Marketing Final

A company should avoid high-pressure selling if it wants to ________. A) build long-term relationships with valued customers B) achieve short-term gains C) comply with local and federal laws D) maintain an accurate customer database E) move a previous year's product models

A

Subcultures are groups of people with shared value systems based on common life experiences and situations. TRUE FALSE

True

The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law. TRUE FALSE

True

The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade. TRUE FALSE

True

The distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased. TRUE FALSE

True

Companies that practice perceived obsolescence use product components that will break, wear, rust, or rot sooner than they should. TRUE FALSE

False

Companies today are moving away from target marketing and toward mass marketing. TRUE FALSE

False

In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment. True or False

False

The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. True or False

True

The purchasing power of a population is part of the demographic environment of a company's macroenvironment. TRUE FALSE

True

The rise of megaretailers has shifted the balance of power between retailers and producers. Since megaretailers have access to numerous consumers, they have significant power when dealing with manufacturers. TRUE FALSE

True

In a territorial sales-force structure, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that area. TRUE FALSE

False

In markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships. True or False

False

Intensive distribution occurs when only one intermediary is used by a producer to sell all its products. TRUE FALSE

False

Life insurance is an example of a convenience product. TRUE FALSE

False

Lobbying refers to a PR department maintaining relationships with shareholders and others in the financial community. TRUE FALSE

False

Marketing intermediaries supply resources needed by a company to produce its goods and services. TRUE FALSE

False

Most of the retailing in the United States is done by small, independent retailers. TRUE FALSE

False

Neuromarketing techniques provide easy-to-interpret data that allow researchers to analyze consumer involvement with products. TRUE FALSE

False

Personal sources of information normally inform the buyer, but commercial sources legitimize or evaluate products for the buyer. TRUE FALSE

False

Pricing strategies usually remain the same as a product passes through its life cycle. TRUE FALSE

False

Sales promotions typically create short-term sales but are viewed as ineffective at building long-term customer relationships. TRUE FALSE

False

Social media marketing is a traditional direct marketing tool. TRUE FALSE

False

Stringent product regulations have helped to lower research costs and decrease time between new product ideas and their introduction to the market. TRUE FALSE

False

Telemarketing is infrequently used as a fundraising tool for nonprofit and political groups. TRUE FALSE

False

The European Union restricts trade opportunities to European firms. TRUE FALSE

False

The franchise organization is an example of a corporate vertical marketing system. TRUE FALSE

False

The least significant demographic trend in the United States is the changing age structure of the population. TRUE FALSE

False

The position of a strategic business unit in the growth-share matrix typically remains constant over time. True or False

False

A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. True or False

True

A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share. True or False

True

A company that adopts a reactive marketing stance would most likely view the marketing environment as an uncontrollable element to which it must adapt. TRUE FALSE

True

A consumer demanding a product from a retailer after watching an ad on television has responded to a pull promotional advertising strategy. TRUE FALSE

True

A joint venture involves a company entering foreign markets by partnering with foreign companies to produce or market a product or service. TRUE FALSE

True

An increase in private goods, such as cars, typically leads to an increased need for public services, such as parking spaces. TRUE FALSE

True

An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create. True or False

True

Cigarettes and junk food are considered pleasing products. TRUE FALSE

True

Corporate marketing ethics policies should most likely address distributor relations, advertising standards, customer service, pricing product development, and general ethical standards. TRUE FALSE

True

Each basic consumer right has led to more specific proposals from consumerists, such as nutritional and ingredient labeling. TRUE FALSE

True

In the marketing mix, product includes the goods and services the company offers to the target market, while promotion includes advertising. True or False

True

In vendor-managed inventory, buyers share sales information directly with key suppliers. TRUE FALSE

True

Marketers must be careful to guard against stereotypes when using age and life-cycle segmentation. TRUE FALSE

True

Marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships. True or False

True

Most international companies strive to adapt global brands to local needs. TRUE FALSE

True

Which of the following is being used by a store owner who sends out a text message to all of her preferred customers, announcing the arrival of this season's new clothing? A. mobile marketing B. social marketing C. personal selling D. sales promotions

C

Which of the following is most likely a true statement about social class? A) Members of a social class vary drastically in their values, interests, and behaviors. B) In the United States, the lines between social classes are fixed and rigid. C) Social classes show distinct product preferences in areas such as clothing. D) Wealth is a more important variable than education in measuring social class. E) Consumers of the same age belong to the same social class.

C

Which of the following is part of the microenvironment of a firm's marketing environment? A) the political state of the country in which the firm exists B) the cultural forces that exist in a society C) the suppliers who work with the company D) the technological resources available to the company E) the different demographic trends in the market

C

Which of the following is true of a territorial sales-force structure? A) It differentiates the sales force solely on the basis of product expertise. B) It is used by firms that organize their sales forces along customer or industry lines. C) It clearly defines each salesperson's job and establishes accountability. D) It requires salespeople to sell a wide variety of products over a broad geographic area. E) It benefits firms with many technological products requiring technically skilled salespeople.

