MKT 350 Practice Exam

In a period of economic recovery, the best marketing strategy for UPS would be characterized by which of the following features? a. Flexibility b. Austerity c. Aggressiveness d. Retrenchment

a. flexibility

Yoshi Ramen restaurant opened in 2017 and struggled to build a customer base for lunch, dinner, or event catering options. When the owners were planning the restaurant, they had projected they would sell 60 to 80 bowls daily with an average lunch price of $8.00 They believed that dinner sales could generate between 100 and 120 bowls per day at $12 per customer. However, the actual daily lunch and dinner totals were much less and the owners were barely breaking even and wondered if they should close the business. However, Yoshi Ramen began an aggressive promotion effort, offered lunch and dinner specials and promoted the restaurant as a family-friendly place where everyone could enjoy fresh, ramen dishes. As a result of their marketing efforts, the restaurant is selling out of its product almost daily and has built a takeaway business as well. They are selling 100 lunches daily with an average price of $10 and approximately 200 dinner plates at $15. The owners are pleased with the revenue stream they're generating from the restaurant and considering opening a second location or adding space to accommodate more customers at the existing location. Using the data regarding number of bowls sold and the average order amount generated, what kind of analysis can the owners of the restaurant perform to assist them in understanding their business opportunities? a. Engagement analysis b. Marginal cost analysis c. Sales analysis d. Profit analysis e. Advertising analysis

C. Sales analysis

Which of the following would NOT be a customer cost considered in the determination of product value? a. Product's purchase price b. Effort spent purchasing the product c. Time spent purchasing the product d. Risk of purchasing the product e. Benefits received in the exchange for the products

e. Benefits received in the exchange for the products

____ is (are) most likely to improve ethical behavior in a marketing organization. a. Encouraging employees to identify ethical issues and to decide what is right b. Allowing employees to follow their own ethical standards c. Hiring goal-directed employees d. Obeying the law and accepting all other behavior e. Eliminating unethical individuals and improving the organization's ethical standards

e. Eliminating unethical individuals and improving the organization's ethical standards

Which of the following agencies regulates marketing activities the most? a. Food and Drug Administration b. Better Business Bureau c. National Advertising Review Board d. Environmental Protection Agency e. Federal Trade Commission

e. Federal Trade Commission

During the 2010s, Nestlé was sharply criticized after it was discovered that some of its global suppliers and contractors were using child labor on their cocoa farms. Nestlé itself did not use child labor and had ethical policies that forbade the use of child labor. Why did consumers still hold Nestlé accountable? a. Nike lied outright about the child labor in its factories. b. Its conduct violated the laws of the countries in which the factories were located. c. As the buyer, it had direct control over its global contractors. d. Nike paid the factories wages that were too low to employ adults. e. It is the most visible and powerful member of the supply chain.

e. It is the most visible and powerful member of the supply chain

Barney has to decide whether to travel to Chicago by train or airplane. Traveling by train would take longer, giving him potentially less time to spend in Chicago. However, traveling by air would be much more expensive. The train as a form of transportation is what type of competitor to air travel? a. Total-budget b. Brand c. Monopolistic d. Product e. Generic

e. generic

Anika knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied to all employees. Anika believes that this sporadic enforcement of the formal code only enhances the ____ for committing unethical acts. a. culture b. punishment c. individual factors d. compliance e. opportunity

e. opportunity

Actions that promote human health and welfare address the ____ dimension of the pyramid of social responsibility. a. social b. legal c. economic d. ethical e. philanthropic

e. philanthropic

Marketers that attempt to influence and change the various environmental forces have a(n) ____ response to these forces. a. inactive b. reactive c. radioactive d. counteractive e. proactive

e. proactive

Research suggests that a relationship exists between ______ and an organizational climate that supports marketing ethics and social responsibility. a. profits b. a cost tradeoff c. a stakeholder orientation d. reduced costs. e. satisfied shareholders.

