marketing tb

46. Which of the following is true about the impact of marketing on stakeholders? A. Marketing is often designed to benefit an entire industry. B. Many firms cannot be benefitted simultaneously by marketing. C. Most people think of marketing as a way for firms to satisfy customer needs. D. Governments do not rely on marketing to communicate their messages to their constituents. E. Marketing does not work well in the nonprofit sector.

A. Marketing is often designed to benefit an entire industry, which can help many firms simultaneously. Most people think of marketing as a way for firms to make profits, but marketing works equally well in the nonprofit sector.

51. Which of the following holds true for value-oriented companies? A. They focus on selling as many of their products as possible rather than focusing on making products consumers really want. B. They focus on giving their customers better worth for products than their competitors. C. They focus on developing and distributing innovative products with little concern about whether the products best satisfy customers' needs. D. They focus on the extension of a single brand name to market products in different product categories. E. They focus on what consumers want and need before they design, make, or attempt to sell their products and services.

B. Value-oriented companies focus on giving their customers better worth for the products than their competitors. Value reflects the relationship of benefits to costs, or what consumers get for what they give.

56. A certain wine retailer sells what it calls QPR wines. QPR refers to quality price ratio. It simply means getting the best quality wine for the lowest possible price. The wine retailer would be an example of a: A. brand-oriented company. B. market-oriented company. C. sales-oriented company. D. value-oriented company. E. product-oriented company.

D. The wine retailer would be an example of a value-oriented company. Value-based companies provide their customers with greater value than their competitors. Value reflects the relationship of benefits to costs, or what one gets for what one gives.

62. Which of the following is the growth strategy that employs an existing marketing offering to reach new market segments? A. Market development B. Product development C. Diversification strategy D. Market penetration E. Product intensification

a

19. The data obtained from which of the following research techniques is likely to be acquired by leading marketing research firms to help other firms assess the market activity? A. Scanner research B. Panel research C. Survey research D. Experimental research E. Exploratory research

a

91. The marketing practice used by the mouthwash company will be checked by the: A. Competition Act. B. Access to Information Act. C. Canada Agricultural Product Standards Act. D. Copyright Act. E. Food and Drugs Act.

a

97. Which of the following statements is NOT true of in-depth interviews? A. They usually require larger sample compared to surveys. B. They are relatively time consuming. C. They could provide an historical context for a research subject. D. They can communicate how people really feel about a product or service. E. The results of in-depth interviews can be used to develop surveys.

a

Lunar Inc. and Qwerty Inc. are competitors in the production of laptops for professionals. To improve sales, the management of Lunar decides to adopt the strategy of market penetration and the management of Qwerty decides to adopt market development. 84. Which of the following is Lunar Inc. most likely to do as part of its strategy? A. It will declare discounts on its products. B. It will expand its operation to new countries. C. It will start producing laptop accessories. D. It will launch a series of laptops exclusively designed for children. E. It will roll back less successive models of laptops.

a

20. Which of the following statements is true of social risk? A. It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively. B. It is the risk that involves the perceived danger inherent in a poorly performing product or service. C. It is the risk associated with the fear of an actual harm should a product not perform properly. D. It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service. E. It is the risk associated with the way people will feel if the product or service does not convey the right image.

a (e is psychological risk)

22. In a SWOT analysis, which of the following is considered a company's strength? A. Presence of wide distribution networks B. Attractiveness of the industry C. Market exit of a competitor D. Favourable political changes E. Acquiring another firm and gaining market access

a. In a SWOT analysis, the presence of wide distribution networks is considered as a company's strength. It is an internal factor that contributes to the company's potential for success.

27. Childcare Inc. produces baby products. It provides product samples to parents-to-be in order to capture a share of their future purchases. It has created a website where parents can get expert parenting advice. It targets potential user groups who can be converted into heavy users. In this case, the company is using: A. occasion segmentation. B. loyalty segmentation. C. geodemographic segmentation. D. undifferentiated segmentation. E. perceptual segmentation.

b

3. Which of the following is NOT a step in the marketing research process? A. Design the research plan B. Define mission statement and objective C. Analyze data D. Collect data E. Determine action plan

b

32. Market positioning is the process of: A. attempting to change the identity of competing products in the collective minds of the target market. B. defining the marketing mix variables to give target customers a distinct and desirable understanding of what a product represents. C. evaluating the attractiveness of various segments and then deciding which to pursue as a market. D. dividing the market into distinct groups of customers where each individual group has similar needs, wants, or characteristics. E. attempting to engage customers with one another or with a company or a brand

b

6. Amy went to the grocery store to do her weekly shopping. She saw some cookies that she had bought few weeks ago. She bought another pack just in case some of her children's friends decided to visit over the weekend. She liked the cookies and was sure that the kids would like them too. In this case, Amy's buying behaviour is an example of: A. an external locus of control. B. limited problem solving. C. an internal locus of control. D. ritual consumption. E. extended problem solving.

