Principles of Marketing Exam 1

A marketing plan a. provides a framework for implementing and evaluating marketing activities. b. is characteristic of production-oriented firms and other mass producers. c. always increases the marketing manager's operating costs. d. restricts the marketing manager's future options. e. produces plans that are short term in orientation.

a

According to the textbook, a manager's duties in an environmental analysis include a. checking information for accuracy, resolving inconsistencies, and assigning significance to the findings. b. observation and assessment. c. observation, market research, and fact finding. d. checking the company database, conducting research, and reporting. e. conducting research, assessment, and reporting. Hide Feedback

a

An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person? a. Awareness b. Adoption c. Evaluation d. Trial e. Interest

a

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications. a. functional b. quality c. aesthetic d. package e. formal

a

Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called a. peak demand. b. off-peak demand. c. high demand. d. preferred demand. e. high intensity time.

a

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

a

Which of the following products would probably require extended decision making before a purchase? a. Expensive products b. Products to be purchased in the future c. Products purchased frequently d. Products purchased as a result of social influences e. Products that are purchased routinely Hide Feedback

a

A marketing ethics issue likely exists when a. an activity does not benefit the organization but benefits the environment. b. an individual or organization must choose from among several actions that must be evaluated as right or wrong. c. company members disagree about a marketing decision. d. an activity results in increased prices for the consumer. e. a consumer is dissatisfied with a marketing decision.

b

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy. a. selective b. concentrated c. differentiated d. undifferentiated e. focused

b

All of the following are marketer-dominated sources of information except a. salespeople. b. friends. c. displays. d. package labeling. e. advertising. Hide Feedback

b

Business customers today turn first to _____ to search for information and find sources for their product needs. a. the NAICS b. the internet c. competitors d. B2B auction sites e. vendor sales representatives

b

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables. a. classification b. segmentation c. marketing d. stratification e. division

b

Convenience products are a. frequently purchased items for which buyers are willing to exert considerable effort. b. relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. c. items that are expensive but are easy to purchase. d. frequently purchased items that are found in certain retail outlets. e. items that require some purchase planning and for which the buyer often will not accept substitutes.

b

The focal point of all marketing activities a. are products. b. are customers. c. are sales. d. are profits. e. is the marketing mix.

b

The intangibility aspect of a service means that a. services are not produced at the same time they are consumed. b. consumers may have a problem evaluating service offerings. c. unused capacity cannot be stockpiled or inventoried for later use. d. there is a lack of perceived quality compared to a tangible good. e. services are not labor-intensive.

b

Three major ways in which marketers engage in product differentiation are a. product positioning, product quality, and product management. b. product quality, product design and features, and product support services. c. product positioning, product design and features, and product promotion. d. product quality, product support services, and packaging. e. product support services, product design and features, and product positioning.

b

Which of the following scenarios involves the distribution element of the marketing mix? a. ​Deciding whether or not a certain product should continue to be sold b. ​Deciding whether or not to have retail outlets in addition to a website c. ​Determining whether an advertising message would be more effective on television or in magazines d. ​Developing a new warranty policy for an existing product e. ​Choosing between a company jet or the airlines for executive travel

b

Which type of business market tends to have the most complex buying procedures? a. Institutional b. Government c. Reseller d. Retailer e. Producer Hide Feedback

b

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

b

After certain inputs have been selected to reach an individual's awareness, the next step in the perceptual process is perceptual a. retention. b. interpretation. c. organization. d. redefinition. e. attention.

c

All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy. a. offer the lowest price b. provide the largest selection possible c. be profitable d. pay employees more than minimum wage e. obey their customers

c

Companies that compete for the same limited financial resources of the same customers are known as ____ competitors. a. generic b. oligopolic c. total budget d. product e. brand Hide Feedback

c

Instead of addressing the question ____, many environmentalists and marketers believe the question should be ____. a. "How can environmentalism be profitable?"; "Where is the benefit of environmental efforts?" b. "How can we reduce costs?"; "How can we keep prices low?" c. "What should we do with our waste?"; "How can we produce products without waste?" d. "Where should we dispose of waste?"; "How can we protect society?" e. "How can we make products better?"; "How can we reduce waste?"

c

When service companies change high-contact services into low-contact services, the a. service becomes less standardized. b. service becomes more expensive to deliver. c. service becomes less personalized. d. quality of the service declines. e. time required to deliver the service increases.

c

A representative product taken from a lot or batch, evaluated, and purchased refers to a. negotiated inspection. b. description. c. trust. d. sampling. e. homogeneous selection.

