Marketing Exam 1 Practice Questions

Effective positioning is based on

differentiating

Company offers foods, drinks, and logo merchandise to customers who in turn offer company money. What is this relationship known as?

exchange

Developing product specifications follows ________ in the business buyer decision process

general need description

Being proactive toward the marketing environment means that

a company develops strategies to changes in the environment

Which of the following statements about marketing information systems MIS is correct?

a good MIS must balance what users would like to have against what they really need and what is feasible to offer

What does a market segment consists of?

a group of consumers who respond to the marketing effort in the same way

Company products and services are geared toward colleges and students, the students of which many be considered young achievers. This designation can be best described as which influential factor of consumer buying behavior?

age and life stages

Demography studies statistics that include ________

age, gender, race, and occupation

What are the main components of a marketing plan?

an executive summary, situation analysis, objectives, marketing strategy, action programs, budget and controls, and threats and opportunities

What is the purpose of a value proposition?

to differentiate and position a marketing offering in the marketplace

The full mix of benefits on which a brand is differentiated and positioned is called​ a(n) __________.

value proposition

Companies whose passively accept the marketing environment ________

view it as uncontrollable and do not attempt to change it

During concept​ testing, who is the product concept actually tested​ on?

groups of target customers

Profits increase during the​ __________ stage of the product life cycle.

growth

Students purchasing items with the college logo most likely represent consumers involved in which types elf buying behavior?

habitual occurs under conditions of low consumer involvement and little significant brand difference purchasing a college team t shirt is more about the college it represents not the brand

Which of the following correctly defines the costumer market?

individuals and households that buy goods and services for personal consumption

The rapidly expanding use of e=procurement in business to business deals provides several advantages; however one of the disadvantages is _______

its its suppliers against one another

Which type of data is usually data that has never been gather before?

primary

Which marketing orientation states that consumers will favor products that offer the most in quality, performance, and innovative features?

product concept

__________ is the first stage of the product life cycle.

product development

_________ segmentation divides buyers into different segments based on lifestyle or personality characteristics

psychographic

Consumer motivation, perception, and learning are related to the _______ factors influencing consumer behavior

psychological

A company's ads feature the cast of a popular reality show. Product sale increase significantly among the fans. From the fans viewpoint the cast is a _____

reference group

Which of the following statements is true regarding public policy and government regulation?

legislation affecting business around the world has increased steadily over the years

There is a growing segment of people who want food that tastes good and is also good for them. This​ healthy-living segment represents which segmentation​ base?

lifestyle

When company expanded its current products into global markets it was pursuing which growth strategy

market development

Mission statements should be defined in terms of satisfying basic customer needs; in other words they should be

market oriented

The video indicated that the shoes would be sold for​ $120 to​ $150 per pair. At which stage of the new product development process was this decision most likely​ made?

marketing strategy development

What are the three broad targeting strategies used by​ marketers?

mass marketing, differentiated marketing, and micro marketing

Most products today are in which stage of their product life​ cycle?

maturity

Prior to the merging of three distinct insurance company names into one new​ name, which of the following best describes the branding strategy​ used?

multibrands

In which type of buying situation will a buyer usually go through all eight stages of the business buying process?

new task buying situation

Small businesses and not for profit organizations can obtain good marketing insights through

observational research

A popular football player at a college who is able to influence the buying decisions of fans would be best described as a _______

opinion leader influence are those within a reference group who because of special skills or other characteristics exert social influence

A sizable and growing market of consumers are seeking products such as natural, organic, and nutritional foods, fuel efficient cars, and alternative medicines. This trend is attributed to which cultural value?

peoples view toward nature

For which service characteristic do marketers need to pay close attention to fluctuations in​demand?

perishability

One form of e-procurement is _________ in which companies put their purchasing requests online and invite bids

reverse auctions

The step in designing a customer value driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market

segmentation

IN determining which customers to serve, a company engages int hick two marketing activite?

segmenting and targeting

According to the growth share matrix, ________ are high share, high growth products; when the market growth slows these products become _______

stars, cash cows

A business buying situation in which the buyer reorders something without any modifications is known as a _______

straight rebuy

If the product passes both the concept test and the product​ test, the next step is​ __________.

test marketing

In​ today's global​ environment, everything and everyone are digitally connected to everything and everyone else. The term used to describe this is​ __________.

the internet of things

What determines if a buyer is satisfied or dissatisfied with a purchase?

