Exam 1 Review Questions MKT 3020

People for the Ethical Treatment of Animals (PETA) has demonstrated against the sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes most directly represents a ____ force for fur retailers. A) technological B) political C) sociocultural D) self-regulatory E) legal

C

Sara Lee introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Sara Lee was most likely following the ________. A) selling concept B) production concept C) marketing concept D) customer concept E) retailing concept

C

T-Mobile implemented a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations? A) Production B) Sales C) Market D) Social E) Development

C

ACME was not the first to bring a selfie stick to market, but it is now introducing a selfie stick that can also be used as a cane, an umbrella, and a knife for self-defense. Which of the following is ACME benefiting from as a late mover? A) Taking advantage of patents and trademarks from the first movers B) Being able to earn a reputation as a pioneer and market leader C) Being able to improve on the product design and marketing strategy D) Getting customers who purchased the first movers' product to switch to ACME's product E) Dealing with uncertainty related to sales growth and product demand

C

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike. A) price B) good C) product D) promotion E) distribution

C

In today's marketing environment, competitors can take on many forms. For example, a Starbucks latte can be seen as a competitor to an issue of The New York Times. In this circumstance, these two products are described as ____ competitors. A) generic B) product C) total budget D) primary E) pure

C

A New York-based brand and customer loyalty and engagement research consulting firm called Brand Keys conducts research annually to identify the top 100 brands with the highest levels of customer loyalty. Amazon, Google, Apple, and Netflix lead the pack and demonstrate that consumers are enjoying long-term engagement with these companies. The top companies' ability to generate high levels of customer loyalty demonstrates these firms are engaging in ________ . A) relationship marketing B) competitive marketing C) production marketing D) sales-oriented marketing E) strategic marketing

A

A company's customers, employees, shareholders, suppliers, governments, communities, and competitors comprise its A) stakeholders. B) stockholders. C) public. D) marketing mix. E) target market.

A

According to the Boston Consulting Group, which of the following has a small share of a growing market and usually requires a large amount of cash to build market share? A) Question marks B) Dogs C) Cash cows D) Stars E) First movers

A

After several children became ill while playing with toys imported from outside the United States, medical researchers found several illegal chemicals, including lead in the paint. These toys were sold primarily through websites on the Internet. Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys? A) Consumer Product Safety Commission B) Children's Online Protection Act C) Food and Drug Administration D) Environmental Protection Agency E) National Advertising Review Board

A

Alex has a good-paying job. However, even though he has not received any official confirmation, Alex suspects that his job might be cut in the near future. Rumors in the grapevine hint that the company is going to go through massive lay-offs due to declining revenues. As a result, Alex has decided to forgo buying a house until he has a better idea of his job status. He has a lot of savings, but Alex knows he might need them if he becomes unemployed. In this case, Alex lacks A) a willingness to buy. B) credit. C) disposable income. D) discretionary income. E) buying power.

A

Boeing is one of the world's largest aerospace and defense companies, and it spent $17 million lobbying to pass legislation to protect its interest or to retaliate against its competitors. This best represents which of the following environmental forces? A) Political B) Legal and regulatory C) Competitive D) Economic E) Technological

A

C.J. Foods, a pet food maker, purchased Lortscher Animal Nutrition, Inc. (LANI), a miller and ingredient supplier, and now operates this division as a separate profit center within the firm. In this example, LANI is a(n) ____ unit of C.J. Foods. A) strategic business B) marketing C) dependent D) independent E) corporate

A

Companies delivering mixed concrete know that it cannot be shipped farther than 25 miles because the concrete might harden in the truck. King County Concrete Company is the only supplier of mixed concrete to customers within a 30-mile radius. King County Concrete is an example of which one of the following competitive structures? A) Monopoly B) Oligopoly C) Monopolistic competition D) Pure competition E) Monopsony

A

Dasani, SmartWater, Aquafina, Glaceau, Pure Life, and Fiji are examples of __________ competitors in the beverage industry. A) brand B) product C) generic D) total budget E) category management

A

A target market A) ​involves a large number of customers. B) ​is a specific group of customers on whom an organization focuses its marketing efforts. C) ​already has several competitors vying for customers' business. D) ​is the same as a salesperson's prospective client list. E) ​is a customer group classified as people with similar demographic characteristics.

B

Ace Manufacturing Company is not attracting sufficient customers. It has long defined itself as being a maker of shelving products. To improve its sales and long-term viability, it should perhaps consider redefining itself as A) an employer of shelving makers. B) helping potential customers satisfy their needs with Ace shelving products. C) helping the environment with shelving products. D) housing the homeless with shelving products. E) selling shelving products.

B

Despite the fact that the FDA has mandated that they are safe, many people still distrust genetically-modified foods. Some are choosing to express their dissatisfaction by protesting and writing letters to their state governments. These letters demand that genetically-modified food be labeled so shoppers can make informed choices. ​These activities are an example of ___________. A) ​demographic shifts B) ​consumerism C) ​the cultural diversity movement D) ​self-regulation E) legal violations

B

During which stage of the business cycle is unemployment low and total income relatively high? A) Repression B) Prosperity C) Recovery D) Recession E) Depression

B

Long-term relationships with profitable customers is the key objective of A) ​personal selling. B) ​customer relationship management. C) ​production oriented firms. D) ​e-marketing. E) distribution channels.

