Marketing Exam 1 Practice Questions
Effective positioning is based on
differentiating
Company offers foods, drinks, and logo merchandise to customers who in turn offer company money. What is this relationship known as?
exchange
Developing product specifications follows ________ in the business buyer decision process
general need description
Being proactive toward the marketing environment means that
a company develops strategies to changes in the environment
Which of the following statements about marketing information systems MIS is correct?
a good MIS must balance what users would like to have against what they really need and what is feasible to offer
What does a market segment consists of?
a group of consumers who respond to the marketing effort in the same way
Company products and services are geared toward colleges and students, the students of which many be considered young achievers. This designation can be best described as which influential factor of consumer buying behavior?
age and life stages
Demography studies statistics that include ________
age, gender, race, and occupation
What are the main components of a marketing plan?
an executive summary, situation analysis, objectives, marketing strategy, action programs, budget and controls, and threats and opportunities
What is the purpose of a value proposition?
to differentiate and position a marketing offering in the marketplace
The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________.
value proposition
Companies whose passively accept the marketing environment ________
view it as uncontrollable and do not attempt to change it
During concept testing, who is the product concept actually tested on?
groups of target customers
Profits increase during the __________ stage of the product life cycle.
growth
Students purchasing items with the college logo most likely represent consumers involved in which types elf buying behavior?
habitual occurs under conditions of low consumer involvement and little significant brand difference purchasing a college team t shirt is more about the college it represents not the brand
Which of the following correctly defines the costumer market?
individuals and households that buy goods and services for personal consumption
The rapidly expanding use of e=procurement in business to business deals provides several advantages; however one of the disadvantages is _______
its its suppliers against one another
Which type of data is usually data that has never been gather before?
primary
Which marketing orientation states that consumers will favor products that offer the most in quality, performance, and innovative features?
product concept
__________ is the first stage of the product life cycle.
product development
_________ segmentation divides buyers into different segments based on lifestyle or personality characteristics
psychographic
Consumer motivation, perception, and learning are related to the _______ factors influencing consumer behavior
psychological
A company's ads feature the cast of a popular reality show. Product sale increase significantly among the fans. From the fans viewpoint the cast is a _____
reference group
Which of the following statements is true regarding public policy and government regulation?
legislation affecting business around the world has increased steadily over the years
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?
lifestyle
When company expanded its current products into global markets it was pursuing which growth strategy
market development
Mission statements should be defined in terms of satisfying basic customer needs; in other words they should be
market oriented
The video indicated that the shoes would be sold for $120 to $150 per pair. At which stage of the new product development process was this decision most likely made?
marketing strategy development
What are the three broad targeting strategies used by marketers?
mass marketing, differentiated marketing, and micro marketing
Most products today are in which stage of their product life cycle?
maturity
Prior to the merging of three distinct insurance company names into one new name, which of the following best describes the branding strategy used?
multibrands
In which type of buying situation will a buyer usually go through all eight stages of the business buying process?
new task buying situation
Small businesses and not for profit organizations can obtain good marketing insights through
observational research
A popular football player at a college who is able to influence the buying decisions of fans would be best described as a _______
opinion leader influence are those within a reference group who because of special skills or other characteristics exert social influence
A sizable and growing market of consumers are seeking products such as natural, organic, and nutritional foods, fuel efficient cars, and alternative medicines. This trend is attributed to which cultural value?
peoples view toward nature
For which service characteristic do marketers need to pay close attention to fluctuations indemand?
perishability
One form of e-procurement is _________ in which companies put their purchasing requests online and invite bids
reverse auctions
The step in designing a customer value driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market
segmentation
IN determining which customers to serve, a company engages int hick two marketing activite?
segmenting and targeting
According to the growth share matrix, ________ are high share, high growth products; when the market growth slows these products become _______
stars, cash cows
A business buying situation in which the buyer reorders something without any modifications is known as a _______
straight rebuy
If the product passes both the concept test and the product test, the next step is __________.
test marketing
In today's global environment, everything and everyone are digitally connected to everything and everyone else. The term used to describe this is __________.
the internet of things
What determines if a buyer is satisfied or dissatisfied with a purchase?
