Practice questions

A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything else. The representative determines that if Phil continues to do business with Subaru every time he wants to purchase a new car, his total value to the company would be $350,000. This includes purchases made by customers who were referred to the firm by Phil. The Subaru representative has calculated Phil's _______. a. customer lifetime value b. value of referrals c. commitment d. monetary and nonmonetary benefits e. relationship marketing

a

ACME Corp. is identifying and using tools to measure and interpret the effectiveness of its marketing activities. This is best described as _______. a. marketing analytics b. big data c. marketing decision support system d. marketing research design e. marketing information system

a

ACME Corp. managers are engaged in the process of systematically designing, collecting, interpreting, and reporting of information to help solve specific marketing problems or take advantage of marketing opportunities. This approach is best described as _______. a. marketing research b. experimental research c. descriptive research d. exploratory research e. focus groups

a

According to your text, what is typically the first sign of a problem that could prompt the marketing research process? a. A departure from some normal function b. Increasing employee turnover c. Declining market share d. Increasing sales e. Declining sales

a

Because it imports more products than it exports, so that money is flowing out of the country, the United States has a(n) _______. a. negative balance of trade b. positive balance of trade c. negative exchange control d. negative gross domestic product e. positive gross domestic product

a

Geodemographic segmentation allows marketers to engage in micromarketing, which _______. a. involves focusing precise marketing efforts on very small geographic markets, such as community and even individual neighborhoods b. refers to the number of potential customers within a unit of land area, such as a square mile c. aggregate population characteristics such as the distribution of age and gender, fertility rates, migration patterns, and mortality rates d. divides a market according to benefits that consumers want from the product e. groups individuals according to how they spend their time, the importance of things in their surroundings (homes or jobs, for example), beliefs about themselves and broad issues, and some demographic characteristics, such as income and education

a

If a furniture maker targets the consumer and business markets for office desks with separate marketing mixes for each, it is using the _______. a. differentiated strategy b. undifferentiated strategy c. homogeneous strategy d. concentrated strategy e. heterogeneous strategy

a

Southwest is known for its culture of "luv" and its fun-loving approach. This is an example of which of the following? a. Corporate identity b. Corporate mission c. Corporate strategy d. Marketing objective e. Business-unit strategy

a

The real value of marketing research is measured by_______. a. improved decision-making ability b. lower costs c. more streamlined operations d. increased profits e. stronger customer loyalty

a

Which marketing research process step requires formulating a hypothesis and determining what type of research is most appropriate for testing it? a. Designing the research project b. Locating and defining issues or problems c. Collecting data d. Interpreting research findings e. Reporting research findings

a

Which of the following are often a political necessity because of nationalism and government restrictions on foreign ownership? a. Joint ventures b. Outsourcing c. Strategic alliances d. Direct investment e. Contract manufacturing

a

Which of the following is NOT a component of the marketing plan? a. Business analysis b. Marketing implementation c. SWOT analysis d. Marketing strategies e. Executive summary

a

Which of the following is the first step in the target market selection process? a. Identify the appropriate targeting strategy b. Determine which segmentation variables to use c. Develop market segment profiles d. Evaluate relevant market segments e. Select specific target markets

a

Which stakeholders are the focal point of all marketing activities? a. Customers b. Employees c. Regulators d. Suppliers e. Communities

a

You are advising a local nonprofit on strategy. The nonprofit supports cancer research and relies entirely on donations. You recommend that the nonprofit engage in marketing activities. The executive director tells you that because it is a nonprofit that does not engage in selling activities and has a small budget, the nonprofit has no use for marketing. You disagree and explain that marketing is not just for for-profit organizations. You explain the different ways the nonprofit can engage in marketing without changing its practices or the mission. Which of the following marketing activities would be most feasible for this nonprofit? a. Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event b. Purchase an advertisement in a state newspaper that is popular in the local community about the nonprofit c. Engage in extensive marketing research to determine what its contributors want d. Get volunteers to sell T-shirts and other items at the nonprofit's major events e. Send out coupons for the organization's products in the local bulletin

a

Conducting a SWOT analysis comes immediately before the establishment of corporate and business-unit strategies. a. True b. False

b

Kraft Foods brings together multiple people to discuss a certain topic in a group setting led by a moderator for initial testing of different marketing strategies for new and existing products. This is best described as _______. a. experimental research b. focus groups c. customer advisory boards d. descriptive research e. conclusive research

