C712 Sample Exam
Cleveland Solvents has field sales staff, a customer service department, and two individuals who manage the "tech hotline." These individuals not only answer technical questions from customers, they also identify customer needs and recommend products that can fill those needs. They have the ability to initiate and close sales on the spot. These individuals are essentially participating in: * a. market analysis. b. inside selling. c. network marketing. d. outside sales.
inside selling.
A fast food company decides to buy farmland in Wisconsin to grow potatoes. The produce from these farmlands will be used for making French fries; an integral part of the fast food company's bestselling menu option. What kind of vertical marketing system is designed to achieve efficiencies in the distribution channel? * A. Backward integration B. Forward integration c. Contractual marketing system D. Franchising
Backward integration
A customer goes to COSTCO and samples a new variety of Pita Bread. The customer likes the taste and quickly takes a bag and puts it in the shopping cart.
Behavioral
B2B
Business to business shorter distribution channel competitive bidding
B2C
Business to consumer- Mass advertising List prices
Jamie works for a local bank. Whenever a new customer opens a checking account, Jamie makes sure to mention some of the other financial services the bank offers. Jamie is engaged in: * a. cross-selling. b. team selling. c. transaction selling. d. virtual selling.
cross-selling.
True-Life Cereals has been in the market for seven decades. They attribute their success to maintaining an almost stable product price in the face of inflation as well as stiff competition from rival firms. The management at True-Life Cereals knows that any substantial increase in product price would translate into loss of sales as consumers are used to paying a specific price for their cereals. This specific price is an example of (a): * a. customary price. b. value price. c. full-cost price. d. incremental-cost price.
customary price.
Statutes enacted in most states that once permitted manufacturers to stipulate a minimum retail price for their product are called _____. * a. fair-trade laws b. tax-exemption laws c. price discrimination laws d. loss-leader laws
fair-trade laws
A cost that remains stable at any production level within a certain range is called a(n) _____ cost * a. variable b. fixed c. average total d. marginal
fixed
Stephen Curry vows to avenge NBA finals loss in Under Armour spot. The marketer is directing this ad to---------- self-concept A. self-image B. ideal-self C. looking-glass self D. real-self
ideal-self
In recent years sales of desktop computers dropped. This is because consumers purchased notebooks instead of desktops. Notebooks competing with desktops is representing what type of competition? * A. Monopolistic B. Monopoly C. Indirect D. Pure
Indirect
Uber Technologies Inc. is a peer-to-peer ridesharing, taxi cab, food delivery, bicycle-sharing, and transportation network company headquartered in San Francisco, California, with operations in 785 metropolitan areas worldwide. What social media tool or platform may be a possible reason for Uber to be so successful. A. App B. Facebook C. Instagram D. Twitter
App
Which of the following statements represent strategic planning level for a company. A. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. B. Company chooses to diversify into Oil and Natural gas exploration C. Company plans to create new policies to hire people D. Company creates an action plan to manage quarterly budgets
A. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate B. Company chooses to diversify into Oil and Natural gas exploration
Ad for diamonds with a tag-line "Diamonds are forever"
Affective
What is the personal determinant that is the reason why some people have blacks and greys in their wardrobe, while some people have a very colorful wardrobe? * A. Attitude B. Perception C. Culture D. Societal norms
Attitude
What type of utility is being provided here? Wintergreen Tic-Tacs are placed near the check out counter of a Grocery store. A. Form B. Place C. Possession D. Time
B. Place
Pam is planning to open a home cleaning business. She conducts a situational analysis and notes that there are many home-cleaning businesses that are operating in her area. Which of the Porter's five forces do the competition represent to Pam A. Threat of substitute products B. Competitive rivalry C. Bargaining power of buyers D. Bargaining power of suppliers
C. Bargaining power of buyers
A manufacturer has a booth setup at COSTCO explaining their HVAC system. The product costs $10,000/
Cognitive
A mosquito repellant brand is advertised as "all natural, no chemicals, and keep Chikungunya and Dengue mosquitoes away"
Cognitive
A consumer spends $600/- on a vacuum cleaner and realizes that the product is as good as the previous vacuum cleaner that cost the customer only $300/-. The consumer is likely to experience -------------. A. Dissatisfaction B. Cognitive dissonance C. Satisfaction D. Anger
Cognitive dissonance
Under which of the following conditions is a product most likely to have an elastic demand? * a. Consumers can easily find close substitutes for the product. b. The marginal cost of producing the product is equal to its marginal revenue. c. A large portion of a person's budget is spent on the product. d. The fixed costs associated with producing the product are higher than the variable costs associated with it.
