marketing final quiz questions

Purchasers of component parts and materials need regular, continuous supplies of uniform-quality products.

True

Tangible goods and intangible services both intend to satisfy consumer wants and needs, but the marketing efforts supporting them may be vastly different.

True

The information gathered by an outside marketing research firm is often more thorough and accurate than that collected by in-house staff.

True

Zone pricing helps sellers compete in distant markets.

True

Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy?

Table salt

Promoting the use of oatmeal as a cholesterol reducer and antacids as a calcium supplement are most likely to be examples of extending the lifecycle of the product by

finding new uses.

Which of the following is a posttest that assesses advertising effectiveness after it has appeared in a print or broadcast medium?

Unaided recall test

'Intimates' is a segment of consumers identified by Roper and it consists of those people who value:

family and personal relationships

The receiver"s response, known as _____, completes the communication process.

feedback

Demand curves must be based on marketing research estimates that may be less exact than cost figures.

True

Few businesses want the distinction of being the first to charge higher prices.

True

Geographic segmentation provides useful distinctions when regional preferences or needs exist

True

Hershey"s introduction of a sugar-free version of its candy bar is an example of line extension.

True

In an oligopolistic market, high start-up costs form significant barriers to entry for new competitors.

True

In the absence of other cues, price is an important indicator of a product"s quality to prospective purchasers.

True

Inventory at off-price stores changes frequently as buyers take advantage of special price offers from manufacturers selling excess merchandise.

True

Micromarketing may cause a company to lose sight of other, larger markets (T/F)

True

Most businesses slowly change the amounts they charge customers, even when they clearly recognize strong demand.

True

Online surveys are less intrusive than telephone surveys and allow participants to respond at their leisure.

True

The screening and business analysis stages of new-product development, determine the product"s financial and technical requirements.

True

The target market for a product is the specific segment of consumers most likely to purchase that particular product (T/F)

True

Typical sources of internal company data are sales records, financial statements, and marketing cost analyses.

True

When a chain store sells certain products below cost to attract customers, it is practicing a loss-leader price tactic.

True

The most common method of market segmentation is:

demographic segmentation.

Which of the following acts as the source of the message communicated to the receiver in the communication process?

Sender

A five-pound bag of roasted peanuts sells for $8, and the average variable cost is $4 per bag. If the total fixed cost for the roasted peanuts is $80,000, the breakeven point in bags is:

20,000

Mignon d"Armitage manufactures jewelry. This firm is planning to introduce a new necklace and is trying to determine how many units it must sell in order to break even. Fixed costs are $100,000 and variable costs for each unit will be $20. At the price of $45 each, the number of units that must be sold in order to break even is:

4,000.

Which of the following comes closest to providing a pure good?

A company that manufactures elevators

Which of the following is an example of a volume pricing objective?

A market-share objective

Which of the following is an example of a specialty store?

A men"s shoe store

Which of the following statements best describes allowances?

Allowances result in reduction of the list price quoted on a product.

Which of the following terms refers to the combination of physical characteristics and amenities that contribute to a store"s image?

Atmospherics

The assortment of product lines and individual product offerings that a company sells is known as its product cluster.

False

The ______ is a powerful regulatory agency that has assumed jurisdiction over the safety of every consumer product except food, automobiles, and a few other products regulated by other agencies.

CPSC

Which is the following statements is true of category management?

Category managers are responsible for the profitability of their product groups.

Under which of the following conditions is a product most likely to have an elastic demand?

Consumers can easily find close substitutes for the product.

The first step in the AIDA concept involves convincing the would-be buyer of the product"s ability to satisfy his or her needs.

False

_____ is the process of searching through computerized information files to detect patterns that guide decision making.

Data mining

Which of the following products would generally be considered as a staple?

Dishwashing liquid

Tina is a customer service representative for an Internet service provider. While dealing with elderly customers, Tina takes extra time and effort in explaining to them how to access the Internet, check mails and browse. She understands their point of view, and realizes that they may need more explanation than the tech-savvy, younger generation. By doing so, which of the following variables of service quality is being demonstrated by Tina?

