Marketing Exam review questions

Felicia wants to buy a new cell phone. She asks her friends who are technologically savvy to recommend a good, lightweight phone that is easy to use. In this scenario, Felicia is obtaining information using a(n)_______ .

non-marketing-controlled information source

FitWear Inc., a sporting goods footwear and apparel company, features photographs of celebrities wearing its brand of clothing and sports gear. FitWear Inc. launched a commercial for its new line of football cleats. This commercial featured famous football stars because the company believes that celebrities can influence customers' buying decisions. In this case, the football stars served as _______.

opinion leaders

Learners Inc. offers instructors a chat capability on their instructional software programs. If an instructor is grading a test and can't access a student's results, the instructor can click on chat and get a person from Learners Inc. to fix the problem immediately. Instructors do not have to fill out a help desk ticket and wait for days for a response or call and be put on hold for a long time. Because Learners Inc. is making help available exactly when and where instructors want and need assistance, the company is using a _____strategy.

place (distribution)

Khokho's Coffee House was the first company to introduce flavored coffee in the global market. It blends coffee in several different flavors, such as blueberry, cinnamon, and cranberry, based on the flavors each country prefers. In this scenario, Khokho's Coffee House is involved in .

product invention

Nature's Own sells cookies and nutrition bars. The marketers at Nature's Own are trying to develop new and attractive packaging designs for its cookies. In this scenario, Nature's Own is working on its _____ .

product strategy

John's Corner is a nursery that allows customers to bring back plants that have died and receive a full refund as long as the customer has a valid receipt. John's Corner has a unique return policy which is valuable to buyers, as opposed to simply offering a lower price than competitors do. This is an example of a .

product/service differentiation competitive advantage

Apple has a history of , creating computers, operating systems, and other gadgetry that it hopes the public will want and buy because of Apple's reputation for innovation.

production orientation

At SunnyVale Corp., a company that manufactures fruit preserves, fruits of excellent quality are used to make jams, jellies, and marmalades. In this scenario, the fruits are examples of _____.

raw materials

One Vision, a publisher of video games, monitors social media conversations that are relevant to its products and follows up on those conversations. This long-term focus on customer needs is the hallmark of .

relationship marketing

Pedro, an administrative manager at Seal Inc., is asked to purchase 100 printers for the firm's office. He contacts a sales representative at Metro Distributors Inc. and places an order for 100 printers. Metro Distributors Inc. purchases the printers from Ink Corp., a wholesaler, and delivers them to Pedro at his office. In this scenario, Metro Distributors Inc. is most likely to be a(n) _______

reseller

Recently, Dell launched a new laptop in the market. Carrie bought the laptop but was disappointed when several cheaper laptops were successfully launched in the market soon after. To deal with her disappointment, she convinced herself that those laptops were inferior in quality. This scenario illustrates .

selective distortion

Karen usually does not spend much time selecting gifts. However, when choosing a fountain pen for her husband's birthday this year, she visited several stores and spent a lot of time asking the sales staff about different features of the pen before making her purchase. This scenario illustrates .

situational involvement

Diego has just joined a community composting project in Ossining, New York. He received information about the project from his friends and neighbors. Diego has always believed that food scraps are not trash but a valuable resource, so he made the decision to buy special containers and drop off his food scraps at the designated drop off park. This is an example of the _________ factors that influence the consumer decision journey.

social

After being influenced by frequent advertisements, Santiago buys a new cell phone. However, he discovers that the new cell phone does not offer the features he expected. This scenario illustrates that______ of the purchase is less than Santiago's expectations.

the actual value

Diego has a small business in California that manufactures custom-made, colorful, hand-painted furniture such as chairs, tables, and benches. He would like to expand his business into international markets because of all the following reasons EXCEPT_______.

to increase excess inventory

When they first started to conduct business, international ride-sharing companies such as Uber or Lyft relied on new, unfamiliar concepts to develop breakthrough decisions. Drivers use their own cars to transport customers who call or text for a reservation using a credit or debit card. According to the innovation matrix, ride sharing is considered a(n) .

