Marketing 340 Final Exam

Which of the following is an example of a horizontal conflict in a distribution channel?

A Ford car dealer complaining that another Ford dealer is underpricing the same models

A product concept is ________.

A detailed version of a product idea stated in meaningful consumer terms

Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________.

A straight rebuy

Which of the following is the most effective way for a company to ship perishable goods over long distances, if its key requirement is speed?

Air transport

Companies that adopt value-added pricing ________.

Attach value-added features and services to differentiate their offers and support their higher prices

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

Behavioral

________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.

Brand equity

Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________.

Brand extension

________ involves using an existing brand name for a new product category.

Brand extension

A ________ brings buyers and sellers together and assists in negotiations.

Broker

________ and ________ do not take title to goods, and they perform only a few channel functions.

Broker; agents

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?

Business analysis

According to the model of buyer behavior, which of the following is one of the two primary parts of a "buyer's black box"?

Buyer's decision process

The decision-making unit of a purchasing organization is called its ________.

Buying center

Which of the following product mix pricing strategies involves pricing products that must or can only be used with the main product?

Captive product pricing

Experimental research is best suited for gathering ________ information.

Casual

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.

Concept testing

Which of the following statements reflects the marketing concept?

Considering customer focus and value as the paths to sales and profits

The buyer decision process consists of five stages. Which of the following is NOT one of these stages?

Conspicuous Consumption

At its most basic form, a marketing channel consists of the producer and the ________.

Consumer

The economic environment consists of economic factors that affect ________.

Consumer purchasing power

In the context of media timing, ________ means scheduling ads evenly within a given period.

Continuity

Which of the following types of products are generally priced the lowest?

Convenience products

The ________ environment consists of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.

Cultural

Which of the following is one of the other stimuli present in a buyer's environment apart from a marketing stimuli?

Cultural Stimuli

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

Decline

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

Demographic Segmentation

Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.

Derived

Companies that take a proactive stance toward the marketing environment are most likely to ________.

Develop strategies to change the environment in their favor

When market segments are conceptually distinguishable and respond distinctively to various marketing mix elements and programs, they are said to be ________.

Differential

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.

Differentiated marketing

Effective positioning begins with ________.

Differentiation

Which of the following statements is most likely true about direct marketing?

Direct marketing provides opportunities for building customer engagement

Florian Fasteners recently introduced a new line of products. In order to promote its product, it sent samples to the addresses of a few select customers. Which of the following types of marketing is evident from this example?

Direct-mail marketing

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

Discount stores

Market segmentation can be best described as the process of ________.

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Big Mike's Health Food Store sells nutritional energy foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.

Dynamic pricing

If demand changes greatly with a small change in price, the demand is ________.

Elastic

Which of the following is an advantage of using digital catalogs?

Eliminates printing and mailing costs

"At Trader Joe's, our mission is to provide all our customers the best food and beverage values to be found anywhere, and the information to make informed buying decisions." This is a product-oriented business definition. True or False?

False

Convenience stores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services. True or False?

False

Direct marketing seldom occurs on a one-to-one, interactive basis True or False?

False

Direct-mail programs are typically stand-alone programs and cannot be integrated with a broader marketing campaign. True or False?

False

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is known as market diversification. True or False?

False

In a direct marketing channel, the producer sells directly to the intermediaries, who in turn sell directly to the customers. True or False?

False

Line extension refers to extending an existing brand name to new product categories True or False?

False

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process. True or False?

False

Marketing researchers can conduct their own searches of secondary data sources by using mail questionnaires and interviewing individuals. True or False?

False

Supermarkets are located near residential areas and are open long hours, seven days a week; they carry a limited line of high-turnover goods. True or False?

False

The distribution strategy during the decline stage of PLC involves building more intensive distribution networks. True or False?

False

The marketing mix consists of people, property, planning, and position. True or False?

False

The single most important demographic trend in the United States that marketers should understand is the changing family structure of the population. True or False?

False

The technological environment is predominantly static. True or False?

False

When using public relations, the company pays for space and time in the media. True of False?

False

What is the most important consumer buying organization in society?

Family

The business marketer normally deals with ________ than the consumer marketer does.