the relationship between consumer expectations and perceived product performance
IN portfolio analysis, a company must identify _____ which are key businesses that make up a company
strategic business unit
In the B to B market one strategy is to offer a complete solution to a buyer's problems. This is called __________
systems selling
Prior to becoming Plymouth Rock Assurance, the company marketed three different insurancecompanies: High Point, Plymouth Rock, and Pallasades. Rebranding the three names into one, Plymouth Rock Assurance, was one part of the overall objective of constantly improving the quality of services and business products. This overall process is known as which of thefollowing?
total quality management
One new technology marketers are adopting is radio frequency identification (RFID). What does this technology do?
tracks products and customers at various points in the distribution channel
Which of the following statements about service marketing is correct?
training current employees between and hiring new ones with more skills can increase service productivity
When does the habitual buying behavior occur?
under conditions of low-consumer involvement and little significant brand difference
What must companies do to create successful new products?
understand its consumers, markets, and competitors and develop products that deliver superior value
To create and capture customer value, companies must engage the first step of the marketing process, which is __________.
understand the marketplace and customer needs and wants
Blood donations to the Red Cross are considered __________ products.
unsought
One of the disadvantages of product and service standardization for international market is__________.
varying worldwide market
The video indicated that a company in China was manufacturing the first batch of the shoes. This is indicative of which stage of the new product development process?
commercialization
During the idea generation stage of the new product development process, it is important that__________.
companies create a large number of ideas
Which of the following is true regarding the technological environment?
companies must keep up with changes in technology or risk being left behind
________ us the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketplace
competitive marketing intelligence
A company is engaged in the collection and analysis of information about consumers, competitors, and developments in the marketplace. This systematic monitoring is known as
compettive marketing intelligence
When consumers engage in ______ buying behavior they go through a learning process, so it is most important that marketers understand information gathering and evaluation behavior
complex
Which of the five characteristics identified in the text has an inverse relationship with an innovations rate of adoption? as this characteristic increase the rate of adoption is slower
complexity
Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as ________
concentrated marketing
Candace Cabe created the Day to Night shoe based on an idea she had, and then asked a group of women to provide feedback regarding the idea. Which step of the new product process does this most likely represent?
concept testing
Freedom from defects and consistency in delivering a targeted level of performance is an attribute of product's __________.
conformance quality
Which of the following statements regarding segmentation is correct?
consumer and business marketers use many similar variables but business marketers use additional variables to segment their markets
Which of the following statements is correct regarding consumer buying decisions?
consumers are often unaware of what influence their purchases
Which of the following statement regarding the buyer decision process is correct?
consumers may in some situations skip steps in the buyer decision process
Which of the following statements is correct regarding the influence of personal factors on buyer behavior?
consumers tend to buy brands whose personality matches their own
One recent development in generating new product ideas is for a company to invite broad communities of people such as employees, customers, and even the public at large into the innovation process; this is known as
crowdsourcing
Through a company invites broad communities of people into the innovation process.
crowdsourcing
When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on __________ factors.
cultural
The most basic determinant of a person's wants and behavior are embedded in a consumers _________
culture
What are the 3 cultural factors that influence consumer buying behavior?
culture, subculture, and social class
__________ development focuses on finding new ways to solve customer problems.
customer centered new product
Company is an important part of the community, including customers live and customer involved which indicates the companys is involved in
customer engagement marketing
Company food, logo products, and overall experience keeps customers loyal and coming back time and time again. Such customer loyalty increases ______
customer lifetime value
To improve the performance of the ______ many companies today are partnering with other members of the supply chain suppliers, distributors, and customers
customer value delivery network
Which of the following statements about information and customer insights is correct?
information to gain customer insights come from a wide variety of sources
Which of the following statements about new product development strategy is correct?
innovation can be very expensive and risky
The first group marketers try to bring their new products to the attention to are potential _______
innovators
People can be classified into adopter categories. Which two categories are th first to adopt a new product idea?
innovators and early adopters
Services cannot be seen, tasted, felt, heard, or smelled before they are bought. In other words, services are __________.