transformational innovation

Clara has opened up a food truck business to sell lunch items such as tacos, tortillas, and burritos. She is a very motivated, hard worker. There are many existing food truck businesses in her town, but she has set a goal of outperforming her competitors and being the busiest, most profitable one. Clara's problem is that her marketing objective is .

unrealistic

Tim Oddo owns a condo in Manhattan and a vacation home in Roxbury, Connecticut. Tim travels to Europe once a year with his family to ski in the Alps. Tim likes to attend art auctions to add to his art collection and visits art galleries whenever he travels. In terms of the U.S. social classes, Tim probably falls into the _______ class.

upper

Jason Ford, the CEO of the Green-Plus Company, was known among businesspeople for his qualities of self-discipline, friendliness, caring, courage, compassion, trust, and humility. This example shows that a being good is a character trait valued as

virtue

Muneko is looking to purchase a good phone. After evaluating her options, she has decided to buy the newest iPhone model, though other brands that have all her required features are offering good value for less money. Prior to buying the iPhone, Muneko may experience some conflict because she is worried that the phone's top-of-the-line technology, which costs much more than its competitors, will be obsolete in a couple of months. What is the marketing term used to describe this feeling?

Cognitive dissonance

Eye-20, an optics manufacturing company, wants to focus on relationship marketing. In this case, which of the following strategies is the best for Eye-20 to market its products?

It can use social networking sites to advertise itself to businesses.

The Biking Company bikers told the manufacturer that they wanted lighter, more powerful bikes and a better way to handle corners. The Biking Company follows a market orientation. What did the company do?

It created bikes with bigger engines and lighter, stronger frames.

Staples has entered a partnership with the Permian Basin Rehabilitation Center to provide hearing aids to children with hearing loss. Staples has collection boxes at the cashier counter so that customers can donate their spare change. Staples adds its own donation as well. Which statement is true of cause marketing as carried out by Staples?

It involves the cooperative efforts of a for-profit firm and a nonprofit organization for their mutual benefit.

Pedro Sanchez Furnishings makes and sells original handicraft oak furniture and cabinet products. The management of the company has been successfully using a niche strategy for years. In this case, which of the following is the most likely to be true of Pedro Sanchez's business?

It serves only a limited geographic market.

Rodriguez Brothers Plumbing in Atlanta, Georgia is sponsoring a 5K run to raise money for cancer research. Rodriguez wants to give back to the community in which he has done business for decades. When considering corporate social responsibility, which is true of stakeholder theory?

It states that a company is expected to be a good citizen in its community.

The manager of Rainbow Printers Inc. has purchased a sophisticated printing press for $1 million. Which of the following statements is most likely to be true about the printing press?

It will depreciate over its useful life.

Lucia is an accounting major at a university in Texas. What is the best reason for her to be familiar with the fundamentals of marketing and marketing terminology?

She needs to be able to communicate with specialists in other areas.

Tshawna is opening up an online jewelry store that sells handmade necklaces, bracelets, and earrings. What is the best reason for her to study marketing?

She will better understand the buying process.

The Brown Company follows a market-oriented approach, whereas The Columbia Company believes in a sales-oriented approach. Considering their approaches, it is evident that ________has/have an advantage in today's marketplace because it/they finds/find out what customers want and what they need.

The Brown Company

Katerina and Cloe are best friends. Katerina regularly runs marathons and is a member of the Marathon Runners Club at her university. Cloe also wants to join the club, but she is not a very strong runner. Cloe decides to start running every day so that she can participate in marathons and become a member of the club. For Cloe, the Marathon Runners Club can be categorized as a(n) _______.

aspirational reference group

Amazon is replacing some fulfillment center jobs with robots that pack orders. Amazon is replacing some workers at its fulfillment centers. The machines are automating one of Amazon's most common job roles held by people: Packing orders. The rollout could cut more than 1,300 jobs across 55 fulfillment centers. This example shows that .

