Marketing Test 2

19. Which of the following information related to Cord pickup trucks suggest that they are of high quality? A. Cord pickups have the high towing capacity B. Cord pickups are well designed C. Cord pickups sometimes perform at 20 mpg against the specified 18 mpg, but under many other conditions they perform at 12 mpg. (mpg = Miles per gallon) D. A and B E. A and C

D. A and B

25. Fighter brands are rarely advertised along with a company's premium brand offerings. Why? A. To avoid cannibalization B. To avoid customer confusion C. To reduce inventory costs D. A and B - the disadvantages of fighter brands are cannibalization, failure to compete, financial costs, customer confusion, and administrative costs E. A, B and C

D. A and B - the disadvantages of fighter brands are cannibalization, failure to compete, financial costs, customer confusion, and administrative costs

4. Cord Motor Company classifies its customer on basis of whether they previously purchased Cord vehicles. What type of segmentation method are they using? A. Demographic B. Geodemographic C. Psychographic D. Behavioral E. Geographic

D. Behavioral

3. Which of the following type of segmentation methods leads to segments that are difficult to identify? A. Geographic Segmentation B. Behavior Based Segmentation C. Age Based Segmentation D. Psychographic Segmentation E. Usage Rate Based Segmentation

D. Psychographic Segmentation

17. Consumers spend minimum effort to evaluate _____________ products. A. Shopping B. Convenience C. Unsought D. Durable E. A and B

B. Convenience

11. Apart from highlighting its value proposition what else can Fevy do in the market to increase its market share? A. Make the rearview camera unavailable. B. Educate the customers on benefits of the rear view camera. C. Increase prices. D. Decrease power to 500 HP and match Cord's fuel efficiency of 17 mpg. E. All of the above.

B. Educate the customers on benefits of the rear view camera.

30. If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is A. Market testing B. Product development C. brainstorming D. reverse engineering E. launching the product

B. Product development

5. According to consumer psychology there are some customers who are good at abstract thinking. If a company is comparing between whether to target those with high ability of abstract thinking or those who are young then on which of the following criteria for segment attractiveness will the high abstract thinking ability segment perform poorly as compared to the youth segment? A. Identifiability B. Responsiveness C. Substantiality D. Behavior E. None of the above

B. Responsiveness

27. When microwaves were new, they often costed over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group. A. innovator. B. laggard. C. late majority. D. early majority. E. early adopter.

B. laggard.

35. Cheryl will only let Martiné cut her hair. She has tried other hairdressers, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions. A. Assurance - the knowledge of and courtesy by employees and their ability to convey trust and confidence B. reliability - the ability to perform service dependably and accurately C. tangibles - the appearance of physical facilities, equipment, personnel, and communication materials. D. Responsiveness- the willingness to help customers and provide prompt service E. empathy - the caring, individualized attention provided to customers.

B. reliability - the ability to perform service dependably and accurately

28. When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars A. provided equivalent relative advantage for both European and U.S. customers B. were not compatible with European market conditions C. did not provide benefits that were observable D. involved technology that was too complex E. could not be easily tried by consumers

B. were not compatible with European market conditions

23. Brands that are owned by ___________ are called private-label brands. A. manufacturers B. wholesalers C. supply chain specialists D. retailers E. manufacturer's reps

B. wholesalers

12. "Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason? ???????? A. "It's a quick way for senior managers to see not only our product but each of our competitors, all at once. B. "It's a way to demonstrate the dimensions that our customers think are important." C. "It shows where we aren't—and where our competitors aren't—in our customers' and prospects' minds." D. "It's a way to show the position of the company throughout the product's life cycle." E. "We can easily show where we are positioned and how large the market is."

C. "It shows where we aren't—and where our competitors aren't—in our customers' and prospects' minds."

10. What can be Fevy's value proposition in the pick-up truck market if the following information is available? A. Best combination of Power and Fuel Efficiency B. Best combination of Power and Towing Capacity C. Best combination of Power, electronic features like rear view camera and Towing capacity D. Good fuel efficiency E. All of the above

C. Best combination of Power, electronic features like rear view camera and Towing capacity

2. Which of the following is NOT a method of segmentation? A. Geographic Segmentation B. Benefit Segmentation C. Competitive Segmentation D. Behavioral Segmentation E. Usage based Segmentation

