofit businesses 5)citizens

1) legislation and laws

A market researcher for a cable company is seeking to determine the number of households in a selected neighborhood that consist of four or more people. The most cost efficient way to collect this information would be to 1) look through the census information available on the Internet 2)use the services of a full service research supplier 3)conduct personal interviews with neighborhood leaders 4)search through the information provided by the local Chamber of Commerce

1) look through the census information available on the Internet

Which one is an example of greenwashing? 1)A company donates money to a school reading project so it can advertise itself as environmentally friendly 2)The corner Laundromat stocks only phosphate-free detergent in its vending machines 3)The Smiths installed energy-saving lightbulbs in their rental apartment buildings 4)A company markets a product made from recycled glass bottles 5)A company charges more for a hybrid car than for a similar gas model

1)A company donates money to a school reading project so it can advertise itself as environmentally friendly

When firms analyze the economic situation in their markets, they are likely to monitor changes in all of the following except 1) Age 2)currency exchange rates 3)interest rates 4)purchasing power 5)inflation

1)Age

Which one is likely to happen when inflation goes up? 1)Consumers buy lower-priced foods 2)Consumers buy fewer personal care and home entertainment products 3)Off-price and discount retailers suffer from lower sales 4)Consumers buy less food 5)Consumers buy more discretionary merchandise

1)Consumers buy lower-priced foods

In the BCG portfolio matrix, which statement is true about stars ? 1)They have high-growth potential 2)They have low growth potential and small market shares 3)They represent declining market segments 4)They require minimal funding 5)They are fast growing market leaders

1)They have high-growth potential

A major advantage of primary data collection is that it can be tailored to fit the pertinent research needs. 1)True 2)False

1)True

A small service agency is trying to assess clients' view of the quality of service over the past year. If the company has had 1000 clients over the past 12 months, then all 1000 clients constitute the population considered for the survey. 1)True 2)False

1)True

By focusing on customer needs and monitoring the external environment in which a firm operates, marketing managers can identify potential opportunities 1)true 2)false

1)True

It would be logical for beach attire marketers to use geographic segmentation 1)True 2)False

1)True

Linda purchased a new refrigerator a week ago. Today she got a phone call from the store and the salesperson was interested to learn how was her experience with the delivery, installation, and her overall satisfaction with the purchase as well. Such strategies employed by marketers help in reducing cognitive dissonance 1)True 2)False

1)True

Married couples, single women, and retirees could be considered separate market segments for a jewelry store. 1)True 2)False

1)True

One of the benefits of marketing research is it reduces the uncertainty under which managers make decisions 1)True 2)False

1)True

Saks Fifth Avenue, a high-end department store, has a reputation for providing an excellent service to its customers. This reputation for excellent customer service will most likely result in 1)a sustainable competitive advantage. 2)producer excellence 3)product design excellence 4)mission statement satisfaction 5) sustainable price decreases

1)a sustainable competitive advantage

When Linda found herself being alone and bored on Friday night, Linda was faced with 1)an unsatisfied need 2)a survival need 3)a social-perceptual incongruence 4)a universal shopping need 5)a cognitive learning failure

1)an unsatisfied need

When Julie, a presenter at a local agricultural industry conference, arrived at the Holiday Inn, she was absolutely tired and her suit was ruined from the long plane trip. The clerk at the front desk found someone to clean Julie's suit and have it ready for her in the morning. Julie is now a loyal Holiday Inn customer. In this example, Holiday Inn executed the strategy of 1)customer excellence 2)promotional excellence 3)product excellence 4)operational excellence 5)global excellence

1)customer excellence

Tom is not very influenced by the opinions of other people and strongly believes he is responsible for all his actions, and he will conduct extensive searches before making a purchase. Jeff always blames outside forces and often feels powerless, when confronted by the need to make an important decision. In marketing terms, Tom is said to have a(n) __________ and Jeff, a(n) __________. 1)internal locus of control; external locus of control 2)obsessive personality; laissez-faire approach 3)increased search anxiety; decreased search anxiety 4)formal search function; casual search function 5)focused sense of information; unfocused sense of information

1)internal locus of control; external locus of control

One of the important aspects of marketing is that it 1)is an approach that stresses customer satisfaction 2)is independent of value creation 3)is a short-term oriented approach to profit maximization 4)is an approach that focuses on maximizing sales 5)is an approach that requires diversity

1)is an approach that stresses customer satisfaction

Organizational strategies have the objective of creating 1)sustainable competitive advantage 2)a market with no distinct segments 3)unsatisfied customers 4)barriers to market entry 5)undifferentiated markets

1)sustainable competitive advantage

Marketers create a special marketing mix for each loyalty segment because these segments are 1)unidentifiable 2)generally profitable 3)too small to service with mass-market strategies 4)dynamic and highly unpredictable 5)most difficult to acquire and serve.

