Marketing Exam 1

Jill's mother pays for her cell phone service. She is due for an upgrade. Jill is hoping for a new iPhone 7, and has suggested that to her parents. Her father is the family technology expert and specifies and decides what phones and service plans will be purchased. For Jill's next phone in this family buying scenario a. Jill is the influencer and consumer; mom is the purchaser; and dad is the initiator b. Jill is the consumer and initiator; mom is the decision maker; and dad is the buyer c. Jill is the consumer and influencer; mom is the purchaser; and dad is the decision maker d. Jill is the consumer and initiator; mom is the influencer; and dad is the purchaser e. Jill is the consumer and purchaser; mom is the influencer and dad is the decision maker

Jill is the consumer and influencer; mom is the purchaser; and dad is the decision maker

Oreo strives to be the world's # 1 cookie. To do this they a. Adapt the product and flavor profile to meet the needs and preferences of different cultures b. Maintain the classic Oreo, taste branding and communication to be a truly global brand c. Utilize the most popular corporate brand on the package in different countries d. b & c e. a & c

a & c

All of the following statements about the creation of a code of ethics are true EXCEPT: a. A written code helps employees avoid confusion when determining whether their decisions are ethical b. A code guarantees ethical behavior among a firm's employees c. A code helps employees identify what their firm recognizes to be acceptable business practice d. The process of formulating the code of ethics facilitates discussion that ultimately create better decisions for the organization e. A code can be an effective internal control on behavior

a code guarantees ethical behavior among a firm's employees

As discussed in class, if you were brand manager for Lucky Charms, which of the below are environmental forces you should be concerned with a. Attitudes about advertising to children b. Attitude changes about children and sugar consumption c. Government regulation concerning sugar content of children's cereal & advertising to children d. All of the above e. b & c only

all of the above

As mentioned in class, key factor(s) impacting ethical behavior are a. Individual ethics b. Group ethics c. Opportunity d. All of the above e. a & b only

all of the above

The Mission Statement a. Is the foundation of any marketing and strategic plan b. Answers the question "What business are we in" c. Answers the question "Why do we matter" d. All of the above e. Only a and c

all of the above

As discussed in class, marketing is a combination of: a. Art and science b. Salesmanship and manufacturing c. Management and branding d. Products and promotion e. Innovation and delivery

art and science

Andrea just purchased an upgraded wedding ring as a present to her husband for their tenth wedding anniversary. Andrea is anxious about the gift, afraid Bill will not like the ring and she is worried she spent too much money. Andrea is experiencing: a. Selective dissatisfaction b. Temporal distortion c. Perceptual disharmony d. Cognitive dissonance e. Self-actualization involvement

cognitive dissonance

As we discussed in class, Taco Bell has had good growth adding a breakfast menu to their offerings. This was their third attempt at this business growth strategy. What made it a winning strategy this time was a combination of a. Consumer's growing need for convenience and targeting McDonald's breakfast users b. Changing consumer demand for more intense tastes at breakfast and targeting their core users c. Consumer attitudes about fresh food and targeting all breakfast diners d. Changing beliefs about Taco Bell quality and targeting male heavy fast food users e. Growing needs for convenience and healthier options for breakfast

consumer's growing need for convenience and targeting McDonald's breakfast users

As discussed in class, since 1890 there have been 4400 patents applied for "A Better Mouse Trap". Of those, less than 40 have gone to market, and less than 20 have ever made money. Currently the conventional "bait and snap" wooden trap has 80% of the market, and it is essentially the same product as in 1890. Why have mouse trap innovations been unsuccessful? a. They haven't found the proper technology to improve upon the current trap b. There hasn't been enough promotion of the advantages of the newer traps c. Consumers don't want a better mouse trap, current trap performance and cost are satisfactory d. The new mousetraps are generally less humane e. All of the above

consumers don't want a better mouse trap, current trap performance and cost are satisfactory