b

Kroger decided to introduce a new product that appeals to Hispanic consumers. While the product is highly successful among Hispanic consumers, other ethnic groups seem to like the product as well. For this product, Hispanic consumers comprise Kroger's _______. a. exchange b. target market c. marketing environment d. community e. marketing mix

b

Logitech was founded with the knowledge and resources to accelerate its participation and investment in the global marketplace; it was able to export products soon after being established in market niches in which it competed with long-established firms. This is an example of a(n) _______. a. contract manufacturer b. born global c. trading company d. strategic alliance e. export agent

b

Marketers at Coca-Cola are exploring why sales of soft drinks have been declining in recent years, but sales of product competitors like bottled water and tea are rising. To understand the characteristics of this phenomenon in order to identify potential strategies to reverse the trend, they should conduct _______. a. exploratory research b. descriptive research c. experimental research d. stratified sampling e. nonprobability sampling

b

Most companies have entered the global marketplace _______ and _______. a. immediately; all at once b. gradually; incrementally c. thoughtfully; all at once d. immediately; incrementally e. gradually; all at once

b

The marketing implementation section of the marketing plan outlines how the company will achieve its objectives. a. True b. False

b

The real value in marketing research is measured by improvements in _______. a. the ability to eliminate focus groups b. a marketer's ability to make decisions c. profits d. a marketer's response to complaints e. market share

b

The strategic planning process begins with _______. a. SWOT analysis b. organizational mission and goals c. marketing objectives d. business-unit strategies e. finance objectives

b

When conducting a SWOT analysis, which of the following are barriers that could prevent an organization from reaching its objective? a. Market opportunity b. Threats c. Strengths d. Weaknesses e. Opportunities

b

Which of the following competitive growth strategies strives to increase sales of current products in new markets? a. Market penetration b. Market development c. Diversification d. Market share e. Product development

b

Which of the following food products would most likely use an undifferentiated marketing strategy? a. Coffee b. Corn c. Pizza d. Soy milk e. Hot sauce

b

Which of the following involves developing marketing strategies as though the entire world (or its major regions) were a single entity? a. Customization b. Globalization c. Outsourcing d. Licensing e. Segmentation

b

Which of the following is based on the philosophy that a product's market growth rate and its market share are important considerations in determining marketing strategy? a. Mission-goal matrix b. Market growth/market share matrix c. Sales analysis d. Product-market matrix e. SWOT analysis

b

Which of the following provides an overview of the entire marketing plan so that readers can quickly identify the key issues and their roles in the planning and implementation process? a. Marketing implementation b. Executive summary c. Performance evaluation d. Environmental analysis e. SWOT analysis

b

ACME Corp. managers lack the will and resources to develop international marketing strategies, but are happy when their company's products are purchased by a(n) _______, which then sells them internationally. a. contract manufacturer b. joint venture c. trading company d. licensor e. export agent

c

Anthony works at a local electronics retailer. He has two customers in particular that he sees regularly. One customer, Mr. Johnson, comes in frequently asking about new deals. However, he rarely buys anything, and when he does buy something it is usually small. The other customer, Mr. Montoya, comes in a little less frequently. He does not purchase products all the time, but when he does the products are expensive. Anthony recognizes that Mr. Montoya is a more valuable customer over time than Mr. Johnson. He has therefore worked hard to develop a strong relationship with Mr. Montoya. What marketing method is Anthony most likely using to direct his actions? a. The marketing concept b. A sales orientation c. Customer lifetime value d. A customer loyalty program e. Customer feedback

c

At what stage of the target market selection process is management likely to investigate whether the organization has sufficient financial resources, managerial skills, employee expertise, and facilities to compete effectively in selected segments? a. Evaluate relevant market segments b. Determine which segmentation variables to use c. Select specific target markets d. Identify the appropriate targeting strategy e. Develop market segment profiles

c

Google has written down the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's _______. a. marketing objective b. marketing plan c. mission statement d. corporate strategy e. strengths

c

If you purchase an iPad for taking notes in school and to watch videos, you are part of which of the following? a. Organizational market b. Industrial market c. B2C market d. Business market e. B2B market

c

Libby is part of an online group of people who act as sounding boards for new ideas from one of her favorite companies. Libby does not interact much with the other people in her group, but she provides her own insights about proposed products. Libby is part of a(n) _______. a. online focus group b. online sample c. customer advisory board d. research design e. stratified sample

