Marketing Exam 2

________ segmentation assumes that nations close to one another will have many common traits and behaviors. A) Geographic B) Occasion C) Psychographic D) Benefit E) Demographic

A) Geographic

________ is the only element in the marketing mix that produces revenue. A) Price B) Product C) Place D) Fixed costs E) Variable costs

A) Price

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. A) Shopping products B) Convenience products C) Unsought products D) Capital items E) Supplies and repair services

A) Shopping products

Marketing mix planning begins with ________. A) building an offering that brings value to target customers B) finding a suitable promotion strategy for the product C) setting a reasonable price for the product D) selecting the right channel for distribution of the product E) calculating the total costs involved in manufacturing the product

A) building an offering that brings value to target customers

What are the two dimensions of product quality? A) consistency and level B) performance and conformance C) design and innovation D) conformance and style E) feature and design

A) consistency and level

Business demand that ultimately comes from the demand for consumer goods is known as ________ demand. A) derived B) negative C) primary D) consumer E) elastic

A) derived

Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed servers and computers for his company, he decided to order these from a local vendor who was offering attractive discounts. In this instance, Peter ________. A) faces a new task situation B) faces a modified rebuy situation C) is most likely to benefit the most from reverse auction D) faces the need for product differentiation E) plans to attract customers by offering products at below-market prices

A) faces a new task situation

Business buyers are heavily influenced by factors in the current and expected economic environment, such as ________. A) level of primary demand B) organizational objectives C) group dynamics D) individual motives E) culture and customs

A) level of primary demand

Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of ________. A) line filling B) social marketing C) market diversification D) negative brand equity E) person marketing

A) line filling

A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. This exemplifies its ________ costs. A) overhead B) variable C) target D) total E) unit

A) overhead

Underpriced products ________. A) produce less revenue than they would if they were priced at the level of perceived value B) sell poorly in the global marketplace C) produce more revenue than they would if they were priced at the level of perceived value D) mostly offer higher value than those with a high markup price E) are characterized by rapidly declining demand

A) produce less revenue than they would if they were priced at the level of perceived value

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) multibrand E) new brand

A) product line

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________. A) test marketing B) focus group surveys C) commercialization D) concept testing E) business analysis

A) test marketing

Acquisition refers to ________. A) the buying of a whole company, a patent, or a license to produce someone else's product B) an agreement between two or more commercial companies to produce a common product C) a partnership between two companies to produce a product in different countries by sharing risks D) investments made in a country's businesses by foreign citizens, often in the form of stocks E) the development of original products, product improvements, product modifications, and new brands through the firm's own product development strategies

A) the buying of a whole company, a patent, or a license to produce someone else's product

In business markets with inelastic demand ________. A) the total demand for products is not much affected by short-term price changes B) buyers are highly sensitive to price changes C) derived demand is absent D) a business purchase usually involves less decision participants E) a business purchase usually does not involve a professional purchasing effort

A) the total demand for products is not much affected by short-term price changes

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines. A) Behavioral B) Gender C) Benefit D) Occasion E) Geographic

B) Gender

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price. A) Markup B) Good-value C) Cost-plus D) Target profit E) Break-even

B) Good-value

________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization. A) Social network B) Organization C) Niche D) Location E) Concentrated

B) Organization

________ are the major marketing factors in the sale of most manufactured materials and parts. A) Branding and advertising B) Price and service C) Sales promotion and advertising D) Branding and packaging E) Public relations and brand management

B) Price and service

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Liabilities B) Services C) Brands D) Consumer products E) Specialty products

B) Services

________ marketing is more suited for uniform products, such as grapefruit or steel. A) Niche B) Undifferentiated C) One-to-one D) Trigger-based E) Local

B) Undifferentiated

A marketer wanting to determine business buyer behavior is most likely to ask which of the following questions? A) Are buyers sensitive toward price changes in consumer markets? B) What are the major influences on buyers? C) Are niche markets more profitable than mass markets? D) How do interpersonal factors affect organizational performance? E) Is the role of gatekeepers relevant in the international business environment?

B) What are the major influences on buyers?

Business buyer behavior refers to the ________. A) buying behavior of consumers who buy goods and services for personal consumption B) buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others C) buying behavior of consumers who rely on small retailers for the regular supply of provisions D) decision process by which business buyers determine which products and services their organizations need to purchase E) strong affinity of businesses for value-for-money deals

B) buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

The decision-making unit of a purchasing organization is called its ________. A) value chain B) buying center C) customer support system D) quality center E) innovation center

B) buying center

Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This exemplifies ________. A) target pricing B) cost-plus pricing C) value-based pricing D) break-even pricing E) penetration pricing

B) cost-plus pricing

The learning curve is representative of the ________. A) per unit cost of output in the long run B) drop in the average per-unit production cost that comes with accumulated production experience C) number of units the market will buy in a given time period, at different prices that might be charged D) total market demand resulting from different prices E) per unit cost of output in the short run

B) drop in the average per-unit production cost that comes with accumulated production experience

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing. A) competition-based B) everyday low C) cost-plus D) break-even E) penetration

B) everyday low

Product improvements, product modifications, and original products can all be classified as ________. A) blueprints B) new products C) prototypes D) product extensions E) test products

B) new products

An attractive product idea must be developed into a ________. A) concept alternative B) product concept C) brand personality D) brand placement E) product strategy