2) generally profitable

One of the risks associated with niche market segments is 1) that niche market consumers are not responsive to customized service offerings 2) that niche markets are very likely to change over time and attract more competitors 3) the high cost of finding new customers 4)that consumers in those markets are unlikely to pay premium prices 5)that niche markets are rapidly growing segments and often require extensive financial investments

2) that niche markets are very likely to change over time and attract more competitors

In the BCG matrix, cash cows are the business units that generate solid cash flows, which are invested to support the unit's own promotions and production efforts 1)True 2)False

2) False

Macroenvironmental factors include the company, competition, and corporate partners. 1) true 2) False

2) False

Quentin is in a group of 8 to 12 people and is being asked questions by a trained moderator. Quentin is part of an in-depth interview group 1)True 2)False

2) False

STP refers to selection, testing, and promotion 1) True 2)False

2) False

The components of a SWOT analysis are strengths, weaknesses, opportunities, and tactics 1)True 2)False

2) False

As applies to purchase decision-making, consumers are more likely to prefer products that move them closer to their real self-images. 1)True 2)False

2)False

Data that have been collected prior to the start of the current research project are considered primary data 1)True 2)False

2)False

External secondary data is never useful in marketing research 1)True 2)False

2)False

If a sales manager buys a Mercedes SUV because several high-rank executives in the firm own Mercedes SUVs, this demonstrates the influence of an opinion leader. 1)True 2)False

2)False

Inflation relates to the cost of borrowing money 1)True 2)False

2)False

Marketing research should be used only to produce favorable recommendations for senior management to consider. 1)True 2)False

2)False

Peter, a farmer in SD, learned that meat of his specially raised hogs was not popular with local customers. But customers in Belgium are willing to pay much higher prices for his products due to unique meat quality. The purchasing influence here is a situational one 1)True 2)False

2)False

Quantitative research methods rely on subjective data that reports opinions rather than exact historical data. 1)True 2)False

2)False

Six firms - GM, Ford, Chrysler, Toyota, Honda, and Nissan - share 90 percent of all U.S. auto sales. Hence the U.S. auto market can be regarded as a monopoly 1)True 2)False

2)False

The core values of a culture are highly dynamic and fluid 1)True 2)False

2)False

To be competitive and successful in the market, companies should focus on a single source of competitive advantage 1)True 2)False

2)False

Warren is conducting a marketing research project. He is not sure what questions to ask or what types of consumers he should talk to. Therefore, Warren should begin by conducting quantitative research. 1)True 2)False

2)False

Toyota generates around 60% of its sales in 5 states. Those states are 1)Toyota's capital region 2)Toyota's core region 3) Toyota's primary market 4)Toyota's most profitable market 5)Toyata's most profitable region

2)Toyota's core region

Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be 1)syndicated data 2)U.S. Census data 3)sales invoices at public libraries 4)door-to-door surveys 5)focus group interviews

2)U.S. Census data

Which of the following is a dimension of Porter's Five Forces model 1)existing firms in the business environment 2)bargaining power of buyers 3)rivalry among organizational departments 4)social trends, i.e. consumer activism, sustainability, etc 5)government offices

2)bargaining power of buyers

Marketing research begins with 1)presenting results. 2)defining objectives and research needs 3)analyzing data 4).designing the research project. 5)creating the data collection process.

2)defining objectives and research needs

Cultural differences are particularly important for 1)local not-for-profit organizations 2)global companies 3)Companies that are marketing to the same segment of consumers for years 4)Companies marketing people living in a single city 5)Companies marketing to kids

2)global companies

A good marketing objective: 1)does not reflects company identity 2) is quantitative rather than qualitative. 3)is unattainable 4)is written independently of the mission statement 5)is general and non-specific

2)is quantitative rather than qualitative.

