Marketing Exam 1

Which of the following products is most likely to have its market segment based on age? A) Nike shoes B) Lipton Iced Tea C) Bic pens D) Legos E) Carpet

D) Legos

Having used both Secret and Sure deodorants, Annette feels that Secret is a good product and the one that best meets her needs. She has formed a (n) ____ about Secret. A) Motive B) consideration set C) cognition D) attitude E) self-concept

D) attitude

A survey question that requires a yes or no answer is called a A) qualifier B) multiple-choice question C) 50-50 question D) dichotomous question E) bimodal question

D) dichotomous question

The real value of marketing research to the organization can best be measured by A) its immediate impact on profits B) the amount of time spent C) how much it costs D) improvements in the ability to make decisions E) the increase in sales volume or market share.

D) improvements in the ability to make decisions

Jason owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Jason negotiated with Palmetto Dodge, a dealer, with the agreement that GreenScapes would be the service company Palmetto Dodge used for all of its landscaping needs. This is an example of A) a new task purchase B) a straight rebuy C) a modified rebuy D) reciprocity E) a straight purchase.

D) reciprocity

In business markets, individuals or groups purchase products for one of three purposes. These purposes are A) resale, wholesale, and direct use B) wholesale, direct use, and use in producing other products C) resale, wholesale, and use in producing other products D) resale, direct use in producing other products, and use in general daily operations E) use in general daily operations, wholesale, and resale.

D) resale, direct use in producing other products, and use in general daily operations

Which type of business market tends to have the most complex buying procedures? A) Reseller B) Institutional C) Retailer D) Government E) Producer

D) Government

(customer value = customer benefits - customer costs).

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Five categories of situational influences

1. Physical surroundings 2. Social surroundings 3. Time perspective 4. Reason for purchase 5. Buyer's momentary mood and condition

Marketing Mix: Four marketing activities

1. Product 2. Pricing 3. Distribution 4. Promotion

The stages of the business buying decision process, in order, are

1. Recognizing the problem 2. Establishing product 3. Specifications 4. Searching for products and evaluating possible suppliers 5. Selecting suppliers and products 6. Evaluating performance

Stacy is going to the store to buy milk and cereal. She will most likely use ____ in her consumer decision-making process. A) Routine response behavior B) limited decision making C) extended decision making D) perceptual scanning E) evaluation of alternatives

A) Routine response behavior

Segmentation variables are usually grouped into four categories: A) demographic, geographic, religion, and income B) geopolitical, income, behavioristic, and psychographic C) attitudes, lifestyles, behaviors, and gender D) geographic, demographic, psychographic, and attitudes E) demographic, geographic, psychographic, and behavioristic.

A) demographic, geographic, religion, and income

The three most widely recognized types of consumer decision making are: A) limited problem solving, extended problem solving, and routine response behavior B) extended problem solving, enduring problem solving, and situational decision making C) planned problem solving, impulse buying, and limited decision making D) internal problem solving, external problem solving, situational behavior E) responsive behavior, planned behavior, and impulsive decision making.

A) limited problem solving, extended problem solving, and routine response behavior

An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a (n) ____ question. A) open- ended B) dichotomous C) forced-sum-choice D) multiple-choice E) limited-choice

A) open- ended

Designing research procedures that produce reliable marketing data means that A) others using the same procedure will get almost identical results B) the procedure must give results that support the hypothesis C) the procedure must not give results that contradict other research studies D) the procedure may give results that contradict other research studies E) sampling must be done in a completely random manner

A) others using the same procedure will get almost identical results

Selective distortion

An individual's changing or twisting of information that is inconsistent with personal feelings or beliefs

Core competencies

Are things a company does extremely well, which sometimes gives it an advantage over its competition

What is the primary factor contributing to the increasing difficulty associated with gathering primary data through surveys? A) Most companies do not have any funding for survey research B) Fewer people are willing to participate in surveys C) Laws significantly limit firms' ability to conduct surveys D) Unreliable methods of distributing surveys make them difficult to conduct E) Very little useful information is ever gathered from survey results

