Marketing Final

It costs the producer of a coffee maker $44 to make each one. The producer charges wholesale distributers $55 for each coffee maker purchased. The producer's markup in dollars is_____, and in percentage terms (based on selling price) is_____

$11, %20

A clothing retailer charged $300 for a man's suit after getting it from the wholesaler for $150. The retailer's selling price based on markup percentage is _____? Based on cost % is _____?

50%, 100%

Chris's local "farm to table" food truck faces steep competition from Chipotle- a national chain restaurant. Chipotle has a national salmonella outbreak caused by tainted lettuce. Chipotle's problems present a ___ for Chris. a) Competitive opportunity b) Monopolistic opportunity c) Legal barrier d) Competitive barrier e) Monopolistic threat

a) Competitive opportunity

Customer retention programs are based on what concept? a) Customer relationships should be viewed from a lifetime value perspective. b) It is important to maximize profits in the first few months of a customer relationship. c) Customer excellence is the easiest macro strategy to follow. d) Segmentation, targeting, and positioning analysis should not be rushed. e) Firms must spend large amounts of money to retain customers.

a) Customer relationships should be viewed from a lifetime value perspective.

Mary's has been buying the same brand of laundry detergent for as long as she can remember. She reaches for that brand every time she buys. Mary's decision process could best be described as: a) Low involvement purchasing b) Routinized response behavior c) Social influences d) High involvement purchase behavior e) Limited problem solving behavior

a) Low involvement purchasing

Becky was buying her first new car. She eliminated everything over $35,000 that did not get at least 40 miles to the gallon. She also rejected everything that had less than 4 doors. After considering several models, she selected the one that offered a rear view camera. For Becky, the price was a: a) Qualifying b) Determining c) Differentiated d) Geographic e) Demographic

a) Qualifying

Chris, an aspiring local restaurateur, wanted to enter his local market. He observed that it currently was served by national chain restaurants that each offered a broad menu of a few basic dishes from many different cuisines. Chris decided to open a local independent authentic Italian restaurant with a wide range of Italian cuisines from all of Italy. Chris's strategy could best be describes as a ___ strategy. a) Single target market b) Multiple target market c) Combined target market d) Structured target market e) Mixed-mode market

a) Single target market

The old marketing view emphasized trying to make a profit on each sale rather than trying to profit by managing what value? a) customer lifetime value b) customer satisfaction index c) cognitive dissonance d) all are correct

a) customer lifetime value

A consumer who uses a few simple decision rules to arrive at a purchase decision is using which of the following? a) limited problem solving b) routine decision making c) graduated response behavior d) extended problem solving

a) limited problem solving

Mary has been buying the same brand of laundry detergent for as long as she can remember. She reaches for that brand every time she buys. Mary's decision process could best be described as: a) Low involvement purchasing b) Routinized response behavior c) Social influences d) High involvement purchase behavior e) Limited problem solving behavior

a) low involvement purchasing

General Motors is considering increasing the length of its bumper-to-bumper warranty on new vehicles from 3 years to 5 years. The marketing mix variable being considered here is: a) product. b) personnel. c) place. d) promotion. e) price.

a) product.

When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) ________ targeting strategy. a) single target market b) combiner c) benefit-driven d) undifferentiated e) differentiated

a) single target market

How a product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer are all elements of a) supply chain logistics b) a marketing plan c) production management d) delivery of the value proposition e) a marketing exchange

b) a marketing plan

The ________ is the most important consumer buying organization in society. Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services. a) opinion leader b) family c) social class d) information source

b) family

The goal of customer relationship management is to a) eliminate customers who are profitable, but not highly profitable b) identify and build loyalty among a firm's most valued customers c) generate relationships with competitor's customers. d) manage every customer relationship differently. e) manage every customer relationship to maximize short-term profitability.

b) identify and build loyalty among a firm's most valued customers

A travel operator has announced luxury vacation packages. The packages include overnight stays at hi9gh end resorts and services from the most expensive spas. Which of the following is most likely to be the target customer base for these tours?

middle-aged married without dependent children

A moderately priced jewelry store is trying to differentiate itself from other jewelry stores. The store prices products somewhat lower than the super-premium jewelry stores, but offers better products and services than the low-end jewelry stores provide. The market situation this store faces sounds most like: a) monopoly b) monopolistic competition c) oligopoly d) pure competition

b) monopolistic competition

Marketers involved in value-oriented marketing are constantly balancing a) promotional effectiveness with ethical advertising standards. b) perceived customer benefits with the costs of their offerings. c) the desire to achieve with the need for a stable source of supply. d) the problem of price maximization with cost-efficiency e) the goal of efficiency with the price charged by competitors

b) perceived customer benefits with the costs of their offerings.

