Principles of Marketing - Petersons Test 1
Trade shows, public relations, banner ads, and dealer incentive programs are part of a. indirect marketing b. marketing services c. product development d. strategic marketing e. sales promotion
b
Which of the following is a backward-only flow in the distribution channel? a. flow of information b. payment flow c. physical flow of goods d. flow of promotional materials e. flow of title to goods
b
Which of the following is a behavioristic criterion that a company would evaluate in determining a market segment for a new line of toothpaste? a. Zip code b. Level of brand loyalty c. Lifestyle d. Gender e. Family size
b
Which of the following is an example of a direct channel? a. A garden center selling supplies like hoses and rakes to customers. b. A basket weaver selling to customers at a craft show. c. A boutique owner selling a designer's clothing line. d. A farm stand selling fruits and vegetables from several farms. e. A dealership selling cars.
b
The Hardy Company's sales for its Series X cell phone is slowing. Sales are still increasing, but the rate of increase has slowed each year for the last three. The Series X is probably in which stage of its life cycle? a. Introduction b. Growth c. Maturity d. Saturation e. Decline
c
To fulfill their missions, nonprofit organizations specifically target financial supporters and: a. government agencies b. the media c. users of their services d. the general public e. similar, but noncompeting organizations for partnerships
c
Two elements that are added to an actual, or tangible, product to create an augmented product are: a. warranties and brand name b. brand name and customer care services c. free delivery and customer care services d. stylishness and brand name e. warranties and quality
c
Which of the following characteristics of service organizations makes it impossible for a consulting company to duplicate its services exactly for all clients? a. Lack of standardization b. Intangibility c. Inseparability d. Perishability e. Variability
c
Which of the following is an example of a positional influencer? a. A celebrity spokeswoman for a face cream b. A friend extolling the features of his new cell phone c. A wife with her husband while he is buying a new jacket d. A Web site video explaining the features of a new MP3 player e. An e-mail sent to a potential customer's in box about a netbook
c
Which step in the consumer decision-making purchase process is evaluating alternatives? a. First b. Second c. Third d. Fourth e. Fifth
c
A wholesaler that buys merchandise from a manufacturer, inventories it, and then fills orders and delivers the merchandise to retailers is a: a. drop shipper b. manufacturer's agent c. commission merchant d. full-service wholesaler e. selling agent
d
Ace Tire Company sells its tires to an automaker. The automaker puts the tires on the cars and trucks that it builds and then sells to consumers through its dealers. The tire maker also sells tires to distributors who sell them to retailers who sell them directly to consumers. Which of the following represents the distribution channel for Ace tires? a. Supplier, manufacturer/wholesaler, distributor/ retailer, consumer b. Supplier, manufacturer, retailer, distributor, consumer c. Supplier, distributor, retailer, consumer d. Supplier, manufacturer/ distributor, retailer, consumer e. Supplier, manufacturer, retailer, consumer
d
Bob is working with the creative team to develop packaging for a new clothes detergent. He wants the packaging to be easy-to-use and deliver the message that the detergent is eco-friendly by listing its ingredients. Based on his criteria, what functions of packaging is he looking for? a. Be easily packable for shipping, promote the product b. Be attractive, encourage product use c. Be easily packable for shipping, identify the product d. Encourage product use, promote the product, inform the consumer e. Identify the product, inform the consumer
d
Exclusive distribution is the best option for a. staples such as bread and milk b. moderately priced menswear c. lighting fixtures d. designer clothing for women e. name-brand electronics
d
If a company wanted to measure market characteristics as part of its environmental analysis, in which area would it conduct research? a. Business economics b. Advertising c. Competitive analysis d. Sales and marketing e. Product research
d
Intrapersonal influences on a person's buying behaviors might include his or her: a. family members b. college classmates c. language(s) d. attitudes e. co-workers
d
Sam intends to buy a hamburger and a soda, and the clerk asks if Sam wants fries, too. Then the clerk asks if Sam wants to add a cherry pie to his order. The clerk is using a technique known as a. approach b. unplanned buying c. overselling d. upselling e. add-on selling
d
Some of the economic factors that a company should consider before entering a foreign market include: a. infrastructure, export regulations, and currency stability b. currency stability, infrastructure, and political stability c. import regulations, currency stability, and income distribution d. currency stability, infrastructure, and income distribution e. export regulations, currency stability, and income distribution
d
The BYN Company has developed a strategy for its new product line that will enable it to market to a segment that is not covered by the market leader. What marketing strategy has BYN adopted? a. Niche b. Frontal attack c. Flank d. Bypass e. Penetration
d
The marketing concept philosophy differs from earlier views of marketing by : a. focusing resources on t he sales force b. incorporating concerns about the greater good of society c. shifting the organization's efforts to maximize short-term sales goals d. doing extensive research about potential customers e. focusing on the features of products and services
d
The total market is estimated at $750 million a year. The Standard Company sells 40 percent of the total market and Ajax is second with 36 percent. What is Ajax's percent age called? a. Sales forecast b. Market potential c. Sales potential d. Market share e. Market profile
d
What is the standard agency commission for media buying? a. 2 percent b. 5 percent c. 10 percent d. 15 percent e. 20 percent
d
Which of the following is NOT a tactic for marketing on social networking sites? a. Blog sponsorship b. Brand pages c. Gifting d. Boilerplate e. Banners
d
Which of the following is a true statement about publicity? a. It is a paid advertisement. b. It is a celebrity endorsement. c. It appears on TV, cable, or the radio, but not in print. d. It is a non-paid announcement about a person, product, or event. e. It is not carried well by Web sites.