b

71. Mila wants to find out more about a newly launched detergent. She seeks additional information on the product from her colleague who has used this particular detergent. This is an example of: A. an external locus of control. B. limited problem solving. C. an internal locus of control. D. ritual consumption. E. extended problem solving.

b

78. Which of the following observations, if made by the external agency, will present the company with an opportunity? A. The company has exclusive market reach in the packaged food industry. B. One of Arpin Stores' major competitors has recently gone bankrupt. C. The company owns the largest food manufacturing facility in the United States. D. The company owns many brands that are well known in the United States. E. Arpin Stores has a stronger marketing department compared to its competitors.

b

3. The particular way in which a person chooses to satisfy the requirement for any of the basic necessities of life is a(n): A. demand. B. want. C. exchange. D. necessity. E. need.

b The particular way in which a person chooses to satisfy the requirement for any of the basic necessities of life is a want. Marketing is about satisfying customer needs and wants.

45. Which of the following terms refers to a group of products that consumers are likely to use together or perceive as similar in some way? A. Product mix B. Product line C. Product portfolio D. Niche market E. Market mix

b. A product line refers to a group of products that consumers are likely to use together or perceive as similar in some way. A portfolio analysis is frequently done at the product line level of an organization.

63. Nutrieat, a digestive cookie manufacturer, sold its products only in high quality, air-tight cans of 16oz and 32oz. To better satisfy customer needs, it recently introduced smaller packs of the biscuits in paper packages at reduced rates. Which of the following requirements for a value-driven firm does Nutrieat exemplify? A. Sharing supplier information B. Balancing benefits with costs C. Building competitor relationships D. Social media marketing E. Gathering customer feedback

b. In this case, Nutrieat exemplifies the practice of balancing benefits with costs. Value-oriented marketers constantly measure the benefits that customers perceive against the cost of their offering.

16. Since women constitute 90 percent of Karen's—a pharmacy chain's—customers, the chain decided to implement changes that would make the shopping experience more pleasant for them. Karen introduced a system for shorter waiting time at the check-out counters, wider and better-lit passageways, and more beauty products. Women constitute Karen's: A. commodity market. B. target market. C. currency market. D. secondary target market. E. niche market.

b. In this case, women constitute Karen's primary target market. Ideas include thoughts, opinions, philosophies, and intellectual concepts that can be marketed to target markets.

Davison Associates Inc. manufactures office furniture. The management of the company believes that developing a strong brand name is the primary strategy to compete in the market. Hence, it invests a significant share of its resources to position its brands through promotions and service. Which of the following does the company use to achieve sustainable competitive advantage? A. Diversification excellence B. Product excellence C. Customer excellence D. Locational excellence E. Operational excellence

b. In this scenario, Davison Associates uses product excellence to achieve sustainable competitive advantage. Product excellence focuses on having products with high perceived value and effective branding and positioning.

14. Availability of new technology in the market can always be categorized as: A. Strength or Weakness B. Opportunity or Threat C. Weakness or Threat D. Threat E. Strength or Opportunity

b. Technology is an external factor; therefore it cannot be a strength or weakness. If a company can use technology to increase its competitive advantage, it would be an opportunity. If not is a threat.

31. The third digit in an NAICS code represents: A. the industry group. B. the subsector. C. a specific subgroup within the industry. D. the sector in the economy. E. the country-level industry.

b. The NAICS classification system can be quite useful to B2B marketers for segmenting and targeting markets. Statistics Canada collects data about business activity in Canada through its classification scheme, which categorizes all firms into a hierarchical set of six-digit North American Industry Classification System (NAICS) codes.

81. Which of the following acts implemented by the Canadian government governs the collection, use, disclosure, and retention of personal information by certain parts of the private sector? A. The Privacy Act B. The Personal Information Protection and Electronic Documents Act C. The Embargo Act D. The Data Protection Act E. The CAN-SPAM Act

b. e Privacy Act, that govern the collection, use, disclosure, and retention of personal information by federal government institutions, and the Personal Information Protection and Electronic Documents Act (PIPEDA), which governs the collection, use, disclosure, and retention of personal information by certain parts of the private sector.