A buyer's decisions also are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept. a) habitual buying behavior b) personal characteristics c) learning d) variety-seeking buying behavior

b) personal characteristics

Generational cohorts are groups of people of the same generation who have similar ________ because they have shared experiences and are in the same stage of life. a) political affiliations b) purchase behaviors c) cultural values d) inflationary expectations e) regional cultures

b) purchase behaviors

Judy pulled an all-nighter studying for an exam. During the exam she encounters a question that she remembers studying, but cannot recall the answer. This is likely due to: a) need-based thinking. b) selective retention. c) selective exposure. d) selective perception. e) psychographics.

b) selective retention.

The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a(n) ________ for these companies. a) diversification strategy b) sustainable competitive advantage c) strategic marketing plan d) clear mission statement e) operational advantage

b) sustainable competitive advantage

Chris, an aspiring local restaurateur, wanted to enter his local market. He observed that it currently was served by national chain restaurants that each offered a broad menu of a few basic dishes from many different cuisines. Chris decided to open two local independent restaurants. One served exclusively authentic Italian food, then second served authentic German food. Chris's strategy could best be described as a_____ strategy.

multiple target market

Does research provide you with the answer?

no

A store advertised a special sale on new, commercial quality sewing machines and offered an exceptionally low price. Jasmine Tetreault, who loves to sew, went to the store to purchase of the machines. When she got there, the salesperson used high-pressure tactics to try and get ger to buy a higher priced model. When Jasmine insisted on looking at the advertised machine, the salesperson sais that the advertised machine was not in stock. Jasmine left the store, concluding that the store was engaged in

bait and switch pricing

When a gas station blows "fresh coffee smell" around the gas pumps to tempt customers to come inside for a cup, the gas station is using a form of ________ marketing to influence customers. a) subliminal b) one-on-one c) differentiated d) sensory

d) sensory

Family branding, licensing, and look-alike packaging are all marketing strategies based on a) stimulus discrimination b) the spacing effect c) extinction d) stimulus generalization

d) stimulus generalization

The roots of micro-macro conflict in a firm are often the result of a) value statements that are too detailed. b) having different pay scales for different employees. c) stockholder disagreement on the firm's value statement. d) the competing values of a company vs. society as a whole. e) not focusing enough on company profits

d) the competing values of a company vs. society as a whole

Acme widgets imports many of its raw materials from other countries. The prospect of tariffs on imports presents a: a) strength b) Weakness c) opportunity d) threat

d) threat

After watching an ad describing Honda's automatic safety features, Ed bought a Honda with plenty of driver assist safety features like parking assist, lane change warnings and braking assist. Ed got a speeding ticket driving home from the dealership. Ed was surprised and said "I thought this car would prevent all of my driving mistakes". Ed had a problem with:

decoding

The "product shape" graph (perceptual map) resulting from a positioning study for shampoo shows a substantial target market that is currently served by only one product - "Exotic Balsam". Which of the following is a reasonable course of action for a competing manufacturer?

depending on circumstances

Becky was buying her first new car. She eliminated everything over $35,000 that did not get at least 40 miles to the gallon. She also rejected everything that had less than 4 doors. After considering several models, she selected the one that offered a rear-view camera. For Becky, the camera was a

determining characteristic

A computer manufacturer is attempting to increase the customer value associated with purchases of its products. Which of the following might be an easy way to achieve this increase in value? a) Reduce price b) Increase technical support for customers. c) Increase warranty coverage. d) Offer free shipping e) Any of the above, depending on the needs of the target market

e) Any of the above, depending on the needs of the target market

Funds available, strong brands, employee turnover are all part of a(n): a) Company assessment b) Economic assessment c)Competitive assessment d) Customer assessment e) Company or competitive assessment f) All of the above.

e) Company or competitive assessment

Zak's regular brand of laundry detergent is out of stock. After reviewing the available options he chooses a familiar brand that he wanted to try even though it was a bit more expensive. Zak's decision process could best be described as: a) Low involvement purchasing b) Routinized response behavior c) Social influences d) High involvement purchase behavior e) Limited problem solving behavior

e) Limited problem solving behavior

Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established a) customer loyalty. b) locational excellence. c) a diversification growth strategy. d) a related diversification opportunity. e) a sustainable competitive advantage.

e) a sustainable competitive advantage.

now how do I get rid of it?" They have made the error of considering marketing as a) an accounting function b) important only for new products. c) a profit center. d) an integral part of a business plan. e) an afterthought.

