Marketing Final

The factors that influence business buying behavior are the same as those that influence consumer buying behavior T/F

False

There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy. T/F

False

Using surveys to conduct marketing research is an example of environmental analysis. T/F

False

A research technique is said to be reliable if it produces almost identical results in successive repeated trials T/F

True

Certain types of promotion facilitate price competition. T/F

True

Many products never get beyond the introduction stage. T/F

True

Marketing analytics can help marketers identify how to develop better-targeted marketing campaigns. T/F

True

One condition for effective segmentation is that at least one segment must have substantial profit potential T/F

True

Personal selling makes possible immediate feedback from consumers T/F

True

Surnames are difficult to protect as brand names. T/F

True

The analysis of strengths and weaknesses focuses on internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets. T/F

True

Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a variety of dimensions including price, product quality, delivery service, product availability, and overall company reliability T/F

True

At what point does a firm maximize profit? a. The point at which marginal cost equals marginal revenue b. The point at which the firm sells its product at the highest price c. The breakeven point plus the adjusted marginal cost d. The point at which marginal profits equal marginal revenue e. The point at which marginal cost equals marginal profits

A

Brady Juraco is the owner of a company that manufactures metal doors that are utilized by retail outlets in shopping malls or higher crime areas where the retailer wants to provide additional security to prevent breakins. Brady is developing a new model that provides greater metal strength, is lighter, and is more attractive when in a closed position. He's interested in determining the breakeven point in order to establish minimum goals for the first month of production. Brady estimates that his fixed costs to produce the new model will be $60,000. He plans to sell the doors to retailers at a list price of $249. Variable costs are estimated to be $95. How many units will his business need to sell in order to reach the breakeven point? a. 390 units b. 337 units c. 241 units d. 632 units

A

Duds and Suds is a bar with a country and western atmosphere. In addition to the bar, Duds and Suds has a gift shop that sells western clothing with its logo. Norman is the owner of the business and has recently enacted temporary price reductions through clearance sales, discounts, and nightly drink specials. What is Norman most likely trying to do? a. Raise cash quickly b. Decrease costs c. Increase profitability d. Run off the competition e. Create a value image

A

Shawna is in charge of the marketing strategy for a new toothbrush her firm introduced. The toothbrush has gotten strong accolades from critics, and Shawna's company has taken great steps using advertisements and public relations to promote the product. The biggest hurdle to product adoption, according to Shawna, is that consumers are much more familiar with Colgate Palmolive's toothbrushes. Colgate-Palmolive is the company's greatest competitor and is a much more established brand name. Shawna plans to release a new campaign highlighting the many benefits of its toothbrush compared to its competitors. She hopes consumers will view their product as superior to Colgate-Palmolive's. After the campaign, Shawna's firm plans to offer free samples in select stores. Shawna is using this campaign to stimulate _______________ on the part of buyers so that they will compare their benefits with Colgate's. a. evaluation b. trial c. awareness d. adoption e. interest

A

Students from a marketing research class are involved in a project about the level of sleep, exercise, and stress individuals experience. They have decided to collect data from three student-center areas on campus. When they analyze their data, they find the responses are very similar across the three areas. The students feel comfortable they have achieved which of the following with regard to their data? a. reliability b. causal relationships c. validity d. sampling accuracy e. measurability

A

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point. a. breakeven b. marginal revenue less than marginal cost c. profit margin d. competitive price

A

Toyota has developed aluminum car bodies that are 100% recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces? a. Proactive b. Competitive c. Reactive d. Inactive e. Controllable

A

Vanessa went to a five-star restaurant that had great reviews. The atmosphere was wonderful and she enjoyed the company of her friends and her boyfriend, Paul. However, at the table next to them sat a family with five kids. The kids were very loud and often ran around. Vanessa, who is not fond of kids, was very annoyed. When she left the restaurant, she remarked to her friend that she didn't see what all the hype over the restaurant was about. Vanessa was most likely influenced by __________________. a. social surroundings b. buyer's mood c. psychical surroundings d. internal pressure e. cognitive dissonance

A

When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all of the items, they can purchase them as a bundle, which costs consumers less than if they had purchased each item individually. Which of the following aspects of the marketing mix is Ikea likely altering? a. Price b. Promotion c. Distribution d. Product e. Target market

A

_____ is the value of the benefit that is given up by selecting one alternative rather than another one A. Opportunity Cost B. Next best option C. Penis pics D. Run off Competition

A

A market orientation is an organization-wide effort that includes all of the following activities except a. researching customers' needs. b. focusing on the marketing department only. c. generating marketing intelligence for use in the organization. d. being responsive to customers' ever-changing wants and needs. e. disseminating marketing intelligence across departments within the organization.

B

In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication _______ A. Sourin B. Source C. Growth D. Product

B

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except: a. the total market should be divided so that segments can be compared on sales potential, costs, and profits. b. customers' needs for the product must be homogeneous. c. the company must be able to reach the chosen segment with a particular marketing mix. d. segments must be identifiable and divisible. e. at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

B

Walmart's tagline "Save Money, Live Better" emphasizes which marketing mix variable? a. Promotion b. Pricing c. Exchange d. Product e. Distribution

B

. To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ____ for the consumer. a. higher costs for the company and higher prices b. higher costs for the company and lower prices c. lower costs for the company and lower prices d. lower costs for the company and higher prices e. no change in the costs for either the company or

C

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike. a. price b. good c. product d. promotion e. distribution

C

Jose went skiing one weekend with several of his friends. While at the slope, Jose injured his leg and needed to see a doctor. Jose is likely going to view solutions to his problem as a. specialty products. b. installations. c. unsought products. d. shopping products. e. convenience products

C

Marketing research is a process designed to gather information a. exclusively about a company's customers. b. from the company's database. c. not currently available to decision makers. d. about the needs and desires of employees. e. concerning the interpretation of the company's sales goals.

