Marketing Final
The _____ authorizes the Federal Trade Commission to restrict unfair or deceptive acts.
Wheeler-Lea Amendment
Which of the following exemplifies a strategy to cater to the sociocultural factor of busier families in America?
the launch of online ticket-booking options
In the context of the consumer adoption process, which of the following is true of the evaluation stage?
At this stage, the consumer thinks about the product's value and whether to try it out.
____ is a relatively enduring organization of beliefs, feelings, and behavioral tendencies toward socially significant objects, groups, events or symbols.
Attitude
Gordon regularly buys meat from Big Well. Big Well also sells meat to local restaurants such as Penny Grills, where Gordon and his wife, Rita, celebrated their wedding anniversary. Big Well sources its meat from Sandown Ranch, owned by rancher Levin and his family. In this scenario, who is the retailer?
Big Well
_____ is used to understand the impact of independent variables on a particular dependent variable.
Causal research
Which of the following is an advantage of sequential new-product development?
Companies can track project progress more easily than with concurrent new-product development.
_____ involves systematically gathering data about what strategies direct and indirect rivals are pursuing in terms of new product development and the marketing mix.
Competitive intelligence
_____ is the most common gauge of the overall expansion or contraction of an economy.
Gross domestic product
Which of the following pairs of products can be regarded as substitute products?
Internet radio and traditional radio
Radio Z and Buzz are radio stations in direct competition with each other. The target audience for both radio stations is the same, with most of the stations' income coming from commercials. Which of the following strategies can Buzz use to differentiate its services from Radio Z?
It can tune its shows to cater to specific needs of the audience.
Which of the following is true of observation?
It is not useful in determining the reason behind people's behaviors.
Which of the following is true of the World Trade Organization?
It is the only international organization dealing with the rules of trade between nations.
Which of the following is a feature of the executive summary?
It must be done after the rest of the marketing plan has been completed.
Which of the following statements best describes descriptive research?
It seeks to understand consumer behavior by answering the questions who, what, when, where, and how.
What is the major difference between a nonprofit organization and a for-profit organization?
The benefactors of nonprofit organizations do not receive any direct benefit, unlike customers.
Why is building brand equity essential for nonprofit organizations?
Nonprofits have complex missions that are hard to achieve.
The higher percentage of U.S. exports to Canada and Mexico rather than to other individual countries can be attributed to the
North American Free Trade Agreement.
____ is a practice in which companies frequently come out with new models of a product that make existing models outdated.
Planned obsolescence
Why do firms find primary data more valuable than secondary data?
Primary data are collected to answer a specific research question.
Which of the following risks that a company takes in new-product development is the most severe?
Product fails to meet needs and wants of customers.
What is the relationship between purchasing power and inflation?
Purchasing power decreases with rising inflation.
BlackTop, a mobile-case manufacturer, manufactured and sold 100,000 units of its latest Pop-On cases. BlackTop plans on introducing more colors and designs in the following months. Ramona, the owner of a large retail store, was one of BlackTop's earliest customers. In which of the following situations can BlackTop expect a straight rebuy from Ramona?
Ramona loves the feel of her device with the Pop-On cover on it.
Resco is an apparel manufacturer whose products are carried only by two major retailers in the United States. In the context of SWOT analysis, which of the following can be classified as a weakness of Resco in this scenario?
Resco's manufacturing units use legacy technology that sometimes leads to backorders.
Taymen Inc., a furniture manufacturer based in Arizona, has tie-ups with raw material suppliers and shipping companies who provide Taymen a uniform pricing option across the United States. Despite the cost of production and distribution being the same across the United States, Taymen charges more for its products on the West Coast than in other parts of the United States. Which of the following acts prohibits this practice?
Robinson-Patman Act
_____ pertains to what a consumer's full potential is and the need to realize that potential.
Self-actualization
Which of the following is true about various demographics in the United States?
Seniors are more likely to complain and require more attention than their younger counterparts.
_____ is the process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives.
Strategic planning
Why should firms selling products globally, use local marketing research companies?
Such companies are familiar with the regional population and language.
Which of the following is true of the business-to-business (B2B) purchasing process?
The B2B purchasing process is often far longer than the consumer decision-making process.
Which of the following is a major risk associated with licensing?
