Marketing Final Exam

​A group that has the willingness, ability, and authority to buy a product is a

A market

Which of the following is NOT a service product?

Tennis racket

Marketing intermediaries bridge the gap between suppliers (or producers) and buyers (or consumers).

True

Procter & Gamble has a wider product mix than does Baskin Robbins.

True

Under a licensing arrangement, the licensee pays commissions or royalties on sales or supplies used in manufacturing.

True

Levitz Furniture locates in huge, low-cost buildings; maintains large, on-premises inventories; and offers minimum service. Levitz is a

Warehouse showroom

If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use

a focus-group interview

One overlooked internal source of secondary marketing information discussed in the text is

accounting records

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n)

expert forecasting survey.

To be truly useful for sales analyses, marketers must compare current sales data with forecasted sales, industry sales, specific competitors' sales, and

the costs incurred from marketing efforts to achieve the sales volume.

According to the marketing concept, an organization should try to

​provide products that satisfy customers' needs and allow the organization to achieve its goals.

The primary value that a marketer expects to receive from a customer in an exchange relationship is

​the price charged for the product.

The in-home (door-to-door) interview is an example of a focus-group interview.

False

​Stars are profitable products that usually generate more cash than is required to maintain share.

False

Zoe is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?

Location

Discretionary income is used for all of the following except

food

When Subaru's advertising campaign mentions the Subaru Forester being named a 2018 IIHS Top Safety Pick, it is using _______ advertising.

Competitive

After several children became ill while playing with toys imported from outside the United States, medical researchers found several illegal chemicals, including lead in the paint. These toys were sold primarily through websites on the Internet. Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys?

Consumer Product Safety Commission

The focal point of all marketing activities

Customers

______ developed on a large scale in the early 1950s, when postwar production caught up with strong consumer demand for goods.

Discount stores

A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

False

Because of service perishability, it is difficult to price services in a manner that takes into account fluctuations in demand.

False

Concept testing gives reliable feedback, but at a relatively high cost.

False

Cost-based pricing results in a high price when demand is high and a low price when demand is low.

False

Discount stores are distinctive in that they usually are very service oriented.

False

Distribution decisions have little influence on the rest of the marketing mix.

False

Fixed costs vary with the number of units produced or sold.

False

Public relations is a set of tools to be used primarily during crises.

False

The absolute dollar outlay for advertising is usually low.

False

The coordination of selling efforts within a community shopping center is usually minimal.

False

An example of an emerging type of power shopping center might contain

Michael's, Office Depot, T.J. Maxx, and Best Buy

Which of the following would be used in setting the price of a new product if considerable competition is expected?

Penetration pricing

Keira is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked, "What level of quality are we building into the camping gear?" Based on this question, Keira and her team are most likely in the ____ phase of new-product development.

Product development

When Shaw Industries develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?

Promotion

A marketer's use of framing can make a product characteristic seem more important to a consumer and can facilitate its recall from memory.

True

Demand-based pricing relies on information concerning peak demand times and off-peak demand times.

True

In vertical integration, control is expanded to two or more successive links of production or distribution.

True

Many products never get beyond the introduction stage.

True

Promotion can assist salespeople in finding likely sales prospects.

True

Promotion decreases in importance during a product's decline stage.

True

Sellers of farm produce would be likely to use an undifferentiated targeting strategy.

True

The line between different marketing channels is becoming increasingly blurred.

True

The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

True

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

True

​Promotion can help sustain interest in established products that have long been available.

True

​The marketing concept is a management philosophy, not a second definition of marketing.

True

A product mix is best described as

all products offered by a firm

To prevent channel conflict, producers or other channel members may do all of the following except

combine reseller markets.

If Ben & Jerry's calculates that it could sell up to 25% of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's

company sales potential

After the advertising budget is determined, the next step in creating an advertising campaign is

developing the media plan

Three primary methods of collecting information for environmental scanning are

observation, secondary sources, and marketing research

The four major competitive structures are

oligopolies, monopolies, monopolistic competition, and pure competition

Alicia is concerned about the effectiveness of Jeroboam, Inc.'s promotional messages and is seeking an approach with immediate feedback. Alicia is most likely to achieve this through

personal selling

The five major stages of the consumer buying decision process, in order, are

problem recognition, information search, evaluation of alternatives, purchase, and post purchase evaluation

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ____ markets.

producer

Consumers receive the benefits of place utility when

products are available in locations where consumers want to buy them.

Multichannel distribution is characterized as

the use of a variety of marketing channels to ensure maximum distribution.

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

time series analysis

If a product has an inelastic demand and the manufacturer raises its price,

total revenue will increase

If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product?​

​Avoiding competition positioning