d

In the consumer buying decision process, the information search stage a. occurs immediately after evaluation of alternatives. b. is not necessary when the buyer is involved in extensive decision making. c. is lengthy for routine response buying behavior. d. yields a group of brands that a buyer views as possible alternatives. e. involves a buyer becoming aware of the need for a product.

d

The first step in the strategic performance evaluation is to a. ​take corrective action. b. ​evaluate actual performance. c. ​reduce the difference between actual and desired standards. d. ​establish performance standards. e. ​compare actual performance and standards.

d

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a. social class. b. motive. c. stage of family life cycle. d. lifestyle. e. personality.

d

The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as a. price sensitive. b. monopolistic competition. c. opportunistic. d. an oligopoly. e. a monopoly. Hide Feedback

d

What should marketers do to promote the consistency and reliability of their services most effectively? a. Encourage employees to be creative in solving customer issues and complaints b. Require employees to be shining, happy people all day long c. Perform as much of the service as possible before the customer arrives d. Train employees and develop standard procedures for dealing with customers e. Limit the number of employees in their organization

d

When marketers define their target market, they simultaneously establish a set of a. sociocultural forces. b. technologies. c. government regulations. d. competitors. e. environmental forces. Hide Feedback

d

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. ​marketing program. b. ​diversified corporation. c. ​profit entity. d. ​strategic business unit. e. ​small business.

d

"Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development. a. concept testing b. test marketing c. idea generation d. product development e. business analysis

e

All of the following are major steps in developing new products except a. idea generation. b. test marketing. c. screening. d. business analysis. e. evaluation of competitors' efforts. Hide Feedback

e

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation. a. social class b. psychographic c. personality d. family life cycle e. lifestyle

e

​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. ​corporate objective. b. ​market requirement. c. ​strategic market plan. d. ​market objective. e. ​market opportunity.

e

The primary value that a marketer expects to receive from a customer in an exchange relationship is a. ​the price charged for the product. b. ​customer satisfaction. c. ​few returns of the merchandise purchased. d. ​quality merchandise that meets expectations. e. ​references to other potential customers.

a

The problem with using an undifferentiated strategy to market a "universal car" is that a. car buyers have heterogeneous needs. b. car buyers have homogeneous needs. c. car buyers cannot be segmented. d. the technology to produce a universal car does not yet exist. e. other car makers are already using an undifferentiated strategy.

a

​Distribution, price, promotion, and product are all elements of a. ​the marketing mix. b. ​a target market. c. ​a business strategy. d. ​a consumer good. e. ​marketing strategy.

a

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

a

​The three basic forms that a product can take are a. ​services, ideas, and goods. b. ​ideas, services, and things. c. ​markets, products, and images. d. ​brands, services, and tangibles. e. ​goods, ideas, and intangibles.

a

A product item is best described as a a. specific version of a product. b. unit of measure for the product. c. component of a marketing mix. d. particular brand. e. specific characteristic of a product. Hide Feedback

a

The depth of a product mix is measured by the average number of a. different products offered in each product line. b. convenience products as compared with the number of specialty products. c. different product lines offered by the company. d. specialty products as compared with the number of convenience products. e. product features that the company offers.

a

The group of people within a business who are involved in making business buying decisions is referred to as a. the buying center. b. the new-task team. c. purchasing agents. d. negotiators. e. deciders.

a

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products. a. service b. shopping c. convenience d. unsought e. specialty

b

Selective exposure refers to a. remembering inputs that support personal feelings and beliefs and forgetting those that do not. b. admitting only certain inputs into consciousness. c. the process of selecting, organizing, and interpreting information inputs to produce meaning. d. targeting only certain parts of the total market. e. the circumstances or conditions that exist when a consumer is making a purchase decision.

b

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of a. heterogeneity. b. intangibility. c. inseparability. d. perishability. e. customer contact. Hide Feedback

b

What do environmentalists set as an objective for profitability? a. Companies will never be profitable if they comply with environmental standards, so taxpayers must subsidize all production. b. Companies should surpass the strictest environmental standards even if it negatively affects profitability. c. Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace. d. Profitability should not be a concern when addressing issues of environmental importance. e. Companies will be more profitable if they work hard to protect the environment because consumers will reward their efforts through loyalty.

c

Which of the following statements about business buying is false? a. Most business purchases are made by committee. b. Business purchases are usually made on the basis of contracts. c. Orders in business markets tend to be smaller than those placed in consumer markets. d. Business marketers prefer not to sell to customers who place small orders. e. Business marketers must often sell their products in large quantities to make profits.

c