MKT 300 Test 4
41. A marketing research project often begins with a review of the relevant __________ data. A. primary B. secondary C. quantitative D. unfocused
B. secondary
42. The complete set of ALL products offered by a firm is called its A. product line. B. product categories. C. product mix. D. product breadth. E. product line depth.
C. product mix.
40. Social media monitoring, in-depth interviews, and focus groups are all __________ research methods. A. quantitative B. data warehousing C. syndicated marketing D. qualitative E. structured
D. qualitative
35. In the marketing research process, data collection happens after research design. A. True B. False
false
77. CPFR refers to _________ inventory management systems. A. collective preferential forecasting and returns B. collection, partnering, franchising, and receiving C. collaborative planning, forecasting, and replenishment D. corporate partnering, facilitation, and replenishment E. centralized planning, factoring, and receiving
A. collective preferential forecasting and returns
31. Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make up an attractive market for their products. This is a __________ segment of the beer market. A. demographic B. psychographic C. behavioral D. benefits E. geographic
A. demographic
85. If you walk into a __________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything divided into what appears to be a collection of specialty shops. A. department store B. off-price retailer C. discount store D. specialty store E. category specialist
A. department store
21. Most "big box" retailers regularly move products from one aisle to another. They also put personal care products in the pharmacy area, many aisles away from the grocery products. They do this because consumers who spend more time walking through the store are likely to make A. impulse purchases. B. limited problem solving decisions. C. extended problem solving decisions. D. ritual consumption purchases. E. affective alternative decisions.
A. impulse purchases.
84. Distribution intensity is commonly divided into three levels: A. intensive, exclusive, and selective. B. primary, secondary and tertiary. C. administered, vertical, and independent. D. global, national, and local. E. corporate, contractual, and independent
A. intensive, exclusive, and selective.
2. Marketers must determine the price of a product carefully, based on potential buyers' beliefs about A. its value. B. the environment. C. the cost to manufacture the product. D. the economic outlook. E. the product's new advertising campaign.
A. its value
39. When consumers are unable to articulate their experiences, __________ becomes particularly useful in understanding consumers' preferences. A. observation B. surveying C. in-depth interviewing D. primary data mining E. a focus group
A. observation
74. With a pull marketing strategy, A. orders for merchandise are generated at the store level based on sales data captured at POS terminals. B. there is a greater likelihood of being overstocked or out of stock than in a push supply system. C. merchandise is allocated to stores on the basis of demand forecasts. D. inventory management is less responsive to customer demand. E. it is more difficult to manage conditions of high uncertainty than in a push supply chain.
A. orders for merchandise are generated at the store level based on sales data captured at POS terminals.
34. For a Successful Value Proposition, the value proposition is represented by A. the intersection between customer needs/wants and competitors' benefits. B. the intersection between the firm's benefits and competitors' benefits. C. the intersection between customer needs/wants and the firm's benefits. D. the intersection between all three of the circles. E. the part of the firm's benefits that doesn't overlap with anything.
A. the intersection between customer needs/wants and competitors' benefits.
83. Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following EXCEPT A. which competitors they should collaborate with. B. what should be made. C. how products should be configured. D. when products should be delivered. E. what products should cost.
A. which competitors they should collaborate with.
47. Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl? A. Because of the annual competition for the most creative Super Bowl ad. B. Because the Super Bowl offers an opportunity to create significant brand awareness. C. Because the Super Bowl is a significant opportunity to be associated with global marketing. D. Because Super Bowl ads generate brand loyalty. E. There is no good reason to spend over $2 million for a Super Bowl ad.
B. Because the Super Bowl offers an opportunity to create significant brand awareness.
54. Which of the following is NOT one of the four product life cycle stages? A. Introduction B. Leveling C. Maturity D. Growth E. Decline
B. Leveling
37. The first question a market researcher should ask when considering a research study is A. Who will pay for it? B. Will the research be useful? C. When is the due date? D. What sample size will be needed?
B. Will the research be useful?
12. Which of the following is the definition of social media? A. content distributed through social interaction B. a collection of websites that support the posting of videos and photos C. a group of websites that allow users to establish formal connections D. the practice of users forwarding video and photo links to each other E. web services that allow users to share their physical locations
B. a collection of websites that support the posting of videos and photos
44. Marketers with successful brands sometimes hesitate to expand their brands because A. Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name. B. it is costly to maintain many product lines, and might weaken the firm's reputation. C. it is often difficult to get additional marketing communications coverage for the brand. D. manufacturing divisions usually control brand expansion and are often in conflict with the marketing division. E. the current economy can only support a limited number of product options.
B. it is costly to maintain many product lines, and might weaken the firm's reputation.
72. The fact that millions of consumers are using online search engines for comparison shopping has A. reduced demand. B. made consumers more price sensitive. C. reduced the income effect. D. reduced price elasticity of demand. E. increased the income effect.
B. made consumers more price sensitive.
45. The decision to delete a product is never taken lightly because, generally, manufacturers have A. offered the product line to other firms for purchase. B. made substantial investments (sunk costs) in brand development and manufacturing. C. promised consumers they will maintain the product. D. used brand repositioning to improve results. E. federal standards that must be met when taking products off the market.
B. made substantial investments (sunk costs) in brand development and manufacturing.
19. 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. cognitive bias. B. postpurchase cognitive dissonance. C. psychological risk. D. need recognition. E. physiological risk.
B. postpurchase cognitive dissonance.
4. Many entrepreneurs are successful through marketing efforts designed to A. mimic existing products on the market. B. satisfy unfilled needs. C. raise social consciousness. D. gain monopoly power. E. push a new technology even if people aren't ready for it.