c. a stakeholder orientation

The unethical practice of shipping surplus inventory to wholesalers and retailers at an excessive rate, typically before the end of a quarter, is called a. bait and switch. b. counterfeiting. c. channel stuffing. d. gouging. e. greenwashing

c. channel stuffing

Target's tagline "Expect More, Pay Less" emphasizes which marketing mix variable? a. Promotion b. Pricing c. Exchange d. Product e. Distribution

b. pricing

Various stakeholders and ____ determine the acceptable standards of conduct involving ethics. a. various self-regulating bodies b. the organization's ethical climate c. the federal government d. the industry leader's ethics e. governmental agencies

b. the organization's ethical climate

What is the major difference between social responsibility and marketing ethics? a. Marketing ethics is concerned with organizational practices, and social responsibility is concerned with individual behavior. b. There is no difference; they are synonymous terms. c. Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations. d. Marketing ethics varies by industry whereas social responsibility involves universal rules of conduct. e. There is legislation that deals with marketing ethics, but none for socially responsible practices.

c. Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.

The marketing plan is a. updated only periodically. b. a plan of all aspects of an organization's business strategy. c. a written document detailing activities to be performed to implement and control marketing actions. d. designed to specify not only marketing, but all other functional areas of business activities as well. e. written about the same for each SBU.

c. a written document detailing activities to be performed to implement and control marketing actions.

The reputation and well-known brand name of Mercedes-Benz automobiles represents a ____ for Mercedes-Benz. a. competitive advantage b. pricing strategy c. core competency d. market opportunity e. strategic window

c. core competency

What is the final step in establishing an implementation timetable? a. Determining time required for completion b. Identifying the activities to be performed c. Assigning responsibility for completing each activity d. Separating activities to be performed in sequence from those performed simultaneously e. Organizing activities in their proper order

c. Assigning responsibility for completing each activity

Marketers live in a world of constant change, and their ability to adapt to the pace of change will dictate the degree to which their marketing strategies are successful. Moreover, the changes can come in any or all of the different parts of the marketing environment. ​ Which one of the following statements is true? a. ​The negative effects of technology include concerns over privacy and intellectual property protection. b. ​Technological innovations are created only by private companies. c. ​The self-sustaining nature of technology relates to the fact that the products are increasingly being produced with environment-friendly components. d. ​We can expect the pace of technological change to slow down as more technology-oriented startups choose to go public and become more conservative with their business strategies. e. ​Consumers' use of mobile devices to access the Internet has been declining over the last few years.

a. ​The negative effects of technology include concerns over privacy and intellectual property protection.

The Federal Drug Administration (FDA) has established the following requirements relating to the ingredients labeling on food products: Labels must be placed on the product in a location most likely to be seen by the consumer. Labels must include quantity of and type of ingredients included in the food product. Labels must be printed in a specific font size ​ Regarding these requirements, which one of the following statements is correct? a. ​ This is an example of marketing ethics as determined by a government regulator. b. ​ The primary objective of these requirements is to enhance competition in the marketplace. c. ​ The primary objective of these requirements is to assist consumers with their recipes. d. ​ The primary objective of these requirements is to make food packaging educational. e. ​ This is an example of marketing ethics as determined by a private-interest group.

a. ​ This is an example of marketing ethics as determined by a government regulator.

Changing the hours of operation for a service business involves the ____ component of the marketing mix. a. distribution b. ​marketing concept c. ​price d. ​promotion e. ​product

a. distribution

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in a. environmental scanning. b. environmental monitoring. c. competitive forces. d. competitive analysis. e. environmental analysis.

a. environmental scanning

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a a. ​market opportunity. b. ​corporate objective. c. ​market requirement. d. ​strategic market plan. e. ​market objective.