automation technologies could become be a global job eliminator

Sony produces products in various categories, such as visual systems, professional cameras, computer products, communications, and security. Sony caters to______ market.

both a business and a consumer

Francisco is hungry and wants to go to a good restaurant to eat and relax. He chooses Ruth's Chris Steak House for its ambiance and good food. His experience provides .

both hedonic and utilitarian value

Howell Printing Inc. manufactures and sells printers, scanners, and copiers to various corporate offices. This is an example of_______.

business marketing

L&T, an international manufacturer of electrical and electronic products and systems, also manufactures custom- engineered switchboards for industrial sectors such as power, refineries, petrochemicals, and cement. In the electronic segment, L&T offers a range of meters and provides control and automation systems for industries. The company manufactures and markets exclusively to .

business products; business customers

Alan makes hand-tooled leather items such as purses, luggage tags, and coasters for sale. Alan buys his leather from Sherman Oak, a company that deals in bulk leather, dyes, finishes, edge coats, clear coats, and cement. This is an example of ______ .

business to business (B-to-B) marketing

Juan owns an oil field supply company in Texas that sells pipe to transport oil to refineries. His business generates more cash than it needs to maintain its market share. According to the portfolio matrix, the type of business unit is called a .

cash cow

Gentech, a cloud-computing company, is rated as a top company to work for. It offers rich monetary and psychological rewards. It has developed software that identifies strong performers who have not been promoted for 18 months and helps them seek new challenges. Gentech has shown that .

companies rated by employees as the top places to work outperform their competitors

Ah Ling buys a new pair of shoes from ShoeFactory, an online store. She logs in to ShoeFactory's website and finds that her homepage has been customized to display the status of her latest purchase. In this scenario, ShoeFactory is using _____to exert influence over the decision-making journey.

contextual interaction

_________ acknowledges that in addition to economic and legal duties, companies have obligations to society. These obligations are not mandated by any law or regulation but instead are associated with the demands, expectations, requirements, and desires of various stakeholders.

corporate social responsibility

Jamal, a customer of Associated Bank, feels that the bank has met his expectations for high-quality service. He gives the bank high ratings on its feedback form and also recommends the bank to his friends and family. Jamal's evaluation of Associated Bank is a reflection of .

customer satisfaction

A well-known car manufacturer decided to go completely to hybrids, adding more sports utility vehicles and using more cutting- edge technology. The company is also focusing more on electric cars. This example shows that strategic marketing management _______.

defines the organization's main activity at a particular time

Hinachi, an electronics and appliance manufacturer, decides to launch its new line of smartphones on the company's official website to resolve logistics issues that the company has identified. With this modification, its customers can now buy the smartphones directly from Hinachi even if they are not available in retail locations near potential consumers. In this case, Hinachi focuses on the ______element of the marketing mix.

distribution

Lucy wants to take her husband, Hector, to an exotic island to surprise him on their tenth wedding anniversary. She has made reservations at an expensive hotel. However, she is now worried whether she is going to get service worth the money she spent. In this scenario, Lucy's inner tension would reduce if

her friends also recommended the hotel

Landon has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. The first thing Landon should do is to:

identify issues

Vactin Corp., a construction company, buys ten truckloads of cement for its new project. Given this information, the cement bought is an example of a(n) .

industrial product

The Chinese company Huawei saw that a T-Mobile robot could detect cellphone problems. T-Mobile permitted Huawei engineers into the lab to test their phones. A Huawei engineer, according to the indictment, took the robot arm out of the lab. When questioned by T-Mobile, he returned it. Prosecutors say that the Chinese company wanted T-Mobile technology for its own phone-testing robot. This is an example of .

intellectual property theft

Santos Inc. is a large company that manufactures and sells hair care products. It plans to adopt a product development strategy. In this case, Santos Inc. will _____.

introduce a new product line of chemical free, all-natural shampoos to its present customers

Griffin Corp. is engaged in marketing various goods and services. It buys products from various manufacturers and sells them to businesses and end consumers. Given this information, Griffin Corp. is said to be selling consumer products if .

it sells books to students

The Lee Corporation is a sales-oriented firm that focuses on high sales. It does not take into account the customer's wants and needs, and instead concentrates on manufacturing products that will reap high profits. This attitude might lead to the firm's missing business opportunities because .

its focus on manufacturing specific products may not meet customer needs and wants

Encott is a pharmaceutical company that designs its products to suit the needs of a group of people with similar characteristics. In this case, Encott should target which of the following market segments?

