CLEP MKTG

All of the following are characteristics of services EXCEPT (A) intangibility (B) heterogeneity (C) inseparability (D) perishability (E) inflexibility

E

If two brands move closer to each other on a perceptual (positioning) map, it means that they have become (A) less perceptually alike (B) closer in price (C) more objectively alike (D) less likely to be direct competitors (E) more similarly perceived by consumers

E

Positioning refers to (A) the perception of a product in customers' minds (B) the store location in which a marketing manager suggests a product be displayed (C) where the product is placed on the shelf (D) which stores will distribute a company's product (E) where the new product is first advertised

A

The estimated market value of a brand is best described as brand (A) equity (B) benefit (C) worth (D) merit (E) return on investment

A

Which of the following specifies a limit on the amount of certain products that can be imported into a country? (A) A tariff (B) A quota (C) A credit restriction (D) An exchange control (E) An embargo

B

Which of the following statements about the European Union is true? (A) The EU creates a single Pan-European government. (B) The EU eliminates trade barriers among member countries. (C) The EU is considered the United States of Europe, with its capital in Brussels. (D) The EU removes all internal and external trade barriers to global trade. (E) The EU minimizes inflation through price controls

B

This positioning strategy is very competitive. It can attack a more-for-more strategy by introducing a brand offering comparable quality but at a lower price. (A) more-for-the-same strategy (B) more-for-less strategy (C) same-for-less strategy (D) less-for-much-less strategy (E) all-or-nothing strategy

C

Which of the following is an example of business-to-business buying? (A) John buys a new home stereo. (B) Hannah pays for a new television by monthly installment. (C) Daniel decides on which college to attend. (D) Avery purchases a new office desk for his company. (E) Corey buys a soft drink from a vending machine.

D

Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs? (A) a money-back guarantee (B) low pricing (C) good customer service (D) a value proposition (E) an attribute

D

Which of the following is true of global marketing standardization? (A) It occurs more frequently with consumer products than with industrial goods. (B) It encourages individualized variation in the product, packaging, and pricing for each nation or local market. (C) It addresses legal and cultural differences. (D) It assumes that global consumers increasingly have similar needs. (E) It reduces profit margins.

D

Which of the following is true of the product life cycle? (A) It can accurately forecast the growth of new products. (B) It reveals that branded products have the longest growth phase. (C) It cannot be applied to computer products that quickly become obsolete. (D) It is based on the assumption that products go through distinct stages in sales and profit performance. (E) It proves that profitability is highest in the mature phase.

D

Which of the following lists the correct order of the steps of the target marketing process? (A) Segmentation, positioning, and targeting (B) Targeting, segmentation, and positioning (C) Positioning, targeting, and segmentation (D) Segmentation, targeting, and positioning (E) Positioning, segmentation, and targeting

D

Which of the following strategies for entering the international market would involve the highest risk? (A) Joint ventures (B) Exporting (C) Licensing (D) Direct investment (E) Franchising

D

Why do profits increase during the growth stage of the PLC? (A) Promotion costs are spread over a large volume. (B) Unit manufacturing costs fall. (C) Competition has not yet taken sales away. (D) All of the above. (E) None of the above.

D

A manufacturer of car batteries, who has been selling through an automotive parts wholesaler to garages and service stations, decides to sell directly to retailers. Which of the following will necessarily occur? (A) Elimination of the wholesaler's profit will result in a lower price to the ultimate consumer. (B) Elimination of the wholesaler's marketing functions will increase efficiency. (C) The total cost of distribution will be reduced because of the elimination of the wholesaler. (D) The marketing functions performed by the wholesaler will be eliminated. (E) The wholesaler's marketing functions will be shifted to or shared by the manufacturer and the retailer.

