MBA 651 Final Exam

The ___ for a soft drink manufacturer would include other manufacturers of soft drinks, fruit juices, bottled water, sports drinks, caffeine-free colas, and dairy beverages. A. Competitive Environment B. Technological Environment C. Cooperative Environment D. Economic Environment

A. Competitive Environment

Which of the following data best describes primary data? A. Data collected by an organization specifically for the research problem under investigation B. Data provided by the government, such as U.S. census data C. Data collected through government reports or syndicated data providers D. Data that has previously been collected for other purposes but can be used for the problem at hand

A. Data collected by an organization specifically for the research problem under investigation

Which of the following growth strategies for entering foreign markets involves companies granting patent rights, trademark rights, and the right to use a technological process to foreign partners? A. Licensing B. Direct entry C. Importing D. Exporting

A. Licensing

Which of the following statements about marketing research is NOT true? A. Marketing research increases the risks associated with managing marketing strategies B. Marketine research forecasts the future with a degree or uncertainty. C. Marketing research can be fraught with errors even if it is executed carefully. D. Marketing research can substantially increase the chances that good decisions are made.

A. Marketing research increases the risks associated with managing marketing strategies

Which of the following is a disadvantage of secondary data? A. Secondary data is not always available for strategy-specific research questions B. Secondary data is collected specifically for the research problem under investigation C. Secondary data is more expensive to obtain and utilize than primary data D. Secondary data sources are more limited than sources of primary data

A. Secondary data is not always available for strategy-specific research questions

In which of the following stages of the product life cycle are promotion efforts minimal? A. The decline stage B. The introduction stage C. The maturity stage D. The growth stage

A. The decline stage

Which of the following statements is true of secondary data? A. They are data that have previously been collected for other reasons. B. They are gathered from a limited number of sources. C. They are always available for strategy-specific research questions. D. They are more expensive to gather than primary data.

A. They are data that have previously been collected for other reasons.

When using a cost leadership strategy, a firm is most likely to offer: A. a standard, no-frills product B. a highly-differentiated product C. a prestige product D. an expensive product of superior design and quality

A. a standard, no-frills product

The per-unit expenditure method of determining advertising budgets is best exemplified by: A. a television manufacturer spending a fixed monetary amount on advertising for each unit of the product expected to be sold. B. the manager of an automobile manufacturing company taking a percentage figure and applying it to either past or future sales. C. the manager of a clothing company estimating the advertising budget on the basis of research findings. D. a grocer using the availability of current revenues to set the upper limit of the advertising budget.

A. a television manufacturer spending a fixed monetary amount on advertising for each unit of the product exnected to be sold.

A positioning map is: A. constructed by surveying customers about various product attributes and developing a graph indicating the relative position of competitors B. an indication of the number of Experiencers and Strivers within a geographic area based on PRIZM analysis C. implemented when marketers want to differentiate between the Young Digerati, Cosmopolitans, and American dreams D. used solely with benefit segmentation and includes an assessment of lifestyle choices based on activities, interests, and opinions.

A. constructed by surveying customers about various product attributes and developing a graph indicating the relative position of competitors

RL Inc., an American insurance company, attempted to sell life insurance in Spain. However, the company failed to understand that life insurance policies are viewed with a negative attitude in Spain. People are averse to profiting from someone else's death and hence the company failed to reach its sales target. In this scenario, RL Inc. experienced: A. cultural misunderstanding B. economic risk C. legal risk D. political uncertainty

A. cultural misunderstanding

Which of the following is the easiest and most common strategic approach for a company making its first foray into the international marketplace? A. exporting B. direct entry C. importing D. joint venture

A. exporting

Which of the following is most likely to help a product gain market share in the long run? A. investing more in advertising and less in discounting B. viewing advertising as a discretionary cost C. raiding advertising budgets to increase earnings D. practicing the art of discounting

A. investing more in advertising and less in discounting

_______ are methods used to determine how resources should be allocated among the various strategic business units (SBUs) in an organization. A. portfolio models B. matrix models C. variable models D. vector models

A. portfolio models

Which of the following is a common pricing objective? A. pricing to achieve a target market share B. pricing to increase the prestige of a product C. pricing to maximize short-term profits D. pricing to reduce inventory costs