B) product concept

Consumer products refer to ________. A) products purchased by consumers for further processing or for use in conducting a business B) products and services bought by final consumers for personal consumption C) primarily intangible offerings from marketers D) raw materials as well as manufactured materials and parts E) products that aid in the consumer's production or operations, including installations and accessory equipment

B) products and services bought by final consumers for personal consumption

Costs that change with the level of production are referred to as ________. A) fixed costs B) variable costs C) target costs D) total costs E) overhead costs

B) variable costs

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it. A) Gender segmentation B) Psychographic segmentation C) Benefit segmentation D) Geographic segmentation E) Age and life-cycle segmentation

C) Benefit segmentation

________ may help shape product specifications, but their major role is to select vendors and to negotiate. A) Gatekeepers B) Deciders C) Buyers D) Influencers E) Users

C) Buyers

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. A) Mass customization B) Market targeting C) Market segmentation D) Differentiation E) Positioning

C) Market segmentation

________ occurs when someone in the company identifies a need that can be met by acquiring a specific product or service. A) Solutions selling B) Proposal solicitation C) Problem recognition D) Performance review E) Real-time marketing

C) Problem recognition

________ is an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes. A) Business intelligence B) Quality function deployment C) Total quality management D) Brand equity management E) Product positioning

C) Total quality management

Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________. A) derived demand B) inelastic demand C) a straight rebuy D) a new task E) a modified rebuy

C) a straight rebuy

Business markets are similar to consumer markets in that ________. A) the nature of the buying unit is the same for both B) the decision processes involved in both the markets are same C) both involve people who assume buying roles and make purchase decisions to satisfy needs D) both share the same market structure E) the types of decisions are fairly consistent in both the markets

C) both involve people who assume buying roles and make purchase decisions to satisfy needs

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________. A) business feasibility plan B) marketing strategy development C) business analysis D) product acceptance E) business proposal

C) business analysis

What sets the ceiling for product prices? A) product manufacturing costs B) sellers' perceptions of the product's value C) customer perceptions of the product's value D) variable costs E) break-even volume

C) customer perceptions of the product's value

What is included in the first part of a marketing strategy statement? A) distribution strategy B) product longevity C) long-run sales goals D) promotional mixes E) target market description

E) target market description

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an example of a ________. A) convenience product B) capital item C) specialty product D) service E) product attribute

C) specialty product

Which of the following is a disadvantage of using a differentiated marketing strategy? A) generates far lower sales compared to an undifferentiated marketing strategy B) customer loyalty is negatively impacted and difficult to obtain C) the costs of doing business increase D) quality control problems increase E) product safety decreases

C) the costs of doing business increase

Which of the following is the most likely reason that employees regularly attend trade shows and seminars? A) to analyze the product life cycle B) to test new product concepts C) to get new product ideas D) to imitate competitors' products and strategies E) to implement a team-based new product development approach

C) to get new product ideas

Product mix ________ refers to the number of different product lines the company carries. A) length B) height C) width D) consistency E) depth

C) width

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies? A) individual marketing B) one-to-one marketing C) mass marketing D) concentrated marketing E) trigger-based marketing

D) concentrated marketing

Department stores such as Kohl's and Macy's practice high-low pricing by ________. A) charging a constant, everyday low price B) providing few or no temporary price discounts C) increasing prices temporarily on select products D) having frequent sale days for store credit-card holders E) underpricing most consumer items

D) having frequent sale days for store credit-card holders

Sage Hospitals, a nonprofit organization, provides healthcare to the people in the Midwest. Management at Sage is involved in the ________ market. A) government B) consumer C) wholesale D) institutional E) resell

D) institutional

Many companies have developed ________ programs that encourage employees to develop new product ideas. A) management B) incentive C) entrepreneurial D) intrapreneurial E) crowdsourcing

D) intrapreneurial

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________. A) occasion segmenting B) local marketing C) market diversification D) market targeting E) product positioning

D) market targeting

Factors such as a firm's objectives, procedures, and systems are examples of ________ influences on the business buyer behavior. A) political B) interpersonal C) technological D) organizational E) cultural

D) organizational

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals. A) demographic segmentation B) geographic segmentation C) benefit segmentation D) psychographic segmentation E) occasion segmentation

D) psychographic segmentation

Which of the following statements best explains why idea screening may be the most important step of new product development? A) It increases the number of ideas generated. B) It provides an opportunity for the marketer to test the prototype in a simulated market. C) It helps forecast the products' sales and profits accurately for a specific period. D) It gives research and development team members an opportunity to gather consumer feedback. E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

Which of the following is an example of a pure tangible good? A) a laptop with a comprehensive warranty for three years B) an online shoe retailer that provides free home delivery C) an agency that offers free legal advice D) a credit card E) a bag of potato chips

E) a bag of potato chips

In the new product development process, the first idea-reducing stage is ________. A) business analysis B) idea generation C) concept development D) crowdsourcing E) idea screening

E) idea screening

A good design begins with ________. A) brainstorming new product ideas B) making prototypes of the planned product C) identifying the most suitable and aesthetic packaging D) brainstorming technical product specifications E) observing and understanding customers and shaping their product-use experience

E) observing and understanding customers and shaping their product-use experience

Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________ marketing. A) corporate image B) person C) organization D) internal E) place

E) place

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation. A) occasion B) geographic C) income D) benefit E) psychographic

E) psychographic

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing? A) when the new product requires a major investment B) when management lacks confidence in the new product C) when management lacks confidence in the marketing strategy D) when the product has no substitutes and is new in its category E) when the costs of developing and introducing the product are low

E) when the costs of developing and introducing the product are low