Marketing Management Tests
Herbie recently read that Crane Airways of Japan, Kestrel Airlines of Germany, Heron Air of Australia, and Egret Airways of India have code sharing partnership, which allows passengers to fly on any of the airlines, share frequent flyer miles, and give each other logistical support. Herbie had just learned in his Global Marketing class that this arrangement is known as a(n) ________.
strategic alliance
________ are all marketing activities that affect the consumer decision process.
Value proposition, distribution, and marketing communications
Once a customer begins to have a positive experience with a service provider and builds a relationship with the firm, customer loyalty ________.
tends to be greater for services than for goods
Malala, the marketing manager of an automobile dealership, is crafting a SWOT analysis. In this case, she should include the downturn in the U.S. economy and tightening of the credit markets under ________.
threats
As a dimension of service quality, reliability means that ________.
a service is performed right the first time and every time
Small changes in consumer demand can lead to considerable shifts in business product demand and are referred to as the ________.
acceleration effect
During which stage do consumers purchase a product with the intent of becoming a dependable user?
adoption
Mariette was highly regarded by her customers in the bakery because she was knowledgeable about the product and was always courteous to customers. Her customers' faith in her demonstrated ________.
assurance
Of the five dimensions of service quality, the ability to convey trust and build a customer's confidence in the quality of a service refers to ________.
assurance
Bjorn felt that the focus groups did not give him enough quantitative information to make a decision, so he directed his managers to conduct surveys online and look for secondary research. Which characteristic of Big Data is Bjorn trying to achieve?
variety
The marketing manager at Little Red Architects, a firm that specializes in the design of school buildings, discovered a glitch in the software that the firm uses. As a result, some of its most recent projects will come in over budget. In the context of SWOT analysis, a discussion of this would be included under ________.
weaknesses
Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with ________.
what customers will pay
The account manager of a market research firm is conducting secondary research on consumer preferences in energy drinks for his clients. His client's drink is 100 percent organic, but all of the secondary data he has found contains only beverages that contain a majority of artificial ingredients. This scenario illustrates the fact that secondary data ________.
will not fit the research problem exactly
The final step in target marketing is to develop profiles of each segment under consideration for investment as a target market.
False
Which contemporary theory of motivation believes that satisfying hygiene factors does not create a loyal employee or customer?
Herzberg's two-factor theory
Which of the following questions about market segmentation relates to creation and execution of different marketing strategies to the different submarkets identified?
Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product?
________ is any change in the content or organization of long-term memory or behavior.
Learning
________ occurs when information is processed and added to long-term memory.
Learning
Food product manufacturers are required to list the number of calories at the top of the nutrition panel. Posting calorie information is an example of meeting the ________ requirements of labeling.
Legal
________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing
________ segmentation recognizes that there may be a number of consistent needs and wants demonstrated by consumers based on what type of job they have.
Occupational
José has been to Farm Fresh Ice Cream Shops several times. Being a loyal customer, he has developed certain emotional and psychological connections with the brand. For instance, he links the brand with higher levels of customer service. Which dimension of brand equity does this example illustrate?
brand association
When Maria purchases laundry detergent, she is able to easily recall and process information about Tide, but not the other brands. Which benefit of brand equity for customers does this exemplify?
brand associations
Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions. Dell engaged in a ________ extension.
category
Advantages to licensing as a market entry strategy include all of the following EXCEPT________.
complete control of the patent
When baby boomers hear music that connects them with positive memories and the product and brand that is being advertised, it demonstrates the idea of ___________.
conditioned learning
One part of a marketing plan should identify what to do if things go wrong. This section is called ________ planning.
contingency
Which of the following helps avoid scrambling to decide how to adjust marketing strategies when performance against a forecast is higher or lower than expected?
contingency plans
Frequently purchased, relatively low-cost products for which customers have little interest in seeking new information and rely heavily on prior purchase behavior are called ________ goods.
convenience
In the context of product characteristics, companies translate the essential benefit into physical, tangible elements known as the ________ product.
core
People around the world prefer Swiss watches over watches manufactured in other countries. In the context of product issues, which of the following best describes the customer's perception?
country-of-origin effect
In the context of market channels, the use of local distribution networks to reach target customers is identified in the ________ channel factor.
coverage
When a company underpromises but overdelivers with respect to its services, it is said to be practicing ________ management.
customer expectations
Which of the following major objectives of customer relationship management relates to increased individual customer margins, while offering the right products at the right time?
customer profitability
External sources of generating product ideas include ________.
customers
One of the difficulties associated with search qualities for consumers when evaluating different service offerings is ________.
customers do not truly know how a service performs until after the sale
The primary function of marketing and the entire organization, in a broader context, is to ________.
deliver value to the customer
The essential marketing objective in the growth phase of the product life cycle (PLC) is to ________.