A. pricing to achieve a target market share

In which of the following stages of the new product development process is a development budget established and some preliminary marketing and technical research undertaken? A. Project planning B. Commercialization C. Test marketing D. Idea generation

A. project planning

Once the marketing objectives have been established during marketing planning, the next step is the ____. A. selection of the target market B. identification of investors' needs C. identification of the competing firms in the market D. determination of the marketing mix

A. selection of the target market

Online retailing is disadvantageous for marketers because it often: A. squeezes profit margins due to strong price competition B. prevents one-on-one relationships with customers C. leads to less shelf space as opposed to direct sales methods D. limits assortment of products to be offered

A. squeezes profit margins due to strong price competition

Which of the following is typically aimed at distributors and retailers of products who make up the distribution channel? A. trade promotions B. premiums C. consumer promotions D. rebates and refunds

A. trade promotions

A bakery has to set the price of its sourdough bread. Which of the following is a psychological factor relevant to the pricing decision of the baker? A. will a low price indicate inferior quality to a potential buyer? B. are the orders coming from households or sandwich shops? C. how many potential buyers for sourdough bread are out there? D. how many loaves of bread will a potential buyer consume every month?

A. will a low price indicate inferior quality to a potential buyer?

HealthPlus Corp., a popular manufacturer of processed food products, recently introduced specialty infant food under the brand name of Nutrababy. Which of the following new product categories does this product fall into? A. New-to-the-world products B. Additions to existing product lines C. Product improvements D. New-to-the-firm products

B. Additions to existing product lines

What is indicated by the cross-functional perspective in strategic planning? A. management action in all functional areas of an organization provide a blueprint for strategic planning B. All functional area plans should be derived from the strategic plan while at the same time contributing to the achievement of it C. objectives and strategies identified in the strategic plan are not related to other objectives and strategies at higher and lower levels of the organization D. Objectives and strategies from the functional areas in an organization should be translated into objectives and strategies for the strategic plan

B. All functional area plans should be derived from the strategic plan while at the same time contributing to the achievement of it

World Explorer Cruises advises that it sells "Cruises for your mind, body, and soul. Even better it comes in a pint-sized budget!" Way kind of segmentation is the cruise line using? A. Benefit Segmentation B. Mass Market Segmentation C. Geographic Segmentation D. Demographic Segmentation

B. Benefit Segmentation

The product launching step where a firm commits to introducing a product into the marketplace is referred to as _______. A. Direct marketing B. Commercialization C. Test marketing D. Personal selling

B. Commercialization

_______ are consumer goods that are purchased frequently with minimum effort. A. Luxury goods B. Convenience goods C. Specialty goods D. Shopping goods

B. Convenience goods

Which of the following types of research methods typically involves discussions among a small number of customers led by an interviewer and is designed to generate insights and ideas about products and brands? A. Observational Research B. Focus Groups C. Long Interviews D. Projective Techniques

B. Focus Groups

The process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) for the firm to serve is called ____. A. Mass marketing B. Market segmentation C. Test marketing D. Marketing communication

B. Market segmentation

Which of the following is the primary reason for studying consumer and organizational buyer behavior? A. To understand employees' relationships with their organization B. To determine the effectiveness of an organization's marketing department C. To provide bases for effective market segmentation D. To determine an organization's distinctive competencies

C. To provide bases for effective market segmentation

India Apparel Inc. is a popular clothing manufacturer in India. It intends to introduce its clothing line in the United States. However, before it does so on a large scale, it releases a portion of its line in two select clothing retail stores in the United States. India Apparel Inc. aims to sell the products on this small-scale basis to estimate consumer acceptance and competitive retaliation before decidine whether its products will work in the American market. This approach to marketing a product is called _____. A. Social marketing B. Test marketing C. Digital marketing D. Internal marketing

B. Test marketing

The marketing manager of a doll manufacturing company is tasked with setting the price of the company's new range of collectible dolls. He decides to consider the psychological factors related to pricing and sets the price of each doll at $300. Which of the following questions would the marketing manager have considered when making his decision? A. What is the discretionary income of prospective buyers of the doll? B. Will prospective buyers relate the doll's high price to high quality? C. How many prospective buyers can afford to pay this much for a doll? D. Are the prospective buyers of the doll geographically clustered?

