Marketing Exam 1

What are the stages of memory that influence consumers' decision making: A. Information encoding, information storage, and information retrieval. B. Learning, perception establishing, and attitude forming C. Learning, information storage, and information retrieval. D. Information encoding, perception establishing, and attitude forming E. Learning, perception establishing, and information retrieval.

A. Information encoding, information storage, and information retrieval.

________ represents all the activities necessary to get the product to the right customer when that customer wants it. A. Place B. Promotion C. Social media D. Value cocreation E. Product

A. Place

A firm can improve its products' attractiveness compared to substitutes by providing better service and more features. A. True B. False

A. True

A want is something that an individual desires to have but may not necessarily need. A. True B. False

A. True

Kaiko's Place is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Kaiko's Place, the possibility that the recession might cut back on tourism in Hawaii would be considered a threat. A. True B. False

A. True

Product penetration is one of the four major growth strategies. A. True B. False

A. True

SanDisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In Boston Consulting Group (BCG) portfolio analysis, the Sansa would be considered a dog. A. True B. False

A. True

The marketing plan is broken down into various components—how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer. A. True B. False

A. True

Today, marketers embrace technologies to help them connect to their customers. A. True B. False

A. True

Understanding the marketplace and especially a consumer's needs and wants, is fundamental to marketing success. A. True B. False

A. True

When Stefan decided he needed a new car, he immediately called his old college roommate, who owns a BMW dealership, to ask questions about options and financing. Stefan was searching for information from A. an external source. B. an internal locus of control. C. a reference source. D. an internal source. E. a situational factor group.

A. an external source.

When Kennedy arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Kennedy's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. Ritz-Carlton demonstrated the macro strategy of A. customer excellence. B. operational excellence. C. product excellence. D. promotional excellence. E. global excellence.

A. customer excellence.

Isabelle phoned her insurance agent to renew her auto insurance policy. On that same call, the agent attempted to sell her one of the firm's new life insurance policies. The agent was pursuing a ________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

A. product development

When a T-shirt manufacturer states, "Customers can have any color T-shirt they want, so long as it's blue," it is reflecting a view that was popular in which era of the marketing evolution? A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. economics-oriented

A. production-oriented

During the Great Depression, consumers couldn't afford to purchase items and instead planted gardens for food, patched together broken cars, and didn't replace items that wore out. This led to the _____ era in which manufacturers had to find ways to get rid of product. A. sales-oriented B. production-oriented C. value-based marketing D. market-oriented E. customer-oriented

A. sales-oriented

Matt pointed out to the board of directors that having the popular teen music group as the company's celebrity endorser has boosted sales by 22% in the 12-18 age bracket. When using a SWOT analysis, the teen music group would be classified as a(n) A. strength. B. option. C. opportunity. D. weakness. E. threat.

A. strength

A consumer's buying decision depends on the consumer's level of involvement or degree of interest in the product or service. A(n) consumer pays greater attention and engages in deeper processing, which leads to strong attitudes and purchase intentions. A. external-locus-of-control B. high-involvement C. low-involvement D. reciprocal E. habitual

B. high-involvement

What is the third step in the marketing planning process? A. define the business mission B. identify and evaluate opportunities C. evaluate using a matrix D. implement marketing mix and allocate resources E. perform situation analysis

B. identify and evaluate opportunities

B&D is a small, local, heating and air conditioning business. The company views the nearby military base as a potential source of growth since B&D already installs and services the type of equipment the military would require. B&D is considering a ________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B. market development

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called A. target marketing. B. market segmentation. C. positioning. D. allocation. E. value capture.