Far fewer but far larger buyers

Which of the following is true with regard to strategic planning?

Finding the game plan for long-run survival and growth is the focus of strategic planning.

McPherson's, an ice cream retailer, recently entered into an agreement that allows independent business people at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example?

Franchise organization

The number of times an average person in the target market is exposed to a message is known as the ________ of the message.

Frequency

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

Geographic Segmentation

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________.

Good-value pricing

If a company ________, it should adopt a product sales force structure, in which the sales force specializes along product lines.

Has numerous and complex products

Conflict which occurs among firms at the same level of the marketing channel is known as ________ conflict.

Horizontal

New-product development starts with ________.

Idea generation

A marketing channel which consists of one or more intermediaries is known as a(n) ________ marketing channel.

Indirect

Primary data consist of ________.

Information collected for the specific purpose at hand

Cameron loves to own and be up-to-date on the latest technological gadgets available in the market. Among his friends, he is always the first to own the latest electronic gadgets. He loves trying out new products before others. Cameron most likely belongs to the ________ adopter group.

Innovator

Which of the following is an advantage of using an internal database?

Internal databases can be accessed more quickly and cheaply than other information sources.

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?

Introduction

Cost-plus pricing ________.

Involves adding a standard markup for profit

Which of the following is most likely true about e-mail marketing?

It is used by marketers to send highly targeted messages

Which of the following statements best explains why idea screening may be the most important step of new-product development?

It saves the company money in product development costs by going ahead with only the product ideas that are likely profitable

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.

Limited-service

For which of the following would a company use an exclusive distribution strategy?

Luxury cars

Which of the following is an example of trade promotion?

Manufacturers offering free merchandise to resellers who feature a certain flavor or size

A(n) ________ is the set of actual and potential buyers of a product or service.

Market

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

Market Targeting

Making more sales to current customers without changing a firm's products is known as ________.

Market penetration

Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________.

Market segment

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy.

Market-skimming

Which of the following is a primary disadvantage of viral marketing?

Marketers have little control over who receives a viral message

Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers?

Marketing environment

The set of marketing tools a firm uses to implement its marketing strategy is called the ________.

Marketing mix

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.

Marketing segments

Marketing the same product to a huge customer base without any customization is referred to as ________.

Mass marketing

When the size, purchasing power, and profiles of a market segment can be calculated, the market is ________.

Measurable

Dan has been directed to study the actors close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.

Microenvironment

________ marketing features marketing messages, promotions, and other content delivered to on-the-go consumers through their portable electronic devices.

Mobile

Specialty stores carry ________ with ________ within them.

Narrow product lines; deep assortments

The physical environment affecting marketing activities is referred to as the ________ environment.

Natural

Which budgeting method entails defining specific promotion goals, determining the necessary tasks, and estimating the costs to determine a promotion budget?

Objective-and-task method

Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________.

Opportunity

Selling accessory products along with the main product is referred to as ________ pricing.

Optional-product

It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.

Perceived value

Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result.

Percentage-of-sales

________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions.

Perceptual positioning maps

Which of the following is true with regard to personal selling?

Personal selling entails personal presentations by a firm's sales force for the purpose of making sales and building customer relationships.

________ refers to the unique psychological characteristics that distinguish an individual or group.

Personality

Which of the following is true with regard to price?

Price is the sum of all the values that customers give up to gain the benefits of having a product.

In the beginning of the buying process, Timothy Perry, a product development manager, noticed that the raw materials that were being procured from his company's regular supplier were of poor quality. Consequently, he decided to change the existing supplier as a remedial measure. The stage of the buying process in which Timothy identified the quality breach represents the ________ stage.

Problem recognition

Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept.

Product

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.

Production

Which of the following is the first step in the personal selling process?

Prospecting and qualifying

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?

Psychological pricing

Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events?

Public relations

Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product.

Pull

________ are low-share business units in high-growth markets that require a lot of cash to hold their share.

Question mark

A product in the maturity stage will most likely require ________ advertising.

Reminder

Which of the following exemplifies a service?

Retail

Which of the following is a marketing intermediary?

Retailers

All of the following are basic types of compensation plans for salespeople EXCEPT ________.