e) an afterthought

Chris wants to open a family-oriented restaurant in a thriving suburban area. Chris thinks a sports-based theme and broad menu will be attractive to the large number of families in the area. However, national chain restaurants, such as Chili's, TGI Friday's, and Applebee's already draw large followings in the area. The existence of these chain restaurants presents a significant: a) competitive opportunity. b) monopoly. c) legal barrier. d) oligopoly. e) competitive barrier

e) competitive barrier

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a ________ growth strategy. a) market penetration b) product development c) market development d) product proliferation e) diversification

e) diversification

Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the ________ step of the marketing planning process. a) define the business mission b) perform situation analysis c) identify and evaluate opportunities d) implement marketing mix and resources e) evaluate performance

e) evaluate performance

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of a) marketing "macro" issues but not ethical issues. b) ethical issues but not marketing issues. c) issues that don't even need to be discussed in ethical firms. d) internal, controllable, "micro" marketing issues. e) marketing ethical issues that create a micro-macro dilemma

e) marketing ethical issues that create a micro-macro dilemma

Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education. What type of segmentation method was used to segment this market? a) behavior b) demographics c) geographics d) geodemographics e) psychographics

e) psychographics Psychographics is related to the way we describe ourselves—our self-concept, values, and lifestyle. Psychographics studies how people self-select, based on the characteristics of how they choose to occupy their time (behavior) and what underlying psychological reasons determine those choices.

Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks if they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing? a) creating value b) making decisions about the setting in which marketing takes place c) making product, place, promotion, and price decisions d) completing the exchange function of marketing e) satisfying customer needs and wants

e) satisfying customer needs and wants

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and a) knowledge of competing products. b) are removed from traditional marketing alternatives. c) are removed from traditional marketing alternatives. d) the ability to negotiate discounts. e) the ability to buy them. f) a thorough knowledge of his brand messages.

e) the ability to buy them.

Fido, Inc. is a producer of dog food and is getting ready to introduce a new brand. The firm's marketing research department learns that a competitor is planning to launch another brand about two weeks after Fido's launch. Fido's marketing department quickly mails a set of dated coupons to several thousand consumers in a purchased database of dog owners, encouraging them to ask for the new Fido brand in their favorite store and to stock up on the new brand using the coupons. This is an example of:

pulling

Rhonda is about to film an online ad targeted toward Gen Zers for a new music streaming service. In the pre-production meeting, the client objects to a wardrobe choice for the brand "hero". "No one that age uses wired earbuds. Our target will not relate to our message. Get rid of them" The client is concerned with:

encoding

Ron Popeil has been a pioneer in the use of direct-response television "infomercials"(commercials designed to describe and demonstrate the product in detail)." Over the years his infomercials have promoted many products, including the Showtime Rotisserie Barbecue, a food dehydrating machine, and the world-famous "Veg-O-Matic." The chief advantage of the infomercial is that it provides plenty of time to show, describe and demonstrate a product's benefits in detail. The choice of the infomercial is related mainly to the _ element of the communication process.

encoding

The Federal Trade Commission informed Tropicana orange juice that it would have to stop advertising that one of the benefits of "heart-healthy" Tropicana orange juice was to lower blood pressure. For Tropicana, this situation was a significant development in the:

legal environment

Whether they like them or not, most US automobile costumers are familiar with and have an opinion about American-made cars. This brand familiarity makes it easier for consumers to:

make purchase decisions

A computer manufacturer is attempting to increase the costumer value associated with purchases of its products. Which of the following might be an easy way to achieve this increase in value?

Any are current depends on the need of the target market

An industry-leading high technology company just announced that it was cutting its prices and would price its products at whatever level was necessary to protect its market share. This is evidence of a pricing objective:

sales - oriented

Judy pulled an all-nighter studying for an exam. During the exam she encounters a question that she remembers studying, but cannot recall the answer. This is likely due to:

selective retention

Ads for Haynes Jeep-Chrysler feature the slogan, "Buy a Jeep and have fun with my friends." This is an appeal to the consumer's:

social need

A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you not use in talking about marketing? a) Marketers help address unmet customer needs, regardless of the size of the firm. b) Marketing isn't essential now, but it will be in a year or two when the product takes off. c) Marketing focuses on the product, but only as one element. Three other areas are promotion, price, and place. d) Marketers are skilled at communicating the value of the product to potential customers. e) Marketing helps new ventures organize, operate, and assess risk.

b) Marketing isn't essential now, but it will be in a year or two when the product takes off

Which are threats? a) Sales for Coke have declined in the past quarter. b) Rising sugar prices reduce cola margins. c) Pepsi surpasses Coke in in fountain sales. d) Upper level management turnover in Coke's marketing division. e) All of the above are threats.

b) Rising sugar prices reduce cola margins.