differentiate the product from those of new competitors
The Clean-O company makes a cleanser for the hospital and nursing home market that is guaranteed to kill 99 percent of Staphylococcus germs, a major concern for medical facilities. Unlike other companies, Clean-O is not interested in pursuing the consumer market. In this case, Clean-O has adopted a ________ orientation.
differentiation
NaviCal Inc., a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years. NaviCal had high financial growth, and it wants to purchase the manufacturing facility. This market entry method is called ________.
direct foreign investment
A shoe manufacturing company is interested in selling its products in a new country. Before entering the marketplace, the company wishes to gather information about how the country's citizens set priorities and make buying decisions. For this purpose, the company is most likely to analyze the country's ________.
economic conditions
B&B Co. is conducting market research to determine if a new beverage will be successful. The company is in the process of determining the kind of research that needs to be done, the information needed, and the sampling plan—including the research participants. B&B is in which stage of the market research process?
establishing the research design
Primary target markets differ from secondary and tertiary target markets by the ________.
expected level of ROI derived from the market
One way to make a service more tangible is to have customers ________.
experience the service through a trial
Graduating from college, getting married, and having a child all transform an individual's buying habits and are referred to as the ________.
family life cycle
The household life cycle is changing due to changes in ________.
family structure
Taking a dashboard approach to marketing metrics goes a long way toward enabling successful marketing planning. However, several potential pitfalls exist in its execution, such as ________.
forgetting to market the dashboard internally
While researching the possible impact of economic conditions on a proposed new product introduction on the Internet, you find an article in Bloomberg Business Week online that reviews how new products have fared during times of rising inflation. Which of the following sources of secondary data does this scenario exemplify?
general knowledge sites
When a company follows a customer-centric philosophy with a high degree of customer orientation, it is likely to ________.
generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm
When a company solicits RFPs from suppliers with an open vendor search, the goal is to ________.
get several proposals to help with negotiations
Companies that promote sustainability practices like Starbucks, which has a stringent recycling program, or General Electric, which makes environmentally sensitive products, are practicing ________ marketing.
green
New-to-the-world products are products that ________.
have not been available before their introduction to the market
An organization's focus on internal service quality implies that employees ________.
hold a customer mind-set
In the purchase process, once the company's needs have been identified and product specifications have been outlined, the next step would involve ________.
identifying and determining potential suppliers
The manager of an automotive after-market specialties firm is interested in collecting secondary data. He is concerned with the future of the industry and his competition. He would like to find industry research reports along with industry and company analysis of his competitors. His best sources of this information would be ________.
independent online databases
Which group of adopters include prime candidates for beta testing and represent a good source of feedback late in the product development process or early in the product launch phase?
innovators
Services are produced and consumed at the same time and cannot be detached from their provider. This characteristic of service is called ________.
inseparability
The four characteristics of services are that they are ________.
inseparable, perishable, intangible, and variable
Treating employees as customers and developing systems and benefits that satisfy their needs is called ________.
internal marketing
The marketing manager for Brand A Razors, a strong national brand, believes he knows how customers will react to a new product offering, but he conducts market research so that he can provide justification for this new product. This cannot be considered quality market research because it ________.
is not impartial and objective
Arthur's Auto Parts Inc. wants to enter the Russian market. Russian law prevents foreign entities from owning a majority position in a company there. The best method of entry for Arthur's is most likely ________.
joint venture
In the CRM process cycle, ________ is the process of analyzing the customer information acquired through various customer touchpoints.
knowledge discovery
Among the five groups of adopters, product avoiders who want to evade adoption as long as possible are known as ________.
laggards
The Food and Drug Administration requires all processed-food companies to provide detailed nutritional information clearly identifying calories, fats, carbohydrates, and other information. This is an example of the ________ requirements of labeling.
legal
Time Express, a well-established North American delivery service, wants to expand service into Central and South America. According to Igor Ansoff's Product-Market Matrix, this is classified as the ________ strategy.
market development
Bliss Massage Therapy Center maintains a database of over 700 clients and sends each one a special discount offer in the month of his or her birthday. Managers hope that as existing customers use the discount, they will see an overall growth in sales. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy.
market penetration
The owner of NOP Detergents is working with an art designer on the label for a new line of naturally- scented detergents. They are trying to come up with the best way to place the brand and logo along with the other required information on the label. They are working on the ________ requirements of labeling.
marketing
DeWanda's business spent a large amount of time determining its brand image and how it would deliver its message to its customers. These are elements of ___________.
marketing (little m)
The sales manager at a company wants to keep informed, so he collects, analyzes, and stores data from the macro environment on a continuous basis. This illustrates the concept of ________.
marketing intelligence
In the ________ phase of the product life cycle (PLC), sales continue to increase but at a decreasing rate.
maturity
Managers gain important information such as the beliefs/values of customers by having them check off rating scales that evaluate a product's performance on a list of attributes by using the ________ model.
multiattribute
RB Soaps, the market leader in body wash, sells its products in every state under the same brand. This is an example of ________ branding.
national
A company's brand role includes ________.