The licensor may be inadvertently creating a future competitor in the form of the licensee.
Assuming that a kilo of wheat sold for $1 in 2002 and $3 in 2013, which of the following can be inferred?
The purchasing power of the consumers has decreased.
Why do marketers tend to target educated consumers?
They are more likely to comprehend an advertising message.
Which of the following is true of new-category entries?
They help a company open up a whole new set of customers.
Vida is an Italian car manufacturer with manufacturing plants all over the world, including the United States. In the context of SWOT analysis, which of the following can be classified as one of Vida's strengths?
Vida recently recruited two senior engineers from one of its major competitors.
Zbar, a mobile phone-manufacturing company, decides to pursue a market development strategy to further its business prospects. In this situation, which of the following actions falls in line with Zbar's latest strategic direction?
Zbar enters a price-sensitive market with its low-end phones.
Zen Breweries has plans to develop a new beverage. It wants to reduce risks in the development of its new product. Which of the following steps will help Zen reduce the risk of new-product failure?
Zen should listen to the customer carefully.
Which of the following scenarios reflects the trial stage of the consumer adoption process?
a consumer test riding a bike at a sports equipment store to see if she likes it
A recession occurs when
a nation's GDP declines for two or more consecutive quarters.
Which of the following buying situations is most likely to involve extensive external information search?
a new buy
Borneo Inc. manufactures coffee. It used to sell its product in glass jars, but it has recently made its coffee more granular and packaged it in vacuum-packed cartons, which weigh less. This product is an example of
a revamped product.
In the context of a SWOT analysis, which of the following can be classified as an opportunity for a manufacturing firm?
a rise in demand for products that the firm manufactures
Consumer learning typically begins with
a stimulus that encourages consumers to act to reduce a need or want.
An aspirational reference group is one
an individual would like to emulate.
Robin, a 28-year-old fashion designer, is very finicky about the brands that she consumes as a customer. She believes in buying brands that she has previously used. When Robin walks into Brown and Grey, a supermarket, she is most likely to engage in _____ to buy toothpaste and mouthwash.
an internal information search
Which of the following is the first stage in the consumer adoption process?
awareness
The growth in information that inundates businesses each day and the complex tools used to analyze the data and derive meaningful insights is known as
big data.
To combat the ethical implications of gathering data on customers, many companies employ
chief privacy officers.
Tom recently bought a pair of headphones, XOB 10, from Blue for $99. Within a month, Tom's friend, Leo, bought a brand new pair of headphones XGD 20, released by Soundz, online at a reduced price of $86. Tom tried the XGD 20 and found it to be significantly better the XOB 10. In this scenario, Tom is most likely to experience
cognitive dissonance.
In the context of new-product characteristics that impact the adoption rate of a product, _____ refers to how well a new product fits into potential customers' needs, values, product knowledge, and past behaviors.
compatibility
Joint ventures work best when the partners'
competitive goals diverge.
The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs is known as
consumer behavior.
If the economy of a country contracts and people lose jobs
consumer confidence decreases.
A product possesses a competitive advantage when it enjoys a superior position over competing products because
consumers believe it has more value than other products in its category.
The two metrics used to evaluate a firm's profitability are customer acquisition and
customer profitability.
Which of the following is an example of a secondary data source?
data collected by an organization every day for its routine operations
Which of the following is a function of the marketing strategy in a marketing plan?
defining the target market
The process by which new products are likely to be adopted, the rate at which they will be adopted, and the process through which the products will spread into markets is termed
diffusion.
A market penetration strategy
emphasizes selling more of existing goods and services to existing customers.
A demand analysis is most likely to be conducted by a company seeking to
establish the price of a new product.
Opinion leaders are people who
exert influence on consumer buying decisions by virtue of the knowledge that they possess.
When customers look beyond their personal knowledge and experience to help them in buying something, they are engaging in
external information search.
Tesseract Inc. launched a range of small toy cars which, became extremely popular within days of its release. Customers queued up to buy the cars and stores ran out of stock rapidly. However, in a few months, demand for the product started to decline and the company soon discontinued production of the range. Based on the product life cycle curve of the product, the product can be identified as a
fad product.
Franchising is an attractive method of entering foreign markets because
franchisees assume the majority of the capital costs and human resource issues.