B. Will prospective buyers relate the doll's high price to high quality?

In the context of product considerations in pricing, __________, is an approach to pricing in which a seller charges a relatively high price on a new product and is used when demand for the product is price inelastic. A. line pricing B. a skimming policy C. price fixing D. a penetration policy

B. a skimming policy

PureFruit Inc. prices its products higher than most of its competing brands in the packaged fruit juice industry. However, it still enjoys higher returns than its competitors because it is the only brand that can rightfully claim the use of fresh fruits and no added sugar. What kind of organizational strategy based on competitive advantage does PureFruit most likely use? A. a strategy based on market development B. a strategy based on differentiation C. a strategy based on cost leadership D. a strategy based on diversification

B. a strategy based on differentiation

_____ are retailers whose primary advantages to consumers are suitable location, close-in parking, and easy entry and exit. A. specialty stores B. convenience stores C. category killers D. mass merchandisers

B. convenience stores

For which of the following products is a retailer most likely to use prestige pricing? A. fresh fruits B. crystal wine glasses C. frozen desserts D. plastic storage containers

B. crystal wine glasses

The final step of marketing planning is _______. A. selecting the target market B. developing the market mix C. establishing the objectives based on the organizational mission D. determining performance objectives for individual members of the marketing team

B. developing the market mix

Which of the following is true of a global corporation? A. it emphasizes universal consumer differences rather than needs and wants B. it views the world as one market C. it does not pit its resources against its competition in an integrated fashion D. it emphasizes cultural differences across countries

B. it views the world as one market

Products that are purchased by business firms for the purpose of producing other goods or for running a business are called ____. A. convenience goods B. organizational goods C. shopping goods D. specialty goods

B. organizational goods

If the product of a firm is a new complex technology that requires a great deal of explanation, the promotional mix will likely focus heavily on ____ so that potential buyers can have their questions answered. A. public relations B. personal selling C. sales promotion D. advertising

B. personal selling

The ____ includes the attitudes and reactions of the general public, social and business critics, and other organizations, such as the Better Business Bureau. A. competitive environment B. political environment C. social environment D. legal environment

B. political environment

An entrepreneur has developed a self-service soda-bottling machine. Customers can fill their own plastic soda bottles with 18 regular and diet flavors. In order to decide where to locate the machines, the entrepreneur conducts research to study the market and groups people into segments based on the research findings. This is an example of the segmentation approach. A. a priori B. post hoc C. psychographic D. mass market

B. post hoc

In odd-even pricing, ________. A. a high price is charged to create a signal that the product is exceptionally fine B. prices are set a few dollars or a few cents below a round number to encourage the customers to think of the products as less expensive C. prices are set exclusively on the cost of the product and historical prices D. several products are sold together at a single price to connote value and convenience for customers

B. prices are set a few dollars or a few cents below a round number to encourage the customers to think of the products as less expensive

Which of the following is true of pricing objectives? A. pricing objectives are not devised to meet or prevent competition B. pricing to achieve a target return on investment is a common pricing objective C. the basic pricing objective is solely concerned with short-run profits D. pricing objectives should not be derived from overall marketing objectives

B. pricing to achieve a target return on investment is a common pricing objective

A fad can be described as a(n): A. specialty product that has retained its popularity for a long time B. product that experiences an intense but brief period of popularity C. product that has a lengthy period of popularity which gives competitors the chance to capitalize on the product D. accepted and popular product that goes through repetitive cycles of popularity

B. product that experiences an intense but brief period of popularity

______ is a nonpaid form of nonpersonal communication about an organization and its products that is transmitted through a mass medium in the form of a news story. A. advertising B. publicity C. direct marketing D. sales promotion

B. publicity

One of the offensive goals multinational firms seek to achieve when investing in other countries is to: A. take advantage of significant differences in operation costs between countries B. take advantage of economies of scale C. compete with foreign firms on their own turf instead of in the United States D. preempt competitors' global moves

B. take advantage of economies of scale

Which of the following is a difference between convenience goods and shopping goods? A. Shopping goods generally require longer channels of distribution than convenience goods B. Convenience goods are used to run a business, while shopping goods are used to produce other products. C. Convenience goods are purchased frequently with minimum effort, while shopping goods are purchased after spending a considerable amount of time and energy. D. Shopping goods generally require broadcast promotion, while convenience goods generally require more targeted promotion.