There are many sources of competitive advantage. For the advantage to be sustainable, it must be difficult to copy by a competitor, and allow you to charge more for your product. In an interview we watched in class with Bob Iger CEO of Disney, talking about their future, the entertainment business and Disney's plans, he stated the notion of original programming and own-ability are the keys to remain competitive in entertainment with his comment a. Program availability and distribution create ownable strategies b. Streaming platforms will be the driving force moving forward c. Live sports will be surpassed by syndicated replays d. The movie theater channel is dead, we are looking for deals with Netflix and Hulu e. Content is king

content is king

All of the following are characteristics of culture EXCEPT: a. Culture is pervasive b. Culture is learned c. Culture is functional d. Culture is an inherited trait e. Culture is dynamic

culture is an inherited trait

Target bought 124 Zeller's stores in Canada and converted them to Target brand stores. This expansion strategy failed, and is considered the highest risk method of growing globally. The strategy target used in Canada was a. Licensing b. Joint venture c. Direct investment d. Exporting/importing e. Contract manufacturing

direct investment

As we discussed in class, acquisitions of companies like Honest Tea and Fairlife leverage Coke's strength and sustainable competitive advantage in a. Brand equity b. Distribution c. Cost structure efficiencies d. Coke brand advertising dominance e. Sustainable practices

distribution

Warren loves to go to the beach on his vacation but hates to have to worry about the possibility of hurricanes. As Warren looked for where he should go on vacation this fall, he consulted a publication called Smart Money and learned the islands of Aruba, Bonaire, and Curacao are not in the hurricane belt. Now he will only consider these island resorts as possible vacation destinations. This group of resort islands is called Warren's: a. Involvement set b. Evaluative set c. Evolved set d. Evoked set e. Intuitive set

evoked set

Alanna is looking into purchasing a scooter as gas prices continue to rise. She needs a reasonably priced, comfortable, and safe scooter with room to store her books. She is not familiar with scooters, and this is a major purchase for her. The purchase will probably involve: a. Low-involvement problem solving b. Low-involvement decision making c. Extensive decision making d. Limited decision making e. Dedicated cognitive behavior

extensive decision making

Mountain Khakis has developed a line of apparel that uses a fiber made from recycled plastic called Bionic. Consumers like the look of the khakis, and Mountain Khakis' use of recycled materials is good for the environment. The production of the Bionic line would be consistent with a. Green marketing b. Supplier engagement c. Cause-related marketing d. Production orientation e. Philanthropic belief structures

green marketing

Volkswagen, who paid huge fines for falsifying emissions testing is now running an advertising campaign featuring their sustainable practices in manufacturing and concern for the environment and air quality. Given Volkswagen's poor track record, this may be viewed as a. Corporate Social Responsibility b. Green Marketing c. Cynical Marketing d. Green Washing e. Cause-Related Marketing

green washing

The primary input needed to have a marketing orientation is a. Information on customers, competitors and markets b. Strong manufacturing and engineering competencies c. Persuasive advertising and high impact packaging d. Strategic pricing structures to deliver target profits and returns to the shareholders e. A strong organizational moral compass, and conviction to "do no harm"

information on customers, competitors and markets

Jim needed to purchase a birthday gift for his 7-year-old niece. While looking at the DVDs at Target, Jim tried to remember the name of the Disney movie featuring a talking snowman and princess named Elsa. His niece had been asking for the DVD. Which step of the consumer decision-making process is this? a. Antecedent search b. Need recognition c. External information search d. Alternative evaluation e. Internal information search

internal information search

One key advantage of consumer's knowledge and familiarity of a strong brand is that it helps customers during their a. Problem recognition b. Internal search c. External search d. Opinion leader influence search e. Marketing controlled search

internal search

Heinz has nearly 70% of the global ketchup market, and the ketchup market is not growing. They see this SBU as their cash cow. Other brands they own include Classico Sauces, several baby foods brands, Lea and Perrins Sauce, TGI Friday's, Ore-Ida and Weight Watchers branded packaged foods. In the US domestic market, growth in prepared "diet" foods has a 12% growth rate. Weight Watchers branded packaged foods has a 52% share. According to the Boston Consulting Group Matrix, Heinz should a. Research the category and consumer satisfaction to optimize the Weight Watchers branded goods, as they are a "?" or "problem child" b. Invest in product line expansion and promotion for the Weight Watchers branded goods as they are a Star and can provide portfolio growth c. Treat Weight Watchers Brands like the Ketchup brand, as they are an old, mature, tired brand d. Shoot the Weight Watchers dog. American obesity is an epidemic. There is no opportunity in this type of product e. Invest more heavily in Ketchup, given its larger market share and strong cash cow position

invest in product line expansion and promotion for the Weight Watchers branded goods as they are a Star and can provide portfolio growth