Salary plus company shares

A(n) ________ is an individual who represents a company to customers by prospecting, communicating, selling, servicing, information gathering, and/or relationship building.

Salesperson

A(n) ________ is a segment of the population selected for marketing research to represent the population as a whole.

Sample

________ are offers of a trial amount of a product.

Samples

________ means that the quality of services depends on who provides them as well as when, where, and how they are provided.

Service Variability

Service perishability means that ________.

Services cannot be stored for later sale or use

Which of the following is a pure tangible good?

Shampoo

Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith targeting to increase?

Share of customer

A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

Shopping center

The ________ style of advertising shows ordinary people clearly using a product in a normal setting.

Slice of life

________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.

Social Classes

Which of the following statements is true of cultural factors that influence consumer behavior?

Social classes show distinct product and brand preferences in areas such as clothing and travel.

For which of the following products would the intensive distribution strategy most likely be used?

Soft drinks

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an example of a(n) ________.

Specialty product

Which type of retailer typically carries deep product assortments of narrow product lines?

Specialty stores

Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations.

Subcultures

Selecting which segments of a population to serve is called ________.

Target marketing

Many companies use RFID product labels on their goods, which exemplifies the ________ environment in business.

Technological

Geller Insurance calls qualified prospects to sell insurance. Which of the following forms of marketing is evident from this example?

Telemarketing

You want to advertise your new product. You want good mass marketing coverage and low cost per exposure. You also want to combine sight, sound, and motion and make the advertisement appealing to the senses. You should choose ________ as your advertising media.

Television

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising.

Testimonial Evidence

A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this communications mix?

The promotion mix

Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all have ________.

The same message, look, and feel

The break-even volume is the point at which ________.

The total revenue and total cost curves intersect

Which of the following is true with regard to media publics?

This group carries news, features, and editorial opinion

Product mix length refers to the ________.

Total number of items a company carries within its product lines

Which of the following is true of using trucks as a transportation mode?

Trucks are highly flexible in their routing and time schedules

A product position is the way a product is defined by consumers on important attributes. True or False?

True

A sample is a segment of the population selected for marketing research to represent the population as a whole. True or False?

True

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. True or False?

True

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs. True or False?

True

Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. True or False?

True

Companies use PR to build good relations with consumers, investors, the media, and their communities. True or False?

True

Consumers are generally willing to make a special purchase effort to buy specialty products. True or False?

True

Consumers who have no past experience with a product are especially likely to judge it by its price. True or False?

True

Direct marketing is characterized by narrowly defined segments or individual buyers. True or False?

True

Disintermediation occurs when radically new types of channel intermediaries displace traditional ones. True or False?

True

Ethnographic research involves sending observers to watch and interact with consumers in their natural environments. True or False?

True

If the pull strategy is effective, then consumers will demand the product from channel members, who will in turn demand it from producers. True or False?

True

In a territorial sales force structure, as each salesperson travels within a limited geographic area, travel expenses are relatively small. True or False?

True

Internal databases usually can be accessed more quickly and cheaply than other information sources. True or False?

True

Market development involves company growth by identifying and developing new market segments for current company products. True or False?

True

Marketing success requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company's value delivery network. True or False?

True

Open-end questions are especially useful in exploratory research. True or False?

True

Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program. True or False?

True

Reminder advertising is ideal for maintaining customer relationships with mature products. True or False?

True

Sales promotion consists of short-term incentives to encourage the purchase of a product or service. True or False?

True

Service companies can differentiate their service delivery by having more able and reliable customer-contact people. True or False?

True

Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. True or False?

True

The aim of the entire value delivery network is to serve target customers and create strong relationships with them.

True

Two of the characteristics that are especially important in influencing an innovation's rate of adoption are relative advantage and compatibility. True or False?

True

While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.

True

According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.

Understand the marketplace and customer needs and wants

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

Value delivery network

Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?

Value proposition

________ are human needs that are shaped by culture and individual personality.

Wants

Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers?

Warehousing

Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer?

When customers are willing to conduct their own locate-compare-select process

A reputed cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________.

Widened its product mix

Which of the following questions is an example of a closed-end question?

Would you like to try our new ice cream flavor?