Consumers can easily find close substitutes for the product.
What kind of Marketing research method is used for the situation below: If you were interested in studying whether or not violent television programming causes aggressive behavior in children, you would use two groups of kids for the study. Group 1 would comprise of kids who would be exposed to a movie containing a lot of violence, such as martial arts or gun fighting and Group 2 would watch movies that contained no violence. You would then compare your results between the two groups * A. Observational studies B. Surveys C. Focused group studies D. Controlled experiments
Controlled experiments
Why is Integrated marketing communication important? Pick the most relevant choice * A. creating synergies between different promotional mix elements maximizes their cost effectiveness B. consumers spend more time online and on mobile devices. Therefore, it is important that marketers tie in exposures of the brand together so they are more likely to be remembered C. IMC helps companies focus on other areas of marketing D. IMC reduces the need for advertising.
Creating synergies between different promotional mix elements maximizes their cost effectiveness
A local pizza restaurant sees large number of pizza places in its vicinity. This results in low switching costs for the customer. Low switching costs represents ------------------- force in Porter's five forces model. A. Threat of substitute products B. Threat of new entrants C. Bargaining power of suppliers D. Bargaining power of buyers E. Competitive rivalry
D. Bargaining power of buyers
What stage follows the stage "Search for information" in consumer buying process. * a. Need recognition b. Problem solving c. Purchase decision d. Evaluating alternatives
Evaluating alternatives
When the consumer preferences change for e.g. when people started investing in a newer technology i.e. mp3 players instead of Sony Walkman product At what stage in the product life cycle do consumer preferences change and new technologies emerge to replace old technology * A. Introduction B. Growth C. Decline D. Maturity
Decline
The key to developing a successful social media marketing plan is to identify target audience. In order to pinpoint audience, firms gather information on the following: A. demographics B. know the needs and wants of the target audience C. which social media will be appropriate to the target audience D. None of the above
Demographics. Know the needs and wants of the target audience. Which social media will be appropriate to the target audience?
When a company includes information on consumer segments about lifestyle patterns, product-attributes, geographic location, the company Is in which of the following stages of the market segmentation process * A. Develop a profile for each segment B. Forecast market growth C. Forecast probable market share D. Select specific market segments
Develop a profile for each segment
When Kitchenaid decided to sell its products through their marketing website to consumer, what form of distribution was this? * A. Intensive B. Direct C. Indirect D. Merchandise selling
Direct
An online retail store is involved in shipping goods from their stores to consumers who have bought products online. What marketing functions is the store performing ( A. Distribution function B. Exchange function C. Facilitating function
Exchange function
A customer is more likely to go to his/her reference group when the product is/are (check all that apply) * A. Expensive B. Products that have consumers confused like what car to purchase C. small economic impact on the consumer D. high involvement products
Expensive Products that have consumers confused like what car to purchase. High involvement products
A company that is just starting out on the web wants to lead conversations about its product and interact directly with consumers. What is the best social media platform for the company * A. Twitter B. Facebook C. Youtube D. QR codes
Arms and Hammer has recently started advertising its Baking Soda as an effective remedy for itching related to insect bites. This is an example of life cycle extension strategy based on * A. Increasing frequency of uses B. Increasing the number of users C. Finding new uses D. Changing packaging sizes, labels, or product quality
Finding new uses
.What kind of Marketing research method is used for the situation below: a moderator poses a series of questions to a group of 12 participant. The moderators intends to gain insight about the way the group views the brand, product and related images, slogans, concepts or symbols * A. Observational studies B. Surveys C. Focused group studies D. Controlled experiments
Focused group studies
Seasonal products like coats and winter gear will most likely use ------------- segmentation * A. Demographic B. Product-related C. Geographic D. Psychographic
Geographic
There are two stores in a region, which are given a territory each. Store 1 is given territory 1 and store 2 is given territory 2. . A channel conflict occurred when store 1 started servicing customers from territory 2. This caused a conflict between store 1 and store 2.What kind of conflict is this? * A. Horizontal B. Vertical C. Parallel D. Circular