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables in order to give customers a) more product features than the competition offers. b) a clear, distinctive, and desirable understanding of their products relative to competing products. c) lower prices than the competition offers. d) a more flexible supply chain strategy. e) a perceptual map of the imaging landscape.

b) a clear, distinctive, and desirable understanding of their products relative to competing products.

A neighborhood restaurant in a diverse market area sought to appeal to a wide range of consumers by offering a menu with a few choices from each of several different styles of cuisine—American, Italian, Chinese, German, Thai, and Indian. Recently, the restaurant has lost sales to newer restaurants that offer many choices from a single style of cuisine. This example illustrates the danger of adopting a ___ approach. a) Single target market b) Multiple target market c) Combined target market d) Structured target market e) Mixed-mode market

c) Combined target market

Which are opportunities? a) Coke has a lot of cash on hand to fund its marketing effort. b) I can add a supply chain emphasis to my Mkting degree to make me more marketable to Coca cola. c) More time crunched lifestyles may help increase demand for Coke's nutrition drink as a meal replacement. d) Coke buys Monster energy drink. e) All of the above are opportunities.

c) More time crunched lifestyles may help increase demand for Coke's nutrition drink as a meal replacement.

Maryam phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available—to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a growth strategy. a) Market development b) Product proliferation c) Product development d) Diversification e) Market penetration

c) Product development

Most banks now have customer relationship software that, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a growth strategy. a) Market development b) Product proliferation c) Product development d) Diversification e) Market penetration

c) Product development and e) Market penetration

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in a) mission statement satisfaction. b) producer excellence. c) a sustainable competitive advantage. d) sustainable price decreases. e) product design excellence.

c) a sustainable competitive advantage.

Before going on his first business trip to China, Brad asked his Chinese American friend to advise him on customs and values common among the Chinese business people he will likely encounter. Brad is trying to avoid ________ business blunders. a) cognitive b) reference group c) cultural d) evoked e) situational

c) cultural

H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ________ growth strategy. a) product development b) diversification c) market development d) product proliferation e) market penetration

c) market development

Many teenagers, both male and female, have clothes they purchased in the past that they "would not be caught dead in" today. When they occasionally see those clothes hanging in the back of their closet, these teenagers probably feel a) physiological risk. b) psychological risk. c) postpurchase cognitive dissonance. d) need recognition. e) cognitive bias.

c) postpurchase cognitive dissonance.

Sam is sneezing as the ragweed blooms. He suddenly notices a lot of advertising for allergy medications. This is an example of: a) need-based thinking. b) selective retention. c) selective exposure. d) selective perception. e) psychographics.

c) selective exposure.

modern

c) seller's

Adam eats the garlic special at lunch and now needs to buy some breath mints before class. To him, all mint brands are exactly the same and he picks the cheapest one on the shelf. Adam views the market for breath mints as (a/n): a) monopoly b) monopolistic competition c) oligopoly d) pure competition

d) pure competition

Which of the following statements, made by marketing managers, illustrates an understanding of the concept of customer value. a) "The only time it's really necessary to demonstrate superior customer value is right before the actual sale. b) "My main concern is meeting this month's sales quota- I'll worry about relationship building later" c) "It's more important to acquire new customers than to retain old ones." d) "I might think my product is a good value, but what really counts is if the customer thinks it's a good value."" e) "Customer value really boils down to which product is the least

d) "I might think my product is a good value, but what really counts is if the customer thinks it's a good value."

A situation analysis begins with a review of the..... a) Customer b) Competition c) Technology d) Company e) Economy

d) Company

What is the focus of a firm that develops a relational orientation with its customers? a) working with competitors to simplify product offerings for customers b) relating product knowledge to customer's interests c) gaining profit from each customer transaction d) gaining lifetime profitability from customer relationships e) generating profits quickly before customers shop elsewhere

d) gaining lifetime profitability from customer relationships

Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? a) perform situation analysis b) evaluate performance c) define the business mission d) implement marketing mix and resources e) identify and evaluate opportunities

d) implement marketing mix and resources

When selecting a target market, firms will be most successful if they a) decide between demographic and geographic segmentation methods. b) reposition the brand. c) develop a strong communication plan. d) match the firm's competencies with a market segment's attractiveness. e) seek out opportunities to customize products.

d) match the firm's competencies with a market segment's attractiveness.

Badger company introduced a new widget but realized that they had a narrow time window to capture the market. Badger chose to price the widget on the low end to capture as many users as possible. Badger used ____ pricing which is a ____ strategy.

penetration, sales oriented

Leonard Stevens, a senior citizen living in Florida, says that he always buys the highest-priced product in a given category. "You get what you pay for," he says. Leonard would appear to be a good target for:

prestige pricing