Principles of Marketing Final Exam

true

Virtually all colleges and universities have alumni associations that publish magazines, hold reunions, and try to raise funds. These activities constitute organization marketing

true

When Dolly Parton promotes her theme park called Dollywood, it is both place and person marketing.

Angelina Jolie's role as a UN Goodwill Ambassador for refugees

Which of the following is a combination of person, cause, and organization marketing?

A mall being inaugurated by a popular commercial actor

Which of the following is an example of person marketing?

inadequate financing capabilities

Which of the following would qualify as an example of a firm's weakness?

situational

While making purchasing decisions, consumers may be influenced by _____ factors which include physical surroundings or a buyer's mood and condition.

true

Within a business environment, the marketing function is responsible for the creation of time, place, and ownership utility, whereas the production function creates form utility.

access to product/service information

You've created a website for selling used cars that's truly unique. For every car on your site, you show the Kelly Blue Book value and provide background details that explain why the car is priced how it is. Which benefit should you emphasize the most to attract your target market?

social networking sites

_____ are websites that provide virtual communities for people to share daily activities and increase their circle of online friends.

true

. According to the BCG matrix, dog products can be sold to other firms, where they are a better fit.

event

. As an official sponsor of the Olympics, The Coca-Cola Company engages in _____ marketing.

true

. Concentrated marketing strategy ties a firm's growth to a specific market segment.

false

The threat of new competitors occurs when a product or service can be replaced with goods and services from a competing firm or industry.

true

Public and private consumer interest groups and self-regulatory organizations are part of the legal environment.

political-legal

The _____ component of the marketing environment consists of laws that require firms to operate under competitive conditions and to protect consumer rights.

true

. Maros, an agricultural biotechnology company, is the sole supplier of genetically engineered seeds and controls 84 percent of the market share for genetically modified crops. This is an example of a monopoly.

true

. Opinion leaders are the first consumers to try new products and then share their experience by word of mouth.

social class categories

. _____ are determined by occupation, income, education, and family background.

true

A SWOT analysis helps planners compare internal organizational strengths and weaknesses with external opportunities and threats.

true

A firm with a fully-developed marketing concept is one with a company-wide consumer orientation with the objective of achieving long-term success.

true

A franchisee receives the right to sell the franchiser's products and to use the franchiser's name as well as a variety of marketing, management, and other services.

culture

A person's values, beliefs, preferences, and tastes are often handed down from one generation to the next. These factors may change over time, but an individual's basic core values do not. These factors are important environmental determinants of consumer behavior. These items are commonly referred to as:

true

A private exchange is a secure website at which a company and its suppliers share all types of data related to e-marketing, from product design through order delivery.

question marks

According to the BCG market share/market growth matrix, _____ typically require more cash than they generate.

increased costs

Advantages of technology include all of the following except:

click-through rate

Amazon boasts a very high _____ when using banner ads placed on CNN.com based upon the percentage of people who are exposed to the advertisement and follow the link to view the advertisement.

true

An effective social media marketing campaign should contain good keywords that the targeted audience are most likely to search for when looking for information about goods and services.

false

An importer is a firm that sells goods manufactured domestically in foreign markets.

true

Business-to-business transactions typically involve more steps than consumer purchases.

philanthropic

Cabi, a women's clothing company based in Los Angeles, CA partners with Opportunity International to make small business loans to female entrepreneurs in developing countries through its "Make a Change Program" where customers can round-up their purchase to the nearest dollar amount and contribute "change" for a change. This program is part of the _______ dimension of social responsibility.

strength

Caleb is the superintendent of a small school district in a rural area of Iowa with a population of 2,500 people. The school district participates in a wide variety of sports for girls and boys including softball, baseball, basketball, volleyball, track, wrestling, and cross country. Students may also be a member of over 12 clubs and organizations sponsored by the school. The school typically rates highly on state-wide tests and approximately 80% of high school graduates attend college. However, Caleb has difficulty in recruiting faculty to teach foreign language, physics, calculus, and computer science classes. It's difficult to recruit these teachers because they are in high demand and are often attracted to larger school districts that can provide higher salaries. Caleb knows the importance of STEM (science, technology, engineering, and math) to the United States and is concerned that the district may fall behind in its ability to prepare students for their future. In addition, Caleb hopes to increase the number of graduates who attend college since college degrees enable students to pursue careers with higher salaries and benefits. Assume that you are helping Caleb conduct a SWOT analysis. The statement related to the district offering students the ability to compete in a number of different sports would be categorized as a(n):

true

Compared to transaction marketing, relationship marketing relies more heavily on information technologies.