Horizontal
Singapore airlines decides to invest in two Boeing 777 aircrafts. Which category does this purchase fall under in Business product classification * A. Installations B. Accessory equipment C. Raw materials D. Business Services
Installations
A company, such as BP, who underwent the largest offshore oil spill disaster in the Gulf of Mexico, and for that matter, U.S. history, needs to repair their image. What type of advertising is this? A. Product advertising B. Institutional advertising C. Informative advertising D. Persuasive advertising
Institutional advertising
Sorting is one of the marketing channel functions. Identify sorting function in the options below: * A. Middlemen obtain supplies of goods from various suppliers and divide them on basis of size, quality etc. B. In order to ensure a continuous supply of goods, intermediaries maintain a large volume of stock. C. Intermediaries obtain a wide variety of goods from different manufacturers and provide them to consumers D. Middlemen have to bear the risk of distribution like risk from damage or spoilage of goods
Intermediaries obtain a wide variety of goods from different manufacturers and provide them to consumers
Using the consumer products classification system, which of the following is true of the marketing mix factors for a convenience product? * a. It is generally high priced. b. The seller's image is very important. c. It has a long distribution channel. d. Its number of sales outlets tends to be very few.
It has a long distribution channel.
When small producer like Florida locks Inc. decides to distribute their product through large wholesalers , who are they most likely to have in their distribution channel network. This is a B2B market. * A. Manufacturer's representative B. Agent C. Retailer D. Smaller wholesalers
Manufacturer's representative
The first sign of this stage is evidence of market saturation. This means that companies will not require any more distribution channels * A. Growth B. Decline c. Maturity D. Introduction
Maturity
A Lifestyle clothing product wants to share visual content about its products. Which social media platform/tool would work best for the company? Click all that apply * A. Media sharing B. Facebook C. Twitter D. Reddit
Media sharing Facebook
A company needs to create a strategy to help reach prospective customers. Which social media tool will work best for prospective customers to get simple information, product descriptions, coupons etc. A. QR codes B. Youtube C. App D. Flickr
QR codes
A standardized product like a brand of shampoo will determine the type of promotional strategies a company will use. What is the factor that will influence the promotional mix for this product. * A. Nature of market B. Nature of product C. Stage in product life cycle D. Funds available
Nature of product
Which of the following is a market structure in which relatively few sellers compete and where high start-up costs form barriers to keep out new competitors? * a. Pure competition b. Monopolistic competition c. Monopoly d. Oligopoly
Oligopoly
Identify major elements of the physical distribution system A. Packaging and materials handling B. Supply chain C. Order processing D. Inventory control E. Manufacturing F. Transportation E. Customer service F. Retailing G. Warehousing
Packaging and materials handling Order processing Inventory control Transportation Customer service Warehousing
Facebook has drawn lot of attention for misusing consumer data. Mark Zuckerberg, CEO of Facebook testified in the senate recently. Regulators are going to look at creating laws to protect consumer data housed on social networking sites. What macro-environment is going to impact these social networking sites? A. Economic B. Socio-cultural C. Demographic D. Political-legal
Political-legal
Identify a traditional channel used by companies for consumer goods. * A. Producer to agent to wholesaler to consumer B. Producer to wholesaler to consumer C. Producer to agent to consumer D. Producer to wholesaler to retailer to consumer
Producer to wholesaler to retailer to consumer
_____ is a personal selling function that involves identifying potential customers. * a. Screening b. Prospecting c. Approaching d. Processing
Prospecting
Which of the following is a market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price? * a. Pure competition b. Monopolistic competition c. Monopoly d. Oligopoly
Pure competition
Which of the following are examples of decisions/conditions based on economic macro-environment? CHECK ALL THAT APPLY * A. GE's ex CEO J Immelt's decision to purchase power businesses and oil-field services to diversify GE's business B. Best buy and Amazon team up to sell Amazon-powered smart Tvs C. Rise in interest rates have slowed down growth in the real-estate market causing prices of homes to go down. D. Unemployment rates have gone down in US making US work force dearer (expensive) to companies. This has led to rise in inflation rates.