intangible
Service quality greatly depends on the quality of the buyer and seller interactions during the service encounter; this is known as
interactive marketing
Some retailers use mannequins with cameras hidden in one eye to record customer demographics and shopping behavior in order to serve them better. This raises ethical concerns in terms of _______
intrusions on consumer privacy
Which of the following correctly defines a product?
is anything offered to a market that might satisfy a need or want
Which of the following statements about the use of digital and social media for B to B marketing is correct?
it allows businesses to target individuals within a business who affect buying decisions
Choosing a differentiated targeting strategy has many benefits, but a potential downside is that__________.
it can increase costs
Using market information to gain customer insights is of little value unless
it is used to make better marketing decisions
Psychographic segmentation divides buyers into different segments based on __________.
lifestyle and personality
When Doritos comes out with new flavors of their tortilla chips, what brand development strategy are they using?
line extension
The _______ consists of larger societal forces that affect how a company engages and serves its customers
macro environment
Business to Business marketing involves buying and selling goods or services by which of the following?
manufacturers, producers, retailers, wholesalers
Which of the following statements regarding the business market is correct?
many sets of business purchases are made for one set of consumer purchases
In additional to selling food, drink, and a variety of times that feature its logo the company is now offering its customers a valuable experience known as its
market offering
Company focuses one of its business units on medical and healthcare group; these groups make up one of the company's'
market segment
Market ______ evaluates each market segment's attractiveness and selects one or more segments to serve
market targeting
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called __________.
market targeting
The owners of a company understand the customer needs and wants by sensing and responding to those needs, indication that the company assumes which philosophy?
marketing concept
Use of commercials, newspapers, social media, and other media to control the marketing message is what kind of marketing concept
marketing mix
Company hopes to create a customer value through its mission, strategic goals and objectives, marketing mix, and other marketing tools; this collective effort is known as
marketing strategy
If a company finds that a new product concept is acceptable and should be moved forward, what is the next step in the new product development process?
marketing strategy development
Which of the following best describes brand equity?
measure of the brands ability to capture consumer preference and loyalty
For Super Bowl Sunday a pizzeria simply increases their order of supplies from their existing suppliers. Which type of buying situation does this represent?
modified rebuy
Which of the following would be an appropriate strategy during the maturity stage of the productlifecycle?
modify the market, product offering, or marketing mix
Which of the following is a personal factor that influences a consumer's buying behavior
occupation
Which of the following statements about big data is correct?
one result of big data is that marketing managers are often overloaded with information
Which of the following statements about online research is correct?
online surveys generally have higher response rates than those conducted by mail or phone
Items such as technical specifications, quantity, delivery time, return policies, and warranties are included in which stage of the buying decision process?
order routine specification
________ includes the final order with the chosen suppler or suppliers and lists other required items.
order routine specification
Which of the following correctly defines the institutional market?
organizations that provide goods and services to people in their care
Which of the of the following best described a marketing information system MIS?
people and procedures that are used to manage information to generate and validate actionable customer and market insights
Prior to changing its product offerings and realigning its business units managers at a company most likely first performed which of the following to determine those units that were profitable and those that should be phased out or realigned?
perform a portfolio analysis
What tends to be the most effective source of information when consumers make a buying decision?
personal sources
Which of the following statements regarding positioning is correct?
positions must adapt over time to meet changing consumer needs
When Eaton's customers became aware that they needed solutions for power management, energy savings, green technologies, and LEED certification, they were in which phase of the business buying process?
problem recognition
At which stage of the new product development process is a physical product first developed?
product development
Marketers should carefully consider public policy issues and regulations regarding all of the following except __________.
product development
Time to invest in _____ by offering new products to the technology market
product development
BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Built Ford Tough". Which type of differentiation do these examples represent?
product differentiation
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 types of outlets, or fall within given price ranges are called a(n) __________.
product line
The number of items in a product line represents the __________ and the total number of product lines a company carries represents the __________.
product line length, product mix width
If a company adds a new product line to its existing portfolio, it has increased its __________.
product mix width
Product value analysis is an approach to cost reduction that is used at which stage of the buying decision process?
product specification
Market offerings include
products, services and experiences
Which of the following is true of a new product in the introduction stage, such as the Day to Nightheels?
profits are generally negative due to the high cost of R&D
One important reason that business legislation is enacted is to ______
protect consumers from unfair business practices
Which of the following correctly lists marketing intermediaries?