true

Competitive pricing is one of the main reasons for consumers preferring to shop online than from a brick-and-mortar store.

social-cultural

Consumers who are part of the Millennial generation rely on social media and the influence of peers when making decisions about purchasing products and brands compared to Baby Boom generation consumers who might prefer to read reviews by sources such as Consumer Reports. This distinction is important to marketers and part of the ______ environment.

find difficult to duplicate

Core competencies are capabilities that customers value and competitors:

true

Culture refers to the values, beliefs, preferences, and tastes that are handed down from one generation to the next.

false

Despite its many advantages, technology can seldom address social concerns.

false

Discretionary income is the amount of money people have to spend on buying necessities such as food, clothing, and housing.

true

Dividing an overall market into homogeneous groups based on gender and age would constitute demographic segmentation.

false

Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic segmentation.

false

Division of the total market into smaller, relatively homogeneous groups is known as market optimization.

true

During an economic recession, marketers look to emphasize value in their offerings by reducing prices in order to help consumers stretch their budget dollars.

gathers information about the attainment of a desired state of affairs

During the search step of the consumer decision process, the consumer:

problem or opportunity recognition

Elizabeth had her car all packed and was ready to head home for semester break. However, when she tried to start her car the battery was dead. She remembered that the last few times she tried to start her car it seemed like the battery was weak. Now, it was clear she would have to get a new battery. Elizabeth is in what stage of the consumer decision process?

social networking site

Eons.com is a website for baby boomers that allows members to find friends, share experiences on various topics, and post photos and videos. It also provides information on health, fitness, retirement and insurance, and access to various special interest groups. Eons.com is an example of a _____.

false

Firms often purchase legal services from external consultants. However, as this does not directly contribute to the firm's production activities, legal services cannot be considered a business product.

true

Groups whose opinions are valued and to whom a person looks for guidance in his or her own behavior, values and conduct are known as reference groups

false

Home Depot introduced a new line of riding lawn mowers. The company decided to focus more on people living in the suburbs than those in the city because a survey showed the former category to be more inclined toward gardening. This is an example of a demographic segmentation by Home Depot.

portfolio analysis

In a(n) _____, firms evaluate their products and divisions to determine the strongest and weakest.

true

Psychographic segmentation helps marketers to gain a sharper insight into consumer purchasing behavior.

be efficient

In drafting your firm's written policy for the ethical use of social media, you want to be simple and clear. You decide to write a memo with just three points that summarize the most important ethical guidelines. These include all of the following except:

the objective view of the total person

In the area of self-concept theory, the real self is:

false

In the case of social media marketing, the messages coming from organizations are more important than those coming from friends and family.

problem or opportunity recognition

In which of the following steps of the consumer decision-making process does the marketer try to help prospective buyers identify and identify potential needs?

false

Integrated marketing refers to the ability to provide a product at the exact time needed

false

International direct investment does not provide a competitive advantage because of its high risk potential and high involvement characteristics.

represent the trendsetters who purchase products before others in the group and then influence the buying decisions of other group members

It is crucial for marketers to focus their marketing strategies on opinion leaders in a group as opinion leaders:

content marketing

Jason's Foods is a manufacturer of organic food products. The company is planning to market its products through social media sites and has developed effective strategies for the marketing campaign. The marketing team plans to use messages that focus on the health benefits of organic foods in order to generate greater awareness about its products and engage its target audience in the conversation. In doing so, the marketing team of Jason's Foods would be engaging in _____.

operations planning

Jose is the social media manager for a children's museum and is making decisions about the best mix of social media tools to utilize in order to achieve the objective of increasing the number of family memberships by 10% during the year. Jose likes to use Twitter, Instagram, Facebook, and Pinterest to reach the museum's desired target market but he spends most of his time developing the appropriate content and determining the frequency of posts. Which term best describes Jose's activity related to determining the use of social media?

the click-through rate

Kayla tells Dylan she's thrilled that her new hair accessory website has had 3,426 page views in the last 30 days. Dylan informs her that a better measurement of potential revenue is

false

Psychographic segmentation involves segmenting the consumers on the basis of the benefits they seek from a product.

true

Many e-commerce retailers employ personalization on their websites, meaning they tailor the shopping experience to each individual customer

true

Market segmentation attempts to isolate traits that distinguish a certain group of consumers from the overall market.