Empathy

A major advantage of advertising is the ease of measuring advertising effectiveness.

False

A probability sample relies on personal judgement somewhere in the selection process.

False

An IMC strategy separates the promotional mix into parts and views them as isolated components.

False

Brand insistence is a company"s first objective for newly introduced products.

False

Census data is an example of primary data.

False

Defense based on cost differentials against charges of price discrimination under the Robinson-Patman Act works only if the price differences exceed the cost differences resulting from selling to various classes of buyers.

False

Geographic segmentation is also called socioeconomic segmentation (T/F)

False

In the awareness phase of the consumer adoption process, consumers make a trial purchase of an item to determine its usefulness.

False

Marketers who have adopted a product-line pricing strategy have one major advantage in that they have no difficulty making price changes on individual items.

False

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as market mapping (T/F)

False

Private labels typically provide better profit margins than captive brands.

False

Which of the following is a pricing method that attempts to use only those costs that are directly attributable to a specific output in setting prices?

Incremental-cost

_____ advertising includes two-way promotional messages transmitted through communication channels that induce message recipients to participate actively in the promotional effort.

Interactive

Which of the following is a practical problem involved in applying price theory concepts to actual pricing decisions?

It is difficult to estimate demand curves.

Using the consumer products classification system, which of the following is true of the marketing mix factors for a specialty product?

It relies on personal selling by producers.

Which of the following is true of promotional pricing?

It uses lower-than-normal price as a temporary component in the selling strategy.

Which of the following exemplifies a yield management pricing strategy?

Lowering cab rental rates on weekends compared to weekdays

Dali stationery and office supplies is a market leader in China. The company wants to expand its business and is setting up retail chains in other Asian countries. Which of the following new-product development strategies is being used by the company in the above scenario?

Market development strategy

During which of the following stages in the product lifecycle, do industry sales of the product level out?

Maturity stage

In the case of shopping products, a store"s name and reputation have considerable influence on people"s buying behavior.

Maturity stage

Which of the following statements is true regarding micromarketing?

Micromarketing is more narrowly focused than concentrated marketing

Which of the following is a pricing technique that is used to evaluate consumer demand by comparing the number of products that must be sold at a variety of prices to cover total cost with estimates of expected sales at the various prices?

Modified breakeven analysis

Which of the following types of advertising is most likely to be used during the growth stage and the early part of the maturity stage of the product lifecycle?

Persuasive advertising

When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of the game scenarios. Addition of this link is most likely to influence which of the following characteristics of the product innovation?

Possibility of trial use

Which of the following segmentation approaches is most likely to help marketers quantify aspects of consumers" personalities and lifestyles to create goods and services for a target market?

Psychographic segmentation

In which of the following nonprobability samples, the participants that are to be included in the study are handpicked by the researchers?

Quota Sample

Which of the following elements of a print advertisement contains the company name, address, web address, slogan, trademark, logo, or names the sponsoring organization?

Signature

_____ represent nonrefundable fees grocery retailers receive from manufacturers to secure shelf space for new products.

Slotting allowances

Which of the following is a probability sample?

Stratified sample

With reference to the business products classification system, which of the following group of products typically has a long distribution channel?

Supplies

Which of the following is also known as the Anti-A&P Act?

The Robinson-Patman Act of 1936

The A.G. Harding company has been charged with price discrimination under the federal Robinson-Patman Act. Which of the following would be the best defense against the charge?

The price differential is justified as they do not exceed the cost differences resulting from selling to various classes of buyers.

The management at Bubblez, a beverage manufacturer, is deciding on whether to buy a purification plant and a bottling unit. Using the business products classification system, which of the following is most likely to be true of the management"s decision?

The quality of the product will be a very important deciding factor in the management"s decision.

Which of the following is true of generic products?

They are characterized by plain labels, little or no advertising, and no brand names.

A marketing information system (MIS) is a part of a firm"s overall management information system that deals specifically with marketing data and issues

True

A trademark is different from a trade name which is usually used to identify a company.