E

A manufacturer who refuses to sell to dealers its popular line of office copiers unless the dealers also agree to stock the manufacturer's line of paper products would most likely be guilty of which of the following? (A) Deceptive advertising (B) Price discrimination (C) rice fixing (D) Reciprocity (E) Tying contracts

E

A product is classified as a business product rather than a consumer product based on its (A) tangible and intangible attributes (B) life-cycle position (C) promotion type (D) pricing strategy (E) intended use

E

In a marketing research study for a manufacturer of porch swings, _____ would most likely be a source of primary data. (A) reports from the homebuilding association (B) a study on how individuals spend their leisure time done by York University (C) annual financial statements provided by the swing manufacturer (D) a survey conducted by Mother Earth News (E) researchers' interviews with hardware-store owners who sell porch swings

E

Rachel Terry, regional manager at Wilcon Solvents, Inc., compares last quarter's sales with the levels projected in the firm's marketing plan. She identifies three solvent brands whose sales are below projections and initiates a series of inquiries to discover the reasons for the shortfall. Ms. Terry is engaged in which stage of the strategic marketing process? (A) Environmental scanning (B) Opportunity analysis (C) Planning (D) Implementation (E) Control

E

Reference groups are more likely to influence a consumer's purchase when the product being purchased is (A) important (B) inexpensive (C) familiar (D) intangible (E) socially visible

E

The primary purpose of market segmentation is to (A) combine different groups to meet their needs (B) create sales territories of similar size and market potential to determine sales quotas (C) educe market demand to a manageable size (D) profile the market as a whole to optimize marketing efforts (E) allocate marketing resources to meet the needs of specific segments

E

The stage of product development that involves launching a new product into the market is called (A) a debut (B) an inception (C) an initiation (D) test marketing (E) commercialization

E

The three types of marketing research are (A) explanatory, normative, and descriptive (B) predictive, normative, and innovative (C) interactive, diagnostic, and predictive (D) proactive, interactive, and reactive (E) exploratory, descriptive, and causal

E

When a convenience store manager raised the price of fountain drinks by 10 percent, she found that the store sold only half as many fountain drinks. The manager's observation indicates that the demand for fountain drinks is highly (A) resilient (B) antagonistic (C) derived (D) exponential (E) elastic

E

Which of the following lists the correct sequence of steps in the consumer decision-making process? (A) Need recognition, evaluation, purchase decision, invoked set, postpurchase behavior (B) Felt need, response to stimulus, evaluation of alternatives, postpurchase decision, purchase behavior (C) Alternative invoked set, need recognition, purchase decision, postpurchase evaluation (D) Information search, need positioning, evaluation of alternatives, product purchase decision, postpurchase satisfaction (E) Need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior

E

Which of the following represent advantages to retailers who sell what are referred to as 'private label' brands? (A) Higher profit margins (B) Lower distribution costs. (C) Increased advertising efforts. (D) A and C. (E) All of the above.

E

A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. (A) product line (B) line extension (C) private brand (D) convenience product (E) product bandwidth

A

A consumer is reading a magazine with an HP advertisement, but is distracted from reading the advertisement or its key points. This unplanned static or distortion during the communication process is called ________. (A) noise (B) distraction (C) feedback (D) response (E) message response

A

A marketing expert said that he could have advertised a brand of soap as a detergent bar for men with dirty hands, but instead chose to advertise it as a moisturizing bar for women with dry skin. This illustrates the marketing principle known as (A) product positioning (B) sales promotion (C) cannibalization (D) deceptive advertising (E) undifferentiated marketing

A

Behavioral research generally indicates that consumers' attitudes (A) do not change very easily or quickly (B) are very easy to change through promotion (C) cannot ever be changed (D) can only be developed through actual experience with products (E) are very accurate predictors of actual purchasing behavior

A

Causal research is used to ________. (A) test hypotheses about cause-and-effect relationships (B) gather preliminary information that will help define problems (C) uncover information at the outset in an unstructured way (D) describe marketing problems or situations (E) quantify observations that produce insights unobtainable through other forms of research

A

In the marketing research process, firms often gather and analyze secondary data rather than primary data because secondary data (A) is more readily available and less expensive to collect than primary data (B) provides more detailed information about consumer preferences than does primary data (C) is easier to analyze than primary data (D) is limited to internal sources, while primary data includes external sources as well (E) can be more readily adapted to individual needs