B) Fewer people are willing to participate in surveys

Abercrombie & Fitch is developing a program to get to know its customers. Which of the following is not a reason why A&F needs to understand consumer buying behavior? A) customer's reactions to marketing strategy can impact the firm's success B) all customers are the same when it comes to buying behavior C) a firm should create a marketing mix that satisfies customers D) it helps the marketer predict how consumers will respond to marketing strategies E) the marketing concept stresses that a firm should know its customers

B) all customers are the same when it comes to buying behavior

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets. A) Consumer B) business C) government D) international E) most target

B) business

After purchasing a new Lexus, Brandon sees an Infinity pass by on the street and begins to wonder if he made the right choice. Brandon is experiencing A) problem recognition B) cognitive dissonance C) internal search D) alternative evaluation E) framing.

B) cognitive dissonance

Systems such as PRIZM provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid A) behavioristic segmentation B) geodemographic segmentation C) market density analysis D) demographic segmentation E) geographic segmentation.

B) geodemographic segmentation

4. Extended decision making is the type of consumer decision-making process that A) involves no conscious planning but rather a powerful and persistent urge to buy something B) is the most complex decision making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products C) requires a moderate amount of time for information gathering and search D) is the creation and maintenance of a collection of products that satisfy a person's needs and wants E) requires very little search-and-decision effort and is practiced when buying low-cost and frequently purchased products.

B) is the most complex decision making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products

The five major stages of the consumer buying decision process, in order, are A) information search, establishment of product criteria, evaluation of alternatives, purchase, and postpurchase evaluation B) problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation C) problem recognition, information search, evaluation of alternatives, postpurchase evaluation and purchase D) information search, evaluation of alternatives, purchase, trial adoption period, and postpurchase evaluation E) problem recognition, purchase, evaluation of alternatives, postpurchase evaluation, and rebuy.

B) problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation

Guess will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's A) sales potential B) market potential C) sales forecast D) market sales E) selected market.

C) sales forecast

Changing people's attitudes toward a firm and its marketing program is A) simple when advertisements are used B) impossible, even if the firm uses advertisements C) a long, expensive, and difficult task that may require extensive advertising campaigns D) unnecessary, since consumer attitudes are of little importance E) rarely attempted through the use of marketing practice.

C) a long, expensive, and difficult task that may require extensive advertising campaigns

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is A) joint B) economically stable C) derived D) inelastic E) more fluctuating.

C) derived

The first step in the target market selection process is A) determining which segmentation variables to use B) selecting specific target markets C) identifying an appropriate targeting strategy D) evaluating relevant market segments E) developing market segment profiles.

C) identifying an appropriate targeting strategy

Consumers tend to remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective A) exposure B) distortion C) retention D) information E) organization.

C) retention

Saks Fifth Avenue wants to learn about its consumers' attitudes toward on-line purchases. There are numerous studies that are available about consumers and on-line buying, but Saks believes its customers might be different from the usual on-line consumer profile, so they decide to conduct their own study. If Saks were to use the available data about consumer attitudes, it would be using ___ data; however, if Saks does its own study it would collect ______ data. A) Descriptive; primary B) experimental; descriptive C) secondary; primary D) primary; secondary E) secondary; descriptive

C) secondary; primary

Marketers use many factors, including occupation, educational level, income, wealth, religion, race, ethnic group, and possessions, to group people into A) family types B) geographic regions C) reference groups D) social classes E) attitudinal segments.

D) social classes

Corporate executives often prefer marketing research findings to be put into a report A) full of statistical analysis with details on methods employed by the researchers B) examining the ethical implications of implementing results from the research report C) that exposes no deficiencies or limitations of the research process D) that is clear, short, and simply expressed E) expressing the views and beliefs of top management about the research problem

D) that is clear, short, and simply expressed

Which of the following is NOT a characteristic of a consumer market? A) It consists of purchasers who intend to consume or benefit from the purchased products B) they buy products for the main purpose of making a profit C) they are sometimes referred to as B2C markets D) their purchasing decisions are always made by only one individual

D) their purchasing decisions are always made by only one individual

When selecting a segmentation variable, several factors are considered: A) Variable should relate to the customers' needs for, uses of or behavior toward the product B) Variable must be measurable C) Company resources and capabilities D) Product type and variations in customer needs E) All of the above.