d
Which of the following is considered a service business? a. Vending machine company b. Cable TV shopping channel c. Mail order catalog company d. Fitness club and spa e. Convenience store
d
Which of the following is the sixth step in the advertising process? a. Select channels b. Determine promotion mix c. Develop message d. Develop budget e. Implement
d
Which of the following is the unique selling proposition? a. The training materials developed for the sales force. b. The sales materials that accompany a product. c. The package of offers that a salesperson customizes for potential purchasers. d. The chief benefit associated with a product. e. The call to action.
d
Which of the following would be considered an "expert influencer"? a. A celebrity endorsing a cosmetics line b. A politician endorsing a nonprofit foundation c. A friend endorsing a particular brand of coffee d. A product reviewer in a consumer affairs organization e. A blogger reviewing music CDs as a hobby
d
Business-to-business advertising in dudes all of the following areas EXCEPT a. industrial advertising b. agricultural advertising c. professional advertising d. trade advertising e. advertising to entrepreneurs
e
Factors used to screen and evaluate new products for production and sale include all of the following EXCEPT a. the relevance of new products to the company's existing products b. the results of marketplace testing c. a financial analysis of costs and potential profitability d. an analysis of the competition e. the sales force's interest in selling the product
e
In evaluating how well a marketing message works on a social networking platform, a marketer can measure: a. social actions and sociographics b. traffic, demographics, and sociographics c. traffic, sociographics, and social actions d. traffic, demographics, and social actions e. traffic, demographics, sociographics, and social actions
e
The A&B Realty Company, based in New York and selling real estate, decides to begin acting as an intermediary for people looking for vacation rent als in Europe. The service connects vacationers with owners wanting to rent their homes through the Internet. This is an example of a company: a. selling its existing product to a differentiated market b. selling its existing product to its existing market c. extending its existing product to a new market d. developing a new product for its existing market e. developing a new product for a new market
e
The Internet is changing marketing for all of the following reasons EXCEPT that it: a. can individualize products and services for consumers b. it is not location specific c. can provide better data for market segmentation d. keeps costs of communicating with customers low e. requires little support from other departments within an organization
e
The Yale Manufacturing Company has decided to maximize short-term profits and cash flow from one of its long-standing product lines. This is what kind of strategy? a. Maintenance b. Exit c. Improvement d. Extension e. Harvesting
e
The pricing strategy for products sold in convenience stores is to set prices a. low b. low to moderate c. moderate d. high e. very high
e
Which is the most important resource that an organization must have in order to achieve its strategic marketing plans? a. Well-researched promotional campaign b. Personnel c. Recognized brand(s) d. Distribution channels e. Money capital
e
A marketing campaign to sell heavy equipment to a textile manufacturer would place most emphasis on: a. direct selling b. sales promotions c. advertisements in trade magazines d. direct mail letters e. catalog marketing
a
A product that has been priced for skimming is in what phase of the product life cycle? a. Introduction b. Growth c. Maturity d. Saturation e. Decline
a
A rebate debit card that is mailed to purchasers of a particular type of cell phone is an example of a. sales promotion b. public relations c. advertising d. direct marketing e. personal selling
a
A shipping company sets prices according to where in the country a package is being sent. This is known as a. zone pricing b. competitive pricing c. flexible pricing d. unit pricing e. variable pricing
a
Because of the expense of promotional campaigns in foreign countries, which of the following is the most effective promotional tool for companies in foreign countries? a. Trade shows b. Catalogs c. Direct mail d. Direct selling e. Advertising
a
Buying a ready-made dining room set rather than making it from lumber, glue, and nails is an example of which type of customer value? a. Form utility b. Time utility c. Place utility d. Possession utility e. Utility of money
a