True

Advertising attempts to condition consumers to adopt favorable viewpoints toward a promotional message.

True

Breakeven analysis is an effective tool for marketers in assessing the sales required for covering costs and achieving specified profit levels.

True

Which of the following the earliest method used for gathering marketing information?

Written testimonials received from purchasers of a firm"s products

Which of the following is employed by theatrical productions when they charge higher prices for their weekend shows than for the shows on weekdays even though the cost of producing the show remains the same on all days?

Yield management

Consumers today perceive that, within price limits, there is:

a direct relationship between the quality and price of a product.

Fresh, a company that manufactures personal care products such as soaps and shampoos, decides to produce and market dishwashing liquid and cleaners. This decision of the company represents:

an increase in product mix width.

The strategy of attaching a popular brand name to a new product in an unrelated product category is known as _____.

brand extension

The process by which buyers ask a number of potential suppliers to submit price quotes on a proposed purchase or contract, of which the lowest will be accepted, is called:

competitive bidding.

Sound systems, batteries, and tires that are included in the manufacturing of a car are examples of:

component parts and materials.

American Express, a large firm with many financial products, recently introduced two new credit cards designed for very specific markets: The Knot, for engaged couples, and The Nest, for newlyweds. This is an example of _____ marketing.

concentrated

Based on the Young & Rubicam"s BrandAsset Valuator model, _____ is a dimension of brand personality that refers to a brand"s ability to stand apart from competitors.

differentiation

Goods and services purchased by the ultimate consumer for personal use are called _____ products.

consumer

The term 'product positioning' refers to:

consumers" perceptions of a product"s attributes, uses, quality, as well as advantages and disadvantages relative to competing brands

A(n) _____ is a scientific investigation in which a researcher manipulates a test group and compares the results with those of another group that did not receive the experimental manipulations.

controlled experiment

Japanese automaker, Subaru, generates more than half of its sales in just four states (Alaska, Colorado, Maine, and Washington). These states constitute Subaru"s:

core region

A local apparel shop sets prices by adding a 45 percent markup to the invoice price charged by the supplier. This method of pricing is known as _____ pricing.

cost-plus

The most popular method of pricing is _____ pricing.

cost-plus

LuLuLemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, LuLuLemon Athletica is using _____ segmentation to segment its markets.

demographic

Jack is a research specialist who has spent six months conducting a detailed study of customer attitudes and expectations. In writing the final report, Jack should remember to:

direct his report toward the management and not other researchers.

When Sara went to a convenience store to get her weekly grocery shopping done, she got a free sample of a new cereal that had just been introduced in the market. This information indicates that the cereal manufacturer is employing _____ to promote its product.

direct sampling

The process of discussing a marketing problem with informed sources both within and outside the firm and examining information from secondary sources is known as _____.

exploratory research

In the process of market segmentation, once the market potential of the segments has been estimated, the next step is to

forecast probable market share

Firms with high fixed costs often expand their markets, quoting the same prices to all customers regardless of shipping expenses, under the plan called:

freight absorption pricing.

The use of unconventional, innovative, and low-cost marketing techniques designed to get consumers" attention in unusual ways is called _____.

guerrilla marketing

The first step in the new-product development process is:

idea generation.

The strategy of category management is used by retailers to:

improve their product group performance through coordinated buying, merchandising, and pricing.

Dawn, Joy, and Ivory are dish liquid brands manufactured by Procter & Gamble. All these brands can be regarded as _____ brands.

individual

Think Green, a not-for-profit organization, promotes its 'go vegan' lifestyle by publishing advertisements in the print media as well as electronic media. This is an example of _____ advertising.

institutional

Charles Schwab, a trading company, will face the risk of cannibalization from its e-tail channel e.Schwab if:

it makes price cuts and creates competition with the parent company.