A

Rather than basing the price of a product on the seller's costs, this method uses buyers' perceptions of what a product is worth. (A) Value-based pricing (B) Target costing (C) Variable costs (D) Price elasticity (E) Product image

A

Relationship marketing can help a company... (A) Create long-term, cost-effective links with individual customers for mutual benefit. (B) Reduce its strategic planning effort since the need for such planning is greatly diminished. (C) Find more effective media for use in advertising and mass marketing. (D) Cut through the planning process straight to tactical plans. (E) Increase its market share by increasing its profit

A

Suppose a company's marketing research found that consumers between the ages of 18 and 34 were potentially the most profitable. If the company decided to direct all of its marketing efforts solely to this age group, the age group would represent the company's: (A) target market. (B) industrial users. (C) market potential. (D) market exclusion. (E) demographic mix.

A

The ability to tailor marketing processes to fit the specific needs of an individual customer is called (A) customization (B) community building (C) standardization (D) mediation (E) product differentiation

A

The growing Latino population (A) Sociocultural Environment (B) Economic Environment (C) Technological Environment

A

The growth of service industries is primarily the result of (A) increasingly complex and specialized customer needs (B) a rise in income and the degree of customer input (C) hrapid growth of population and government tracking systems (D) increased use of labor-intensive technology (E) decreasing demand for equipment-based services

A

When a firm decides on a minimum acceptable profit level and seeks to increase its sales subject to this profit constraint, its pricing objective is (A) sales maximization. (B) increasing cost. (C) target costing. (D) prestige pricing.

A

Which customer question is answered by a company's value proposition? (A) "Why should I buy your brand rather than a competitor's?" (B) "How does your brand benefit me and society?" (C) "What are the costs and benefits of your brand?" (D) "What kind of experience will I have with products and services associated with this brand?" (E) "What are the benefits of being a loyal consumer of your brand?"

A

Which of the following best describes members of a buying center? (A) Everyone involved in making the purchase decision (B) Everyone involved in signing contracts (C) Everyone employed in the purchasing department (D) Direct reports of the vice president of purchasing (E) Technical experts who advise on product specifications

A

Which of the following is NOT a segmentation criterion or consideration used for choosing a target market? (A) Market accountability (B) Market identifiability and measurability (C) Market substantiality (D) Market accessibility (E) Market responsiveness

A

Which of the following is an intermediary in the distribution channel that moves goods without taking title to them? (A) Agent (B) Wholesaler (C) Merchant (D) Retailer (E) Dispenser

A

Which of the following is the first step in the sales process? (A) Prospecting (B) ASales presentation (C) Gaining commitment (D) Approach (E) recall planning

A

Which one of the following changes would most likely motivate a firm to reposition a brand? (A) Shifting demographics (B) Stock market fluctuations (C) An economic downturn (D) Changes in available financial resources (E) Rising sales

A

You are directed to study the demographic, economic, natural, technological, political, and cultural factors that are larger societal forces affecting your company. What are you studying? (A) the macroenvironment (B) the microenvironment (C) the external environment (D) the marketing mix (E) the global environment

A

A brand that has achieved brand insistence and is considered a specialty good by the target market suggests which of the following distribution objectives? (A) Widespread distribution near probable points of use (B) Exclusive distribution (C) Intensive distribution (D) Enough exposure to facilitate price comparison (E) Widespread distribution at low cost

B

A channel of distribution refers to the (A) routing of goods through distribution centers (B) sequence of marketing intermediaries from producer to consumer (C) methods of transporting goods from producer to consumer (D) suppliers who perform a variety of functions (E) traditional handlers of a product line

B

A fertilizer manufacturer who traditionally markets to farmers through farm supply dealers and cooperatives decides to sell current products to home gardeners through lawn and garden shops. This decision is an example of (A) market penetration (B) market development (C) product development (D) diversification (E) vertical integration

