Marketing Final Exam Quiz Answers

A company utilizing intermodal transportation will utilize several types of transportation for the same shipment.

True.

A firm could use mathematical modeling to investigate the effect on sales if the firm were to increase or decrease the price of the product.

True.

A global brand is a brand that is marketed under the same name in multiple countries.

True.

B2B marketers prefer the straight rebuy outcome to any other because straight rebuys normally do not require any additional design modifications or contract negotiations.

True.

Brand image is the unique set of associations target customers or stakeholders make with a brand.

True.

Business marketers typically deal with far fewer buyers than consumer marketers.

True.

Corporate volunteerism is the policy or practice of employees volunteering their time or talents for charitable, educational, or other worthwhile activities, especially in the community.

True.

Each component of a marketing plan should be grounded in the firm's overall mission.

True.

One of the easiest ways for marketers to engage in sustainable marketing is to seek ways to cut costs using sustainable practices as a guideline.

True.

Positioning refers to the activities a firm undertakes to create a certain perception of its product in the eyes of the target market.

True.

Primary data are collected specifically for the research problem at hand.

True.

Products like Facebook and Twitter are changing how firms interact with customers to better meet the needs of the marketplace.

True.

Put away refers to moving goods to their temporary or semi-permanent storage location and updating inventory records.

True.

Railroads account for almost half of the ton miles moved in the United States.

True.

Regardless of market conditions, over 80 percent of all new products fail in the marketplace.

True.

Relationship selling is increasingly important since very few firms can survive on the profits generated from one time transactional sales.

True.

Reminder advertising is most common in the maturity and decline stages of the product life cycle.

True.

Sandra was looking at the magazines on display while waiting in the check out lane. Although she hadn't intended to purchase one, Sandra bought a magazine that caught her attention. This is an example of an impulse buy.

True.

Selling domestically produced products to foreign markets is the least risky option for entering international markets.

True.

Social media users on sites like Facebook often share information concerning their purchases or intended purchases as well as personal information about themselves that is used by researchers.

True.

Sue wanted everyone to have a chance to go first with the pi?ata, so she drew names out of a hat. She was using simple random sampling.

True.

The United States government is one of the world's largest customers, spending hundreds of billions of dollars a year.

True.

The group of products on the BCG matrix that represents products that have a small market share in industries with low growth rates is dogs.

True.

The marketing mix is also referred to as the four Ps of marketing.

True.

The marketing concept is a strategy that utilizes all aspects of marketing in order to persuade consumers to buy new products and more of existing products.

alse.

The best chance of promoting a product is to choose one element from the promotion mix and stick with it.

False, all four elements should be integrated and working together.

An advantage of Internet advertising is the use of banner ads on websites which allow consumers to click on the banner and immediately be able to view the advertisement.

False, banner ads are very ineffective.

An example of corporate philanthropy would be when a company that earns a profit decides to give each of its employees a bonus.

False.

As a form of advertising, packaging does very little to promote the brand.

False.

In a marketing sense, there is really no difference between a need and a want.

False.

Marketing refers to advertising and selling a product.

False.

NAFTA has had a negative impact on U.S. farmers because of the restrictions it imposes on exports, which has made trade between countries more difficult for the farmers.

False.

The phrase Just Do It is a brand mark for Nike.

False.

When Apple began selling the iPhone, Blackberry countered with a number of business apps that Apple didn't offer and emerged as a smaller but stronger company.

False.

An effective marketing strategy should seek to discourage ritual consumption.

False. It should seek to encourage ritual consumption.

Decisions regarding the place or distribution function must be made using sales tracking.

False. Sales forecasting is the correct answer.

Carly spoke to 50 people about their preferences in hair coloring, but she spoke to them one at a time. Carly was conducting focus groups.

False. She was conducting interviews. Focus groups involve 8-12 people, not one.

When a company sends survey takers to a mall to determine buying behavior, it is conducting exploratory research.

False. That is descriptive research.

Research objectives are set during the plan development step of the marketing research process.

False. They are set during the problem definition stage.

Brand equity is the value derived from the sale of a product.

False.

Psychographic segmentation involves categorizing customers based on what they actually do with their goods and services.

False.

Social media outlets like Facebook are not generally helpful in segmenting markets because of the wide variety of people who utilize this type of technology.

False.

Strategic planning is a process that is done only once, when the firm is defining its objectives and setting a course for achieving those objectives.

False.

The best choice for moving expensive, fragile goods is by rail.

False, air transportation is the best mode for this type of good.

Individual customer profitability measures how much was spent on marketing to gain new customers.

False, customer acquisition.

Data shows that in 2012 the largest percentage of contributions to nonprofit organizations came from corporations and foundations.

False, it came from individuals.

Days of supply is calculated by dividing the cost of goods sold by the average daily use or sales.

False, it is calculated by dividing the inventory on hand by the average daily usage or sales.

Branding is less critical for nonprofit organizations because they do not have to generate profits or satisfy customers' needs with products.

False, it is even more critical.

One of the most common objective measures for measuring personal selling is gross profit.

False, it is sales quota.

Gross margin is calculated by subtracting total revenue from the selling price per item.

False, it is selling price minus COGS.

The cost of international shipments generally makes up a lower percentage of the product costs than domestic transportation.