C. Convenience goods are purchased frequently with minimum effort, while shopping goods are purchased after spending a considerable amount of time and energy.

Which of the following segmentation bases of consumer markets includes income? A. Behavior B. Psychographic C. Demographic D. Geographic

C. Demographic

_______ are accepted and popular product styles that go through a receptive cycle of popularity. A. Specialty products B. Fads C. Fashions D. Impulse goods

C. Fashions

Redstone Inc. manufactures and markets computer games. Its latest game, Warrior Xero, is designed specifically for teenagers. The company recently implemented a free trial where they invited teenagers to their office to play the game. After the free tria' the company's market research executives conducted discussion sessions with teenagers to gain insights into the product and whether any changes needed to be made. The research conducted by Redstone Inc. best exemplifies ___. A. Mathematical Modeling B. Group Experiments C. Focus Groups D. Observational Research

C. Focus Groups

Fun Time Games Inc. develops and markets mobile entertainment software. The company's application portfolio includes single and multiplayer games, ring tones, and other entertainment content. Its most popular mobile game is the Lightz200. Recently, it released a new, upgraded version compatible with all major mobile handsets called the Lightz201 series. Which of the following product categories would best describe the Lightz201 series? A. Product repositioning B. Additions to existing product lines C. Improvements and revisions of existing products D. New-to-the-world products

C. Improvements and revisions of existing products

In the context of the diffusion of innovation, _____ refer to the buyers who are the first to purchase a product. A. Laggards B. Early adopters C. Innovators D. Late adopters

C. Innovators

Which of the following statements about marketing research is true? A. Marketing research is a substitute for decision making B. Marketing research forecasts with certainly what will happen in the future C. Marketing research is an aid to decision making D. Marketing research that is executed carefully is free from errors.

C. Marketing research is an aid to decision making

Altron Herbals is trying to market a new sunscreen lotion. In order to identify their target market segment, they have prepared a questionnaire that asks potential consumers about their lifestyles, especially their activities, interests, and opinions. Based on their answers, the consumers will be grouped into separate categories. Which of the following market segmentation approaches has Altron used in this scenario? A. A priori segmentation B. Social segmentation C. Psychographic segmentation D. Geographic segmentation

C. Psychographic segmentation

The group or market segment that a company selects to market to is called a ____. A. Customer Profile B. Business Group C. Target Market D. Differentiated Market

C. Target Market

The depth of a product mis refers to the: A. total number of products or items in the company's product mix B. number of product lines, handled by the organization C. average number of products in each product line D. degree of similarity between product lines

C. average number of products in each product line

While choosing an appropriate strategy to establish competitive advantage, management should choose an organizational strategy that: A. allows the organization to practice the strategy of differentiation, other than cost leadership B. try to succeed by following all strategies and trying to be all things to all people C. bears consistency with the organization's mission and capitalizes on its distinctive competencies D. empowers the organization to grow without creating new products or entering new markets

C. bears consistency with the organization's mission and capitalizes on its distinctive competencies

The primary role of all marketing intermediaries is to: A. produce goods and services efficiently to meet the demands of customers B. create timely demand for products that a manfuacturer produces C. bring supply and demand together in an efficient and orderly fashion D. prevent customers from making poor buying decisions

C. bring supply and demand together in an efficient and orderly fashion

The primary goal of a test market is to: A. increase frequency of consumption or increase the number of customers using the firm's product(s). B. place emphasis on the organizational structure and management talent needed to implement the marketing strategy. C. evaluate and adjust the general marketing strategy to be used and the appropriate marketing mix. D. evaluate the product plan from the standpoint of engineering, manufacturing, finance. and marketing.