B. market segmentation.

Which company activity is identified as the set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large? A. human resources B. marketing C. accounting D. manufacturing E. sales

B. marketing

After defining the business mission, what should a firm do next to develop a marketing plan? A. conduct an STP analysis B. perform a situation analysis C. develop a positioning strategy D. select a target market E. implement the four Ps

B. perform a situation analysis

During the ________ era, firms had excess production capacity and used personal selling and advertising to generate customers. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B. sales-oriented

In his role as a product developer at Comfy Shoes, Henry should determine the price of his products carefully based on the potential buyer's interest in his products and A. a thorough knowledge of his brand messages. B. the buyer's belief about the products' value. C. knowledge of competing products. D. ability to negotiate discounts. E. susceptibility to traditional marketing alternatives.

B. the buyer's belief about the products' value.

Some discount stores place products in large bins, inviting consumers to spend time hunting through them to find a bargain. The price these consumers pay includes A. only the actual price they pay at the register. B. the value of their time and energy. C. the excitement they experience in finding an item they desire. D. the savings to the store of not having to display the products neatly on shelves. E. the time the product was full price and didn't sell.

B. the value of their time and energy.

A firm's buyers have low bargaining power when A. The firm's product is unimportant to the buyer's product quality B. Buyers can earn low profits via the firm's product C. The firm's product is differentiated from its competitors' product D. Substitutes exist for the firm's product E. The firm's buyers threaten to backward integrate

C. The firm's product is differentiated from its competitors' product

Negative attitudes are typically difficult for marketers to change because A. most consumers' attitudes depend on prices. B. consumers weigh performance risk against functional needs when assessing their attitudes. C. attitudes are learned and long lasting. D. attitudes shift consumers from limited to extended problem-solving situations. E. consumers' attitudes are derived from unchanging decision rules.

C. attitudes are learned and long lasting.

When Janelle decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but when she visited her local Best Buy, she limited her search to only those brands she would consider buying. The brands available at Best Buy represent Janelle's ________ set. A. universal B. retrieval C. evoked D. deterministic E. behavioral

C. evoked

Anna decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Anna is pursuing a ________ growth strategy. A. segment development B. market development C. market penetration D. diversification E. product development

C. market penetration

Niro Music Source Inc. is considered the best in the industry in terms of human resource management and its excellent supply chain that assures the company will deliver products on time. Which macro strategy does this company demonstrate to achieve a sustainable competitive advantage? A. locational excellence B. customer excellence C. operational excellence D. product excellence E. planning excellence

C. operational excellence

If a firm adopts a CRM business philosophy, it most likely has a(n) ________ orientation with its customers. A. transactional B. external C. relational D. internal E. divisional

C. relational

From a customer's perspective, value reflects A. the need for value and the perception of value. B. explicit versus implicit value. C. the relationship of benefits to costs. D. the balance between needs and wants. E. the need for product improvement.

C. the relationship of benefits to costs.

The consumer decision process model represents A. the concept of habitual decision making. B. the retrieval of an evoked set based on physiological needs. C. the steps that consumers go through before, during, and after making purchases. D. the shift from an internal to an external locus of control. E. the types of decisions all consumers must make for each product or service purchase.

C. the steps that consumers go through before, during, and after making purchases.

The consumer buying process begins when A. a consumer enters a store. B. consumers' functional needs are greater than their psychological needs. C. a consumer's performance risk is minimized. D. a consumer recognizes an unsatisfied need. E. learning follows perception.

D. a consumer recognizes an unsatisfied need.

Though he has never owned a Jaguar, Jamie thinks that Jaguar vehicles are poorly made and have many mechanical problems. For Jaguar to sell Jamie a car, the company would need to change the ________ component of Jamie's attitude. A. social B. affective C. functional D. cognitive E. physiological

D. cognitive

During which phase of the marketing planning process does a firm evaluate performance using marketing metrics? A. planning phase B. implementation phase C. production phase D. control phase E. strategy phase

D. control phase

Henson Electric is interested in diversifying into the frozen foods industry. The board of directors sees this as a risky move since the company can't capitalize on any of its existing markets or core strengths. Which type of growth strategy is Henson Electric considering? A. product development B. market development C. market penetration D. diversification E. product proliferation

D. diversification

The goal of customer relationship management is to A. manage every customer relationship differently. B. manage every customer relationship to maximize short-term profitability. C. eliminate customers who are profitable, but not highly profitable. D. identify and build loyalty among a firm's most valued customers. E. generate relationships with competitors' customers.