a. market opportunity

Failure to maintain product quality and integrity in production may result in _____ if products are found to be defective. a. product recalls b. misleading advertising c. channel stuffing d. bait and switch e. greenwashing

a. product recalls

Businesses that view sales as the major means of increasing profits are operating with a _____ orientation. a. sales b. production c. market d. green e. disruptive

a. sales

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a​ a. ​strategic business unit. b. ​diversified corporation. c. ​small business. d. ​marketing program. e. ​profit entity.

a. strategic business unit

The essence of marketing is a. to develop satisfying exchanges from which both customers and marketers benefit. b. to provide customers with the greatest amount of value. c. to select a target market big enough to make marketing efforts worthwhile. d. to collect market information and use it to develop long-lasting customer relationships. e. to modify marketing mix variables so as to secure the highest market share.

a. to develop satisfying exchanges from which both customers and marketers benefit

In today's market environment, you might pay $16 for a vinyl LP record by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)? a. $4.00 b. $8.00 c. $5.10 d. $10.25 e. $12.75

b. $8.00

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a. Wheeler-Lea Act. b. Sherman Antitrust Act. c. Clayton Act. d. Robinson-Patman Act. e. Celler-Kefauver Act.

b. Sherman antitrust act

The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also a. ​increase sales. b. ​achieve the organization's goals. c. ​coordinate its activities to increase production. d. ​produce high-quality products. e. ​increase market share.

b. achieve the organization's goals

The Buddhas Brew Kombucha has become highly efficient in developing and manufacturing new kombucha products for the market. It far surpasses its competitors in these areas. Recently, major medical journals have started describing how kombucha can be highly advantageous for consumer health. This is likely to give Buddhas Brew Kombucha a ______________ because it is able to match its skills with opportunities in the marketplace. a. core competency b. competitive advantage c. new marketing objective d. market opportunity e. strategic advantage

b. competitive advantage

A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called a. codes of conduct. b. corporate culture. c. organizational factors. d. company ethos. e. ethical environment.

b. corporate culture

Businesses that strive to determine what customers need or want and then develop products to satisfy those needs and wants are operating in a(n) ____ orientation. a. evolutionary b. market c. production d. sales e. disruptive

b. market

Kraft made the announcement that it was eliminating artificial food additives. Which of the following most likely influenced Kraft's decision? a. Marketing task b. Marketing environment c. Marketing costs d. Regulatory variables e. Marketing mix

b. marketing environment

The Boston Consulting Group's matrix is based on the a. ​business position and market attractiveness of the firm. b. ​philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy. c. ​idea that a firm's market share and market attractiveness are the important factors for a marketing strategy. d. ​idea that a product's market growth rate and market attractiveness determine the marketing strategy. e. ​assumption that a firm's actions have a profitable impact on marketing strategy.

b. philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy

Nick Clark is managing director for Southern Mutual Company, a financial services firm. Nick firmly believes that dress and grooming are important elements in creating a positive first impression and provides training to his account managers regarding the dress code and grooming policy. Southern Mutual does not allow any facial hair for men and stresses that women should pull their hair back away from their face because research suggests they will be perceived negatively. The Southern Mutual Company dress and grooming policies are an example of the importance of ______ in influencing ethical decision making. a. personal values b. organizational relationships c. corporate culture d. strong leadership e. opportunity

c. corporate culture

Miriam got a new job that pays extremely well. This is good because two years ago she was forced to go into bankruptcy when she couldn't repay her debts. She would like to purchase a used car so she can drive to work. However, she knows it will be hard to get the bank to provide her with a car loan at favorable interest rates due to her recent bankruptcy. She has therefore saved her money diligently so she will have enough to pay for the car outright. In this case, Miriam lacks a. legal counsel. b. income. c. credit. d. a willingness to barter. e. a willingness to buy.