Marketing (defined) a. Is restricted to the activities of the marketing department in an organization, specifically the task of determining the optimal marketing mix b. Is selling goods, services and ideas to consumers via value exchange with the ultimate goal of generating profit for your organization c. Is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large d. Is a set of processes and activities that develop long-term mutual relationships and facilitate exchange by adding value to the day to day life of the consumer e. All of the above

is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large

Mario usually purchases Old Spice deodorant. Unfortunately, the drug store is sold out of Old Spice today, so Mario will have to choose a brand that's in stock. In making his decision, Mario will engage in _____ consumer decision making. a. Limited b. Extended c. Habitual d. Classical e. Routine

limited

The South Korea market, as described by one of our TA's Young Kim, has all the characteristics below except a. 98% Literacy rate b. Long work hours and work days c. Low, under 1% suicide rate d. Very fast internet connections e. Home Plus virtual stores in the subway, with in-home delivery

low, under 1% suicide rate

Marketing managers often use in-store promotions to stimulate sales of: a. Technical products b. High-involvement products c. High-priced products d. Industrial products e. Low-involvement products

low-involvement products

In order to expand its sales into the U.S. market, BRL, an Australia based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's strategic opportunity matrix, BRL would be implementing a _____ strategy. a. Diversification b. Market development c. Product development d. Divestment e. Product penetration

market development

Procter & Gamble has observed growth in men's foot care products, specifically scrubs and deodorants. Therefore they want to explore the viability of introducing a men's foot care line in their Old Spice Brand portfolio. They know they need to fully understand the market. They will look at the current products in the category, survey men on their interest in these types of products, and survey Old Spice users as well. They will determine purchase intent, and estimate the share they could get of this market. This is a(n) a. Benchmarking study b. Market opportunity analysis c. Strategic plan d. Mission e. Market penetration growth strategy

market opportunity analysis

Kraft Foods created a magazine full of recipes and coupons for customers as well as a Web site with product and recipe information. The goal was to get current customers to purchase more of Kraft's products. These activities are representative of a _____ strategy. a. Diversification b. Product development c. Market development d. Market penetration e. Product penetration

market penetration

Which step in the consumer decision-making process is a result of an imbalance between actual and desired states? a. Evaluation of alternatives b. Need recognition c. Purchase d. Post purchase behavior e. Information search

need recognition

Jackie and Kevin like to cook fresh food and grow vegetables in their garden. They consider their home cooking and fresh meal preparation a "farm-to-table" style of life. An ad showing food created "fast from a can or box" would be appealing to Jackie and Kevin's _____ reference group. a. Non-aspirational b. Direct reference c. Membership d. Integrated e. Aspirational

non-aspirational

One of the key reasons Seth Godin pointed out in the "Purple Cow" video that we need to be sure we do something remarkable to get noticed by consumers is a. Social media has changed the way we receive information b. People have less time and more choices c. Average consumers generally drive the market d. High risk choices seldom pay out e. All of the above

people have less time and more choices

The work of the marketing manager and marketing department is to create a marketing mix that meets consumer needs, and is in sync with trends in the external environment. The marketing mix (commonly referred to as "the 4 P's") consists of a. Product, price, priorities and place b. Price, promotion, product and place c. Priorities, planning, premise and pricing d. Planning, promotion, product and pricing e. Product, price, place and public relations

price, promotion, product and place

Sherri went shopping with a friend and noticed her friend's new jeans, and great fashion. She thinks her clothes are old worn, and behind the times. She realizes she would like some new clothes like her friends. In which stage of the consumer decision-making process is Sherri in? a. Information search b. Cognitive dissonance c. Alternative evaluation d. Problem recognition e. Pre-purchase cognition

problem recognition

When IKEA, the Swedish home furnishings retailer, first entered the Japanese market, it failed. It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes. IKEA's success on its second foray into Japan was based on its ability to give the Japanese consumer what he or she needed without abandoning its product strategy. IKEA had to adopt a _____ strategy. a. Product substitution b. Market differentiation c. Message adaptation d. Product invention e. Product adaptation

product adaptation

As we discussed in class, Jolly Time popcorn knows that the largest growth in the popcorn consumption category is "ready-to-eat", pre popped corn. They have efficient plants and considerable investment in production of micro-wave popcorn, which is showing loss of share to ready-to-eat. When they introduced their newest product, "Simply Popped" they made it only available in microwave. This is evidence of a(n )___________ orientation to the business. a. Exchange b. Production c. Sales d. Promotion e. Societal

production

Burger King did a clever promotional event in South Korea that addressed the problem South Korean's having the longest commute to work each day, at an average of 58 minutes. Their "wake me up at my stop" is an example of a(n) ___________________ approach to customizing a marketing mix to meet the needs of the market. a. Product adaptation b. Promotion adaptation c. Co-Branding d. Public Relations e. Joint Venture