c

Subaru developed a new luxury car model, but, after performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Subaru had to make some changes in its marketing mix. Unfortunately, it made the mistake of launching its product right when a recession hit. As unemployment rose, sales of luxury products such as Subaru's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _______ force for Subaru, while the economic downturn is a(n) _______ factor. a. stable; unstable b. uncontrollable; controllable c. controllable; uncontrollable d. predictable; unpredictable e. unpredictable; predictable

c

The essence of marketing is to develop satisfying _______ from which both customers and marketers benefit a. values b. target markets c. exchanges d. marketing mixes e. environmental factors

c

The first of two major components of developing a marketing strategy is to _______. a. perform sales analyses b. perform a business analysis c. select a target market d. determine a segmentation strategy e. develop a product

c

What is the first step for marketers in implementing the marketing concept? a. Engage in personal selling or advertising to promote products that customers desire b. Modify existing products to meet customer needs more effectively c. Establish an information system to discover customers' real needs d. Develop a feedback system so customers can describe their thoughts about a product e. Modify a communication system that allows information to be disseminated throughout the organization

c

When marketers use age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and/or social class to segment consumer markets, they are using _______. a. customer size b. geographic variables c. demographic variables d. behavioristic variables e. psychographic variables

c

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market, there exists a(n) _______. a. weakness b. core competencies c. market opportunity d. strategic window e. competitive advantage

c

Which of the following is NOT one of the five opportunities for creating value generated by a global presence? a. Exploit economies of global scale b. Adapt to local market differences c. Minimize the transfer of knowledge across locations d. Mine optimal locations for activities and resources e. Exploit economies of global scope

c

Which of the following is contracting of noncore operations or jobs from internal production within a business to an external entity that specializes in that operation? a. Offshoring b. Offshore outsourcing c. Outsourcing d. Licensing e. Crowdsourcing

c

Which of the following is the first step of the target market selection process? a. Develop market segment profiles b. Select specific target markets c. Identify the appropriate targeting strategy d. Determine which segmentation variables to use e. Evaluate relevant market segments

c

Which of the following raises the price of foreign goods? a. Embargo b. The World Trade Organization (WTO) c. Import tariff d. Exchange controls e. Quota

c

Which of the following would likely be the hardest to standardize when engaging in international marketing? a. Packaging b. Product characteristics c. Media allocation d. Labeling e. Branding

c

A large proportion of customers in the total market must be homogeneous in order to effectively use a(n) _______. a. segmented strategy b. corporate strategy c. concentrated strategy d. undifferentiated strategy e. differentiated targeted strategy

d

Chipotle is conducting a research study that divided the population of interest into groups according to a common attribute, and then a random sample was chosen within each group. This best describes _______. a. random sampling b. nonprobability sampling c. quota sampling d. stratified sampling e. probability sampling

d

Shannon is driving in downtown Santa Fe. She is not very familiar with the area and is running late for her appointment. She heads to a nearby paid parking lot and is told that it costs $20 to park. Shannon is irritated by the price. Although there are likely other paid parking lots that are less expensive, Shannon pays the price to park there. Different cost considerations impacted Shannon's decision, but clearly one stood out over all the others. Which cost exerted the most influence over Shannon's decision to park in the $20 parking lot? a. The $20 monetary cost b. The monetary cost of time c. The monetary cost of the effort involved d. The non-monetary cost of time e. The non-monetary cost of risk

d

Teenagers are not part of the market for alcohol because they do not have _______. a. the desire to buy alcohol b. the willingness to buy alcohol c. the ability to resell them d. the authority to buy alcohol e. the ability to buy alcohol

d

The chief advantage of the _______ is that it allows the firm to specialize in satisfying the needs and characteristics of a specific customer group. a. homogeneous targeting strategy b. marketing targeting strategy c. differentiated targeting strategy d. concentrated targeting strategy e. undifferentiated targeting strategy

d

The marketing concept is based upon the idea that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. During which orientation (time period) are marketers most likely to adopt the marketing concept? a. Production orientation b. Exchange orientation c. Promotion orientation d. Market orientation e. Sales orientation

d

Which of the following has the main purpose of better understanding a problem or situation and/or helping to identify additional data needs or decision alternatives? a. Experimental research b. Descriptive research c. Conclusive research d. Exploratory research e. Focus groups