E) All of the above.

What is a primary difference between business and consumer buyers? A) Consumer buyers require more product information than business buyers B) Business purchases are made by one individual whereas families make consumer purchases together C) Repeat sales are more common with consumer buyers than business buyers D) Consumers primarily buy inexpensive items; businesses only buy expensive items E) Business buyers generally make larger orders than consumer buyers.

E) Business buyers generally make larger orders than consumer buyers.

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets. A) Consumer B) institutional C) producer D) government E) reseller

E) reseller

All of the following are steps in the marketing research process except: A) collecting data B) interpreting research findings C) designing the research project D) reporting research findings E) understanding your customer

E) understanding your customer

T/F: When writing codes of ethics, businesses must ensure their codes deal with every possible situation.

False

Delphi technique

Is a procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts

Joint demand

Occurs when two or more items are used in combination to produce a product

Inelastic demand

Price increases and decreases will not significantly alter industrial demand

Selective retention

Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

Derived demand

The demand for business products derives from demand for consumer products

Selective exposure

The process by which some inputs are selected to reach awareness and others are not

T/F: Cause-related marketing is the cooperative efforts of a "for profit" firm and a "non-profit" organization for mutual benefit.

True

T/F: Executive Leadership and top managers behaving ethically can influence others in an organization to behave ethically.

True

T/F: Market density refers to the number of potential customers

True

T/F: Morals are rules people develop as a result of cultural values and norms

True

T/F: Social Responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society

True

By the turn of the 20th century, the population of the US had shifted to three large racial and ethnic groups. These groups are: a) African-Americans, Hispanics, Caucasians b) Asians, African-Americans, Caucasians c) Asians, African-Americans, and Hispanics d) African-Americans, Native American Indians, Caucasians e) Hispanics, Native American Indians, Caucasians

a) African-Americans, Hispanics, Caucasians

All marketing mix decisions must have two characteristics a) consistency and flexibility b) consistency and rigidity c) variability and flexibility d) formality and rigidity e) vagueness and flexibility

a) consistency and flexibility

Many health care companies are making adaptations to meet the needs of aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in a) demographics b) cultural values c) income levels d) consumerism e) subcultures

a) demographics

To monitor changes in the marketing environment effectively, marketers must engage in a) environmental scanning and analysis b) economic scanning c) self-regulatory analysis d) market research analysis e) information collecting

a) environmental scanning and analysis

A competitive advantage exists when a: a) firm matches a core competency to opportunities it has discovered in the marketplace b) firm does marketing better than its competitors c) combination of circumstances and timing allow a firm to reach an attractive target marketplace d) firm observes a fit between the key requirements of a market and its own capabilities e) firm has a strong marketing plan

a) firm matches a core competency to opportunities it has discovered in the marketplace

The process of putting marketing strategies into action is called a) marketing implementation b) marketing control c) marketing action d) marketing audit e) the marketing action plan

a) marketing implementation

An organization's business goals should be derived from its a) mission statement b) strategic plan c) strategic business plan d) marketing plan e) marketing strategy

a) mission statement

_______ is the efforts of independent individuals, groups, and organizations to protect the rights of consumers a) sustainability b) consumerism c) philanthropy d) community relations

b) consumerism

Resource deployment and coordination of functional areas are determined by a) the mission statement b) corporate strategy c) business unit strategy d) marketing strategy e) the marketing mix

b) corporate strategy

Realizing an increase in both the number of consumers who are environmentally conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a _______ while the strategic window in open. a) marketing mix b) marketing opportunity c) objective d) requirement e) goal