B

Target's tagline "Expect More, Pay Less" emphasizes which marketing mix variable? A) Promotion B) Pricing C) Exchange D) Product E) Distribution

B

The Buddhas Brew Kombucha has become highly efficient in developing and manufacturing new kombucha products for the market. It far surpasses its competitors in these areas. Recently, major medical journals have started describing how kombucha can be highly advantageous for consumer health. This is likely to give Buddhas Brew Kombucha a ______________ because it is able to match its skills with opportunities in the marketplace. A) core competency B) competitive advantage C) new marketing objective D) market opportunity E) strategic advantage

B

The reputation and well-known brand name of Mercedes-Benz automobiles represents a ____ for Mercedes-Benz. A) competitive advantage B) core competency C) market opportunity D) strategic window E) pricing strategy

B

Which of the following includes a detailed assessment of the competitive, economic, political, legal, regulatory, technological, and sociocultural factors that could affect marketing activities? A) Executive summary B) Environmental analysis C) SWOT analysis D) Marketing implementation E) Performance evaluation

B

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a​ A) ​profit entity. B) ​strategic business unit. C) ​marketing program. D) ​small business. E) ​diversified corporation.

B

A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace. A) ​market opportunity B) ​market requirement C) ​competitive advantage D) ​strategic window E) ​competitive opportunity

C

A marketing objective should be expressed in clear, simple terms; be _____________; specify a time frame for completion; and ensure the marketing objective is _____________ with both business-unit and corporate strategies. A) precise; centralized B) encompassing; consistent C) measurable; consistent D) legalistic; aligned E) detailed; decentralized

C

The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could _best_ be described as A) price sensitive. B) opportunistic. C) monopolistic competition. D) an oligopoly. E) a monopoly.

D

Why are marketers interested in consumers' levels of disposable income? A) It accurately predicts future buying power. B) It increases current buying power. C) It is what is left after taxes and savings to buy luxuries with. D) It is a ready source of buying power. E) It is essential for forecasting future business trends.

D

The equation a buyer applies to assess a product's value is A) value = monetary price−customer benefits. B) value = customer costs−customer benefits. C) value = customer benefits−customer costs. D) value = customer benefits−monetary price. E) value = customer benefits−time and effort.

C

To be truly useful for sales analyses, marketers must compare current sales data with forecasted sales, industry sales, specific competitors' sales, and A) business-unit objectives. B) business-unit costs. C) the costs incurred from marketing efforts to achieve the sales volume. D) performance standards. E) market share.

C

A market is defined as A) ​a place to buy products. B) ​the buyers of the products that a company develops, promotes, prices, and distributes. C) ​the specific group of customers on whom an organization focuses its marketing efforts. D) ​a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products. E) ​the percentage of a group of customers that actually buys a specific product from a specific company.

D

Herbal Organics used actor and former NFL player Sweet Dave Brown to act as its spokesperson as the "Herbal Organics Man." It filmed humorous videos of the actor that went viral online. Herbal Organics saw sales of its deodorants increase substantially from the previous year. What type of competitive growth strategy did Herbal Organics use? A) Product penetration B) Market development C) Diversification D) Market penetration E) Product development

D

San Francisco has banned toys in children's fast-food meals because of the demand these toys might create among children for unhealthy fast food. What type of regulatory force is this? A) Social regulation B) Self-regulation C) State regulation D) City regulation E) Federal regulation

D

The definition of marketing implies that ____ should receive benefits from exchange relationships. A) ​only customers B) ​only businesses C) ​company management D) ​both customers and businesses E) ​only the most important customers

D

The four major competitive structures are A) monopolies, oligopolies, oligopolistic monopolies, and pure competition. B) pure competition, heavy competition, moderate competition, and light competition. C) brand, product, total budget, and generic. D) oligopolies, monopolies, monopolistic competition, and pure competition. E) monopolies, limited competition, oligopolistic competition, and pure competition.

D

American Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the A) Sherman Antitrust Act. B) Wheeler-Lea Act. C) Lanham Act. D) Federal Trade Commission Act. E) Robinson-Patman Act.

E

Organizations try to retain and increase long-term profitability through customer loyalty, which results from increasing A) production. B) market share. C) sales. D) market value. E) customer value.

E

Southwest Airlines' planes are easily recognizable even when in the air due to their vibrant color scheme, striped tail, distinctive font, and striped heart. Southwest carries this color scheme and heart symbol throughout much of its communication-airport signs, print and television advertising, even its smartphone app. This use of color, font, and symbols to convey Southwest Airlines' personality is an example of a(n) A) ethics statement. B) marketing plan. C) mission statement. D) corporate logo. E) corporate identity.

E

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace is called A) first-mover advantage. B) early-mover advantage. C) first-mover disadvantage. D) strategic window. E) late-mover advantage.

E

The marketing concept focuses on A) ​achieving the goals of top executives. B) ​creating maximum visibility for the firm. C) ​maximizing sales in a way that helps to achieve organizational objectives. D) ​maximizing market share in a way that helps to achieve organizational objectives. E) ​satisfying customers' needs in a way that helps to achieve organizational objectives.

E

When using credit to make purchases, consumers are A) decreasing current buying power and increasing future buying power. B) increasing their present discretionary income to extend purchasing power. C) putting themselves at significant risk of financial disaster. D) forgoing the accumulation of wealth to increase current income. E) increasing current buying power at the expense of future buying power.

E

Which of the following is a strategy of increasing sales of current products in new markets? Figure 2.4 Competitive Growth Strategies A) Diversification B) Product development C) Market share D) Market penetration E) Market development

E

____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. A) Marketing orientation B) Monetary price C) Product assessment D) Price assessment E) Value

E