Marketing - Final Exam (Review) 122 Questions

How does technology help businesses when it enables them to obtain and analyze vast amounts of information that impacts the pricing function?

By determining the best time to adjust prices

Which of the following is a way that a business can extend the life cycle of an established product?

By finding new uses for the product innovators

How can researchers protect the integrity of the marketing information they collect?

By interpreting it correctly

How do channel members add value to a product?

By performing certain channel activities expertly

How do competing businesses within the same industry usually react to each other's promotional mixes?

By playing follow the leader

How can ill-designed questionnaires affect survey participants?

Can decrease their response rate

When marketers sampled 100 15-year-old girls, they found that they all were 5 feet 2 inches tall. What type of sampling error contributed to this finding?

Chance

Why are there specific guidelines for advertising to children?

Children are impressionable, and the wrong kinds of advertising can affect their development

What is one action that customer service can take to facilitate order processing?

Communicate effectively

What is an example of publicity?

Company news release

What is an important ethical issue involved with the collection and use of marketing information?

Confidentiality

Which characteristic of useful marketing information is represented by the statement "The benefits of using the information should be greater than the expense of gathering the data used to generate this information"?

Cost-effectiveness

What is an example of a marketing-research method that is used to collect primary data?

Customer survey

What is an example of a topic that would be addressed in an informational message?

Date and time of appointment with customer

A business has identified a sample of the population that it plans to survey to determine who is using their product in a foreign country. What research design should it use?

Descriptive

What pricing tactic might be considered questionable by some businesses?

Developing a complex pricing structure

What legal example is represented by a manufacturer selling its products through a toll-free phone system, a company web site, and several retailers?

Dual distribution

What is the advantage to a business of using bar-code pricing?

Easier to change prices

What is an external factor that affects the price that a business charges for its products?

Economic conditions

Which activity is addressed in the product/service management function?

Eliminating products that are slow sellers

What research approach do businesses often use to test new product ideas?

Experimental

What type of research would a business conduct if it wanted to identify potential issues or opportunities?

Exploratory

A company advertises that its products are durable, lightweight, and come in a variety of colors. What strategy is the company using to position its product?

Features and benefits

What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn?

Flexible pricing

What is an example of an external factor that affects promotion?

Government regulation of ads

In which stage of a product's life cycle do promotional activities focus on differences between competing products?

Growth

How does promotion benefit customers?

Helps them to select appropriate products

What question does establishing a sampling plan for a research project answer?

How many people to survey

What do marketers want to achieve by determining distribution intensity?

Ideal market exposure

How should the information be presented when writing informational messages?

In the order of importance

What is a benefit to businesses of positive word-of-mouth communication?

Increased sales

What is new technology enabling businesses to create that is impacting the promotion function?

Individualized messages

How have technological advancements enhanced a small business's ability to promote its products?

Information can be communicated by more venues, and messages can be customized.

Which of the following technological tools helps a business's employees simultaneously access the same information about the business's products?

Intranet

What factor could determine legal ownership of goods in the distribution process?

Involvement of agents

What is the most significant reason why marketing research is important to businesses?

It contributes to business success

What is a benefit of having managers and researchers "on the same page" about the marketing-research problem?

It keeps the business from wasting resources.

When is it best for a business to use an exclusive distribution pattern?

It needs to maintain tight control over a product

Why is the quality level of a product an important product/service management decision?

It reflects the image of the business

What is an advantage of using secondary data in a marketing-research project?

Less expensive to collect than primary data competitors

What is an example of marketing information that a business could gather by surveying its customers?

Location of the company's market

What is a common method of collecting research data that often involves the use of questionnaires?

Mail survey

What is a technologically advanced method that allows businesses to produce products that are specialized for a very few customers?

Mass customization

Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor's brand. What strategy would be most appropriate to use in this situation?

Modify the product to renew customer interest

A small retail chain that sells specialized products for sports enthusiasts is located in a resort area that receives most of its business during the summer. To increase year-round sales, management wants to use direct-mail advertising. What format should you recommend that the retail chain use?

Niche catalogs

Which statement about marketing research problems is true?

Problems that company decision-makers identify are often just symptoms of larger problems that need to be researched.

What indirect channel of distribution is used to reach large retailers when the producer does not want responsibility for the selling activities?

Producer to agent to retailer to consumer

What type of promotion is depicted by a business's one-time announcement of its half-price sale in the local newspaper?

Product promotion

What best describes the goal of amplified word-of-mouth?

Providing information to activists to share with others

What type of research is intended to obtain detailed data about customers' opinions and experiences?

Qualitative

What research option usually answers questions related to "how many"?

Quantitative

The TUV Company wants to conduct marketing research by surveying a sample of its vast customer base. What should companies use to reduce the possibility of bias?

Random sampling

In what stage of brand loyalty do people become aware of the brand?

Recognition

What is an example of a secondary source of data that a business can obtain internally?