b) marketing opportunity

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 unit e) diversified corporation

b) strategic business unit

Sheila's new job with the federal government provides a comfortable and fairly stable income. She would like to purchase a new car now that she has a job; however, Sheila hesitates to purchase because she is concerned about how poor economic conditions may affect her position in the future. Sheila lacks a) disposable income b) willingness to spend c) buying power d) credit e) discretionary income

b) willingness to spend

The four major competitive structures include all but a) monopolies b) oligopolies c) brand d) pure competition e) monopolistic competition

c) brand

When marketers define their target market, they simultaneously establish a set of a) technologies b) monopolies c) competitors d) government regulations e) sociocultural forces

c) competitors

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's a) strategic segment b) target market c) market share d) market cut e) market position

c) market share

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a) recovery b) prosperity c) recession d) uncertainty e) expansion

c) recession

Total buying power declines during periods of economic a) recovery b) prosperity c) recession d) uncertainty e) expansion

c) recession

People for the Ethical Treatment of Animals (PETA) have demonstrated against the sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes represent a ______ force for fur retailers. a) technological b) political c) sociocultural d) self-regulatory e) controllable

c) sociocultural

Stakeholders in a typical corporation include: a) employees b) employees and management c) employees, management, customers and owners d) employees, management, customers, owners, suppliers and local community

d) employees, management, customers, owners, suppliers and local communit

_______ refers to the moral principles or values that generally govern the conduct of an individual or a group. a) righteousness b) social consensus c) virtue d) ethics

d) ethics

Which of the following is an unethical practice marketing managers may have to deal with? a) entertainment and gift giving b) false or misleading advertising c) price deception d) unsafe products or services e) all of the above

e) all of the above

imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment a) sociocultural b) technological c) competitive d) economic e) political

e) political

Corporate responsibility exists on several levels including all but a) ethical b) legal c) economic d) profitable e) strategic

e) strategic

Successful business organizations should take actions to convert internal weaknesses into _____ and external threats to _______. a) opportunities; core competencies b) core competencies; strengths c) opportunities; strengths d) strengths; core competencies e) strengths; opportunities

e) strengths; opportunities

A disadvantage of the concentrated targeting strategy is that A) the firm's financial condition is tied to a single and specialized marketing mix B) large sales volumes cannot be generated C) production costs may be higher than with other strategies D) marketing personnel may become dissatisfied with the limited opportunities provided by this approach E) marketing costs are often higher than for other strategies.

A) the firm's financial condition is tied to a single and specialized marketing mix

Marketing research is best defined as A) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities B) a framework for the day-to-day management and structuring of information gathered by marketers C) a continuous gathering of data for an organization, the systematic design, collection, to make marketing decisions take advantage of market opportunities D) the collecting of data from secondary sources and internal documents E) an intuitive process for making decisions based on personal knowledge and experience to take advantage of market opportunities.

A) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities

When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers. A) Corporate B) government C) institutional D) producer E) nonprofit

C) institutional

Bart's Appliance Center owner Ron Bart feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Bart needs to develop a A) marketing research focus B) marketing knowledge bank C) marketing information system D) marketing strategy E) data-gathering system

C) marketing information system

Most business purchases can be classified as belonging to one of three types: A) delinquent, repetitive, or delivered B) repetitive, new-task, or modified rebuy C) modified rebuy, new-task, or straight rebuy D) delinquent, new-task, or reciprocal E) rebuy, reciprocal, or delayed.

C) modified rebuy, new-task, or straight rebuy

Business markets are typically divided into four categories. These categories are A) retailers, wholesalers, services, and nonprofit firms B) producer, manufacturer, reseller, and government C) producer, reseller, government, and institutional D) manufacturer, wholesaler, retailer, and services E) reseller, retailer, government, and institutional

C) producer, reseller, government, and institutional

According to the Boston Consulting Group, marketers may classify their products as all of the following except a) dogs b) cash cows c) stars d) cash contributors e) question marks

d) cash contributors