B

A marketing strategy is composed of both (A) a target market and market opportunities (B) a target market and related marketing mix (C) a target market and SWOT analysis (D) a marketing mix and required resources (E) a marketing mix and competition

B

During the first stage of the product life cycle, a marketer's objective most likely will be to (A) maximize market share (B) build product awareness (C) reduce expenditures (D) defend a position (E) diversify into new categories

B

Firms set prices as low as possible in order to become the ________. (A) product quality leader (B) market share leader (C) customer quality leader (D) profit maximization leader (E) price leader

B

If a firm is using penetration pricing, the firm is most likely trying to achieve which of the following pricing objectives? (A) Troduct quality leadership (B) Market-share maximization (C) High gross margin (D) Status quo (E) Geographic flexibility

B

In general, a company should enter only segments in which it can ________ and ________. (A) offer lower prices; ship faster (B) offer superior value; gain advantages over competitors (C) offer superior value; ship faster (D) gain advantages over competitors; get co-op advertising (E) identify behaviors; understanding spending power

B

In which of the following situations is the number of buying influences most likely to be greatest? (A) A university buys large quantities of paper for computer printers on a regular basis. (B) A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture. (C) A consumer decides to buy a different brand of potato chips because they are on sale. (D) A retail chain is searching for a vendor of lower-priced cleaning supplies. (E) A purchasing manager has been asked to locate a second source of supply for corrugated shipping cartons.

B

Rising mortgage rates (A) Sociocultural Environment (B) Economic Environment (C) Technological Environment

B

The XYZ Corporation has two chains of restaurants. One restaurant specializes in family dining with affordable meals. The second restaurant targets young, single individuals, and offers a full bar and small servings. The XYZ Corporation uses which form of targeted marketing strategy? (A) Mass marketing (B) Differentiated marketing (C) Undifferentiated marketing (D) Customized marketing (E) Concentrated marketing

B

The demand for industrial goods is sometimes called "derived" because it depends on (A) economic conditions (B) demand for consumer goods (C) governmental activity (D) availability of labor and materials (E) the desire to make a profit

B

The reasons many hotel chains now use the same room decor at all their hotels is in the attempt to solve the problem that (A) services are intangible. (B) it is difficult to standardize services. (C) services are inseparable from their providers. (D) buyers get involved in service design and distribution.

B

When backed by buying power, wants become ________. (A) social needs (B) demands (C) physical needs (D) self-esteem needs (E) exchanges

B

Which answer has the four steps of the marketing research process in the correct order. (A) Determine the research design. Define the problem. Collect data. Choose the data collection method. (B) Define the problem. Determine the research design. Choose the data collection method. Collect data. (C) Choose the data collection method. Define the problem. Determine the research design. Collect data. (D)Collect data. Choose the data collection method. Define the problem. Determine the research design. (E) Determine the research design. Collect data. Define the problem.Choose the data collection method.

B

Which of the following is a major disadvantage associated with the use of dual distribution? (A) It is usually very expensive. (B) It can cause channel conflict. (C) It provides limited market coverage. (D) It is only appropriate for corporate channels. (E) Some distribution channel functions are not completed.

B

Which of the following is true of price skimming? (A) It requires intermediaries to provide kickback payments. (B) It calls for relatively high prices to start, reducing over time. (C) It is reserved for products in the late stages of the product life cycle. (D) It works best in situations with highly elastic demand. (E) It is illegal in most jurisdictions in the United States.

B

Which of the following most accurately describes agent wholesalers? (A) They take title to goods that they sell to other intermediaries. (B) They do not take title to goods that they sell to other intermediaries. (C) They take title to goods that they sell to final consumers. (D) They do not take title to the goods that they sell on commission to final consumers. (E) They manufacture the goods that they sell to final consumers.

B

Which of the following products is most likely to be a high-involvement purchase? (A) A package of rubber bands. (B) A birthday gift for your new mother-in-law. (C) A subscription renewal to Time magazine. (D) A mystery novel to read on a long airplane flight. (E) A box of baking soda.