The marketing goal of getting the "right quantities to the right locations, at the right time" relates to 1) communicating the value proposition 2)managing the distribution and supply chain 3)performing service marketing 4)capturing value 5)managing price and performance

2)managing the distribution and supply chain

The information collected for the first time specifically for a marketing research study is called _____ data. 1)processed 2)primary 3)qualitative 4)sindicated 5)secondary

2)primary

If a customer participates in the creation of a product, this provides additional value to her and might improve consumer satisfaction 1)efforts by individuals and organizations 2)production scheduling 3)creating value 4)conducting exchanges 5)satisfying customer needs and wants

2)production scheduling

"On the street" interviews conducted by a broadcaster with anyone who passes by are example of 1)projectives research 2)survey 3)random talk 4)focus group 5)observation

2)survey

All of the following are good reasons to study marketing except 1)Marketing affects your day-to-day life as a consumer. 2)Marketing is an important function in business 3)Marketing creates consumer needs. 4)Marketing plays an important role in society, coordinating the huge numbers of transactions needed to provide goods and services. 5)Marketing offers outstanding career opportunities

3) Marketing creates consumer needs.

Every month, Dr. Combahee takes her staff to lunch and asks them to share patients' comments and concerns. Dr. Combahee uses the lunches as an informal marketing research effort intended primarily to 1)improve profitability 2)provide a link between herself and her profession 3)help her understand the needs of her customers 4)monitor her competitors. 5)decrease the uncertainty associated with decision making

3) help her understand the needs of her customers

Anabelle, a women's clothing store, targets college-educated women between 25 and 45 years old with average household income of $55,000 or more. This is a form of __________ segmentation. 1)Geodemographic 2)Occasion 3)Demographic 4)VAL-based 5)benefit

3) Demographic

Margo is going to sell a line of exclusive underwear, which she has already purchased from an international producer. She has researched the competing brands, talked to some customers, and decided on prices she is going to charge. Margo has also developed a promotional plan. Based on this information, which element of the marketing mix does Margo still need to work on? 1)product 2)promotion 3)place 4)planning 5)price

3) Place

Which component of the marketing mix relates to the idea of "capturing value"? 1)Prodct 2) Purchasing 3) Price 4) Place 5) Promotion

3) Price

In SWOT analysis, Ryan is assessing his firm's internal environment by focusing on 1)demographics 2)opportunities and threats 3)strengths and weaknesses 4)the economy 5)competition

3) Strengths and weaknesses

When an umbrella producer says, "We produce only green umbrellas because we buy plenty of green fabric and thus keep our costs down", it reflects the views that were popular in which era in marketing? 1)sales-oriented 2) value-based marketing 3) production-oriented 4)market-oriented 5)economics-oriented

3) production-oriented

According to famous Pareto principle (80/20 rule) in economics, in any sets of things (customers, workers, businesses) a few (about 20%) are vital, important and many (about 80%) are trivial. For example, roughly 20% of your inventory on hand (bulky items) occupies 80% of your warehouse space. If applied to marketing, Pareto principle could be formulated as 1)if you do market segmentation, you will be able to increase company sales in 80% of markets 2)80% of market can be segmented, 20% cannot 3)80 % of company sales are generated by 20 % of its customers 4)around 80% of market segment is generally tapped within the first 3 years, and remaining 20% within the next decade 5)20% of the richest people in the market buy 80% of least-expensive products in that market

3)80 % of company sales are generated by 20 % of its customers

Which statement is an example of time utility? 1)Stamp vending machines are located in drug stores 2)A new motor oil container comes equipped with a disposable pouring spout 3)A service station has 24-hour ice machine available for use 4)A waterbed company offer 6-month financing, same as cash

3)A service station has 24-hour ice machine available for use

Clad is preparing for his first visit to China and consulting his business partner, Chinese American, regarding customs and values common among the Chinese businesspeople. Clad is trying to avoid __________ business blunders 1)reference group 2)evoked 3)cultural 4)situational 5)cognitive

3)Cultural

Cindy has identified several promising market segments for her Balloon Travels startup. She is analyzing the segments to see if they are distinct from each other. Cindy is evaluating whether or not each segment is 1)Profitable 2)Responsive 3)Identifiable 4)Big enough 5)Sustainable

3)Identifiable

Ben was afraid his apartment would not impress his new girlfriend, so he hired a cleaning firm to have it done just before her visit. Ben was addressing his __________ risk. 1)Financial 2)Physiological 3)Social 4)Inner 5)Performance

3)Social

Choose the option which is most likely to get through a customer's perceptual screens? 1)Simple message, simple background 2)Radio advertisement presented in a monotone voice 3)Unique packaging 4)Black-and-white classified ad 5)Fewer colors used in an ad

3)Unique packaging

Company sales invoices, census data, and trade association statistics are examples of 1)data mines 2)qualitative data 3)primary data. 4)secondary data. 5)tertiary data.

4)secondary data.