A group of individuals who are diabetic

Family Farms Inc., a company which deals in dairy products, adheres to a standard of behavior for its employees, and it follows certain practices that reflect the moral principles and values held by the company and that guide the conduct of the individuals in the company. Which practice is described in this scenario?

Business ethics

The Otani Company Inc. is a renowned technological firm. It manages many strategic business units (SBUs) in which each SBU _______.

has its own return on investment

Betty bought a jar of facial cream with natural ingredients for $50 online from Beauty Today Inc., a company that promises a youthful wrinkle-free skin for those who buy the cream and use it twice a day. Betty used the cream as directed but didn't see any difference in her skin. Which of the following statements is NOT an ethical explanation of Betty's situation? a. Law is not a perfect mechanism for ensuring good corporate behavior.

Customers should not assume that all product labels are accurate.

Kayla owns an apparel shop located in a mall in Nebraska. There are eight other clothing shops in the mall plus a Macy's department store. Which is an important basis for Kayla for establishing a competitive advantage and differentiating her dress shop from competitors?

Delivering consistent, high-quality customer service

Walmart is the largest retailer with both brick-and-mortar stores and a growing internet business. Walmart continues to innovate with its service to shop online and pick up at the store. Walmart has also faced criticism due to its low wages and difficulty for part-time employees to get group health insurance. Many consumers refuse to shop at the store due to their employee policies. Based on this scenario, which criterion for an exchange to occur is missing?

Each party is willing to consider the other to be a desirable exchange partner.

Engineering Services provides consulting services to corporate clients such as Caterpillar and John Deere in the United States. Engineering Services would like to increase its revenues and capture additional clients. Which of the following statements might be true for Engineering Services?

Engineering Services may be able to utilize the internet to expand globally.

The popularity of massive music festivals has created an opportunity for fans of electronic dance music to get together and create their own _______.

subculture

Johnson Controls experienced a steep decline in product sales due to increased competition in the local market. Johnson Controls plans to adopt the market development strategy. Which of the following is the best step the company can take to overcome its financial losses?

Focus on promoting new uses for old products.

Zenith, a popular restaurant chain, has many branches all over the world. The taste and quality of its food are the same across all these branch restaurants. Based on this information, which of the following strategies does Zenith embrace?

Global marketing standardization

Social sustainability

If a company does not make a profit, then the other three responsibilities—legal, ethical, and philanthropic—are moot.

The marketers at Ferguson have prepared a marketing plan for the company's air conditioners. Ferguson's management team has outlined several activities for account executives based on this marketing plan and set a deadline and allocated a budget for each activity. Which of the following stages of the marketing plan is illustrated in this scenario?

Implementation

Wonder Coffee is a chain of coffee serving outlets and specializes in selling different flavors of coffee. The increase in the price of sugar does not affect Wonder Coffee's coffee prices very much and sales continue at their usual level. Identify the type of demand in this scenario.

Inelastic demand

Francisco buys five million sheets of paper from a vendor for his printing firm. He is satisfied with the product, and he orders the same quantity from the same vendor every week. This is most likely an example of a(n)______.

Influencer

Steve is a high school math teacher and has group health insurance. However, his insurance policy has very high deductibles and copays for prescription medicines. Steve sometimes has to choose between buying food and paying for his prescribed insulin since he has diabetes. Finally, he gets desperate and steals food from a convenience store. What ethical theory has Steve displayed in this case?

