Marketing CLEP Testing Practice

Which customer question is answered by a company's value proposition?

"Why should I buy your brand rather than a competitor's?"

In which of the following situations is the number of buying influences most likely to be greatest?

A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture

Which of the following would be considered a nonprofit organization?

A homeless shelter that charges a fee for its services and uses the proceeds for the upkeep of the shelter

Which of the following lists the correct sequence of steps in the consumer decision-making process?

Need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior

If a company decides to allocate more resources to personal selling and sales promotion by its resellers, which of the following strategies is it using?

Push Strategy

Which of the following types of marketing communications tends to have the shortest-term focus and objectives?

Sales Promotion

Which of the following statements about secondary data is correct?

Secondary data are usually available in a shorter period of time than primary data.

Which of the following lists the correct order of the steps of the target marketing process?

Segmentation, targeting, and positioning

An advertisement for prospective applicants to a college shows individual students along with the slogan "I am getting ready to seize my destiny." The ad appeals to which need in Maslow's hierarchy?

Self-actualization

Which one of the following changes would most likely motivate a firm to reposition a brand?

Shifting demographics

The growing Latino population

Sociocultural Environment

The development of new production techniques

Technological Environment

Which of the following statements about the European Union is true?

The EU eliminates trade barriers among member countries

Which of the following organizations administers the GATT (General Agreement on Tariffs and Trade) ?

The World Trade Organization

A manufacturer who refuses to sell to dealers its popular line of office copiers unless the dealers also agree to stock the manufacturer's line of paper products would most likely be guilty of which of the following?

Tying Contracts

Harmony Households is the largest home improvement retailer in China. Because of its size and market power, the firm can insist upon desired product features, delivery schedules, and price points from its suppliers. Harmony Households is

a channel captain

Which of the following specifies a limit on the amount of certain products that can be imported into a country?

a quota

A marketing strategy is composed of both

a target market and related marketing mix

Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs?

a value proposition

A major advantage of distributing products by truck is

accessibility to pick-up and delivery locations

Which of the following is an intermediary in the distribution channel that moves goods without taking title to them?

agent

The primary purpose of market segmentation is to

allocate marketing resources to meet the needs of specific segments

President John F. Kennedy's assertion that consumers have certain rights led to legislation that guaranteed all of the following EXCEPT the right to

bargain

At the most basic level, products and services should be viewed as a collection of

benefits

During the first stage of the product life cycle, a marketer's objective most likely will be to

build product awareness

On its e-commerce Web site, XYZMusic.com sells songs from new artists who produce their own music. The site also hosts ads from other e-businesses. The ads presented to a user depend on the type of music the user is reviewing. XYZMusic.com collects ad revenue when users follow links in the ads to the advertisers' Web sites. XYZMusic.com's advertising revenue is based on

click-through rates

A formal statement of standards that governs professional conduct is called a

code of ethics

The stage of product development that involves launching a new product into the market is called

commercialization

Gabriella's is an Italian producer of fashion jeans. In this highly competitive market, the firm wishes to match the advertising efforts of its competitors by achieving a share of voice (promotion) which is roughly equal to its share of market (sales). This approach to promotional budgeting is called

competitive parity

Rachel Terry, regional manager at Wilcon Solvents, Inc., compares last quarter's sales with the levels projected in the firm's marketing plan. She identifies three solvent brands whose sales are below projections and initiates a series of inquiries to discover the reasons for the shortfall. Ms. Terry is engaged in which stage of the strategic marketing process?

control

ABC Company agrees to pay a certain amount of a retailer's promotional costs for advertising ABC's products. This is an example of

cooperative advertising

In selling a new global logistics information system to a large client, the national account manager of a leading supply chain management vendor learns that client executives from marketing, production, human resources, finance, and business strategy will participate in the decision-making process. Which of the following terms best describes the scope of the buying initiative?

cross-functional

________ is an important concept when we realize that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage.

customer lifetime value

A statement most consistent with the philosophy of the marketing concept would say that the key to success is

customer satisfaction

The ability to tailor marketing processes to fit the specific needs of an individual customer is called

customization

The demand for industrial goods is sometimes called "derived" because it depends on

demand for consumer goods

When backed by buying power, wants become

demands

Market segmentation that is concerned with people over 65 years of age is called

demographic

When a convenience store manager raised the price of fountain drinks by 10 percent, she found that the store sold only half as many fountain drinks. The manager's observation indicates that the demand for fountain drinks is highly

elastic

A marketer usually offers a noncumulative quantity discount in order to

encourage users to purchase in large quantities

The estimated market value of a brand is best described as brand

equity

A brand that has achieved brand insistence and is considered a specialty good by the target market suggests which of the following distribution objectives?

exclusive distribution

Which of the following is NOT an advantage of Internet advertising as compared with traditional advertising?

exclusivity

The three types of marketing research are

exploratory, descriptive, and causal

With seven other homeowners, Marty was invited to a(n) _____ where the researcher asked the group general questions about how they do yard work. The interview revealed that most have limited time to work in the yard and would be willing to hire a lawn care service if the price were reasonable.

focus group

For a United States manufacturer of major consumer appliances, the most important leading indicator for forecasting sales is

housing starts

The growth of service industries is primarily the result of

increasingly complex and specialized customer needs

All of the following are characteristics of services EXCEPT

inflexibility

The primary function of promotion is to

inform, persuade, and remind

A product is classified as a business product rather than a consumer product based on its

intended use

Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is called

intermodal transportation

In the marketing research process, firms often gather and analyze secondary data rather than primary data because secondary data

is more readily available and less expensive to collect than primary data

While writing a marketing plan, Melanie decides that the marketing objective should be "to increase market share by 5 percent." A weakness in this objective is that

it does not specify a time period

A customer is satisfied, when a customer's purchase ________ his or her expectations.