Customers' perceptions of different retail chains and whether they would shop in them are based on the customers': a. material values b. spiritual values c. cultural values d. core values e. instrumental values
a
Five days after the red carpet at the Academy Awards, some clothing manufacturers have close copies of some of the gowns on their way to stores. This is known as a. imitative str ategy b. knockoff strategy c. mirror image strate.gy d. alliance strategy e. follower strategy
a
In deciding to target 20- to 30-year-old car buyers for its new model, an automaker is using which segmentation strategy? a. Concentrated b. Differentiated c. Macromarketing d. Demographics e. Lifestyle
a
In identifying and defining market segments, marketers look for segments that are a. substantial b. heterogeneous within the group c. explicit d. responsible e. sustainable
a
Jake has decided on the media for his product launch and his next step is to a. identify the outlets to use b. buy the media c. establish schedules for when the ads will run d. determine the method of advertising to use e. identify objectives for the advertising
a
Tabloids at the supermarket checkout line are an example of what type of consumer product? a. Convenience b. Specialty c. Unsought d. Component e. Supplies
a
Which of the following factors can make doing business online more expensive than doing business through a traditional store format? a. Order processing and direct shipping to customers b. Warehousing goods c. Operating call centers d. Customizing orders e. Potentially wide geographic range of customers
a
Which of the following is NOT a form of social media marketing? a. Prospecting b. Social networks c. Sponsored virtual gifts d. Blogs e. User-generated contests
a
Which of the following is an environmental factor that companies can influence, though not control? a. Target market b. Technology c. Demographics d. Competition e. Social
a
Which of the following is an internal reason that a company's product positioning can fail? a. Market research misunderstands the preferences of the target market. b. A competitor gets to market first with a similar product. c. A strike hits a supplier. d. Costs to promote the product are underestimated. e. A flaw in the product requires a recall after six months.
a
Which of the following market research tools is the most expensive? a. In-home personal interviews b. Telephone interview c. Mall intercepts d. Mail surveys e. Automated self-interviewing
a
Which of the following transportation modes is typically used to ship grain? a. Waterways b. Rail c. Air d. Trucks e. Air and trucks
a
A chain of superstores works out an arrangement with a drugstore chain to open pharmacies in its stores. The superstores company receives rent for the pharmacies. This is an example of a a. vertical marketing system b. horizontal marketing system c. multichannel marketing system d. retailer-wholesaler system e. contract marketing system
b
A difficulty in conducting market research on a company's Web site is the: a. high cost of collecting the data b. lack of randomness of the sample c. poor tools for collect ing online data d. difficulty in driving people to the site e. difficulty in designing algorithms for data gathering
b
A high-end cosmetics company is introducing a line of men's products. To interest department stores in selling the line, the manufacturer would offer a" a. trade-in allowance b. promotional allowance c. markdown d. seasonal discount e. channel discount
b
A manufacturer of snow blowers wants to begin using e-newsletters as part of its cooperative advertising campaign with retailers for a new line of eco-friendly machines. An e-newsletter: a. is an effective indirect marketing tool b. will remind consumers on a regular basis about the product line c. should not include a call to action d. will be more expensive than a print newsletter e. doesn't require an opt-out function
b
A nonprofit agency that provides residential care for people with cognitive developmental disabilities would do best to advertise its services to families by highlighting the: a. availability of recreational activities b. low aide-to-resident ratio c. list of its board of directors d. biography of its founder e. list of its funders
b
Darden Enterprises wants to extend the life of its once best-selling canister vacuum cleaner. Which of the following marketing options could be attempted to extend the life cycle of the vacuum cleaner? a. Switching over to the milking strategy. b. Designing new features. c. Ending marketing to all segments except the one that is the heaviest user of the product. d. Retiring the product and reintroducing it in a year or two. e. Recognizing that the product has outlived its profitability and discontinuing it.