C

Which of the following sources of product information can marketers control completely? A) public B) personal C) commercial D) experimental E) experiential

C

A brand's ________ is the set of benefits that it promises to deliver to consumers to satisfy their needs. A) dominant effect B) fringe benefit C) perquisite D) value proposition E) dividend yield

D

Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of ________. A) disintermediation B) selective distribution C) horizontal price fixing D) exclusive dealing E) horizontal integration

D

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions. A) point-of-purchase B) consumer C) sales-force D) trade E) business

D

Susan has been redecorating her new condo for a year. She is carefully selecting every item. Susan finds an oriental rug that matches her color scheme and décor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a(n) ________. A) shopping product B) capital product C) industrial product D) specialty product E) convenience product

D

The ________ concept specifically focuses on the future welfare of customers, but not on future company needs. A) sustainable marketing B) marketing C) selling D) societal marketing E) strategic planning

D

Which of the following are the fastest-growing forms of marketing? A) mass and targeted B) undifferentiated and differentiated C) internal and external D) direct and digital E) standardized and customized

D

Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies. TRUE FALSE

True

Once the research problems and objectives have been defined, researchers must determine the exact information needed. TRUE FALSE

True

Product, price, place, and promotion make up the elements of a firm's marketing mix. True or False

True

Satisfying consumers' immediate needs and desires does not always serve the future best interests of either customers or the business. TRUE FALSE

True

Service retailers in the United States are growing faster than product retailers. TRUE FALSE

True

Acquisitions are not considered a source of new products for organizations. TRUE FALSE

False

Causal research is used to ________. A) test hypotheses about cause-and-effect relationships B) gather preliminary data to define problems and their underlying causes C) collect information on the demographics of customers D) collect information on the attitudes of consumers E) generate hypotheses about the causes of a marketing problem

A

Compared to standardized global marketing, adapted global marketing ________. A) modifies marketing strategies to meet local needs B) uses the same marketing mix elements in all target markets C) maintains uniformity across all markets D) results in greater brand power E) lowers marketing costs by using home country sales teams

A

Howard Schultz, the founder of Starbucks, positioned his bistros as "a third place" between work and home where patrons could share and enjoy a cup of coffee with friends. This illustrates ________. A) a core customer value B) an actual product C) complex bundling D) an augmented product E) simple bundling

A

Imaginative Web sites, smartphone apps, and social media allow marketers to deliver messages that are direct and personal so consumers can ________. A) live the brand B) sustain the brand C) deliver the brand D) enhance the brand E) establish the brand

A

In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. A) personal selling B) advertising C) public relations D) merchandising E) crowdsourcing

A

Products that give high immediate satisfaction but may hurt consumers in the long run are called ________ products. A) pleasing B) desirable C) deficient D) salutary E) threatening

A

The ultimate aim of customer relationship management is to ________. A) produce high customer equity B) divide markets into distinct segments C) evaluate customer lifetime value D) turn "strangers" into "butterflies" E) evaluate current sales share

A

Which aspect of niche online social networks makes the medium most appealing to marketers? A) They cater to the needs of small communities of like-minded people. B) They allow marketers to control the conversations on the network. C) They help marketers target the best undifferentiated market segment. D) They are used by a majority of Internet users in the United States and overseas. E) They guide organizations on how to set up social media networks.

A

Which of the following concepts calls for sustainable marketing? A) the societal marketing concept B) the marketing concept C) the selling concept D) the production concept E) the product concept

A

Which of the following is true of personal selling? A) It is the most expensive promotional tool for companies to utilize. B) It presents a firm's message as news rather than as a sales-directed communication. C) It allows firms to dramatize product offers through arts and visuals. D) It is an ineffective method for building long-term customer relationships. E) It is the most effective promotional tool for geographically dispersed buyers.

A

________ are defined as states of felt deprivation. A) Needs B) Ideas C) Demands D) Values E) Exchanges

A

________ are distribution channel firms that help a company find customers or make sales to them. A) Resellers B) Suppliers C) Producers D) Logistics firms E) Credit companies

A

________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service. A) Price B) Payroll C) Cost D) Salary E) Profit

A

Bakeries and coffee bistros that offer pumpkin-flavored items only during the autumn season target their consumers primarily through ________ segmentation. A) demographic B) occasion C) psychographic D) income E) age and life-cycle

B

During which stage of the business buying decision process is a buyer most likely to conduct value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively? A) general need recognition B) product specification C) proposal solicitation D) order-routine specification E) performance review

B

In advertising, puffery refers to ________. A) broadcasting a straightforward promotional message B) including innocent exaggeration for effect C) providing value-added promotions D) creating subliminal appeals for a brand E) creating emotional appeals for a brand

B

Rather than just creating and placing "TV ads" or "print ads" or "Snapchat branded story ads," many marketers now view themselves more broadly as ________ managers. A) social media marketing B) content marketing C) direct marketing D) multi-media marketing E) integrated marketing communication