In the context of the consumer diffusion process, '_____' constitute the final group of consumers that make trial purchases of a new product.

laggards

Mommy & Little Tots, manufactures products for would-be mothers as well as newborn infants. Their products include maternity wear, diapers, wipes, burp clothes, and swaddling blankets. These products constitute the 'product _____' at Mommy & Little Tots

line

The strategy of developing individual offerings to appeal to different market segments while remaining closely related to the existing product line is called _____.

line extension

While mail surveys are a common data collection method in developed countries, they are an unreliable means of gathering primary data in many foreign countries because of the:

low literacy rates.

Burlan Paints, manufacturer of paints for both interiors and exteriors, prices its products differently in different international markets to suit the requirements of the local customers. Burlan Paints is implementing the _____ pricing strategy for pricing products.

market-differentiated

A penetration pricing strategy is called _____ pricing when it implements the premise that a lower-than-market price will attract buyers and move a brand from an unknown newcomer to brand-recognition or brand-preference stage.

market-minus

As part of his marketing research duties, Neal evaluates the expenses incurred by his company for selling, warehousing, advertising, and delivering the products. Neal is engaging in:

marketing cost analysis.

Setting the timing and sequence for a series of advertisements is known as:

media scheduling.

Erica is a marketing researcher involved in improving retail store layouts. Erica would like to know the order in which the various types of products are purchased by the customers. Erica also wants to find out what type of assistance is required by the customers while purchasing products. The best method for Erica to collect this data would be by:

observation

In the context of the sampling process, the universe is also known as the _____.

population

The information collected for the first time specifically for a marketing research study is called _____ data.

primary

A bundle of physical, service, and symbolic attributes designed to satisfy a customer"s wants and needs is referred to as a(n) _____.

product

The latest ad of Crest toothpaste says 'Crest is a cavity fighter.' This is an example of a positioning strategy based on

product application

For the purpose of transfer pricing, any part of the organization to which revenue and controllable costs can be assigned, such as a department, is referred to as a:

profit center.

Pricing objectives that focus on attaining a target return on investment are examples of _____ objectives.

profitability

A pricing policy that assumes that some prices are more appealing than others is known as _____ pricing.

psychological

A local newspaper is planning to come up with a special series on the growth of entrepreneurship within the community. Each week an article featuring a different business owner and his or her success story will be published. For the featured business owners, this type of promotion would constitute _____.

publicity

The 80/20 principle states that:

roughly 80 percent of total product sales come from 20 percent of customers.

Walmart is evaluating its performance records of the previous years that are stored in its database. In addition to this, the company is also evaluating its previous year invoices. This evaluation process carried out by firms is called _____.

sales analysis

A positioning map:

shows how consumers view a product relative to competitive products

As per the studies conducted by Roper, the segment of customers who value professional and material goals more than other groups is called

strivers

A _____ pricing strategy helps manufacturers to distinguish their high-end products from similar products of their competitors.

skimming

In order to recover research and development costs rapidly and earn high initial profits, SenseTV is setting a high price for its plasma TVs. The pricing strategy SenseTV is using is called _____ pricing strategy.

skimming

An organization that regularly provides a standardized set of data on a periodic basis to its subscribers is called a ______.

syndicated service

A product is said to have achieved brand preference when:

the consumer sees or recognizes the product and chooses it over its competitors.

One of the reasons cited by the U.S. Department of Commerce for the trend toward smaller households is:

the frequency of divorce.

Supermarkets usually display items such as candies, gums, and magazines near the checkout counter because:

they tend to be purchased on the spur of the moment.

The leaping jaguar symbol, featured on cars of a particular brand, is a part of the brand"s:

trade dress.

A credit allowance given for a used item when a customer purchases a new item is known as a _____.

trade-in

State laws requiring sellers to maintain minimum prices for comparable merchandise are called _____ laws.

unfair-trade

When the price of Cheerios cereal is displayed as 14.7 cents per ounce, this is an example of _____ pricing.

unit

The numerical bar code system used to record product and price information is called the _____.

universal product code

Products marketed to consumers who may not yet recognize a need for them are called _____ products.

unsought

A major problem facing company decision makers when setting transfer prices is:

what price to actually charge the receiving profit center.