b
On each customer bill that it sends out, a retailer prints a coupon offering 20 percent off on the customer's next purchase. What kind of coupon is this? a. Markdown b. Bounce back c. Special value d. Instant redemption e. Customer reward
b
People buying relatively high-ticket durable goods such as refrigerators and flat-screen TVs tend to do what kind of information search? a. Internal search b. External search c. Compensatory search d. Situational sea rch e. Conditional search
b
SMSA stands for: a. Standard Metropolitan Statistical Aggregate b. Standard Metropolitan Statistical Area c. Standard Marketing System Approach d. Societal Marketing System Approach e. Sociocultural Marketing and Standard Aggregate
b
Sharing survey data from customer surveys across the sales, direct mail, and advertising departments is an example of how which of the following concepts works? a. MIS b. IMC c. CRM d. DSS e. USP
b
Telemarketing is regulated by the a. Can-Spam Act of 2003 b. Do Not Call Act of 2003 c. Brady Act of 1993 d. Consumer Protection Act of 1987 e. Consumer Product Safety Act of 1972
b
The characteristics of a market include: money, a. authority to purchase, and access b. authority to purchase, desire, and access c. authority to purchase, time, and desire d. time, desire, and access e. time, access, and interest
b
The major factors that can affect the reliability and validity of market research include all of the following EXCEPT the: a. unsophisticated nature of research tools. b. difficulty in finding subjects to participate. c. complexity of human nature. d. inability to control the environment in which the research is being done. e. short time frame for research
b
The most important benefit derived from marketing a company's activities in the area of social responsibility is: a. potential tax savings b. increased customer loyalty c. free publicity d. improved company image e. influence for good on the general public
b
The purpose of CRM is to maximize a. distribution channel, revenue, and profitability b. revenue, profitability, and customer satisfaction c. profitability, employee satisfaction, and customer satisfaction d. revenue, resource use, and profitability e. revenue, employee satisfaction, and customer satisfaction
b
To be effective, a marketing plan has to answer "yes" to all of the following questions EXCEPT: a. Is it measurable? b. Is it motivational? c. Is it consistent? d. Is it specific? e. Is it achievable?
b
To which of the following groups would a furniture manufacturer target living room and dining room sets? a. Single adults b. Young married couples c. Full nesters I/ll/III d. Empty nesters e. Retired couples
b
Which of the following is an example of reverse logistics? a. A company ships unused goods back to its suppliers. b. A company accepts the return of its used clothing from customers and reuses it in the manufacture of new clothing. c. An audit of the supply chain is performed to see where costs can be cut. d. The logistics department is debriefed after a product launch to determine if any changes should be made. e. The wholesaler is removed from the supply chain and purchases are made directly from the supplier.
b
Which of the following is an example of the emotional appeal that a car brand may have for loyal customers? a. Reliability b. The feeling of status that ownership confers c. Quality of craftsmanship d. Design and styling e. Comfort
b
Which of the following statements is the best response to a customer who asks a salesperson how his or her company's after-sale service compares with another company's? a. "I don't know, but I can find out for you." b. "You'd have to ask customers of the XYZ Company what they think of its service." c. "I don't know anything about XYZ's service." d. "I haven't heard anything, good or bad, about XYZ's service." e. "XYZ Company has a bad reputation for service after a sale."
b
A business arrangement in which a parent company promotes locally owned operations with advertising and promotional deals is a: a. licensing arrangement b. strategic alliance c. franchise d. turnkey operation e. partnership
c
A cell phone maker wishing to sell its products in a developing country did market research and discovered that because of the country's high rate of illiteracy, all functions would need to be shown through icons. This is an example of which of the following difficulties in selling in a foreign market? a. Political b. Sociocultural c. Demographic d. Technological e. Economic
c
A global brand a. has a different target market depending on the country b. is promoted differently in different countries c. has the same name and logo regardless of country d. uses a single distribution channel e. ensures the profitability of a product line
c
A meeting in a company that uses an integrated marketing communications system would include people from all of the following departments EXCEPT a. advertising b. public relations c. inventory control d. sales promotion e. personal selling
c
A party thrown in order to sell cosmetics is an example of a. direct advertising b. cold calling c. direct selling d. generating sales leads e. direct response marketing
c
A penetration pricing strategy is most effective in marketing to an expandable and a. small, price-sensitive market b. medium-sized, price-sensitive market c. large, price-sensitive market d. small, nonprice-sensitive market e. la rge nonprice-sensitive market
c
A salesperson who works for a distributor or wholesaler, but restocks shelves and sets up displays in stores, is what kind of a salesperson? a. Order taker b. Missionary c. Trade d. Service e. Product manager
c
According to the Boston Consulting Group (BCG) matrix, a business unit that is defined as a ''star" has a: a. small market share in a stabilized market b. small market share in a growing market c. large market share in a growing market d. large market share in a stabilized market e. large market share in a shrinking market
c
According to the Pareto effect, Mary's House of Cupcakes will see what proportion of customers account for what proportion of its business? a. 10/90 b. 15/85 c. 20/ 80 d. 25/ 75 e. 30/ 70
c
All of the following are objective characteristics that define consumers EXCEPT: a. age b. stage in life cycle c. brand loyalty d. sex e. class
c
Computer Graphics, Inc., decides it wants to sell its netbooks in Japan. The option that involves the least investment for CGI is a. setting up a national sales office and regional sales offices in Japan. b. building a factory in Japan to make its netbooks there. c. hiring an importer to handle sales of its computers. d. buying a Japanese computer manufacturer to produce CGI's netbooks and sell them. e. setting up its own subsidiary to build and sell CGI's netbooks.