the relationship between consumer expectations and perceived product performance

IN portfolio analysis, a company must identify _____ which are key businesses that make up a company

strategic business unit

In the B to B market one strategy is to offer a complete solution to a buyer's problems. This is called __________

systems selling

Prior to becoming Plymouth Rock​ Assurance, the company marketed three different insurance​companies: High​ Point, Plymouth​ Rock, and Pallasades. Rebranding the three names into​ one, Plymouth Rock​ Assurance, was one part of the overall objective of constantly improving the quality of services and business products. This overall process is known as which of the​following?

total quality management

One new technology marketers are adopting is radio frequency identification (RFID). What does this technology do?

tracks products and customers at various points in the distribution channel

Which of the following statements about service marketing is​ correct?

training current employees between and hiring new ones with more skills can increase service productivity

When does the habitual buying behavior occur?

under conditions of low-consumer involvement and little significant brand difference

What must companies do to create successful new​ products?

understand its consumers, markets, and competitors and develop products that deliver superior value

To create and capture customer​ value, companies must engage the first step of the marketing​ process, which is​ __________.

understand the marketplace and customer needs and wants

Blood donations to the Red Cross are considered​ __________ products.

unsought

One of the disadvantages of product and service standardization for international market is​__________.

varying worldwide market

The video indicated that a company in China was manufacturing the first batch of the shoes. This is indicative of which stage of the new product development​ process?

commercialization

During the idea generation stage of the new product development​ process, it is important that​__________.

companies create a large number of ideas

Which of the following is true regarding the technological environment?

companies must keep up with changes in technology or risk being left behind

________ us the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketplace

competitive marketing intelligence

A company is engaged in the collection and analysis of information about consumers, competitors, and developments in the marketplace. This systematic monitoring is known as

compettive marketing intelligence

When consumers engage in ______ buying behavior they go through a learning process, so it is most important that marketers understand information gathering and evaluation behavior

complex

Which of the five characteristics identified in the text has an inverse relationship with an innovations rate of adoption? as this characteristic increase the rate of adoption is slower

complexity

Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as ________

concentrated marketing

Candace Cabe created the Day to Night shoe based on an idea she​ had, and then asked a group of women to provide feedback regarding the idea. Which step of the new product process does this most likely​ represent?

concept testing

Freedom from defects and consistency in delivering a targeted level of performance is an attribute of​ product's __________.

conformance quality

Which of the following statements regarding segmentation is​ correct?

consumer and business marketers use many similar variables but business marketers use additional variables to segment their markets

Which of the following statements is correct regarding consumer buying decisions?

consumers are often unaware of what influence their purchases

Which of the following statement regarding the buyer decision process is correct?

consumers may in some situations skip steps in the buyer decision process

Which of the following statements is correct regarding the influence of personal factors on buyer behavior?

consumers tend to buy brands whose personality matches their own

One recent development in generating new product ideas is for a company to invite broad communities of people such as employees, customers, and even the public at large into the innovation process; this is known as

crowdsourcing

Through a company invites broad communities of people into the innovation process.

crowdsourcing

When segmenting international​ markets, markets can be grouped according to​ language, religion,​ customs, and values. This type of segmentation is based on​ __________ factors.

cultural

The most basic determinant of a person's wants and behavior are embedded in a consumers _________

culture

What are the 3 cultural factors that influence consumer buying behavior?

culture, subculture, and social class

​__________ development focuses on finding new ways to solve customer problems.

customer centered new product

Company is an important part of the community, including customers live and customer involved which indicates the companys is involved in

customer engagement marketing

Company food, logo products, and overall experience keeps customers loyal and coming back time and time again. Such customer loyalty increases ______

customer lifetime value

To improve the performance of the ______ many companies today are partnering with other members of the supply chain suppliers, distributors, and customers

customer value delivery network

Which of the following statements about information and customer insights is correct?

information to gain customer insights come from a wide variety of sources

Which of the following statements about new product development strategy is​ correct?

innovation can be very expensive and risky

The first group marketers try to bring their new products to the attention to are potential _______

innovators

People can be classified into adopter categories. Which two categories are th first to adopt a new product idea?

innovators and early adopters

Services cannot be​ seen, tasted,​ felt, heard, or smelled before they are bought. In other​ words, services are​ __________.

intangible

Service quality greatly depends on the quality of the buyer and seller interactions during the service encounter; this is known as

interactive marketing

Some retailers use mannequins with cameras hidden in one eye to record customer demographics and shopping behavior in order to serve them better. This raises ethical concerns in terms of _______

intrusions on consumer privacy

Which of the following correctly defines a​ product?