B

Which of the following statements about secondary data is correct? (A) Secondary data are usually more expensive to obtain than primary data. (B) Secondary data are usually available in a shorter period of time than primary data. (C) Secondary data are usually more relevant to a research objective than are primary data. (D) Secondary data must be collected outside the firm to maintain objectivity. (E) Previously collected data are not secondary data.

B

With seven other homeowners, Marty was invited to a(n) _____ where the researcher asked the group general questions about how they do yard work. The interview revealed that most have limited time to work in the yard and would be willing to hire a lawn care service if the price were reasonable. (A) walking interview (B) focus group (C) experimental method (D) centralized survey method (E) shopping mall intercept

B

A major advantage of distributing products by truck is (A) low cost relative to rail or water (B) low probability of loss or damage to cargo (C) accessibility to pick-up and delivery locations (D) speed relative to rail or air (E) ability to handle a wider variety of products than other means

C

A marketer usually offers a noncumulative quantity discount in order to (A) reward customers for repeat purchases (B) reduce advertising expenses (C) encourage users to purchase in large quantities (D) encourage buyers to submit payment promptly (E) ensure the prompt movement of goods through the channel of distribution

C

A(n) ______________ is a group of customers (people or organizations) at whom the seller specifically intends to aim its marketing efforts. (A) market (B) segment (C) target market (D) market aggregate (E) industrial use

C

At the most basic level, products and services should be viewed as a collection of (A) attributes (B) expectations (C) benefits (D) features (E) promises

C

Buyers typically experience some post-purchase anxieties in all but routine purchases. This state of anxiety is known as cognitive dissonance and can be expected to increase if: (A) the length of the distribution channel increases. (B) the relative attractiveness of the unselected alternatives decreases. (C) the relative importance of the purchase increases. (D)the price elasticity increases. (E) any of the above occurs.

C

Consumers tend to be more satisfied with their purchase of a product when (A) cognitive dissonance develops after the purchase (B) he price of the product falls after the purchase (C) they research the product before the purchase (D) their opinions are inconsistent with their values (E) there is no further contact with the seller

C

Kellogg's has introduced a new puffed corn cereal, Kellogg's Corn Puffs, a category where they previously did not have a product. This is an example of ________. (A) brand equity (B) product line (C) brand extension (D) private brand (E) brand symbol

C

Market segmentation that is concerned with people over 65 years of age is called (A) geographic (B) socioeconomic (C) demographic (D) psychographic (E) behavioral

C

Marketing strategy planning includes (A) supervising the activities of the firm's sales force (B) determining the most efficient way to manufacture products (C) selecting a target market and developing the marketing mix (D) determining the reach and frequency of advertising (E) monitoring sales in response to a price change

C

Maxine suddenly realizes that she is out of paper towels. She remembers that she last bought Max Dri Towels, so she stops at the store and picks up another roll of Max Dri on her way home from work. In this example, Maxine uses what form of information search in her decision process? (A) Limited problem solving (B) Extended problem solving (C) Internal information search (D) Compensatory information search (E) Information search by personal sources

C

Missionary salespersons are most likely to do which of the following? (A) Sell cosmetics directly to consumers in their own homes (B) Take orders for air conditioners to be used in a large institution (C) Describe drugs and other medical supplies to physicians (D) Secure government approval to sell heavy machinery to a foreign government (E) Take orders for custom-tailored garments or other specially produced items

C

Prices of services rise during times of peak demand only to fall -- often drastically -- when demand declines because (A) services are intangible. (B) buyers get involved in service design and distribution (C) services are perishable. (D) services are inseparable from their providers.