Marvin is looking for data to help him with a new marketing research study assigned to him. When reviewing existing secondary data from a past research study, Marvin should pay careful attention to 1)whether the data were transformed into information 2)where the data were warehoused 3)how the secondary data were collected 4)whether or not the Census Bureau has certified the research 5)how often primary data were substituted for secondary data

3)how the secondary data were collected

Firms can influence customers' post purchase evaluation of a product or service by: 1)helping consumers to identify potential problems or needs 2)trying to convince consumers this was their fault if the product was not performing as expected 3)offering personal assistance with any problem experienced with the product 4)attempting to convince consumers that a competing brand does not meet their criteria 5)trying to get consumers to expand their evoked sets to include their product

3)offering personal assistance with any problem experienced with the product

Which statement is not one of the four major growth strategies firms employ? 1)market development 2)diversification 3)segment development 4)product development 5)market penetration

3)segment development

Many Americans purchase hybrid cars, which are more expensive than conventional ones. These consumers 1)are economically irrational 2)are greenwashing 3)value contributing to a greener environment 4)are responding to global corporate pressure for social responsibility 5)would prefer an SUV

3)value contributing to a greener environment

The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called 1)marketing research 2)market share analysis 3)market segmentation 4)marketing 5)market positioning

4) Marketing

Craig is planning on launching a new Internet auction-based business and is working through the STP process. After identifying potential market segments and evaluating the attractiveness of each of them, Craig now has to 1)develop loyalty program 2)monitor positioning strategy 3)identify competitors' positioning and develop a perceptual map. 4) select a target market 5)differentiate his product offering

4) Select a taget market

Which one is typically observed during a depression? 1)Consumers have money to spend, but caution often restrains their willingness to buy 2)Businesses offer new products, expand distribution, and raise prices to widen profit margins 3)Consumers are willing to spend more for premium versions of well-known brands 4)Consumers focus on more basic, functional products that carry lower price tags

4)Consumers focus on more basic, functional products that carry lower price tags

__________ refer(s) to the process by which consumers select, organize, and interpret information to form a meaningful picture of the world. 1)Learning 2)Values 3)Attitude 4)Perception 5)Consumption

4)Consumption

Which one is an example of nontraditional marketing? 1)transaction-based marketing 2)interactive marketing 3)company-wide marketing 4)event marketing 5)sales marketing

4)Event Marketing

The USPS argues that its services are very similar to those of FedEx and offered at much cheaper price. Nevertheless, FedEx is a strong market leader controlling 60 percent of the market. Which of the arguments below describes the situation? 1)The USPS should lower its prices even further to increase market share. 2)Customer value is not an issue in deciding which express-delivery service to use 3)The USPS is perceived as offering greater customer value. 4)FedEx is perceived as offering greater customer value. 5)FedEx and the USPS offer the same customer value.

4)FedEx is perceived as offering greater customer value.

Which statement is true regarding the gender roles today? 1)Modern standards require firms to produce gender neutral advertising for every product 2)Gender roles are a constant cultural norm. 3)Gender roles are unimportant to marketers 4)Gender roles have been blurred in the past several years 5)Gender boundaries should never be crossed in marketing efforts

4)Gender roles have been blurred in the past several years

Undifferentiated marketing strategy would work well for 1)Personal tax services 2)Imported wine 3)Eco-friendly dishwasher liquid 4)Milk powder 5)Tiffany jewelry

4)Milk Powder

The first question a marketing researcher should ask before embarking on a research study is 1)Should we use structured or unstructured questions? 2)Who will pay for it? 3)What is the due date? 4)Will the research be useful? 5) What sample size will be needed?

4)Will the research be useful?

Alex and Dane just got married and are exploring the real estate market, looking for a new house. After checking several houses, they have developed a list of features that are salient to them and that are different among the homes they've considered. Those features are 1)perceived risk factors 2)trade-off elements 3)short lists 4)determinant attributes 5)an evoked set

4)determinant attributes

When conducting SWOT analysis, companies can identify strengths and weaknesses by focusing on: 1)government policies 2)foreign competitors 3)socio-cultural trends in society 4)employee capabilities 5)quality of products produced by competitors

4)employee capabilities

Postpurchase cognitive dissonance is especially likely for products that are 1)psychologically soothing, purchased impulsively, and part of a consumer's evoked set. 2)personally valuable, antique, or foreign-made 3)simple, easily copied, and new 4)expensive and infrequently purchased. 5)cheap, poorly made, and made of plastic

4)expensive and infrequently purchased.