Which stage of the product life cycle is characterized by increases in sales, profits, and competition?
growth
The most frequently offered eye-tracking output is/are
heat maps.
One of the functions of the International Monetary Fund is to
help member countries manage their debt by providing resources to them.
Which of the following is the last stage in the new-product development process?
initially producing, distributing, and promoting a new product
Catalina, a young, successful manager, always buys the latest gadgets on the market. She takes pride in buying new technology products as soon as they are launched and her friends always seek her opinion about new products. Which type of adopter can Catalina be categorized as?
innovator
Promotional strategies in the _____ stage of the product life cycle usually involve making customers aware of the product and its attributes.
introductory
A firm with a "cash cow" product is most likely to
invest just enough money to maintain strong sales.
The mission statement of a firm
is a concise affirmation of the firm's long-term purpose.
One of the disadvantages of concurrent new-product development is that
it is more difficult to control when compared to sequential new-product development.
John is 55 years old and is a janitor at a school. He prefers to buy the same brands he used as a young man and does not trust online retailers. What type of adopter can John be classified as?
laggard
A person's activities, interests, and opinions are related to his or her
lifestyle.
Gary is a promising young model. In future, he hopes to become as famous as his idol, Sean O'Pry. According to Maslow's hierarchy of needs, this need can be classified as a
lower esteem need.
A _____ is a system that assesses an organization's marketing information needs, develops the needed information, and helps decision makers use information to create and validate actionable customer insights.
marketing information system
The _____ is an action-oriented document or playbook that guides the analysis, implementation, and control of the firm's marketing strategy.
marketing plan
The primary strategic planning tool for directing and coordinating the marketing effort is the
marketing plan.
Passive data collection is a technique used in
mobile marketing research.
The formal or informal societal rules that specify or prohibit certain behaviors in specific situations are referred to as
norms.
Which of the following is an unethical way of obtaining competitive intelligence?
offering money to competitors' employees in exchange for information
Which of the following exemplifies impulse buying in a supermarket?
picking up a candy bar while waiting in line at the checkout counter
A group of related products marketed by the same firm is known as a(n)
product line.
Indirect competition occurs when
products provide alternative solutions to the same market.
A _____ is a mock-up of a good, often created individually with the materials a firm expects to use in the final product.
prototype
The mission statement of a firm
provides a standard to ensure that the business never strays too far from its core goals and values.
Marketers are attracted to countries with a growing middle class because a nation's
purchasing capability tends to increase as the proportion of middle-income households increases.
Ruth designs games for mobile operating systems such as iOS and Windows. The demand for games on mobile devices is high. Ruth's latest game, Viper Slash, is yet to generate profitable sales despite receiving rave reviews. According to the BCG matrix, Viper Slash can be classified as a
question mark product.
Green Mat, a notebook manufacturer, wants to gauge the response of customers to its new line of eco-friendly notebooks. Being situated in a school district, the marketing team at Green Mat restricts the respondents to school-attending teenagers. This scenario exemplifies
quota sampling.
A country has a GDP of $23 million during the first quarter of 2015. During the next two quarters, it records a GDP of $21 million and $20.5 million, respectively. This trend can be classified as a(n)
recession.
Marketers can transition certain high-involvement products to low-involvement products for satisfied customers by
removing doubts about the efficacy of the products.
A firm measures its effectiveness in using the resources it has allocated to its marketing effort by use of which tool?
return on marketing investment
According to Maslow's hierarchy of needs, once their physiological needs have been satisfied, consumers' _____ take precedence.
safety needs
GAM, a mobile application developer, develops Talk2Text, an app that converts audio to text. Based on the demand estimated for the app during a free trial, the amount of usage, and the demographics of the users, GAM reckons that the app will sell 5,000 units over a period of six months. This scenario exemplifies
sales forecasting.
The first step in the marketing research process involves
setting specific objectives for the research.
One of the advantages of quantitative research is that
the results may be generalizable to a larger population.
In codes issued to organizations by the North American Industry Classification System
the sixth digit can vary among NAFTA countries.
Which of the following is a recent trend in marketing research?
the use of user-generated content in online research
A measurement instrument exhibits _____ if it measures what it is supposed to measure, and not something else.
validity