False, it makes up a higher percentage.

Most salespeople in the U.S. are compensated using a straight commission system.

False, most are compensated using a mix of salary and commission.

Radio advertising is usually the most expensive medium available to a company.

False, radio advertising is usually the most cost-effective medium for a company.

A consumer's ability to identify the brand under a variety of circumstances is referred to as brand association.

False, that is brand recognition.

A marketer who shows consumers a print advertisement and asks them if they recognize the ad is performing an exposure test.

False, that is called a recognition test.

A fixed salary system is one in which payment is made only when employees meet the certain objectives the organization has set for them.

False, that is commission.

The promotion mix is all the activities that communicate the value of a product and persuade customers to buy it.

False, that is simply promotion.

The four dimensions of corporate social responsibility are: ethical, legal, economic, and Social.

False, the fourth dimension is philanthropic, not "social."

Some companies perform indirect retailing, which is selling to customers at their homes, at their offices, or through parties at a customer's home at which the customer's friends and family watch product demonstrations by a company representative.

False, this describes direct retailing.

The biggest mistake marketers make when auditing a corporate social responsibility program is using both quantitative and qualitative measurements.

False, this is a good thing.

The practice of recreational traveling in a way that maximizes the social and economic benefits to the local community and minimizes the negative impact on cultural heritage and the environment is called green tourism.

False, this is called sustainable tourism.

A set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer is referred to as a marketing chain.

False, this is the supply chain.

The finance department is typically responsible for developing an organization's corporate social responsibility program.

False, this task is usually given to the marketing department.

Businesses that are vastly different from one another can be measured with the same performance metrics.

False.

Companies use the sales and operations planning process to measure and balance revenue and expenses.

False.

Franchising is an attractive method of entering foreign markets because franchisors assume the majority of the capital costs and human resource issues.

False.

Market size, customer lifestyles, and population shifts are all important geographic segmentation tools.

False.

Marketers particularly target younger consumers because compared to the rest of the population, they typically have more time and money.

False.

Marketing audits should use either quantitative or qualitative data from employees, customers, suppliers, and other stakeholders to measure the success of each marketing mix element, but not both.

False.

Promotion involves the activities a firm undertakes to make its product available to potential customers.

False.

Strategic planning is not necessary for nonprofit organizations because they are not operating to make a profit.

False.

The first level in Maslow's hierarchy of needs is safety needs.

False.

The major advantage of a differentiated targeting strategy is the potential savings in developing and marketing the product.

False.

There are three classifications of B2B buying situations: new buy, continual buy, and a modified repurchase.

False.

Unique segmentation is used when the similarity in needs and wants only extends across the region or several countries.

False.

Reliability concerns how well the data measure what the researcher intended to measure.

False. Correct answer is Validity.

The first step in the consumer decision making process is the search for information.

False. It is recognizing the problem.

A Klout score measure a user's influence based on his or her ability to drive other people to act on social media sites.

True.

A perceptual map is a competitive analysis tool that creates a visual picture of where products are located in consumer's minds.

True.

As an alternative to extending its brand through new product development, a firm can choose to increase its own brand equity by leveraging the equity of another brand using a cobranding strategy.

True.

Employees tend to be engaged when they work for a company that expresses sustainability goals and holds itself accountable to its stakeholders.

True.

In order to succeed, a corporate social responsibility program must be adopted and enacted by all of the functional areas within a firm.

True.

Janie is looking to open a cupcake shop. She wants to make sure her shop is successful, so she hires a consultant to help her determine the best location for her new business. In this example, the information given to Janie by the consultant is considered a product.

True.

Janie thinks that Kleenex is the best brand of facial tissue on the market and refuses to buy any other brand. For Janie, Kleenex has established a competitive advantage over the competing products.

True.

Logistics is that part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer.

True.

Magazines allow firms to segment based on a variety of demographic, geographic, and behavior variables to reach their target audience.

True.

Market segmentation helps firms decide how to allocate their marketing resources in a way that maximizes profit.

True.

Rebates work most effectively when offered in conjunction with a high involvement purchase in which the perceived value of the rebate is magnified.

True.

Rebranding is a strategy to recapture lost sources of brand equity and identify and establish new sources of brand equity.

True.

The mission statement should be customer oriented and focused on satisfying basic customer needs and wants.

True.

The production era continued until the mid 1920s, when consumer demand could not keep up with the growth in production and new strategies were needed to maximize success.

True.

The situation analysis section is often considered the foundation of a marketing plan because organizations must clearly understand their current situation to make strategic decisions about how to best move forward.

True.

The ultimate objective of supply chain management is to integrate related companies in order to facilitate coordinating activities across the supply chain in a manner that improves the entire chain's performance.

True.

Two advantages of outdoor advertising are its flexibility and reduced costs.

True.

Values reflect a consumer's belief that a specific behavior is socially or personally preferable to another behavior.

True.

When it comes to selling tennis racquets, marketers would seek the endorsement of Serena Williams, because she would be an opinion leader for that product.

True.

When marketers segment based on psychographics, the market is divided into groups according to the reason the consumer made the purchase.

True.

When professional sports players are allowed to wear an advertisement on their jerseys, this is an example of product placement.

True.

Firms should consider three important factors during the targeting process: growth potential, level of competition and strategic fit.

True