true

Marketers can attempt to change consumer attitudes by engaging them in new buying behavior

offering personal assistance with any problem experienced with the product

Marketers can attempt to shape the outcome of the post purchase evaluation by:

true

Marketers need to establish their overall promotional goals first in order to develop sound strategies and choose the best social media platforms for their messages

basis for a firms marketing tactics and strategy

Marketing planning establishes the

true

Married couples enter the "empty nest" stage once their children are grown.

culture

Mateo recently graduated from high school and it's always been assumed that he would go to college after graduation. His family believe education is important to success in life and know that Mateo will be able to achieve success with a combination of hard work, persistence, and knowledge. Mateo has been influenced by

star

Microsoft Windows generates considerable income for its parent company but is expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. Based on this information, Windows would be categorized under the BCG market share/market growth matrix as a:

true

Most social networks have their own search engines, which allow users to search for topics that interest them.

false

NAFTA has succeeded in achieving political integration among its member nations: the United States, Canada, and Mexico

time

Netflix has become a popular media streaming company and provides consumers with the opportunity to view programming at their leisure whenever it's convenient for them. In addition, consumers can stream programming on smart TVs, tablets, computers, or smartphones. What type of utility is Netflix offering?

false

One disadvantage of an acquisition is that you may not acquire knowledge about foreign markets that would help build a competitive advantage.

true

Perception is the meaning a person attributes to incoming stimuli gathered through the senses of hearing, taste, smell, touch, and sight

false

Personalization is defined as a consumer's ability to order a custom-made product through an e-commerce website.

false

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as market mapping.

false

Procter & Gamble and other consumer products companies have experienced decreased profitability due to its relationship with Walmart, the nation's largest retailer, which demonstrates the impact of supplier power as one of the competitive forces identified by Michael Porter.

true

Product lifecycles can stretch indefinitely as a result of decisions designed to increase the frequency of use by current customers; increase the number of users for the product; or change package sizes, labels, or product quality.

true

Production and marketing of goods and services are two basic functions that create utility.

false

Repurchasing the same brand of detergent during each trip to the grocery store is an example of limited problem-solving behavior by a consumer.

activity

Since launching her Instagram account promoting her hand-painted scarves six months ago, Selina has seen anywhere from a 17 to 24 percent increase in new followers each month. She's really happy with this level of ___.

true

Social media helps marketers to connect with influencers

place

State bureaus of tourism and conventions typically engage in _____ marketing.

false

Strategic business units (SBUs) of a diversified firm have common managers, resources, objectives, and competitors.

marketing tactics

Taylor is an account executive with Enterprise Holdings and works the counter at airport. She always strives to be upbeat, professional, polished, friendly, and fast since the company routinely asks customers about their experience when renting a vehicle. Taylor believes her customer service skills are a key component to achieving high customer satisfaction scores. Taylor's activities would be described as ________ that could become part of the company's marketing plan.

personalization

The LifeguardStore.com is an Internet-based business serving customers by providing products that meet their swim, lifeguard, or facility needs. The company offers a dedicated team of consultants to work with swim teams across the globe to design and deliver apparel appropriate for their needs. Once designed, a dedicated web portal is created, so members of the swim team can purchase their items directly from The LifeguardStore.com. The ability to customize products for swim teams is an example of the _____ capability of e-marketing.

conversion rate

The Metrics Group is a firm that helps companies improve the performance of their websites. The firm rates the effectiveness of the website based on the percentage of website visitors making purchases through the site. Which of the following measures is being used by the firm while assessing the effectiveness of the websites?

true

The WTO makes binding decisions in mediating disputes and reduces trade barriers.

false

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

true

The basis for social media is two-way conversation

true

The competition among Amtrak, Hertz, and Delta Airlines for the travelers' dollar is considered indirect competition because these services can be substituted for one another.

true

The first phase of federal regulation of business was aimed at protecting competitors and included the Robinson-Patman Act, passed in the 1930s.

false

The five dimensions of the marketing environment are independent and do not influence each other.

true

The goal of content marketing is to drive the target audience toward a desired action.

true

The marketing era is defined by a shift in focus from products and sales to satisfying a consumer's needs.

marketing

The process for creating, communicating, and delivering value to the customer is called _____.

Federal Trade Commission (FTC)

The regulatory agency that can require advertisers to provide additional information about products in their advertisements is the _____.

false

The situation in which a consumer makes a purchase by rapidly choosing a preferred brand is referred to as limited problem solving

true

The term "exchange rate" refers to the price of one nation's currency in terms of another country's currency.