C

The development of new production techniques (A) Sociocultural Environment (B) Economic Environment (C) Technological Environment

C

To save time and money, a marketing research team uses data that have already been gathered for some other purpose. Which type of data is the team using? (A) Sample (B) Primary (C) Secondary (D) Survey (E) Experiment

C

Which of the following approaches for entering international markets involves granting the rights to a patent, trademark, or manufacturing process to a foreign company? (A) Exporting (B) Franchising (C) Licensing (D) Joint venturing (E) Contract manufacturing

C

Which of the following best describes the process of selecting target markets in order to formulate a marketing mix? (A) Strategic planning (B) Product differentiation (C) Market segmentation (D) Marketing audit (E) SWOT analysis

C

Which of the following is the fastest growing nonstore retail segment in the United States? (A) Television home shopping (B) Automatic vending (C) Online retailing (D) Catalog marketing (E) Direct-response marketing

C

While writing a marketing plan, Melanie decides that the marketing objective should be "to increase market share by 5 percent." A weakness in this objective is that (A) it is not measurable (B) it should be related to brand image rather than market share (C) it does not specify a time period (D) if the product is an industrial product, the objective should specify product quality (E) it does not address all elements of the business plan

C

________ is an important concept when we realize that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. (A) heuristics (B) net profit (C) customer lifetime value (D) relationship marketing (E) market share

C

A customer is satisfied, when a customer's purchase ________ his or her expectations. (A) a) exceeds (B) redefines (C) falls short of (D) lives up to (E) none of the above

D

A statement most consistent with the philosophy of the marketing concept would say that the key to success is (A) innovative product development (B) a persuasive sales force (C) an experienced team of marketing managers (D) customer satisfaction (E) minimization

D

An advertisement for prospective applicants to a college shows individual students along with the slogan "I am getting ready to seize my destiny." The ad appeals to which need in Maslow's hierarchy? (A) Physiological (B) Esteem (C) Social affiliation (D) Self-actualization (E) Safety

D

For a United States manufacturer of major consumer appliances, the most important leading indicator for forecasting sales is (A) automobile sales (B) computer sales (C) educational level of consumers (D) housing starts (E) number of business failures

D

In contrast to a selling orientation, a marketing orientation seeks to (A) increase market share by emphasizing promotion (B) increase sales volume by lowering price (C) lower the cost of distribution by direct marketing (D) satisfy the needs of targeted consumers at a profit (E) market products that make efficient use of the firm's resources

D

Richard Weiss, SA, is a Swiss watch manufacturer. One of its two major brands offers ruggedness, reliability and durability to active sports enthusiasts. The other offers elegance and stylishness to fashion conscious consumers. Which of the following segmentation approaches is this firm using? (A) Demographic (B) Geographic (C) Usage (D) Benefits sought (E) Socioeconomic

D

The best business portfolio is one that best fits the company's strengths and weaknesses to ________. (A) the established market (B) the potential target markets (C) the company's values statement (D) opportunities in the environment (E) all of the above

D

The degree to which a customer's experience with a product or organization meets or exceeds his or her expectations is often referred to as: (A) Relationship marketing. (B) Exchange. (C) Customer value. (D) Customer satisfaction. (E) Customer loyalty.

D

The principle task of marketers is to offer a product or service that offers satisfaction. Such an exchange process is intended to satisfy customer ___________. (A) wants (B) expectations (C) needs (D) A and C (E) B and C

D

The process of identifying people or companies who may have a need for a salesperson's product is known as (A) cold calling (B) presenting (C) approaching (D) prospecting (E) targeting

D

The sign on the wall of The Health Hut reads, "We want to provide our customers with the freshest and healthiest of foods so that they can live life to the fullest." This sign reflects the: (A) strategic plan. (B) corporate motto. (C) marketing campaign. (D) mission statement. (E) situational assessment

D

Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is called (A) conventional distribution (B) developing dual distribution (C) selective distribution (D) intermodal transportation (E) freight forwarding

D

Which of the following are key characteristics of services? (A) Cost, time, quality, and value (B) Uncertainty, variability, and standardization (C) Intangibility, durability, and standardization (D) Intangibility, perishability, and variability (E) Tangibility, variability, and uncertainty

D

Which of the following is a primary disadvantage of direct marketing? (A) It is difficult to measure response. (B) It is not personal. (C) t is poorly targeted. (D) It tends to have high costs per contact. (E) It has a fragmented audience.

D