c
Ensuring that finished goods are shipped to distributors or retailers is the function of which of the following departments? a. Warehousing b. Purchasing c. logistics d. Sales e. Marketing
c
In identifying market segments based on purchase behavior, a marketer should look for groups that are internally heterogeneous in terms of: a. age, consumption, and brand loyalty b. age, preferen ces, and brand loyalty c. preferences, brand loyalty, and consumption d. life style, consumption, and age e. life style, preferences, and brand loyalty
c
In order to be quantifiable, marketing objectives must indicate a. numerical measures b. the group(s) charged with r esponsibility for accomplishing objectives c. numerical measures and time frames for accomplishing objectives d. processes for feedback e. clear reporting structures
c
Selling new products in the business-to-business market is complicated because of the a. number of companies that sell in this market b. short time frame in which decisions are made c. number of people involved in the buying process in any given company d. usual lack of defined need e. difficulty in getting information from seller to buyer in this market
c
The Clothes Hanger chain of boutique clothing stores receives a discount for warehousing the clothes that it buys from Ace Clothing Manufacturer. This is a. an absorption factor b. a quantity discount c. a trade discount d. a cash discount e. a service discount
c
The Everyday Cookie Company, a regional chain, decides to move into the cupcake market. It has gone through a number of the stages of new product development and is now ready to do test marketing. What does test marketing involve? a. Evaluating the product against the competition b. Testing the product with real consumers in buying situations c. Testing the marketing plan and the product d. Trying out some of the promotional concepts in the local area e. Giving out samples in the store and tracking how many customers then buy cupcakes
c
A distributor has worked out a deal with a manufacturer to receive a 15 percent discount off the face value of its invoice if the invoice is paid in full in 30 days. If the distributor fails to pay in 30 days, then the full amount is due in 45 days. Which of the following shows this agreement? a. 30/45, net 15 b. 15, net 45 c. 30/15, net 45 d. 15/30, net 45 e. 15/ 30/45 net
d
A maker of frozen dinners decides to capitalize on the interest in healthy foods and develops a line of reduced-calorie frozen dinners. The new dinners are an example of: a. product line extension b. product distribution c. product density d. product diversification e. repositioning
d
"A good product sells itself' could be the slogan of which of the following marketing management philosophies? a. Sales b. Marketing concept c. Societal marketing d. Production e. Social responsibility
d
A company that adopts a penetration pricing strategy for a new product will need which of the following to ensure that the strategy works? a. Accurate sales forecasting b. Exceptional customer care c. Extras, such as warranties d. Economies of scale e. Promotion based on price and value
d
A company wanted to add to its product line of cereals and decided after research to produce a whole-grain cereal. It targeted its new cereal to a market segment looking for: a. healthful food b. "green" concerns c. low-sugar cereals d. cereals made from natural foods e. organic foods
d
A difference between quantitative and qualitative market research is that quantitative market research is a. subjective, not objective b. inductive, not deductive c. captured in words rather than numbers d. generalizable, whereas qualitative is not generalizable e. systematic, not unsystematic
d
A supermarket chain sells its own brand of canned vegetables. This is known as a a. national brand b. regional brand c. shelf brand d. private label brand e. licensed brand
d
Which of the following is an example of dual distribution? a. A textbook salesperson sells to both middle schools and high schools. b. A retailer sells merchandise in its stores and through its Web site. c. A clothing manufacturer sells its clothes through its own boutiques and its own Web site. d. A garden center sells plants from two different nurseries. e. An electronics manufacturer sells its products through its own stores and through retailers.
e
Which of the following types of demand exists when aging Americans look for easy-to-use products that will help them become and stay fit, but can't find what suits them? a. Irregular b. Negative c. Focus d. Full e. Latent
e