Marketing Final Exam test 1 and 2

Which of the following countries has the highest gross domestic product?

Acquardica, whose market value of final goods is $170 billion and market value of final services is $90 billion for a year

Which of the following is true about inflation?

Inflation is an indicator of the decrease in the value of money.

Which of the following is true of outsourcing?

It faces production delays due to faulty parts.

Which statement is true of market segmentation?

It helps marketers design marketing mixes that match the characteristics of one or more segments.

Tamery Corp. is engaged in marketing various goods and services. It buys products from various manufacturers and sells them to businesses and end consumers. Given this information, Tamery Corp. is said to be selling consumer products if:

it sells books to students

Which statement is true of consumer behavior?

The study of consumer behavior includes factors that influence purchase decisions and product use.

Addoso Inc. manufactures electronic gadgets. The marketing managers at Addoso have found that a new competitor is gaining more customers. In the context of SWOT analysis, which of the following actions should be prioritized by Addoso's marketing managers?

They must analyze aspects of its marketing environment

A company selling plain toilet paper is an example of a firm that uses an undifferentiated targeting strategy.

True

A global marketer or a firm considering global marketing must consider the external environment.

True

A subculture is a homogeneous group of people who share elements of an overall culture as well as cultural elements unique to their own group. Within subcultures, people's attitudes, values, and purchase decisions are even more similar than they are within the broader culture.

True

A production-orientated company can survive in a competitive market if ______.

its goods and services meet the needs of the market place

A target market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

True

According to Ansoff's strategic opportunity matrix, both product development and diversification entail the creation of new products.

True

Having too many choices can confuse consumers and cause them to delay the decision to buy, or in some cases, cause them not to buy at all.

True

Neuromarketing is a fresh attempt to better understand consumers' responses to promotion and purchase motivations.

True

Segmentation descriptors identify the specific segmentation variables to use in segmenting a market.

True

The U.S. federal government buys goods and services valued at more than $875 billion per year, making it the world's largest customer.

True

The ability of multinationals to tap financial, physical, and human resources from all over the world and combine them economically and profitably can benefit any country.

True

The four Ps of global marketing strategy are product, place, promotion, and price.

True

The size of the business market in the United States and most other countries substantially exceeds that of the consumer market.

True

Typically, more people are involved in a single business purchase decision than in a consumer purchase decision.

True

Unilever is an example of multinational company with a multisegment targeting strategy that has many products in its product line.

True

Foreign Corrupt Practices Act (FCPA) was enacted because congress was concerned about

U.S. corporations' use of illegal payments and bribes in international business dealings.

A firm that acknowledges the importance of all four marketing mix decisions (product decisions, place or distribution decisions, promotion decisions, and pricing decisions) is a ______ firm

market-oriented

Which of the following statements is true of a target market?

uncontrollable elements continually evolve and create changes in a target market

Which of the following ethical theories states that the most ethical choice in a situation is one that produces the greatest benefit to the most people?

Utilitarian ethical theory

A statement of what is to be accomplished through marketing activities is called __________.

a marketing objective

Choqlate King Inc. is a large company that manufactures and sells chocolate bars. It plans to adopt a product development strategy. In this case, Choqlate King will:

introduce a product line of low-calorie chocolates.

When properly created, a strategic business unit (SBU) of a large company:

has a specific target market

A sales-oriented firm defines its mission in terms of benefits its customers seek, while a market-oriented firm defines its business in terms of goods and services.

False

A sampling error is an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process.

False

Cannibalization occurs when the sales of a firm's existing product increase with the introduction of a new product.

False

Consumers can be influenced by reference groups only if they belong to those groups.

False

Customers looking for luxury want products that exhibit careful craftsmanship, timeless design, prestige, and exclusivity. This type of market is segmented by ethnicity.

False

Global marketing is a one-way street whereby only U.S. companies sell their wares and services throughout the world.

False

In a buying center, the decider is the person who actually negotiates a purchase.

False

In social media marketing, awareness occurs when action is taken by a business or individual consumer that includes everything from downloading a piece of content (like a white paper) to actually making a purchase.

False

Marketing career opportunities almost exclusively exist in nonbusiness organizations.

False

Often, secondary data sources give detailed information that would enable a researcher to assess their quality or relevance.

False

Scanner-based research is the process of researching brain patterns and measuring certain physiological responses to marketing stimuli.

False

Secondary data refers to information collected for the first time.

False

The process by which we select, organize, and interpret stimuli into a meaningful and coherent picture is called learning.

False

The pyramid of corporate social responsibility presents ethical responsibilities as the foundation for the other three responsibilities.

False

The utilitarian theory of ethical behavior is a belief in time-and-place ethics, that is, ethical truths depend on the individuals and groups holding them.

False

Unlike experiential learning, conceptual learning occurs when an experience changes your behavior.

False

With the help of an effective sales force that devises high-quality sales techniques, a sales-oriented firm can successfully convince customers to purchase goods and services that they neither wanted nor needed.

False

Which statement expresses the American Marketing Association (AMA)'s core definition of marketing?