Sales report

What type of scale is a firm using when a survey format has a seven-point rating system consisting of opposite adjectives on each end of the scale?

Semantic differential

A university is considering changes to its business administration degree. To obtain feedback on the idea from students, the university selects a sample of business majors who are seniors. What type of sampling did the university use?

Simple

What statement is true about technology in relation to channel management?

Some businesses have the capacity to distribute most or all of their products through the Internet.

Which of the following is an unethical situation in product/service management?

The Simpson Company embellishes the information that it places on its product labels.

Why do marketers continue to gather information?

The marketing environment is constantly changing

How do companies make brand promises to their customers?

They meet or exceed customer expectations on a consistent basis.

Why are promotional media such as newspapers and television referred to as mass media?

They reach a lot of people at the same time

Why must all businesses incorporate their values into every aspect of their operations?

This will reinforce their promises to customers and build the brands

What is an example of a large business using coercion in the distribution channel?

Threatening to stop using a supplier unless given major concessions

Which of the following is an aspect of channel management that impacts customer service?

Timeliness

Why does a company need to know what stage of the product life cycle its products are in?

To adapt its marketing strategies

What is an objective of institutional advertising?

To demonstrate the organization's role in community affairs

How could a business use marketing-research data it has gathered about the average age, income, educational levels, and spending patterns of area consumers?

To develop a profile of the typical customer

Why do companies use brands for their products?

To differentiate their products

Why do some new companies set their selling prices as low as they can?

To get market share as fast as possible

What is a reason why a businessperson might write a letter of inquiry?

To request an appointment

How can businesses use computerized databases to sort and organize information about customers' purchases, brand preferences, and dollar amounts spent?

to customize its marketing efforts

Which statement is true about regulating international promotional activities?

A business must understand that the laws governing promotional activities vary by country

What is an example of an unethical pricing practice?

A company prices its products low in an attempt to drive its competitors out of business.

What example demonstrates the use of satellite tracking within a distribution channel?

A dispatcher has current knowledge of a delivery truck's location and destination.

In which situation might exclusive distribution be considered a legal arrangement?

A franchisor requires a franchisee to sell only the franchisor's products.

Which situation is an example of SUGGING?

A marketer tells a customer that s/he is conducting research, and then begins a sales pitch.

Which of the following is an example of distributing goods through a gray-market strategy?

A pharmacy sells brand medications to customers in foreign countries for a lower price than they can get domestically.

What is an example of advertisement stereotyping?

A television commercial depicts a woman mopping the kitchen with a new floor cleaner.

What is an example of out-of-home media?

An electrical sign located in a high-traffic area

When writing a letter of inquiry, when should you identify the purpose of your letter?

At the beginning of the letter

The SBU Company developed a survey in which respondents are provided the same number of favorable and unfavorable rating options. What type of scale has this survey used?

Balanced

Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product's life cycle?

Because competitors have entered the market

How can using a database to track its customers' preferences and buying habits help a business?

Builds strong, loyal customer relationships

A major credit-card company has hired a marketing-research firm to conduct a survey regarding the use of consumer credit. Would it be considered ethical to use the database information collected in a direct marketing campaign?

No, businesses should not undertake any non-research activities involving data collected.

What is the most appropriate data-collection method to use when a business wants to determine how its employees interact with customers?

Observation

Alexandria has been using Look-So-Good cosmetics for several years and would not consider changing brands. In fact, Alexandria likes the cosmetics so much that she has become an advocate for the cosmetic company. She tells everyone about the features and benefits of Look-So-Good products, and encourages them to try the cosmetics. What type of word-of-mouth marketing is Alexandria using?

Organic marketing

What form of promotion is generally emphasized for complex, technical products sold to industrial users?

Personal selling

Company XYZ sells condensed soups and promotes them by saying, "Great taste, great price." Company XYZ is positioning its product according to what strategy?

Price and quality

A business charges a small company a higher price for a product than it charges a large company for the same product. What does this represent?

Price discrimination

Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. In what unethical activity are the businesses engaging?

Price fixing

Why do many businesses place a cookie on a user's hard drive when the user visits the business's web site?

To track the number of times the user buys the product

When should researchers ask potentially sensitive questions during an interview?

Toward the end of the interview

What is one way businesses use computer technology to obtain information to improve their product/service mix?

Tracking visitors to their web sites

What costs do businesses usually include in the price of their products?

Transportation

A company that makes ink pens claims that no other pen on the market uses a type of ink that changes color when exposed to light. The company is positioning its product according to what strategy?

Unique characteristics

What is an example of an ethical issue that a product/service manager might face?

Use of environmentally friendly packaging

Which situation hinders a business's ability to provide quality customer service?

Vendor consistently has back orders

What data-collection method can be used to obtain product information during the point-of-purchase process?

Volume-tracking scanner

What is an advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel?

Wholesalers usually buy in large quantities

Which advertising message reinforces the concept of materialism?

You can increase your social status by purchasing this product.