resellers, physical distribution firms, marketing service agencies, and financial intermediaries
To do e-procurement, companies can conduct _____ in which they put their purchasing requests online and invite suppliers to bid for the business
reverse auctions
When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________.
sales would be slow and profits nonexistent
Marketing was once understood in the sense of making a sale. Today, marketing is understood in the new sense of __________.
satisfying customer needs
The first step to a successful value-driven marketing strategy is to determine whom to serve with a market offering. To make this decision, marketers engage in which two activities?
segmenting and targeting
After defining its mission the next step in strategic planning is it
set company objectives and goals
Furniture, major appliances, clothing, and hotel services are classified as __________ products.
shopping
Which of the following correctly identifies the social factors that influence consumer buyer behavior?
small groups, social networks, family, and social roles and status
Companies such asIBM, Walmart, and Google now look beyond economic gain and, in their marketingstrategies, they also consider the well-being of customers, the depletion of natural resources, the viability of suppliers, and the interests of the local community. This reflects which marketingphilosophy?
societal marketing concept
Throughout the years a company has shifted from selling strictly components to solving its customer problems with more tailored offerings. This is an example of _________
solutions selling
According to the text, the most successful new products satisfy three criteria. What are thesecriteria?
solve a major customer problem, are differentiated, and offer a compelling value proposition
What are the two major components of a B to B marketer's buying activity?
the buying center and the buying decisions process
Which of the following statements regarding socially responsible product decisions is correct?
the government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition
Which one of the following statements about marketing research in small businesses and nonprofit organizations is correct?
the research methods of small businesses and nonprofits are less complex and less costly but they still must be conducted carefully
What is the overall goal of marketing strategy?
to create customer value and build profitable relationships
What are perceptual positioning maps used for?
to show consumer perceptions of different brands on important product dimensions
Which generational age group is now forming brand relationships and represent tomorrow's markets?
Gen Z
Many companies manage detailed information about individual customers by using all of the following methods except ______
collecting and storing huge amounts of data
What is positioning?
arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
_______ is the first stage in the new product adoption process
awareness
_______ segmentation divides buyers into segments based on their knwoelge, attitudes, uses, or responses to a product
behavioral
Company segmented the market by targeting parents of preschoolers who wished to have an educational and entertaining experience for and with their children. Which type of segmentation does this describe?
benefits sought
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation.
benefits sought
According to the stimulus-response model of buying behavior, marketing and other stimuli enter the consumer's ______ and produce certain responses
black box
The name Plymouth Rock Assurance identifies the company as the seller of its services andproducts, which is also known as which of the following?
brand
__________ is a measure of the brand's ability to capture consumer preference and loyalty.
brand equity
The branding strategy of launching a product or service as a national or store brand is considered a __________.
brand sponsorship
__________ helps the seller to segment markets.
branding
What is the final step in the marketing process
capture value from customers
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague?
carefully consider the degree of competition and ease off entry into the segment
The BCG Matrix classifies products which have a high market share in low growth market as
cash cows
Fathers were once ignored or portrayed as dolts in advertising, however today's advertisers are showing more caring and capable dads. This reflects which demographic trend?
changing dynamics in the american family
Amazon and GEICO set themselves apart with their smooth functioning direct delivery strategy referred to as __________ differentiation
channel
Institutional markets are ______
characterized by low budget, captive patrons
Consumer purchases are influenced strongly by certain characteristics which include all of the following except ______
cognitive
Typically, consumers put in minimum time and effort when buying products such as laundrydetergent, candy, and fast food. These types of goods are classified as __________ products.
convenience
Product planners think of products on three levels. Which of the following correctly identifies the three levels?
core customer value, actual product, augmented product
The key element of successful marketing today is to
create value
What is the key to building lasting customer relationships?
creating superior customer value and satisfaction
Unlike marketers in the consumer market, business to business marketers _______
deal with far fewer but far larger buyers
What is the first step in the marketing research process?
define the problem
Company markets to preschool ages and their parents which typically of segmentation are they using?