15. Lincoln introduced the new Lincoln Navigator, a large luxury SUV, to appeal to higher income families who do not desire to buy a minivan. The Navigator is a luxury 8-seater car, which has more power, and offer many more luxury features than traditional minivans. This is an example of A. Market development B. Market positioning C. Situation analysis D. Market segmentation E. A strategic business unit

b/ Lincoln offers a clear, distinct, and desirable understanding of Navigator model. It is sporty, powerful, roomy, and luxury for families who requires more room.

2. Which of the following is NOT a microenvironmental factors? A. company B. corporate partners C. consumers D. competition E. capabilities

c

23. Netflix is able to analyze data from its millions of users and customize its recommendations to them. This is an example of _____. A. Primary data B. Secondary data C. Big data D. Panel data E. Observation

c

30. Customers are more likely to use "decision heuristics" for which category of products? A. Shopping B. Specialty C. Convenience D. Luxury E. Credence-based

c

37. A construction firm realizes that suppliers have increased the prices of steel after doing a market analysis for the prices quoted by various suppliers for the same type of steel. Also, the firm is not satisfied with the performance of the supplier and decides to replace it. In the context of the business-to-business (B2B) buying process, the firm is currently in the stage of: A. proposal analysis. B. RFP process. C. need recognition. D. supplier selection. E. product specification.

c

44. Customer lifetime value (CLV) refers to the: A. sum total of benefits that a vendor promises a customer will receive in return for the customer's loyalty for his or her lifetime. B. strategy for managing a company's interactions with customers, clients, and sales prospects. C. total value of purchases of a customer over a lifetime of patronage. D. tendency of a customer to stick with a brand even when it is priced higher than an otherwise equal product. E. the provision of service to customers before, during, and after a purchase.

c

45. Two tourists were angry after a hotel clerk gave away their room reservations without their consent. They lashed out against the company by posting a nasty video of their experience online, which more than 20,000 people viewed when it went viral. This act by the tourists to inform others about their discomforting experience with the hotel is an example of: A. the affective component of attitude. B. the cognitive component of attitude. C. the behavioural component of attitude. D. postpurchase dissonance. E. ritual consumption.

c

5. Which of the following statements is true about business-to-business (B2B) markets? A. Institutions such as hospitals and prisons are excluded from conducting B2B transactions. B. Distributors in a B2B market are those which usually buy raw materials, components, and parts that allow them to manufacture their own goods. C. Usually, information about government buying can be obtained from Business Access Canada or from MERX. D. In a B2B market, resellers completely alter the form of the product before selling it. E. In most countries, the central government tends to be one of the smallest contributors to the purchase of goods and services.

c

76. Which of the following observations, if made by the external agency, will indicate the company's strength? A. The market potential for packaged goods is high in the United States. B. Economic slowdowns do not have a significant impact in the wholesale food industry. C. The company has exclusive market reach in the packaged food industry. D. One of Arpin Stores' major competitors has recently gone bankrupt. E. The U.S Congress recently passed a bill to subsidize wholesale food manufacturers.

c

69. Joe has developed two Facebook advertisements for his restaurant and is not sure which one to use. Which method of data collection should he use to answer his question? A. Survey B. In-depth interview C. Experiment D. Qualitative research E. Panel data

c. Experimental research works best when a researcher is assessing a causal relationship. In this example, Joe should run A/B test (i.e. experiment) to find out which ad creates more impression or store traffic.

22. For marketers, the key to determining prices is to: A. vary the price of products frequently before finalizing. B. focus exclusively on high organizational profitability. C. figure out how much customers are willing to pay. D. rely on the price range of competitors to determine pricing strategies. E. involve employees in making price decisions.

c. For marketers, the key to determining prices is figuring out how much customers are willing to pay so that they are satisfied with the purchase, and the seller achieves a reasonable profit.

30. Alchemistro Inc. is a firm that manufactures chemical detergents and associated products. The company decides to manufacture detergent products that cater to the needs of the high-income consumers. Which of the following best describes Alchemistro's decision to specifically cater to the high-income segment? A. Locational excellence B. Downsizing C. Targeting D. Diversification E. Operational excellence

c. The decision to cater to a particular market segment is a part of targeting. Targeting is the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.

68. A large software company released its web browser for free. As a result, other smaller software companies were forced to reduce their price significantly and went out of business. This is an example of: A. bid rigging. B. bait-and-switch. C. predatory pricing. D. referral selling. E. pyramid selling.

c. The pricing that is intended to drive competitors out of the market or keep competitors from entering the market by fixing very low prices is called predatory pricing.