A consumer's external social environment includes 1)universal, retrieval, and evoked sets 2)cognitive, affective, and behavioral environments 3)impulse, habitual, and limited problem-solving processes 4)family, reference groups, and culture 5)functional and psychological needs

4)family, reference groups, and culture

Evaluative criteria consumers use to make their decision regarding the purchase may be 1)set aside if the consumer finds a better means of making the purchase decision 2)Useless 3)invoked during the first stage of the consumer decision process 4)objective factors of subjective opinions about the alternatives 5)used to identify alternative brands for consideration and possible purchase

4)objective factors of subjective opinions about the alternatives

Alex graduated from university and found well-paying job. Soon he got married. He also got recognition in the local community. Eventually, he began to devote more time and effort to various emotionally-fulfilling pursuits. Alex is moving up to which level on Maslow's Hierarchy of Needs? 1)self-fulfillment 2)self-esteem 3)self-confidence 4)self-actualization

4)self-actualization

A generational cohort is a group of people 1)who share similar ethnic characteristics 2)who are not open to new things 3)who grew up and went to school together 4)who are of the same generation 5)with the same beliefs and values

4)who are of the same generation

The first stage in the STP model is 1) perform SWOT analysis 2)select target market 3)develop a marketing mix, so that an appropriate segment can later be identified. 4)decide on the segmentation method(s) to be used 5) define the firm's vision or marketing strategy objectives.

5) define the firm's vision or marketing strategy objectives.

By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to 1)demonstrate social responsibility 2)stimulate supply chain management cooperation 3)influence social norms regarding sexuality 4)encourage consumers to participate in product redesign 5)increase the perceived value of its products

5) increase the perceived value of its products

Marketers build perceptual maps because 1)It's a way to demonstrate the dimensions that customers think are unimportant 2)it is a way to assess profitability and customer buying behavior in each segment 3)perceptual maps show the number of competitors, entry barriers, and product substitutes 4)It's a way to show the position of the company throughout the product's life cycle 5)It's a quick way for senior managers to see not only firm's product but each of competitors, all at once

5)It's a quick way for senior managers to see not only firm's product but each of competitors, all at once

Smart Money is a health insurance company that markets its roducts with a tag line "save for the future". Smart Money is appealing to which of the following needs in the Maslow's hierarchy of needs 1)Survival needs 2)Esteem needs 3)Psychological needs 4)Social needs 5)Safety needs

5)Safety needs

Which of the following statements reflects the philosophy of the market(ing)-oriented era? 1)A good product will sell itself 2)Advertising and personal selling should be emphasized in order to make the sale. 3)Firms should focus on value 4)Firms should take advantage of a seller's market 5)The customer is king

5)The customer is king

When conducting a survey about choosing vacation destinations, Hillary will need to __________ in order to get reluctant respondents to provide honest information. 1)use only focus group interviews 2)choose only highly verbal consumers 3)create an efficient data warehouse 4)ask unstructured questions 5)assure consumers that their individual responses will be kept confidential

5)assure consumers that their individual responses will be kept confidential

Health inspectors found that the storage facilities at the juice store were not hygienic as per standards set by the government and closed the business. A ____________ factor affected the juice store in this case 1)unforeseen 2)social 3)cultural 4)economic 5)legal

5)legal

Erica is a marketing researcher involved in improving retail store layouts. Erica would like to know the order in which the various types of products are purchased by the customers. Erica also wants to find out what type of assistance is required by the customers while purchasing products. The best method for Erica to collect this data would be by: 1)voluntary mail-back questionnaires 2)"on the street" interview 3)telephone survey 4)online surveys 5)observation

5)observation

The evolution of marketing progressed along the following continuum 1)value-based marketing, production, sales, marketing 2)marketing, value-based marketing, production, sales 3)sales, value-based marketing, marketing, production 4)sales, marketing, value-based marketing, production 5)production, sales, marketing, value-based marketing

5)production, sales, marketing, value-based marketing

"Never shop for groceries hungry" implies that a consumer's __________ can negatively impact their purchasing decisions 1)external state 2)shopping state 3)theoretical state 4)social state 5)temporal state

5)temporal state

Manufacturers of athletic footwear for trail runners advertise their products as non-slippery, with low risk of injury. Manufacturers of footwear for recreational runners emphasize style and comfort. Shoes for professional runners are advertised as stable, flexible and lightweight. Athletic footwear marketers are using ______ segmentation 1)Geodemographic 2)Demographic 3)Ergonomic 4)Benefit 5)Loyalty

Benefit

In most cases, a single marketing mix strategy effectively attracts all sectors of a market 1)True 2)False

False