D. identify and build loyalty among a firm's most valued customers.

A competitive advantage based on location is often sustainable because A. mobile marketing has not yet proven its value for most customers. B. real estate prices have been dropping. C. few marketers are aware of its importance yet. D. location cannot be easily duplicated. E. the Internet has diminished the importance of brick-and-mortar stores.

D. location cannot be easily duplicated.

In which era of the marketing evolution did firms begin to focus on what consumers wanted and needed before designing, making, or selling a product? A. production-oriented era B. sales-oriented era C. value-based marketing era D. market-oriented era E. creative production era

D. market-oriented era

Susan has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the ________ associated with her purchase decision. A. evoked set B. reference group C. physiological risk D. performance risk E. financial risk

D. performance risk

In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on ________ value creation. A. product B. price C. promotion D. place E. financial

D. place

Upscale men's and women's clothing stores like Nordstrom, Neiman Marcus, or Saks Fifth Avenue are more likely to appeal to consumers' ________ needs. A. functional B. postpurchase C. safety D. psychological E. situational

D. psychological

Many states have laws regulating the prices businesses charge during emergencies like hurricanes. These laws are designed to protect consumers whose ________ state may impair their ability to make sound purchase decisions. A. cognitive B. social C. theoretical D. temporal E. physical

D. temporal

In 2006, Ford Motor Company announced it would severely cut back its automobile production. For parts companies supplying Ford its parts, this represented a(n) A. weakness. B. opportunity. C. strength. D. threat. E. strategic plan.

D. threat.

Which of the following does not belong to Porter's five forces? A. Buyer's bargaining power B. Supplier's bargaining power C. Threat of new entrance D. Threat of substitute products E. Competitor's bargaining power

E. Competitor's bargaining power

Which of these consumers is involved in an exchange for a service? A. Parul had to go buy groceries and couldn't join her friends at the theater. B. Corinne bought popcorn at the movie theater. C. Jason drove to the movie theater in the car he bought last year. D. Henri bought a new shirt at the store next to the theater. E. Natalie purchased her movie ticket online.

E. Natalie purchased her movie ticket online.

In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing Inc., a manufacturer of personal devices and smartphones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in which step of the marketing planning process? A. perform situation analysis B. implement marketing mix and allocate resources C. identify and evaluate opportunities D. evaluate performance E. define the business mission

E. define the business mission

Postpurchase cognitive dissonance is especially likely for products that are A. cheap, poorly made, and made of plastic. B. personally valuable, antique, or foreign-made. C. simple, easily copied, and new. D. psychologically soothing, purchased impulsively, and part of a consumer's evoked set. E. expensive, infrequently purchased, or associated with high levels of risk.

E. expensive, infrequently purchased, or associated with high levels of risk.

Natalie and her fiancé Mayuree are planning their wedding. Natalie's mother wants her to have a traditional church wedding with a Roman Catholic priest officiating, but Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Mayuree is from Thailand and would like to have a monk officiate. Natalie and Mayuree's wedding decisions are most influenced by A. impulse, habitual, and limited problem-solving processes. B. functional and psychological profit. C. universal, retrieval, and evoked sets. D. cognitive, affective, and behavioral environments. E. family, reference groups, and culture.