15. Commercial research firms such as Nielsen, Leger Marketing, and National Purchase Diary Panel are sources of: A. experimental data. B. focus group data. C. control group data. D. syndicated data. E. biased data.

d

18. Government purchases differ from the purchases made by institutional organizations in that institutional organizations: A. make relatively large purchases and consider a wide range of factors in their purchases. B. may not always purchase from the vendor with the lowest price. C. need to make purchases that comply with the policy guidelines and trade rules set by the World Trade Organization. D. have relatively small budgets and therefore seek the best value when buying products and services. E. have to disclose their purchase decisions and practices to the public.

d

24. A company uses a youth icon to endorse its new range of biker glasses. The commercial symbolizes youth and freedom. An individual who wants to live a life of freedom would be attracted to the ad. In the context of psychographic segmentation, the commercial is appealing to the individual's: A. perceptual map. B. ideal point. C. positioning statement. D. lifestyle. E. self-moral.

d

28. Which of the following could be seriously reduced due to an improper execution of the important aspects of primary data collection? A. Sample size and data analysis procedure B. Problem definition or hypothesis and reliability C. Reliability and central limit theorem D. Reliability and validity E. Hypothesis formulation and statistical analysis

d

46. Denthrill Inc. is a firm that manufacturers dental products. Denthrill produces a range of products such as toothbrushes, toothpastes, and breath fresheners. These products form a: A. premium offering. B. market mix. C. promotion mix. D. product line. E. niche portfolio.

d

60. A technical firm that assembles computers decides to buy LCD monitors from a supplier that specializes in LCD monitors and batteries. The materials manager at the firm suggests to the top management to place an order for both monitors and batteries at the same time so that he can save on transportation costs and also get a discount for bulk purchase. The role played by the manager is that of a(n): A. influencer. B. user. C. decider. D. buyer. E. gatekeeper.

d

8. A new startup company decided to target Canadians between age of 18 and 35 who use iPhone mobile for their new application. Which segmentation base(s) does the company use? A. Demographic and behavioural segmentation B. Geographic, behavioural and psychographic segmentation C. Geographic and behavioural segmentation D. Behavioural, demographic, and geographic segmentation E. Psychographic, behavioural, and demographic segmentation

d

83. Amir owns a fine Steak House Restaurant in north of Toronto with the average meal of $65 per person. What would be the two most influential macroenvironmental factors that Amir has to monitor for his business? A. Corporate partners and political environment B. Economic situation and competition C. Culture and Legal environment D. Economic situation and social trends E. Customers and corporate partners

d

9. Which of the following is NOT true of retailers? A. They are business customers for wholesalers and manufacturers. B. They are a form of resellers. C. They resell manufactured products without significantly altering their form. D. They are one of the largest purchasers of goods and services in most countries. E. They are selling products to end consumers.

d

91. A paint company conducted a market survey to find products that could improve the shelf-life of its products. It chose a solution from a particular vendor after it did a detailed evaluation of the vendor's product. This is an example of a: A. straight rebuy. B. supplier buy. C. modified rebuy. D. new buy. E. discount buy.

d

Apple achieved success by providing customers with products that meet/exceed expectations, good customer service, convenient locations and online presence. Which of the following strategies is used by Apple to achieve sustainable competitive advantage? A. Service excellence B. Marketing excellence C. Product excellence D. Multiple source of advantage E. Operational excellence

d

33. Lego Inc., a manufacturer of computers, has developed a brand image by delivering high-quality products at affordable prices. This image results in customers choosing Lego's products over competing products. In this case, which of the following refers to Lego's strategy of creating a distinct and desirable understanding in the minds of consumers of what its product represents? A. Locational excellence B. Market segmentation C. Target marketing D. Market positioning E. Downsizing

d. Lego's strategy is a part of market positioning. It is the process of defining the marketing mix variables to give target customers a distinct and desirable understanding of what a product represents.

11. The fundamental purpose of marketing is to create value by: A. hiring the right people for the promotion of the products being manufactured. B. educating employees about sales and customer preferences. C. fixing the measure of sacrifice that a customer is willing to make in order to acquire a specific product. D. developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. E. delivering a product on offer to a customer.

d. One main purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. The marketing mix is the controllable set of activities that a firm uses to respond to the wants of its target markets.

17. The implementation phase of a marketing plan involves: A. Identifying a business's mission and objectives. B. Evaluating the performance of a marketing strategy. C. Analyzing a market by using marketing metrics. D. Identifying and evaluating different opportunities. E. Evaluating the present situation of a business.

d. The implementation phase of a marketing plan involves identifying and evaluating different opportunities by engaging in a process known as segmentation, targeting, and positioning. It also involves developing and implementing the marketing mix by using the four Ps.