is anything offered to a market that might satisfy a need or want

Which of the following statements about the use of digital and social media for B to B marketing is correct?

it allows businesses to target individuals within a business who affect buying decisions

Choosing a differentiated targeting strategy has many​ benefits, but a potential downside is that​__________.

it can increase costs

Using market information to gain customer insights is of little value unless

it is used to make better marketing decisions

Psychographic segmentation divides buyers into different segments based on​ __________.

lifestyle and personality

When Doritos comes out with new flavors of their tortilla​ chips, what brand development strategy are they​ using?

line extension

The _______ consists of larger societal forces that affect how a company engages and serves its customers

macro environment

Business to Business marketing involves buying and selling goods or services by which of the following?

manufacturers, producers, retailers, wholesalers

Which of the following statements regarding the business market is correct?

many sets of business purchases are made for one set of consumer purchases

In additional to selling food, drink, and a variety of times that feature its logo the company is now offering its customers a valuable experience known as its

market offering

Company focuses one of its business units on medical and healthcare group; these groups make up one of the company's'

market segment

Market ______ evaluates each market segment's attractiveness and selects one or more segments to serve

market targeting

The process of evaluating each market​ segment's attractiveness and selecting one or more market segments to enter is called​ __________.

market targeting

The owners of a company understand the customer needs and wants by sensing and responding to those needs, indication that the company assumes which philosophy?

marketing concept

Use of commercials, newspapers, social media, and other media to control the marketing message is what kind of marketing concept

marketing mix

Company hopes to create a customer value through its mission, strategic goals and objectives, marketing mix, and other marketing tools; this collective effort is known as

marketing strategy

If a company finds that a new product concept is acceptable and should be moved​ forward, what is the next step in the new product development​ process?

marketing strategy development

Which of the following best describes brand​ equity?

measure of the brands ability to capture consumer preference and loyalty

For Super Bowl Sunday a pizzeria simply increases their order of supplies from their existing suppliers. Which type of buying situation does this represent?

modified rebuy

Which of the following would be an appropriate strategy during the maturity stage of the product​lifecycle?

modify the market, product offering, or marketing mix

Which of the following is a personal factor that influences a consumer's buying behavior

occupation

Which of the following statements about big data is correct?

one result of big data is that marketing managers are often overloaded with information

Which of the following statements about online research is correct?

online surveys generally have higher response rates than those conducted by mail or phone

Items such as technical specifications, quantity, delivery time, return policies, and warranties are included in which stage of the buying decision process?

order routine specification

________ includes the final order with the chosen suppler or suppliers and lists other required items.

order routine specification

Which of the following correctly defines the institutional market?

organizations that provide goods and services to people in their care

Which of the of the following best described a marketing information system MIS?

people and procedures that are used to manage information to generate and validate actionable customer and market insights

Prior to changing its product offerings and realigning its business units managers at a company most likely first performed which of the following to determine those units that were profitable and those that should be phased out or realigned?

perform a portfolio analysis

What tends to be the most effective source of information when consumers make a buying decision?

personal sources

Which of the following statements regarding positioning is​ correct?

positions must adapt over time to meet changing consumer needs

When​ Eaton's customers became aware that they needed solutions for power​ management, energy​ savings, green​ technologies, and LEED​ certification, they were in which phase of the business buying​ process?

problem recognition

At which stage of the new product development process is a physical product first​ developed?

product development

Marketers should carefully consider public policy issues and regulations regarding all of the following except​ __________.

product development

Time to invest in _____ by offering new products to the technology market

product development

BMW says their cars are​ "The Ultimate Driving​ Machine". Ford trucks are​ "Built Ford​ Tough". Which type of differentiation do these examples​ represent?

product differentiation

A group of products that are closely related because they function in a similar​ manner, are sold to the same customer​ groups, are marketed through the same types of​ outlets, or fall within given price ranges are called​ a(n) __________.

product line

The number of items in a product line represents the​ __________ and the total number of product lines a company carries represents the​ __________.

product line length, product mix width

If a company adds a new product line to its existing​ portfolio, it has increased its​ __________.

product mix width

Product value analysis is an approach to cost reduction that is used at which stage of the buying decision process?

product specification

Market offerings include

products, services and experiences

Which of the following is true of a new product in the introduction​ stage, such as the Day to Night​heels?

profits are generally negative due to the high cost of R&D

One important reason that business legislation is enacted is to ______

protect consumers from unfair business practices

Which of the following correctly lists marketing intermediaries?