C. Competitive Segmentation - under behavior based segmentation

7. Conde Nast has more than 20 niche magazines focused on different aspects of life - from Vogue for fashionistas to Bon Appetit for foodies to GQ for fashion conscious men. What type of targeting strategy are using A. Micromarketing - customized products for each customer B. One to one marketing - customized products for each customer C. Differentiated marketing - multiple products for different segments D. Concentrated marketing - one/few product/s on one/few segments E. None of these

C. Differentiated marketing - multiple products for different segments

14. __________ is the number of items within a product line. A. Brand equity B. Product line breadth - refers to the total number of product lines the company offers C. Product line depth D. Product mix depth E. Product mix breadth

C. Product line depth

1. Which of the following is NOT a reason why firms segment their markets? A. To tailor their marketing mix (4Ps) according to the needs of specific segments. B. To increase customer satisfaction. C. To increase standardization. D. To customize their offerings according to customer needs. E. To make more profit.

C. To increase standardization.

15. For many years, General Electric's corporate strategy was to be among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation A. increasing product line depth B. decreasing product line depth C. decreasing product mix breadth D. increasing product mix breadth E. introducing brand extensions

C. decreasing product mix breadth

31. When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time. A. peripheral B. variable C. heterogeneous D. inseparable E. None of the above

C. heterogeneous

26. By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopters

C. late majority

8. In the Circles for a Successful Value Proposition framework, the value proposition is represented by Slide 21 A. the intersection between customer needs/wants and competitors' benefits. B. the intersection between firm's product's benefits and competitors' benefits. C. the intersection between customer needs/wants and the firm's product's benefits. D. the intersection between all three of the circles. E. the part of the firm's benefits that doesn't overlap with anything.

C. the intersection between customer needs/wants and the firm's product's benefits.

21. Which of the following is NOT one of the four criteria used for determining how good a brand is or how much equity it has? A. brand awareness - if a lot of people know the brand it is easier to launch new products B. brand loyalty - price premium (paying more for brand) C. brand associations - associations w a certain brand tend to stick on. (Toyota known to be reliable) D. brand conceptualization E. perceived value - brands are a signal of quality

D. brand conceptualization

24. One of the categories of products for which brand extension is especially logical is A. generic goods B. generic services C. commodities D. complementary goods E. licensed brands

D. complementary goods

33. The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a A. knowledge gap B. standards gap C. social expectations gap D. delivery gap E. communications gap

D. delivery gap

32. When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another. A. intangible B. inseparable C. heterogeneous D. perishable E. None of the above

D. perishable

13. For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix (total number of products that the firm carries). A. brand associations B. family brands C. co-brands D. product lines E. private label brands

D. product lines

29. Zappos.com, an online shoe store, worked to overcome the problem of new product __________ with its easy, no-hassle return procedure. A. Relative advantage - relative advantage of the new product over its substitutes B. Compatibility - how compatible is the new product with respect to consumer's existing lifestyle, culture, and other products the customer owns? C. observability - how easy it is to observe the difference that the new product creates as compared to substitutes D. trialability - how easy is it to use and try the new product E. complexity

D. trialability - how easy is it to use and try the new product

22. Brands can be owned by A. manufacturers only B. any firm in the supply chain C. retailers only D. wholesalers and retailers only E. only private label generic retailers

D. wholesalers and retailers only

What are the profits for the two market segments? A. $38000, $42000 B. $ 40000, $55000 C. $ 40000, $48000 D. $ 45000, $56000 E. $ 45000, $48000

E. $ 45000, $48000

16. Ford is planning to launch its Ranger pickup truck in the American market. However, in order to _______________ it is planning to launch only a stripped down version of the truck as compared to its current premium product F-150. The ranger pickup truck will be a compact pickup truck with only 4 cylinders. A. increase sales B. increase economies of scale C. minimize cannibalization - diverting sales from other models rather than generating true incremental sales D. increase profits E. C and D

E. C and D

18. The extent to which a product is produced according to specifications is called ____________ dimension of ___________. A. Conformity, product line B. Specificity, product line C. Feature, service D. Feature, product quality E. Conformity, product quality

E. Conformity, product quality

34. When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a A. knowledge gap B. standards gap C. social expectations gap D. delivery gap E. communications gap

E. communications gap

9. The perceptions of __________ are being measured in a perceptual map. A. competitors B. strategic planners C. the company's executive team D. the current R&D team E. consumers

E. consumers

20. One important purpose of a brand is to A. sell advertising space B. minimize product line depth needed to be effective C. meet government regulations D. inform product packaging E. increase consumer recognition and awareness of product offerings

E. increase consumer recognition and awareness of product offerings