C. evaluate and adjust the general marketing strategy to be used and the appropriate marketing mix.

Which of the following is the least costly stage in the new product development process? A. test marketing B. commercialization C. idea generation D. product development

C. idea generation

Dexo Inc. plans to launch a new version of its beverage, Lime n' Lemon. The new variant will be similar to the current Lime n' Lemon in terms of taste and packaging, but it will be fortified with vitamins and minerals. The company decides to market the new drink as Lime n' Lemon Extreme. Which of the following new product categories does this new beverage fall into? A. new-to-the-world products B. product repositionings C. improvements and revisions of existing products D. new-to-the-firm products

C. improvements and revisions of existing products

With regard to global marketing, one of the offensive goals a firm seeks to achieve is to: A. avoid being locked out of future markets by arriving to late B. take advantage of significant differences in operating costs between countries C. increase long-term growth and profit prospects D. gain access to technological innovations which are developed in other countries

C. increase long-term growth and profit prospects

Products that are inventions and create a whole new market are called _____. A. new-to-the-firm products B. additions to existing product lines C. new-to-the-world products D. product improvements

C. new-to-the-world products

Which of the following is a primary consideration in evaluating demand influences on pricing decisions? A. competition B. government regulations C. price elasticity D. cost considerations in pricing

C. price elasticity

Which of the following observations is true of price elasticity? A. the estimation of price elasticity from historical data is an expensive approach and is not limited to the consideration of price changes B. crude estimates of price elasticity are note useful to pricing decisions C. price elasticity is a measure of consumers' price sensitivity D. price elasticity is only affected by demographic factors, not psychological factors

C. price elasticity is a measure of consumers' price sensitivity

Owing to recent failed campaigns, an established advertising agency is at the risk of reaching bankruptcy. The agency's top-management does not want to release such bad news just as yet as it hopes to recover losses soon. It therefore plans to orchestrate news events to present a false appearance of widespread support for the company's position. This is an example of a legal concern directly related to ______. A. sales promotion B. advertising C. public relations D. personal selling

C. public relations

Offering a product at a discounted price for a limited period of time in an attempt to induce customers to purchase the product is an example of _____. A. personal selling B. direct marketing C. sales promotion D. advertising

C. sales promotions

Appliances, home furnishings, and better clothing are usually distributed ______. A. intensively B. demographically C. selectively D. exclusively

C. selectively

Alcove Studio is a designer boutique that sells the most recent collections from top designers. Since it sells exclusive clothing, customers from all over the world are willing to pay exorbitant prices, and place orders months in advance. Alcove Studio's goods are examples of ___. A. convenience goods B. organizational goods C. specialty goods D. impulse goods

C. specialty goods

An advertising expenditure approach that initially formulates the advertising goals and defines the tasks to accomplish these goals is known as a(n) ________. A. percentage sales approach B. functional approach C. task approach D. objective approach

C. task approach

Which of the following constitutes a viable market segment? A. A group of products and services that can be mass marketed profitability by a firm B. A particular group of consumers who have varying preferences for products and services C. A group of consumers with needs that can be seldom met by a single product item offered by a firm D. A particular group of consumers of a single item who can be served profitability by a firm

D. A particular group of consumers of a single item who can be served profitability by a firm

A company is entering the deodorant market. Its marketing manager decides that the market should be divided on the basis of whether the consumers are nonusers, light users, or heavy users of deodorants. Which of the following approaches to segmentation is the company using? A. Post hoc segmentation B. A posteriori segmentation C. Empirical segmentation D. A priori segmentation

D. A priori segmentation

Which of the following is true of global distribution strategy? A. Manufacturers become less directly involved in the global distribution system when they select agents and distributors located in foreign markets. B. Manufacturers have lesser control over distribution when they select agents and distributors located in foreign markets. C. Both agents and distributors perform dissimilar functions, and agents assume title to the manufacturers' products, while wholesalers do not. D. If manufacturers establish their own foreign branch, they greatly increase control over their global distribution systems.

D. If manufacturers establish their own foreign branch, they greatly increase control over their global distribution systems.

Charles and Steve are business partners who want to start a publishing house. Both partners thoroughly research the market before proceeding with the planning. They believe that the research results guarantee that the new business will be successful. Which of the following will help Charles and Steve interpret their research results accurately? A. Understanding that marketing research studies all the factors that contribute to the success of a business B. Considering the results of the research as a final answer to all doubts about setting up the new business C. Using the research results as a substitute for decision-making D. Knowing that even the most carefully executed research can be filled with errors

D. Knowing that even the most carefully executed research can be filled with errors

Which of the following is an advantage of secondary data over primary data? A. Secondary data is collected specifically for the research problem under investigation B. Secondary data sources are limited, making the information more valuable C. Secondary data is always available for strategy-specific research questions. D. Secondary data is cheaper to obtain and utilize