resellers, physical distribution firms, marketing service agencies, and financial intermediaries

To do e-procurement, companies can conduct _____ in which they put their purchasing requests online and invite suppliers to bid for the business

reverse auctions

When Dr. Footcare developed and launched a revolutionary new walking​ shoe, he knew that during the introductory stage of the product life cycle​ (PLC) __________.

sales would be slow and profits nonexistent

Marketing was once understood in the sense of making a sale.​ Today, marketing is understood in the new sense of​ __________.

satisfying customer needs

The first step to a successful​ value-driven marketing strategy is to determine whom to serve with a market offering. To make this​ decision, marketers engage in which two​ activities?

segmenting and targeting

After defining its mission the next step in strategic planning is it

set company objectives and goals

​Furniture, major​ appliances, clothing, and hotel services are classified as​ __________ products.

shopping

Which of the following correctly identifies the social factors that influence consumer buyer behavior?

small groups, social networks, family, and social roles and status

Companies such​ asIBM, Walmart, and Google now look beyond economic gain​ and, in their marketing​strategies, they also consider the​ well-being of​ customers, the depletion of natural​ resources, the viability of​ suppliers, and the interests of the local community. This reflects which marketing​philosophy?

societal marketing concept

Throughout the years a company has shifted from selling strictly components to solving its customer problems with more tailored offerings. This is an example of _________

solutions selling

According to the​ text, the most successful new products satisfy three criteria. What are these​criteria?

solve a major customer problem, are differentiated, and offer a compelling value proposition

What are the two major components of a B to B marketer's buying activity?

the buying center and the buying decisions process

Which of the following statements regarding socially responsible product decisions is​ correct?

the government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition

Which one of the following statements about marketing research in small businesses and nonprofit organizations is correct?

the research methods of small businesses and nonprofits are less complex and less costly but they still must be conducted carefully

What is the overall goal of marketing strategy?

to create customer value and build profitable relationships

What are perceptual positioning maps used​ for?

to show consumer perceptions of different brands on important product dimensions

Which generational age group is now forming brand relationships and represent tomorrow's markets?

Gen Z

Many companies manage detailed information about individual customers by using all of the following methods except ______

collecting and storing huge amounts of data

What is positioning?

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

_______ is the first stage in the new product adoption process

awareness

_______ segmentation divides buyers into segments based on their knwoelge, attitudes, uses, or responses to a product

behavioral

Company segmented the market by targeting parents of preschoolers who wished to have an educational and entertaining experience for and with their children. Which type of segmentation does this describe?

benefits sought

Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep​ monitoring, text​ notification, and wireless sync to their smart phone. In serving these two very different​ groups, Fitbit is using​ __________ segmentation.

benefits sought

According to the stimulus-response model of buying behavior, marketing and other stimuli enter the consumer's ______ and produce certain responses

black box

The name Plymouth Rock Assurance identifies the company as the seller of its services and​products, which is also known as which of the​ following?

brand

​__________ is a measure of the​ brand's ability to capture consumer preference and loyalty.

brand equity

The branding strategy of launching a product or service as a national or store brand is considered a​ __________.

brand sponsorship

​__________ helps the seller to segment markets.

branding

What is the final step in the marketing process

capture value from customers

A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your​ colleague?

carefully consider the degree of competition and ease off entry into the segment

The BCG Matrix classifies products which have a high market share in low growth market as

cash cows

Fathers were once ignored or portrayed as dolts in advertising, however today's advertisers are showing more caring and capable dads. This reflects which demographic trend?

changing dynamics in the american family

Amazon and GEICO set themselves apart with their smooth functioning direct delivery strategy referred to as __________ differentiation

channel

Institutional markets are ______

characterized by low budget, captive patrons

Consumer purchases are influenced strongly by certain characteristics which include all of the following except ______

cognitive

Typically, consumers put in minimum time and effort when buying products such as laundry​detergent, candy, and fast food. These types of goods are classified as​ __________ products.

convenience

Product planners think of products on three levels. Which of the following correctly identifies the three​ levels?

core customer value, actual product, augmented product

The key element of successful marketing today is to

create value

What is the key to building lasting customer​ relationships?

creating superior customer value and satisfaction

Unlike marketers in the consumer market, business to business marketers _______

deal with far fewer but far larger buyers

What is the first step in the marketing research process?

define the problem

Company markets to preschool ages and their parents which typically of segmentation are they using?