C

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ____ product. a. convenience b. shopping c. specialty d. unsought e. durable

C

The Reputation Institute rates the social responsibility of the largest global corporations. They assign a proprietary Corporate Social Responsibility rating to each company based on surveys of thousands of consumers worldwide. In a recent annual ranking, Microsoft Corporation was ranked #1 for social responsibility. Regarding the ranking, the following is a quote from Microsoft's Senior Director of Citizenship and Public Affairs: "I think this is really a testament to our employees worldwide and the difference they make in their local communities. While we have a small Citizenship team here at the corporate level, we have Citizenship Leads across the globe and they work daily in collaboration with a wide range of stakeholders on a range of issues important to local communities." Which of the following terms best describes Microsoft's approach to corporate social responsibility? a. Green marketing b. Cause-related marketing c. Stakeholder orientation d. Strategic philanthropy e. Consumerism

C

The three major ways to modify a product include____ A. Aesthetic, quality, and quantity B. quality, functionality, growth C. Aesthetic, quality, and functional changes D. Functional changes and quality

C

What equation shows organizations the relationship between price and profit? a. Total Variable Costs + Total Fixed Costs = Sales − Profit b. Price = Profit per Item × Number of Units Sold c. (Price × Quantity Sold) − Total Costs = Profits d. (Price − Profits) × Total Costs = Sales e. Total Costs = (Price × Quantity Sold) − Profits

C

When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct ____ research. a. descriptive b. experimental c. exploratory d. analytical statistical e. conclusive

C

Dividing the percentage change in quantity demanded by the percentage change in price gives the a. prestige demand curve. b. breakeven point. c. marginal cost curve. d. price sensitivity curve. e. price elasticity of demand

E

In which stage of a product's life cycle is the firm focused on establishing and fortifying the product's market position by encouraging brand loyalty? a. The maturity stage b. The introduction stage c. The decline stage d. The growth stage e. The rebirth stage

D

Melissa needs some spaghetti sauce and always buys Ragu. However, her local supermarket is out of Ragu and, since Melissa wants to get home to cook dinner, she settles for Prego. Melissa has brand ____ for Ragu and brand ____ for Prego. a. insistence; recognition b. insistence; preference c. loyalty; preference d. preference; recognition e. preference; loyalty

D

Some critics, including consumer groups and gov officials, suggest that certain products should not be promoted because they are A. Painful B. Safe C. Helpful D. Potentially harmful

D

Which of the following is not a stage in the buyer's product adoption process? a. Awareness b. Adoption c. Trial d. Exploration e. Interest

D

Which of the following products is an example of a manufacturer brand? a. Great Value Corn Flakes b. JCPenney jeans c. Kmart tires d. Sony TVs e. Safeway tomato sauce

D

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices. a. Total budget b. Generic c. Brand d. Product e. Price

D

Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces. a. reactive b. inactive c. variable d. positive e. proactive

E

The Federal Reserve Bank just issued its economic report on the U.S. economy for the quarter just ended. The following are some of the key points mentioned in the report: 1. "Economic activity has continued to grow at a moderate pace since the last report." 2. "Manufacturers report that business activity has picked up considerably in recent weeks." 3. "Tourism activity has strengthened, no longer held back by harsh weather." 4. "General merchandise retailers report that sales rebounded strongly in April and early May." 5. "Retail contacts generally say that inventories are at satisfactory levels, that prices are mostly steady, and that the degree of discounting is little changed from a year ago." Based on these economic forces, you can conclude a. that the economy is entering the depression stage of the business cycle. b. that the economy is in the prosperity stage of the business cycle and consumers' buying power is declining. c. that the economy is in the recession stage of the business cycle and consumers' buying power is increasing. d. that the economy is in the recession stage of the business cycle and consumers' buying power is declining. e. that the economy is in the prosperity stage of the business cycle and consumers' buying power is increasing.

E

The marketing environment is the arena in which the marketer executes marketing strategies and techniques designed to build relationships with customers. It includes a host of forces that surround the customer and affects the marketing mix. The marketing environment: a. changes periodically, but at a slow enough pace for the skillful marketer to respond to effectively. b. creates risks for the marketer, but seldom creates opportunities. c. is not impacted by technology to any significant degree. d. can be completely controlled by a skillful marketer using well-thought-out strategies e. includes legal and regulatory forces that affect the marketing mix.

E

When marketing to business customers, marketers have to understand the key characteristics of the business customer, and alter their marketing mix accordingly. For example, a business customer views _________ as the amount of investment necessary to obtain a desired level of return or savings. Moreover, the business customer demands ______________ before buying to be sure their needs are being met with the product. a. price; good service b. product; price discounts c. place; product samples d. distribution; product guarantees e. price; detailed information

E

The basic purpose of packaging is to create eye appeal. T/F

False

. Early adopters are the first group of consumers to adopt a new product. T/F

False

In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods. T/F

False

In general, when marketers focus on customers chosen for their lifetime value, they earn lower profits in future periods than when they focus on customers selected for other reasons. T/F

False

In the strategic planning process, marketers conduct their SWOT analyses before developing corporate and business-unit strategies. T/F

False

It is rare for a channel member to manage the physical distribution of goods for all supply-chain members involved in exchange. T/F

False

Once initiated, the consumer buying decision process always leads to a purchase. T/F

False

Profit, even at the expense of customers' satisfaction, is the major thrust of the marketing concept. T/F

False

A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations. T/F

True

7. When a firm's packages are designed to appear to be quite similar, the firm is using family packaging. T/F

True

8. Patronage motives influence where one purchases s on a regular basis. T/F

True