c. credit

____ competitors provide very different products that satisfy the same basic customer need. a. Total budget b. Primary c. Generic d. Product e. Brand

c. generic

Jo's Coffee Shop wants to increase customer satisfaction. Currently, only 75% of customers indicate they are satisfied with the services offered. In the next six months, it plans on implementing a number of changes to improve its services. Jo's Coffee plans to implement a survey at the end of the six-month period to determine whether customer satisfaction has improved. Jo's wants 90% of its customers to indicate they are satisfied with its service. This is an example of a ________________. a. marketing plan b. marketing control c. marketing objective d. strategic window e. core competency

c. marketing objective

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is a. effort. b. risk. c. monetary price. d. time. e. availability.

c. monetary price

C.J. Foods, a pet food maker, purchased Lortscher Animal Nutrition, Inc. (LANI), a miller and ingredient supplier, and now operates this division as a separate profit center within the firm. In this example, LANI is a(n) ____ unit of C.J. Foods. a. independent b. marketing c. strategic business d. dependent e. corporate

c. strategic business

Which of the following statements about social responsibility is correct? a. Social responsibility dimensions do not include economic concerns. b. Social responsibility does not deal with the total effect of all marketing decisions on society. c. Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders. d. Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society. e. Social responsibility dimensions do not include philanthropic concerns.

d. Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. a. Monetary price b. Marketing orientation c. Price assessment d. Product assessment e. Value

e. value

In many cases, companies that enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, MicroPro was the first company to introduce a word processing program, but SSI cornered a large market share when it introduced the Word Perfect program. Today, however, Microsoft's Word is the dominant word-processing software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. MicroPro's WordStar possessed a ___________ advantage while Microsoft enjoyed a ___________ advantage. a. economic; technological b. sustainable; unsustainable c. late-mover; first-mover d. first-mover; late-mover e. sustainable; late-mover

d. first-mover; late-mover

The definition of marketing implies that ____ should receive benefits from exchange relationships. a. ​only businesses b. ​only customers c. ​company management d. ​both customers and businesses e. ​only the most important customers

d. both customers and businesses

Emily Ross is an administrative assistant for Erik Boseman, who is brand manager for a consumer products company. Erik works with a variety of suppliers and customers and is very busy. Erik has asked Emily to screen his calls to make sure that only those people with whom he is working are able to speak with him, advising her to say things like "I'm sorry, he's in a meeting" or "He just stepped out of the office and won't return until tomorrow." Emily is growing increasingly concerned about these practices and dislikes lying to people who call. She feels that Erik is being dishonest, and she'd rather be more transparent and honest with people when they call rather than making up a story that isn't true. Emily doesn't want to compromise her own personal values to be an effective administrative assistant. Emily's dilemma represents the ________ factor that influences the ethical decision-making process. a. competitive b. organizational relationships c. social responsibility d. individual e. opportunity

d. individual

Managers at the Tycho Manufacturing are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called a. marketing strategy. b. strategic business planning. c. corporate strategy. d. strategic planning. e. business-unit planning.

d. strategic planning

Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon? a. Customer retail calculation b. Customer profitability value c. Customer impact score d. Customer patronage value e. Customer lifetime value

e. customer lifetime value

Scenario 3.3 Use the following to answer the questions. The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. Refer to Scenario 3.3. If the Consumer Financial Protection Bureau decides to contact the Federal Trade Commission (FTC) to investigate Bank of America and its practices regarding deceptive billing practices, and if the FTC believes that Bank of America has violated a law, the FTC would first a. order Bank of America to provide refunds to consumers. b. Order Bank of America to be divided into a number of small bank operations. c. order Bank of America to pay up to $10,000 per day for violating the law. d. order Bank of America to stop engaging in deceptive practices to avoid prosecution. e. issue a cease-and-desist order.

e. issue a cease-and-desist order

Scenario 3.3 Use the following to answer the questions. The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. Refer to Scenario 3.3. Which environmental force is Bank of America responding to by agreeing to pay fines and refunds to consumers? a. Technological b. Economic c. Sociocultural d. Competitive e. Legal and regulatory

e. legal and regulatory