lives up to

Which of the following is NOT a segmentation criterion or consideration used for choosing a target market?

market accountability

A fertilizer manufacturer who traditionally markets to farmers through farm supply dealers and cooperatives decides to sell current products to home gardeners through lawn and garden shops. This decision is an example of

market development

The sign on the wall of The Health Hut reads, "We want to provide our customers with the freshest and healthiest of foods so that they can live life to the fullest." This sign reflects the:

mission statement

If two brands move closer to each other on a perceptual (positioning) map, it means that they have become

more similarly perceived by consumers

Which of the following is the fastest growing nonstore retail segment in the United States?

online retailing

A marketing expert said that he could have advertised a brand of soap as a detergent bar for men with dirty hands, but instead chose to advertise it as a moisturizing bar for women with dry skin. This illustrates the marketing principle known as

product positioning

The process of identifying people or companies who may have a need for a salesperson's product is known as

prospecting

Which of the following is the first step in the sales process?

prospecting

In a marketing research study for a manufacturer of porch swings, _____ would most likely be a source of primary data.

researchers' interviews with hardware-store owners who sell porch swings

The marketing director of a manufacturing company says, "If my wholesaler exceeds the sales record from last month, I agree to give him a paid trip to the Bahamas." This technique is a form of

sales promotion

In contrast to a selling orientation, a marketing orientation seeks to

satisfy the needs of targeted consumers at a profit

To save time and money, a marketing research team uses data that have already been gathered for some other purpose. Which type of data is the team using?

secondary

Cooperative advertising is usually undertaken by manufacturers in order to

secure the help of the retailer in promoting a given product

Marketing strategy planning includes

selecting a target market and developing the marketing mix

A channel of distribution refers to the

sequence of marketing intermediaries from producer to consumer

Reference groups are more likely to influence a consumer's purchase when the product being purchased is

socially visable

Compared with agent intermediaries, merchant intermediaries

take title to the goods they sell

A(n) ______________ is a group of customers (people or organizations) at whom the seller specifically intends to aim its marketing efforts.

target market

You are directed to study the demographic, economic, natural, technological, political, and cultural factors that are larger societal forces affecting your company. What are you studying?

the macroenvironment

Positioning refers to

the perception of a product in customers' minds

Consumers tend to be more satisfied with their purchase of a product when

they research the product before the purchase

Lutèce Brands, Inc., acknowledges that its French pastries may contribute to health problems in some of its customers, but the company claims that the benefits (such as personal pleasure and taste) outweigh the risks. The company's approach to moral reasoning is best described as

utilitarianism

A fast-food chain seeking an easy and low-cost entry into a foreign market would most likely choose which of the following avenues?

Franchising

If a firm is using penetration pricing, the firm is most likely trying to achieve which of the following pricing objectives?

Market-share maximization

Which of the following best describes the process of selecting target markets in order to formulate a marketing mix?

Market segmentation

Which of the following is an example of business-to-business buying?

Avery purchases a new office desk for his company

Behavioral research generally indicates that consumers' attitudes

Behavioral research generally indicates that consumers' attitudes

Richard Weiss, SA, is a Swiss watch manufacturer. One of its two major brands offers ruggedness, reliability and durability to active sports enthusiasts. The other offers elegance and stylishness to fashion conscious consumers. Which of the following segmentation approaches is this firm using?

Benefits sought

Relationship marketing can help a company...

Create long-term, cost-effective links with individual customers for mutual benefit.

Which answer has the four steps of the marketing research process in the correct order.

Define the problem. Determine the research design. Choose the data collection method. Collect data.

Missionary salespersons are most likely to do which of the following?

Describe drugs and other medical supplies to physicians

The XYZ Corporation has two chains of restaurants. One restaurant specializes in family dining with affordable meals. The second restaurant targets young, single individuals, and offers a full bar and small servings. The XYZ Corporation uses which form of targeted marketing strategy?

Differentiated Marketing

Which of the following strategies for entering the international market would involve the highest risk?

Direct Investment

Rising mortgage rates

Economic Environment

Which of the following best describes members of a buying center?

Everyone involved in making the purchase decision

Which of the following are key characteristics of services?

Intangibility, perishability, and variability correct

Maxine suddenly realizes that she is out of paper towels. She remembers that she last bought Max Dri Towels, so she stops at the store and picks up another roll of Max Dri on her way home from work. In this example, Maxine uses what form of information search in her decision process?

Internal information search

Which of the following is true of global marketing standardization?

It assumes that global consumers increasingly have similar needs

Which of the following is true of price skimming?

It calls for relatively high prices to start, reducing over time

Which of the following is a major disadvantage associated with the use of dual distribution?

It can cause channel conflict

Which of the following is true of the product life cycle?

It is based on the assumption that products go through distinct stages in sales and profit performance.

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

It tends to have high costs per contact

Which of the following approaches for entering international markets involves granting the rights to a patent, trademark, or manufacturing process to a foreign company?

Licensing

A manufacturer of car batteries, who has been selling through an automotive parts wholesaler to garages and service stations, decides to sell directly to retailers. Which of the following will necessarily occur?

The wholesaler's marketing functions will be shifted to or shared by the manufacturer and the retailer

Which of the following most accurately describes agent wholesalers?

They do not take title to goods that they sell to other intermediaries

Which of the following statements most accurately describes antidumping laws?

They prevent foreign-manufactured goods from selling at below cost.