Moral relativism

As a social media network, Facebook has evolved to fill users' needs for a variety of communication beyond simply updating their status or posting photos or video from their day-to-day life. Users like Jose can now post messages that they are looking to buy or sell items. Jose recently posted that he had a solid oak dining room table and chairs for sale in great condition for $250. Caleb and his partner have been looking for a dining room set but they don't use Facebook, only Instagram and Twitter. Is it likely an exchange will occur? a. No, it is not likely an exchange will occur because the

No, it is not likely an exchange will occur because the parties are not using the same platforms of communication.

Shawna and her friend Elizabeth, who support two different political parties, only quote statistics that support their favorite political party's strengths, but each girl overlooks her party's weaknesses. Which type of perception do Shawna and Elizabeth demonstrate?

Selective perception

Starbucks supports literacy campaigns in every community in which it does business. Starbucks wants to give back to the community in a meaningful way by doing this. Which of the following is a component of the pyramid of corporate social responsibility represented by the Starbucks literacy effort?

Philanthropy

Zara is one of the leading women's shoe companies in Spain. It manufactures leather shoes that are similar to those produced by luxury European brands. The management of the company has decided to adopt a product/service differentiation competitive strategy. In this scenario, what would Zara be likely to do?

Produce boots, heels, and sandals that have specialized features.

Christina buys groceries every month from Target and rarely does much research on the products she buys. What is the marketing term for this type of consumer behavior?

Routine response behavior

Carolina went to Target to check the quality, sizing, and price of some branded clothes. But she found the same items at a cheaper price online and bought them online instead of getting them at Target. What is this practice called?

Showrooming

The WWW Corporation builds hospitals in rural areas of India. The hospitals are essential for providing health care for the current and future residents of the area. Which term refers to a type of social responsibility concerned with developing processes and structures that not only meet the needs of a current community but benefit future generations as well, as exemplified by the WWW Corporation?

Social sustainability

Whenever a particular fashion house brings out a new product line, it publicly launches the products in a grand social event, invites society's who's who, and lavishly displays its new products. What term best describes this type of consumer involvement?

Social visibility

Zoom is a company that saw the need for videoconferencing. "Our mission is to develop a people-centric cloud service that transforms the real-time collaboration experience and improves the quality and effectiveness of communications forever." Zoom is an example that shows which of the following?

Sound strategic planning is based on creativity.

The ABC Lawn Company aims for a high number of clients that result in high profits. To meet its goal ABC markets its landscaping service vigorously because there are many lawn services and nurseries in the local community. As a sales- oriented company, ABC focuses on .

aggressive trading techniques

The Good Earth Company created a special baby shampoo designed for children 5 years old or younger. The company provided an excellent product manufactured in an environmentally safe plant. Sales flagged as customers turned to shampoos that could be used not only for small children but for people of all ages. What mistake did the Good Earth company make?

The company did not define its business in terms of the benefits customers seek.

In countries that experience severe drought, which of the following is most likely to happen? a. International marketing will remain unaffected because petroleum is the only factor that affects international marketing.

The country will rely on imported foodstuffs.

Lotex Inc. is a manufacturer of mother boards for computer systems, which sells its product to the firms which manufacture assembled computers. Which of the following is true in this scenario?

The finished items are ready for assembly or are products that need very little processing before becoming part of some other product.

Computer World Corp. manufactures electronic components for computers. The marketing managers at Computer World noted that a new competitor is gaining more customers. In the context of SWOT analysis, which of the following actions should be prioritized by Computer World's marketing managers?

They must analyze aspects of its marketing environment.

Sari has opened up a craft store. She offers classes in cake decorating as well as sewing and needlepoint supplies. However, she has had very low attendance in the classes and a low sales level of craft items, even though she has discounts available in the form of store coupons. In the context of the portfolio matrix, which statement is generally true of Sari's business?

This business is a dog and she should harvest or divest it.

Ben wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about .

U.S. corporations' use of illegal payments and bribes in international business dealings

Kendall Wong has a car to sell and advertises it online. Several potential buyers test drive the car. All five conditions that are necessary for an exchange to occur exist in this scenario. Has an exchange occurred?