d

Which of the following is NOT a purpose of marketing research? a. Increase the marketer's ability to respond to customer needs b. Inform an organization about marketing opportunities for products c. Inform an organization about changing attitudes and purchase patterns of customers d. Gather random data e. Inform an organization about customers' needs and desires

d

Which of the following is NOT one of the steps in strategic performance evaluation? a. Modifying the marketing strategy, if necessary b. Comparing actual performance with established standards c. Measuring actual performance d. Establishing a timetable for implementation e. Establishing performance standards

d

Which of the following is a collection of information arranged for easy access and retrieval? a. Marketing decision support system b. Single-source data c. Marketing information system d. Database e. Big data

d

Which of the following provides a uniform marketing vision for the firm and is the basis for internal communications? a. Marketing strategy b. Mission statement c. Performance standard d. Marketing plan e. Target market

d

Which of the following sentences is true about a marketing exchange? a. An exchange only needs to provide a benefit to one party. b. Products in an exchange must be traded for money. c. Seeing an advertisement is an example of an exchange. d. It requires four conditions to take place. e. An exchange will always take place if four conditions are met.

d

Charlotte loves her mom's edible cookie dough recipe, and she assumes everyone else will too. She starts a cookie dough business. Charlotte views promotion, such as advertising and personal selling, as the most important activities needed to sell her product. She figures that consumers only have to learn about her product before becoming loyal and steadfast customers. What type of orientation does Charlotte seem to embrace? a. Production orientation b. Exchange orientation c. Promotion orientation d. Market orientation e. Sales orientation

e

If segmentation analysis shows that customer needs are essentially homogenous, what action may be most appropriate? a. Segregated approach b. Concentrated approach c. Differentiated approach d. Demographic approach e. Undifferentiated approach

e

In Mozambique a currency crisis led the government to mandate that citizens from Mozambique could only spend up to $13,600 on their credit or debit cards when shopping abroad. This is an example of a(n) _______. a. quota b. self-reference criterion c. import tariff d. embargo e. exchange control

e

Marketers use market segment profiles to assess the degree to which their products fit potential customers' _______. a. demographics b. type of business c. psychographic profiles d. geographic location e. product needs

e

Marketing environmental forces are often _______. a. non-influential b. easy to predict c. controllable d. stable e. interdependent

e

Sheryl works at Southwest Airlines as a digital marketer. A major part of her job is communicating with customers, answering questions and letting them know about how the airline offers them the best in customer value. Sheryl is working to create long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges with customers. This is an example of _______. a. a sales orientation b. the marketing mix c. customer lifetime value d. customer loyalty programs e. relationship marketing

e

The unique symbols, personalities, and philosophies that support all corporate activities including strategic planning and marketing are best described as _______. a. corporate strategy b. mission statement c. SWOT analysis d. market share e. corporate identity

e

The use of bribes, which are illegal for U.S. companies, relate best to which of the following? a. Economic forces b. Trade barriers c. Sociocultural forces d. Political and regulatory forces e. Ethical and social responsibility forces

e

Which of the following equations describes customer value? a. Customer value= customer benefits - opportunity costs b. Customer value= customer costs - customer benefits c. Customer value= customer benefits - price d. Customer value= income - price e. Customer value= customer benefits - customer costs

e

Which of the following is the market value of a nation's total output of goods and services for a given period in relation to its population? a. Exchange control b. Gross national product per capita c. Gross domestic product d. Balance of trade e. Gross domestic product per capita

e

Which of the following is used most often when the individuals in the sample are spread over a wide area and funds for the survey are limited? a. Personal interview survey b. Shopping mall intercept interview c. On-site computer interview d. Telephone survey e. Mail survey

e

Drake is performing a marketing research study on products that contain avocado as an ingredient. He believes this study will prove that consumers are increasingly attracted to avocados because of their rise in popularity on social media and reported connection to health benefits. Drake is developing a(n)

hypothesis

_____ involves developing and performing marketing activities across national boundaries.

international marketing

A small restaurant in Chicago hires an accounting firm to take care of its taxes and payroll. This is an example of ______

outsourcing

A market segment profile describes the ____ among potential customers within a segment and explains the differences _____ among people and organizations in different segments.

similarities differences

Through the process of _____, a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy.

strategic planning