D. Secondary data is cheaper to obtain and utilize

A paid form of nonpersonal communications about an organization, its products, or its activities that is transmitted through a mass medium to a target audience is called: A. personal selling B. direct marketing C. publicity D. advertising

D. advertising

______ is the first stage a firm's marketing communication tools must encourage and allow a potential buyer to experience. A. comprehension B. conviction C. conception D. awareness

D. awareness

Which of the following is true of global advertising agencies? A. global advertising agencies can better adapt a firm's message to the local culture B. global advertising agencies, in emerging markets, take a more entrepreneurial and fresher approach to advertising than local agencies C. advertising through global agencies can always be used more successfully than advertising through local agencies D. by using global advertising agencies, companies can take advantage of economies of scale and other efficiencies

D. by using global advertising agencies, companies can take advantage of economies of scale and other efficiencies

A _____ refers to a combination of institutions through which a seller markets products to organizational buyers or ultimate consumers. A. sales consortium B. logistics conduit C. marketing node D. distribution channel

D. distribution channel

In which of the following forms of distribution coverage does the manufacturer attempt to gain exposure through as many wholesalers and retailers as possible? A. exclusive distribution B. selective distribution C. focused distribution D. intensive distribution

D. intensive distribution

Which of the following is true of a multidomestic company? A. it views the world as one market and pits its resources against the competition in an integrated fashion B. it standardizes marketing activities when there are cultural similarities and adapts them when the cultures are different C. it emphasizes cultural similarities across countries and universal consumer needs and wants rather than difference D. it pursues different strategies in each of its foreign markets

D. it pursues different strategies in each of its foreign markets

A manufacturer utilizing an intensive form of distribution coverage: A. severely limits distribution and provides intermediaries with exclusive rights within a territory B. usually produces products that require certain specialized selling effort or investment in unique facilities C. limits the use of intermediaries to the ones believed to be the best available in the geographic area D. manufactures products that are characterized by low unit value and a high frequency of purchase.

D. manufactures products that are characterized by low unit value and a high frequency of purchase.

_____ involves offering products and services in many channels such as in stores, in catalogs, and online. A. multi-level marketing B. vertical channel system C. network channelization D. multichannel marketing

D. multichannel marketing

The primary reason for new product failure is the inability of the selling company to match its offering to the ______. A. market leader's selling price B. prevailing price for the product C. products offered by competitors D. needs of the customers

D. needs of the customers

Products that take a firm into a product type new to it but that are not new to the world are known as _____. A. new-to-the-world B. addition to existing product lines C. product improvements D. new-to-the-firm products

D. new-to-the-firm products

The width of a product mix refers to the: A. average number of products in each line B. total number of items or products in the company's product mix C. extent to which one product line differs from another D. number of product lines handled by the organization

D. number of product lines handled by the organization

_____ retailing is the fastest growing method of retailing. A. direct B. limited-line C. system D. online

D. online

A manufacturer utilizing an exclusive form of distribution coverage: A. attempts to gain exposure through as many wholesalers and retailers as possible B. limits the use of intermediaries to the ones believed to be the best available in the geographic area C. manufactures products that are characterized by low unit value and high frequency of purchase D. severely limits distribution and intermediaries are provided exclusive rights within a territory

D. severely limits distribution and intermediaries are provided exclusive rights within a territory

Elite Inc. began as a brand of luxury clothing and accessories targeted at affluent working women. However, it altered its offerings to include a large proportion of standard clothes at cheaper prices when the country was faced with severe recessionary pressures. In this scenario, which of the following did Elite primarily respond to by changing its offerings? A. the legal environment B. the competitive environment C. the cooperative environment D. the economic environment

D. the economic environment

Which of the following is an advantage of using the everyday low pricing (EDLP) strategy? A. This strategy, when implemented, tends to draw a lot of customers and create a lot of excitement B. this strategy allows retailers to charge higher prices to customers who are not price-sensitive and will pay the "high" price C. this strategy allows retailers to get rid of slow-selling merchandise D. this strategy tends to reduce advertising and operation expenses

D. this strategy tends to reduce advertising and operation expenses