Marketing is an organization function and a set of processes implemented in order to ensure customer satisfaction

Which model suggests that corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities that are built upon a firm's economic performance?

Pyramid of corporate social responsibility

All of the following are advantages of defining a firm's mission in terms of benefits that customers seek except for which one?

Satisfying customer wants and needs may not always be in the best interests of society as a whole

_________ refers to data previously collected for any purpose other than the one at hand.

Secondary data

Allen, a Human Resources manager in a multinational firm, is recruiting employees. Rebina, one of the candidates, introduces herself and shares some of her background. From a marketer's point of view, which of the following things she said is considered a demographic factor?

She lives in California

Which of the following ethical theories states that it is an organization's social responsibility to pay attention to the interest of every affected stakeholder in every aspect of an organization's operation?

Stakeholder theory

A sales-oriented company is one that focuses on _______.

aggressive sales techniques

Which of the following comprise(s) the competitive environment of a firm?

all of these

The form of research that aims to confirm an existing concept or to learn more about a phenomenon is called ________.

basic research

Fournotts Printing Inc. manufactures and sells photocopiers, printers, and scanners to various corporate offices. This is an example of _____.

business marketing

Tennot Inc. sells used cars. It focuses solely on low-income customers who prefer to buy a used car rather than a new one. Therefore, it develops one marketing mix that targets a low-income demographic group. In this scenario, Tennot Inc. most likely uses a(n) _____.

concentrated targeting strategy

A product bought to satisfy an individual's personal wants or needs is a ________ product.

consumer

Gerrard, a manager at Zincod Clothing, organizes a survey to study the quality of the company's products. He instructs the survey team to interview readily accessible customers who visit the outlets during weekdays. In the context of nonprobability samples, Zincod Clothing is most likely using a _____ for its survey.

convenience

_____ is a business's concern for the long-range welfare of both the company and its relationship to the society within which it operates.

corporate social responsibility

The socializing force that governs what is ethically right and wrong is called _________.

culture

A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group. Which type of market segmentation approach does the company undertake?

demographic segmentation

Terra Corp. produces a wide range of furniture, such as cabinets, book cases, and bureaus. It divides its consumer market into several groups of people who have similar interests in wooden furniture. The strategy of dividing its consumer market most likely:

enables Terra Corp. to define customer needs and wants more precisely.

A(n) _____ is an intermediary who brings a buyer and a seller together.

export blocker

Gen Xers have lower average incomes than their Millennial and Baby Boomer counterparts.

false

A(n) ______________ consists of 7 to 10 people who participate in a group discussion led by a moderator.

focus group

Rochelle wants to purchase a new gaming laptop. She wants to compare two of the latest models of gaming laptops—with similar build, quality, and hardware specifications—from different manufacturers. Rochelle reads reviews of each product on reputable online forums before making her decision. In this scenario, Rochelle seeks data ________________.

from a nonmarketing-controlled information source

The basic goal of ________ is to increase the short-term cash return without too much concern for the long-run impact.

harvesting

Trower Inc. has launched a new smartphone in two different versions. Both variants of the smartphone have a similar design but have different hardware specifications. The company uses this strategy to make this smartphone more universally affordable. In this scenario, Trower Inc. is most likely using __________________________.

income segmentation

The process of planning, collecting, and analyzing data relevant to a marketing decision is called ___________.

marketing research

Melrow Inc., a U.S. firm, suffers heavy losses and lays off many of its employees. To reduce its manufacturing costs, it shifts its production units to another country where labor costs are less. In this scenario, Melrow Inc. is engaged in _____.

outsourcing

When an SBU has become a _____________, it is essential to either invest in it heavily to gain better market share, acquire competitors to get the necessary market share, reposition its products, or drop it.

problem child / question mark

Which term refers to a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas?

purchasing power

Critics of Ansoff's matrix mention that the matrix does not:

reflect the reality of how businesses grow

Linda usually does not spend much time selecting gifts. However, when choosing a fountain pen for her husband's birthday this year, she visited several stores and spent a lot of time asking the sales staff about different features of the pen before making her purchase. This scenario illustrates _____.

situational involvement

Joshua is a millionaire, and he manages several successful companies. He usually interacts with people of similar status. Given this information, Joshua and the people he interacts with are part of a _____.

social class

Casca Paints Inc., a manufacturer of paints and emulsions, owns a user-friendly website. The website allows customers to upload pictures of their house to help in selecting their color choices. Donnel Designs Inc., an interior decoration firm, enters into a partnership with Casca Paints Inc. As a result, customers can now get a complete design solution for their houses. This is an example of a _____.

strategic alliance

_____________ refers to determining what information is needed and how that information can be obtained efficiently and effectively.

the marketing research problem

Companies selling to business buyers face the same challenges as all marketers of goods and services, including determining __________.

the target market and deciding how to best reach it

Reference groups are extremely important to marketers in three ways: (1) They serve as information sources and influence perceptions; (2) they affect an individual's aspiration levels; and (3)

their norms either constrain or stimulate consumer behavior