B

The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________. A) failure to provide value-priced products for online customers B) protecting the privacy of knowing and unknowing customers C) providing too many alternative products online which confuses customers D) rarely following the marketing orientation when devising promotional offers online E) failing to reach their target customers through online marketing

B

What do most companies today focus on when it comes to protecting the environment? A) practicing product stewardship B) investing heavily in pollution prevention C) investing heavily in environmental technology D) increasing the biodegradability of products E) developing a sustainable vision

B

Which of the following is most likely a benefit of joint ownership? A) It is the simplest way for a domestic company to enter a foreign market. B) It allows a firm to gain the financial and managerial resources that it may otherwise lack. C) It allows one firm to acquire complete ownership of the other firm in the venture. D) It provides significant economies of scale for both the local firm and the foreign investor. E) It minimizes the need to build a new manufacturing facility in the foreign market.

B

Which of the following is true of a conventional distribution channel? A) It has all members of the channel working together as a single organization. B) It has each channel member acting as a separate business unit trying to maximize its own profits. C) It is a distribution channel where a producer is owner of all the other channel members. D) It has one channel member owning the other channel members. E) It consists of producers selling their products directly to customers without the use of intermediaries.

B

Which of the following most likely suggests that marketers lack the power to create consumer needs and control market demand? A) consumer acceptance of changing clothing styles B) high failure rate of new products C) consumer interest in modern technology D) use of social media in product comparisons E) affordable products in disadvantage communities

B

________ is a discomfort caused by postpurchase conflict. A) Selective retention B) Cognitive dissonance C) Selective attention D) Restraint bias E) Subliminal perception

B

Companies like 3M, Google, and Sony have ________ that encourage employees to develop new ideas. A) government agencies B) marketing research firms C) intrapreneurial programs D) trade magazines E) competitor's ads

C

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________. A) redundancy in product design across market segments B) reduced sales in each market segment C) higher costs of doing business D) smaller market share in the industry E) weaker product position in each market segment

C

The 4Ps model has been challenged because it omits or underemphasizes important activities such as services. It's also been criticized for taking a seller's, rather than a buyer's, viewpoint. The more recent 4As framework complements the traditional model and includes ________. A) adaptability, affordability, availability and awareness B) adaptability, affordability, accessibility and awareness C) acceptability, affordability, accessibility and awareness D) acceptability, affordability, accessibility and aptitude E) adaptability, affordability, availability and aptitude

C

The migration trend towards micropolitan and suburban areas has caused a shift in where people work. This has resulted in a rapid increase in the number of people who ________. A) commute B) leave the workforce C) telecommute D) work part-time E) purchase second residences

C

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is referred to as ________. A) perceived-value management B) societal marketing C) customer relationship management D) partner relationship management E) enterprise resource planning

C

Which of the following is an example of a media public? A) community organization B) minority group C) television station D) banking institution E) federal government

C

Which of the following is true about joint venturing? A) Management contracting is highly risky for the domestic firm. B) Companies are required to invest in the construction of foreign-based facilities. C) Contract manufacturing gives significant control to the domestic firm. D) A host country partner is necessary for selling or marketing products. E) Licensing is a highly complex method for entering global markets.

D

Which of the following statements about break-even analysis is most likely true? A) It determines how customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It is a tool marketers use to examine the relationship between supply and demand. D) It fails to consider customer value and the relationship between price and demand. E) It is used to determine the maximum price that can be set on a product

D

________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy. A) Market segmentation B) Vertical integration C) Product line extension D) Downsizing E) Diversification

D

Bikers and non-bikers alike enjoy dining at the Harley Davidson Café in Las Vegas. Several Harley Davidson models are on display as well as a very large, uniquely crafted American flag. Menu items include the Easy Rider, the Choppers Cobb salad, and the Harley Hog sandwich. The Harley Davidson Café most likely uses ________. A) self-service retailing B) franchising C) predatory pricing D) everyday low pricing E) experiential retailing

E

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. A) oligopolistic competition B) a pure monopsony C) monopolistic competition D) a pure monopoly E) pure competition

E

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation. A) market-penetration B) predatory C) target costing D) deceptive E) market-skimming

E

The new product development process usually starts with ________. A) concept testing B) concept development C) market strategy development D) idea screening E) idea generation

E

Which of the following is true of marketing ROI? A) Marketing ROI uses only those marketing factors that can be measured in dollars. B) Marketing ROI ignores customer-centered measures of marketing impact, such as customer acquisition and retention. C) Marketing ROI is easier to calculate than financial ROI. D) Marketing ROI cannot be assessed in terms of standard marketing performance measures, such as brand awareness, sales, or market share. E) Marketing ROI measures the profits generated by investments in marketing activities.

E

Which type of economy consumes most of its output and barters the rest for simple goods and services? A) industrial economy B) emerging economy C) developed economy D) raw material exporting economy E) subsistence economy

E

A sequential product development approach is team-oriented, enabling firms to bring products to TRUE FALSE market very quickly

False