demographic

Business to Business marketers will sometimes promote their goods directly to consumers. This is because business demand is ________

derived

When the economic crises hit in 2008, consumers began cutting back, and as a result, Eaton's customers needed to cut costs and scale back operations. This in turn impacted Eaton's sales which is known as _______

derived demand

Survey research is the approach best suited for gathering __________

descriptive research

There are a number of influences on the buying organization and buying center that can impact how and what is purchased by a business. For Eaton's customers, the economic crises in 2008 would be classified as what type of influence?

environmental

Many companies are going beyond government regulation and are developing strategies and practices that create a world economy that the planet can support indefinitely. This represents ______

environmental sustainability

The objective of ______ research is to gather preliminary information that will help define the problem and suggest hypotheses.

exploratory

When Eaton worked with the University of Notre Dame on its new engineering building to improve its energy efficiency and earn LEED​ credits, Eaton engaged with a number of people at Notre Dame to finalize the partnership and solidify terms and conditions associated with the agreement. Which of the following people in the buying center would have affected Notre​Dame's buying decision​ (for example, define specs and provide information on evaluating​alternatives)?

infleuncers

A University is buying new overhead projectors for its classrooms. The​ University's Information Technology Department has been asked to provide specifications and recommendations for this purchase. The IT Department is playing which role in the​ University's buying​ center?

influencer

________ are members of the buying center who help define specifications and provide information for evaluating alternatives

influencers

One characteristic of services is their variability. What is the main reason for services being​variable?

service quality depends on who provides them, as well as when, where, and how they are provided

__________ means that the quality of services depends on who provides them as well as​when, where, and how they are provided.

service variability

Which of the following statements regarding the US government is correct?

the US government is the largest buyer of goods and services in the world

Which of the following statements regarding the current demographic environment is current?

the US population is rapidly getting older

Which of the following is an advantage to using internal databases for information?

they can be accessed quickly and cheaply

What is the overall focus of strategic planning?

to create a game plan for long run survival and growth in consideration of changing marketing opportunities

A ____________ is defined as a any contact between a customer and a company

touch point

Using a ________ marketing strategy a firm might decide to ignore market segment differences

undifferentiated

The primary goal of consistently delivering superior value is to​ ________.

build profitable customer relationships

Which of the following is not considered one of the links in the service profit​ chain?

buyer seller interaction

A marketer who wishes to gain insight into the demographics and attitudes of consumers who buy their product would likely ask someone to perform which type of research?

descriptive research

After defining the problem an objectives, what is the next step in the marketing research process?

develop the research plan

Which of the following statements about segmentation is​ true?

different segments might require different marketing strategies or mixes

Company has created a unique market offering by integrating its programs with both children and parents. This unique offering that creates superior customer value is known as _______

differentiating

_______ behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands.

dissonance reducing buying behavior

When a firm starts up or buys a business outside of its current product line and markets, it is pursuing which growth strategies?

diversification

Sending observers to watch and interact with consumers in their natural environment is now as

ethnographic research

Companies can allow key customers and value network members to access account, product, and other data through _______

extranets

A temporal period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called

fad

Compared to the mainstream buying public, Hispanic consumers tend to be deeply _______ oriented, making this a special characteristic and behavior.

family

Defining the problem and research objectives is the ________ step in the marketing research process

first

In the production adoption process

five stages

You and seven other people are talking with a trained moderators about your feeling and thoughts about a new potential product. For doing this you receive a mall payment. You are participating in an

focus group interview

Hospital purchasing agents should prefer ________

food vendors with low prices and quality products

In the decline stage of the product life​ cycle, some companies continue to offer the product but reduce various​ costs, hoping that sales hold up. This is known as​ __________ the product.

harvesting

New product development starts with​ __________.

idea generation

What is the first step of the new product development​ process?

idea generation

Candace Cabe likely had several different ideas for a convertible​ high-heel, but sifted through each idea until she found the one that was most marketable. Which step of the new development process did this most likely occur​ in?

idea screening

Which of the following statements regarding habitual buying behavior is correct?

in these types of purchases marketers often use price and sales promotion as incentives for purchase

Ford offers a wide variety of cars that range from around $14000 to more than $54000. This reflects which economic factor?

income distribution

Materials and​ parts, capital​ items, and supplies and services are groups of​ __________products.

industrial

Business markets have demand that _____

inelastic

Company provides college students with new, relevant media, making which stage of the consumer buyer behavior process easier for the consumer?

information search