Until Kendall sells the car, an exchange has not taken place.

Marketing can occur even if an exchange does not occur. When Sally Rodriguez sold her car, she put an ad in the localnewspaper and allowed potential customers to test drive the vehicle. Sally engaged in marketing, even if no one bought her used automobile.

advertising

As a developing nation, India has relied on assistance for building roads, power plants, schools, and hospitals. In order to receive assistance, the government of India has lower trade barriers and fosters private business. Many high-tech start- ups and call centers are now located in India. This example illustrates the function of the .

World Bank

BCD Sportswear has introduced initiatives to attract millennial shoppers, who typically avoid department stores. These include themed pop-up shops, shop-in shops featuring new fashion designers, and concept shops. This example shows that

a market-oriented organization recognizes that different customers want different benefits

Rodriguez Paints Inc., a manufacturer of paints and emulsions, owns a user-friendly website. The website allows customers to upload pictures of their house to help in selecting their color choices. New Designs Inc., an interior decoration firm, enters into a partnership with Rodriguez Paints Inc. As a result, customers can now get a complete design solution for their houses. This is an example of______.

a strategic alliance

Employees at the Lucerne luxury hotels developed service guidelines. The guidelines include brief statements such as "I own and immediately resolve guest problems." These employees sustain the company's success in addition to taking responsibility for their actions because they are .

empowered to put values into actions

GE's Instagram account shares behind-the-scenes looks at its business and employees. One post about the first female wind technician in Western Canada received over 1,000 likes. With regard to business-to-business social media marketing, this effort by GE is an example of the _______ marketing metric.

engagement

GoPro is arguably one of the top non-celebrity brands on Instagram. A lot of the content they share is from customers using their products. The GoPro page has over ten million followers and gets hundreds of thousands of tweets, comments, and shares on every post. This exemplifies the metric of

engagement

The Sunshine Foundation provides funds to countries in South America to develop long-term sources of clean water. The Sunshine Foundation realizes that clean water is needed to improve health and preserve local ecosystems while creating a competitive advantage. The actions and interests of the Sunshine Foundation are examples of

environmental sustainability

Tony saw a television advertisement for Yamaha Star Venture, a sports touring motorcycle, and wanted to test drive one. The advertisement is an example of a(n) _____ stimuli.

external

Ruth wants to purchase a new gaming laptop. She wants to compare two of the latest models of gaming laptops—with similar build, quality, and hardware specifications—from different manufacturers. Ruth reads reviews of each product on reputable online forums before making her decision. In this scenario, Ruth seeks data _______.

from a non-marketing-controlled information source

Carolina conducts marketing research for a pharmaceutical company in California. Carolina oversees telephone surveys to determine the satisfaction of those who use her company's products. This example shows that .

marketing can assess the needs and wants of present and potential customers

The total population of the United States exceeds 328 million people. Many transactions each day are needed to feed,clothe, and shelter a population of this size. The number is huge. It all works because the US economic system distributes the output of farms and factories. This example shows that .

marketing is important to business

The co-founder of Hewlett Packard said, "Marketing is too important to be left only to the marketing department." This comment means all of the following EXCEPT .

marketing means selling and promoting products and services

The research and development team of Nature's Way Beverages has discovered that, during the testing process, one of their highly profitable new beverages contains ingredients that may cause liver damage in humans if consumed regularly over time. Additionally, the team acknowledged that the plant that manufactures this beverage draws healthy groundwater which could cause a water shortage in areas surrounding the plant. Based on these findings, management has halted its production of this beverage until a solution can be found that does not adversely affect its consumers and the environment. Given this decision, it is evident that Nature's Way Beverages embraces a __________ orientation.

societal marketing

When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormones, it considered multiple__________, including the ranchers that supply the food, its customers, and animal welfare groups.

stakeholders

Patek Phillippe is a prestigious brand of watch that is sold as a luxury product. It has a reputation based on quality and attention to detail. When the company introduces new timepieces, it can count on an existing, well-established market for its new products due to

stimulus generalization