offering an effective and efficient methodology for categorizing products
Dan is creating a survey for his company. The question he is currently working on asks his business-to-business customers to describe the ideal purchasing transaction. Dan is utilizing a(n) ________ question.
open-ended
Fluctuating demand is related to ________ of services.
perishability
In the United States, most business conversations occur between three and five feet, which is a greater distance than in Latin American cultures. This is an example of differences in ________.
personal space
In the context of product classifications, tangibility refers to the ________.
physical aspects of a product
Victor Inc., a producer of headphones used with cell phones and MP3 players, uses contract manufacturing overseas. The firm is concerned that tariffs may be increased. Under which component of situation analysis will an examination of this issue be found?
political, legal, and ethical factors
The marketing manager for Dream Weaver Textiles reads in a trade magazine that the Federal Trade Commission is in the process of revising content labeling requirements for textiles that claim to be natural. In the context of external forces affecting marketing decisions, this represents the ________.
political/legal environment
Mia thinks about how she would like to feel or live today. She is thinking about a(n) ________ state.
preferred
Harold buys most of his groceries at Aldi because it has the cheapest groceries even though he has to bring his own bags and bag his own groceries. Aldi demonstrates ________ leadership.
price
Mega-Big Corp. is interested in buying Soft works, a medical software firm. Soft works is highly regarded by medical practices for ease of use, but hasn't sold well. Two software engineers started the company, but they have made risky financial and poor management decisions. Mega Corp. believes that with proper management the software firm will become an industry leader. In the context of the BCG matrix, Soft works is most likely considered a ________.
problem child
An offering today is considered to be the ________ in the marketing mix.
product
When Sunshine Inc., a cosmetics manufacturer, introduced an additional line of perfumes, the response from its existing customers was good. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy.
product development
Heinz revolutionized the industry when it introduced its inverted bottle because consumers had complained for years about how hard it was to get out that last bit of ketchup. The company spent three years designing the convenient container, which is equipped with a vacuum cap that stops dry ketchup from forming around the lid. Which of the following packaging objectives does this exemplify?
promote usage
Green Scene Co., a struggling start-up firm that needs a huge cash injection, has an environmentally friendly pesticide that is approved for use by commercial organic farmers. The pesticide is made from all-natural ingredients and has great potential. A small investment firm has injected cash in Green Scene. In the context of the BCG matrix, Green Scene is most likely considered a ________.
question mark
Social class has declined as a method of segmentation as a result of ________.
readily available credit flattening the classes
If a low-risk marketing program has a return on marketing investment (ROMI) of 4.0, this means that any marketing program must generate at a minimum $4.00 in revenue for every ________ in marketing expenditure.
$1
Millennials represent roughly __________ of the population, and ___________ in annual buying power.
25 percent; $200 billion
The basis of the gap model is the identification and measurement of differences in ________ key areas of the service delivery process.
5
Which of the following competitive forces is NOT addressed directly by Michael Porter?
relative power of other stakeholders
American credit card companies would like to offer their services to people in a country in East Africa. However, they are finding it difficult because of language barriers and infrastructure challenges. These issues are related to which of the following questions about market segmentation?
Can the segment be reached in order to deliver the value of the product, and subsequently can it be effectively and efficiently managed?
Burger Bistro recently experienced a decline in hamburger sales after salmonella was discovered during a health inspection at one of the restaurants. The marketing manager was interested in how other restaurants had dealt with similar situations. Which of the following types of data would be the most appropriate way to find answers related to this marketing problem?
secondary
A marketing manager is considering a new advertising campaign for Guzzle Beverages. She purchases six months of scanner data for Cruncheez Snack Foods, a company that recently ran a similar campaign. She wants to use this information to determine the campaign's effectiveness before implementing it for Guzzle. In this case, the marketing manager is using ________ to collect the needed information for research.
secondary data
Which of the following is LEAST likely to be included under action plans?
separate plans for worst-case performance against the forecast
When shopping with her friend, Kristina chooses the same products that her friend likes and buys. This is an example of ________ affecting the actual choice decision.
social circumstances
Lever Brothers, a worldwide leader in consumer products, follows a brand strategy in its personal care division with nine brands (AXE, Dove, Lifebuoy, Lux, Ponds, Rexona, Sunsilk, Signal, and Vaseline) that operate independently of one another. This is an example of ________ branding.
stand-alone
Once a firm has invested in continuous process improvement and quality control in operations, goods, in general, tend to be much more ________ than services.
standardized
Hot and Cold Corp. makes disposable coffee and soft drink cups for use in fast-food restaurants, hospitals, convenience stores, and the like. The company is working on a sturdy new product that will biodegrade within five years of being put in a landfill. According to the BCG matrix, this promising new product line would most likely be classified as a ________.
star
Super-Mart decides to create its own brand of personal care products. It enters into an agreement with a large manufacturer of this type of product to supply Super-Mart with the products that will carry its newly formed brand's name. This is an example of ________ branding.
store