promotion adaptation

Coke recently introduced a "Fairlife" premium milk line. As we saw in the Bloomberg news clip, the premium/alternative milk category is growing rapidly. Coke has a small market share in this category, under 10%. Fairlife milk is an example of a(n) _____ according to the portfolio matrix. a. Star b. Question mark c. Dog d. Cash cow e. Widow

question mark

Lucky Charms from General Mills has had consistent performance in a shrinking cereal market. A key concern for Lucky Charms are all the copycat private label brands in the market such as Malt-O-Meal's Marshmallow Mateys. These wholesaler or store brands seem to flourish during economic periods described as a. Stagflation b. Recession c. Growth d. Stagnation e. Distension

recession

In the Barry Schwartz video about the Paradox of Choice you viewed in discussion section, Schwartz contends that in today's developed economies we have an abundance of choice that is a. Fueling growth in logistics and service sectors b. Creating a highly satisfying customer experience and innovative feedback systems c. Driven by digital platforms and the growth in online retailing d. Resulting in decision paralysis, reduced satisfaction, and depression e. Easy for millennials to navigate but problematic with boomers

resulting in decision paralysis, reduced satisfaction, and depression

On any given day, a person may be subjected to over 2,500 advertising messages but may only remember 11 to 20 of them. This is called: a. Selective distortion b. Stimulus generalization c. Sporadic reinforcement d. Intermittent selectivity e. Selective retention

selective retention

The consumer journey is a more connected way companies are approaching consumer decision-making. This model often uses automation, proactive personalization, contextual interaction and journey innovation. The key goal(s) is (are) to a. Move customers to the loyalty loop faster b. Shorten or eliminate the consider and evaluate steps c. Improve a company's CSR position d. All of the above e. a and b only

shorten or eliminate the consider and evaluate steps

Patagonia believes that it exists not only to satisfy customer needs and to meet organizational objectives but also to consider society's long-term best interests. This is an example of a. Sales orientation b. Market orientation c. Ethical business mission d. Focused target market strategy e. Societal orientation

societal orientation

Pepsico has a joint venture with Unilever in the ready- to- drink tea business. Unilever owns the powerful Lipton brands, (Lipton, Pure Leaf and Brisk) and Pepsico has distribution and bottling capabilities. When Pepsico decided it would reduce their resource allocation behind the shrinking soft drink segment, and allocate more resources and invest heavily in Lipton Teas, they were engaging in a. Benchmarking b. Alternative problem solving c. Strategic planning d. Portfolio evaluation e. Tactical control

strategic planning

In the strategic planning process, when determining the marketing mix, the most critical step of clarity and definition is to determine the, as demonstrated in the video about the 4P's of a lemonade stand we watched in class. a. Strengths and weaknesses b. Opportunities and threats c. Strategic business units d. Target market e. Mission statement

target market

When mechanical gas pumps first appeared in the United States in the 1930's, their spinning dials couldn't register sales beyond $99.99. Today, some stations still use the retro pumps, but the limited dials cannot register the sales of higher-priced gas, which can amount to over $100 for large SUV's and RV's. The pumps can be modernized for about $650, but the company that provides the service has a huge backlog. This is an example of how __________________ and ____________ factors affect small convenience stores and service stations. a. Technological and demographic b. Competitive and natural c. Technological and economic d. Cultural and economic e. Demographic and marketing mix

technological and economic

All of the following are factors in the external environment affecting marketing EXCEPT: a. The marketing mix b. Economic conditions c. Technology d. Government regulations e. The competition

the marketing mix

While preparing a SWOT for Netflix, you would consider Amazon's entry into digital delivery of entertainment to Amazon Prime subscribers as a a. Strength b. Weakness c. Opportunity d. Threat e. Competitive advantage

threat

Family consumption behavior can be full of emotional conflicts, as household resources are shared, and lifestyle choices of one may impact all members of the family. Behaviors that are used to manage and resolve the conflicts include all except: a. Use of authority or intimidation b. Playing on emotions, such as silent treatment, guilt, crying c. Gathering other information from other friends to manage impressions and source support d. Use of a buying group for efficiency e. Bargaining and bribery

use of a buying group for efficiency

The University of Iowa has an outstanding College of Business. Sean attended, paid tuition and got a great job when he graduated. Was this a marketing exchange? a. No, because the University is a public institution b. Yes, because the University adds value c. No, because no money was exchanged d. Yes, because paying tuition was exchanged for gaining knowledge that led to Sean's job e. No, because Sean did not receive a tangible product

yes, because paying tuition was exchanged for gaining knowledge that led to Sean's job