Rise in interest rates have slowed down growth in the real-estate market causing prices of homes to go down. Unemployment rates have gone down in US making US work force dearer (expensive) to companies. This has led to rise in inflation rates.
If you always order a Diet Coke at lunch, you're engaging in.......You may not even think about other drink options at lunch because you always order a Diet Coke. * A. Routinized response behavior B. evaluation of alternatives C. Limited problem solving D. Extended problem solving
Routinized response behavior
If the statement " late entrants often are more successful than their pioneering competitors" is true, identify the reason/s why this statement is true. CHECK ALL THAT APPLY * A. First mover pays a steep price in creating the product B. Second mover or late entrant can learn from the experience of the pioneer C. Late entrants enjoy lower costs of developing the product D. Late entrants have deeper pockets (more money)
Second mover or late entrant can learn from the experience of the pioneer Late entrants enjoy lower costs of developing the product
An apparel manufacturer designs sports clothing for teens. It decides to sell the products through Target, Kohl's or Belk. What is the intensity of distribution? * A. Intensive distribution B. Selective distribution C. Exclusive distribution D. Single-segment distribution
Selective distribution
A product that is bought by a consumer after comparing prices and quality of competing brands is ------------ product * A. Convenience B. Shopping C. Unsought D. Specialty
Shopping
Which interpersonal factor will make a family go on a vacation to Europe? * A. Motive B. social C. self-image D. learning
Social
Which of the following factors will increase the importance of personal selling in the promotional mix? * a. Increasing emphasis on productivity b. Lower priced products c. Standardized products that are easy to understand d. Technically complex products
Standardized products that are easy to understand
One of the drawbacks of secondary research method is: * A. It is expensive B. It is time consuming C. The data collected may not be relevant for the research being conducted D. It requires many resources
The data collected may not be relevant for the research being conducted
Fear-based appeals seem to be effective at influencing behavior. Identify some of the psychological reasons that make fear-appeal in ads effective. A. These appeals are effective in changing attitudes, and intentions. B. Fear appeals are messages that emphasize potential danger that could fall on the consumer C. Fear appeal do not change behavior at all. People are used to seeing such communication from companies. D. none of the above
These appeals are effective in changing attitudes, and intentions. Fear appeals are messages that emphasize potential danger that could fall on the consumer
Low-involvement decisions are typically products that are relatively inexpensive and pose a low risk to the buyer if buyer makes a mistake by purchasing them. True or False
True
Social media marketing plan identifies and describes the tactic required to implement the plan. This is found in the Body of the marketing plan. True False
True
When a company decides to market its product to the entire market, what is the target market strategy being used * A. Undifferentiated B. Concentrated C. Differentiated D. Niche
Undifferentiated
Which of the following is the purpose of adopting a meeting-competition pricing objective? a. Market share b. Sales maximization c. Profit maximization d. Value pricing
Value pricing
To motivate intermediaries many Ice-cream companies provide freezers to their retailers to keep the ice-creams at frozen temperatures. The company noticed that Retailer 1 in a certain region is not selling their ice-cream well so decides to motivate the retailer by giving it a free freezer. This helps Retailer 1 stock on the company's ice-cream and the sales go up. The word spreads fast to other retailers who did not receive free freezers. This causes a conflict between the retailers and the Ice-cream company. What is this conflict : * A. Horizontal B. Vertical C. Parallel D. Circular
Vertical
A penetration pricing strategy is called _____ pricing when it implements the premise that a lower-than-market price will attract buyers and move a brand from an unknown newcomer to brand-recognition or brand-preference stage. * a. market-plus b. market-minus c. EDLP d. FOB
market-minus
A customer travels to may countries for work. He feels that the customer service in Starbucks-US is very different from the customer service in Starbucks- China. What characteristic of services is being referred to here: * A. intangibility of service B. Inseparability of service C. services cannot be standardized D. services are perishable
services cannot be standardized