demographic
Business to Business marketers will sometimes promote their goods directly to consumers. This is because business demand is ________
derived
When the economic crises hit in 2008, consumers began cutting back, and as a result, Eaton's customers needed to cut costs and scale back operations. This in turn impacted Eaton's sales which is known as _______
derived demand
Survey research is the approach best suited for gathering __________
descriptive research
There are a number of influences on the buying organization and buying center that can impact how and what is purchased by a business. For Eaton's customers, the economic crises in 2008 would be classified as what type of influence?
environmental
Many companies are going beyond government regulation and are developing strategies and practices that create a world economy that the planet can support indefinitely. This represents ______
environmental sustainability
The objective of ______ research is to gather preliminary information that will help define the problem and suggest hypotheses.
exploratory
When Eaton worked with the University of Notre Dame on its new engineering building to improve its energy efficiency and earn LEED credits, Eaton engaged with a number of people at Notre Dame to finalize the partnership and solidify terms and conditions associated with the agreement. Which of the following people in the buying center would have affected NotreDame's buying decision (for example, define specs and provide information on evaluatingalternatives)?
infleuncers
A University is buying new overhead projectors for its classrooms. The University's Information Technology Department has been asked to provide specifications and recommendations for this purchase. The IT Department is playing which role in the University's buying center?
influencer
________ are members of the buying center who help define specifications and provide information for evaluating alternatives
influencers
One characteristic of services is their variability. What is the main reason for services beingvariable?
service quality depends on who provides them, as well as when, where, and how they are provided
__________ means that the quality of services depends on who provides them as well aswhen, where, and how they are provided.
service variability
Which of the following statements regarding the US government is correct?
the US government is the largest buyer of goods and services in the world
Which of the following statements regarding the current demographic environment is current?
the US population is rapidly getting older
Which of the following is an advantage to using internal databases for information?
they can be accessed quickly and cheaply
What is the overall focus of strategic planning?
to create a game plan for long run survival and growth in consideration of changing marketing opportunities
A ____________ is defined as a any contact between a customer and a company
touch point
Using a ________ marketing strategy a firm might decide to ignore market segment differences
undifferentiated
The primary goal of consistently delivering superior value is to ________.
build profitable customer relationships
Which of the following is not considered one of the links in the service profit chain?
buyer seller interaction
A marketer who wishes to gain insight into the demographics and attitudes of consumers who buy their product would likely ask someone to perform which type of research?
descriptive research
After defining the problem an objectives, what is the next step in the marketing research process?
develop the research plan
Which of the following statements about segmentation is true?
different segments might require different marketing strategies or mixes
Company has created a unique market offering by integrating its programs with both children and parents. This unique offering that creates superior customer value is known as _______
differentiating
_______ behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands.
dissonance reducing buying behavior
When a firm starts up or buys a business outside of its current product line and markets, it is pursuing which growth strategies?
diversification
Sending observers to watch and interact with consumers in their natural environment is now as
ethnographic research
Companies can allow key customers and value network members to access account, product, and other data through _______
extranets
A temporal period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called
fad
Compared to the mainstream buying public, Hispanic consumers tend to be deeply _______ oriented, making this a special characteristic and behavior.
family
Defining the problem and research objectives is the ________ step in the marketing research process
first
In the production adoption process
five stages
You and seven other people are talking with a trained moderators about your feeling and thoughts about a new potential product. For doing this you receive a mall payment. You are participating in an
focus group interview
Hospital purchasing agents should prefer ________
food vendors with low prices and quality products
In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is known as __________ the product.
harvesting
New product development starts with __________.
idea generation
What is the first step of the new product development process?
idea generation
Candace Cabe likely had several different ideas for a convertible high-heel, but sifted through each idea until she found the one that was most marketable. Which step of the new development process did this most likely occur in?
idea screening
Which of the following statements regarding habitual buying behavior is correct?
in these types of purchases marketers often use price and sales promotion as incentives for purchase
Ford offers a wide variety of cars that range from around $14000 to more than $54000. This reflects which economic factor?
income distribution
Materials and parts, capital items, and supplies and services are groups of __________products.
industrial
Business markets have demand that _____
inelastic
Company provides college students with new, relevant media, making which stage of the consumer buyer behavior process easier for the consumer?
information search