E. family, reference groups, and culture.

Logan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. His friend Riley has a different attitude about responsibility. Riley's favorite phrase, when confronted by the need to make a decision, is "Whatever." In marketing terms, Logan is said to have a(n) ________ and Riley, a(n) ________. A. personal-accountability approach; laissez-faire approach B. formal search function; casual search function C. increased search anxiety; decreased search anxiety D. internal locus of control; external locus of control E. focused sense of information; unfocused sense of information

E. focused sense of information; unfocused sense of information

Jason wants to impress Camille with the perfect engagement ring. He has been saving money for months, and he realized his attitudes and perceptions about diamond rings have been changing as he began paying attention to ads for rings. Marketers call this process A. consumer confidence building. B. self-actualization. C. perception construction. D. prepurchase dissonance. E. learning.

E. learning.

A firm's supplier has low bargaining power if the supplier has built-in switching cost A. True B. False

B. False

Jenni didn't go see the movie Us because her friends said she wouldn't be able to handle it. When she found out how good it was, she blamed her friends. Jenni's reaction demonstrates an internal locus of control. A. True B. False

B. False

Marketing is an activity that only large firms with specialized departments can execute. A. True B. False

B. False

Maslow's hierarchy of needs is an interesting concept for psychology, but it has little relevance for marketing. A. True B. False

B. False

Product objectives include growth and new product development A. True B. False

B. False

The consumer decision process begins with a comparison of available alternatives. A. True B. False

B. False

To build a sustainable competitive advantage, companies should focus on a single strategy. A. True B. False

B. False

________ is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response. A. Pricing B. Promotion C. Placement D. A relational orientation E. Value cocreation

B. Promotion

Which factor, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity as identified by a SWOT analysis? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

B. Recent consumer studies have indicated that Chinese consumers prefer American cars.

Which statement reflects the philosophy of the market-oriented era? A. A good product will sell itself. B. The customer is king. C. Firms should take advantage of a seller's market. D. Advertising and personal selling should be emphasized in order to make the sale. E. Firms should focus on value.

B. The customer is king.

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.

B. cash cows.

The growth rate for the iMac desktop, which has a small relative market share in the desktop market, has slowed down in recent years. Although sales have dropped by approximately 3 percent, it remains popular among graphic designers. Given these conditions, in which quadrant of the BCG matrix would the iMac most likely fall? A. upper left quadrant because although its growth rate has dropped, it still remains popular among graphic designers B. upper right quadrant because although it has a small relative market share, it is part of a high-growth market C. lower left quadrant because although its sales have dropped, it still has high market share among graphic designers D. upper left quadrant because it is a heavy resource investment E. lower right quadrant because it is in a low-growth market and has a relatively low market share

E. lower right quadrant because it is in a low-growth market and has a relatively low market share

A former advertising campaign for GEICO Insurance used the slogan "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website—implying it was simpler than using a competitor site. This campaign was part of GEICO's A. mission statement. B. market segmentation plan. C. product strategy. D. customer excellence strategy. E. positioning strategy.

E. positioning strategy.

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) ________ macro strategy. A. customer excellence B. global excellence C. locational excellence D. operational excellence E. product excellence

E. product excellence

A product that is in a high-growth market but has a low market share would be classified as a ________ on the BCG matrix. A. ladder B. dog C. cash cow D. star E. question mark

E. question mark

Maslow's hierarchy of needs includes physiological needs at the bottom-most level of the pyramid and self-actualization at the top-most level. The three levels in between are A. material goods, safety, and love. B. community, family, and self. C. safety, stability, and striving. D. health, wealth, and happiness. E. safety, love, and esteem.

E. safety, love, and esteem.

For marketers, "exchange," refers to A. the location where products and services are traded. B. the price charged, adjusted for currency exchange rates. C. location-based tactics for creating value. D. promotional offers designed to stimulate barter. E. the trading of things of value.

E. the trading of things of value.

Jonni has just started with a travel agency and has been offering clients and prospective clients a range of packaged tours. She is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Andrew, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Andrew's approach is based on A. transaction-oriented marketing. B. premium pricing. C. economies of scale. D. special incentives from tour operators. E. value cocreation.

E. value cocreation.