61. A coffee shop attempted to discover what customers really wanted from their coffee-drinking experience. It found that people liked to chat over their cup of coffee without anybody disturbing them. Therefore, the coffee shop allowed its customers to stay as long as they liked, without requiring them to order a new cup of coffee every 20 minutes to stay in the shop. This is an example of: A. value orientation. B. brand orientation. C. product orientation. D. market orientation. E. sales orientation.

d. This is an example of market orientation. Market-oriented companies focus on what consumers want and need before they design, make, or attempt to sell their products and services.

1. The consumer decision process model represents... A. Steps consumers go through during a purchase B. Process that consumers go through in a store to make a final purchase decision C. Process that companies go through to convince customer to make a purchase D. Factors that target market consider to make a purchase decision E. Steps that consumer go through before, during, and after making purchases.

e

16. Caroline needs to research information about income and age distribution in Fort McMurray, an urban service area in Alberta. Which of the following would be the most useful source of data for Caroline in terms of being easily accessible at a low cost? A. Door-to-door surveys B. Focus group interviews C. Syndicated data D. Sales invoices at public libraries E. Census data

e

36. A local coffee shop spend $1,000 in advertising on Facebook with no success. Alex, the marketing manager, believes the company sent a wrong message to the audience. He believes the message should have focused on quality of coffee rather than price. Alex statements are examples of: A. Problem definition B. Research objectives C. Data analysis D. Action plan E. Hypotheses

e

55. Cielo loves visiting Williams Café, which is located near her college. Her enduring evaluation of Williams Café is that she loves the ambience but doesn't enjoy the food too much. She spends over an hour at the café, almost every day, sipping coffee and reading her books. Which of the following psychological factors is most likely affecting Cielo's decision to be a regular visitor at Williams Café? A. Reference group B. Culture C. Purchasing situation D. Temporal state E. Attitude

e

75. A university publishes a journal, which is subscribed to by individuals and bookshops. The editors have recommended $20 as the retail price. The university also maintains that the journal cannot be sold at a discount. The university has threatened to cease the supply to any bookshop that sells for less than the recommended retail price. This is an example of: A. price fixing. B. price discrimination. C. predatory pricing. D. referral selling. E. resale price maintenance.

e

75. Surge Manufacturing sells its products by using a wide variety of channels, including the Internet. This gives the firm: A. product excellence. B. customer excellence. C. operational excellence. D. procedural excellence. E. locational excellence.

e

11. A credit card company issues a special card only to those customers who spend more than $100,000 a year on its other cards. In this case, the segmentation approach used by the company is: A. geographic segmentation. B. benefit segmentation. C. occasion segmentation. D. demographic segmentation. E. behavioural segmentation.

e (usage rate segmentaio)

44. Zorbo Furniture Inc. is a firm that manufactures and markets wooden furniture. One of the departments in the firm is devoted to the production and marketing of office furniture. The department is managed independently from other departments and is held accountable for its profitability. In this case, the office furniture department is an example of a(n): A. joint venture. B. executive department. C. product line. D. subsidiary firm. E. strategic business unit.

e. The department for office furniture is an example of a strategic business unit. A strategic business unit is a division of a company that can be managed somewhat independently from other divisions of the company since it markets a specific set of products to a clearly defined group of customers.

74. When a customer visits the website of a company selling computers, the website provides the customer with information regarding pricing, product variety, and product availability. The customer makes a product choice. The order then goes to the assembly plant and then to all of the company's vendors and their vendors. This is an example of a(n): A. stock valuation. B. demand optimization. C. inventory control. D. demand chain. E. supply chain.

e. The group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services is commonly referred to as a supply chain. Excellent supply chains effectively and efficiently integrate their supply chain partners to produce and distribute goods in the right quantities, to the right locations, and at the right time.

21. Maria wants to buy a bike. She spends a lot of time and energy trying to find the right bike. She does find one and then pays $200 to buy it. The time and energy spent along with the sum of money constitute the: A. idea. B. good. C. service. D. exchange. E. price.

e. The time and energy spent for the bike along with the sum of money constitutes the price. Price is everything the buyer gives up in exchange for the product.

28. A major sporting goods company distributes its products via retailers. It offers attractive subsidies on its products to encourage retailers to sell higher volumes. Among the four Ps of marketing, this exemplifies the use of: A. people B. price C. place D. product E. promotion

e. This case shows the use of promotion to attract customers. Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response.