B. satisfy unfilled needs.
66. One of the problems associated with an everyday low pricing (EDLP) strategy is that A. stores may have to offer too many noncumulative wholesale discounts. B. some consumers may associate EDLP with lower quality goods. C. the retailer may be accused of price discrimination. D. too many coupons may be redeemed. E. it may conflict with price-based cost calculations.
B. some consumers may associate EDLP with lower quality goods.
63. Because market and operating conditions are different in each target market A. all consumers will react similarly to the firm's pricing strategy. B. the choice of a pricing strategy is specific to the target market. C. prices need to be held constant because everything else is changing. D. only horizontal price fixing should be used. E. external reference prices will always be the best strategy.
B. the choice of a pricing strategy is specific to the target market.
65. A reference price is A. the actual price. B. the price against which buyers compare the actual selling price. C. the manufacturer's cost. D. a cumulative quantity discount price. E. the external horizontal fixed price.
B. the price against which buyers compare the actual selling price.
76. In marketing's four Ps, Place refers to all activities required to get A. the design of the terminal location for products accomplished. B. the right products to the right customer when that customer wants it. C. access to the physical space within a retail establishment. D. consumers to the destination. E. demand chain management functionally operable.
B. the right products to the right customer when that customer wants it.
75. Which of the following is NOT one of the activities carried on in a distribution center? A. Coordinating inbound transportation B. Receiving, checking, storing, and cross-docking C. Distributing paychecks and paystubs for retail employees D. Getting merchandise floor ready E. Coordinating outbound transportation
C. Distributing paychecks and paystubs for retail employees
86. Integrated marketing communications represents the _________________ P in the four Ps of a firm's marketing mix. A. Pricing B. Product C. Promotion D. Place E. Partnering
C. Promotion
88. Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and A. supply chain effectiveness. B. enhanced decoding processes. C. a consumer's purchase. D. the level of noise in the IMC
C. a consumer's purchase.
30. The first step in the STP process is to A. identify the segmentation methods to be used. B. produce a list of strengths and weaknesses of the firm's past marketing strategies. C. clearly articulate the firm's vision or marketing strategy objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified.
C. clearly articulate the firm's vision or marketing strategy objectives.
64. Firms using a(n) ____________ pricing method set their prices relative to what other firms are charging. A. improvement value B. value-based C. competitor-based D. reference-based E. cost-based
C. competitor-based
38. Quantitative research A. is always conducted using primary data collection. B. revises the research objective based on data mining. C. confirms insights and provides a basis for taking a course of action. D. offers conclusions that are always correct. E. includes focus group interviews.
C. confirms insights and provides a basis for taking a course of action.
60. The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service. A. voice-of-customer programs B. empowerment C. the zone of tolerance D. standards analysis E. quality gap analysis
C. the zone of tolerance
55. During the ________________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market. A. introduction B. leveling C. maturity D. growth E. decline
decline
18. Firms should not attempt to educate customers about products and services using social media, since customers are busy interacting with friends and will reject attempts to educate them. A. True B. False
false
24. Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products. A. True B. False
false
50. The diffusion of innovation curve follows the following sequence: innovators, early majority, early adopters, late majority and laggards. A. True B. False
false
14. LinkedIn is an example of what type of social media site? A. microblogging B. media sharing C. thought sharing D. social networking E. social bookmarking
social networking
17. Situational factors sometimes override psychological and social factors in the consumer decision process. A. True B. False
true
27. Firms are typically more successful when they focus on opportunities that build on their competitors' strengths. A. True B. False
true
28. The focus of all social media efforts targeted at customer interaction is building connections. A. True B.False
true
29. Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products. A. True B. False
true
48. A product is anything that is of value to a consumer and can be offered through a voluntary exchange. A. True B. False
true
49. A product will likely remain in the maturity stage of the product life cycle until a superior product comes along to replace it. A. True B. False
true
53. New product development adds value to a firm's products and services through innovation. A. True B. False
true
56. One use of marketing research is to provide an effective means to understand consumers' service expectations and their perceptions of service quality. A. True B. False
true
57. The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles. A. True B. False
true
62. The methods used to develop pricing strategies are cost-based pricing, competitor-based pricing, and value-based pricing. A. True B. False
true
67. The key to successful pricing is to match the product with the consumer's perception of value. A. True B. False
true
79. Many retailers and some manufacturers are exploring the use of a multichannel strategy in which they sell in more than one channel, for example, the Internet and stores. A. True B. False
true
92. Almost everyone is engaged in some form of selling. A. True B. False
true
96. Price is the only part of the marketing mix that does not generate costs. True False
true
81. __________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise. A. Vertical integration B. Cross-channel leverage C. Horizontal integration D. Multichannel retailing E. Opportunistic retailing
D. Multichannel retailing
68. Price elasticity of demand is the A. percentage change in quantity demanded divided by the percentage change in price. B. percentage change in price divided by percentage change in quantity demanded. C. change in price divided by change in quantity demanded. D. change in quantity demanded divided by the change in price. E. change in quantity demanded multiplied by the change in price.
D. change in quantity demanded divided by the change in price.
52. The ________________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. A. innovator B. laggard C. late majority D. early majority E. middle adopter
D. early majority
1. Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is A. expanding from offering just services to also offering goods. B. implementing a market segmentation strategy. C. capturing value through multiple pricing strategies. D. expanding from offering just goods to also offering services. E. increasing customer value through inflated appraisal evaluations.
D. expanding from offering just goods to also offering services.
22. Upscale men's and women's clothing stores like Nordstrom's, Neiman-Marcus, or Saks Fifth Avenue primarily appeal to consumers' __________ needs. A. functional B. postpurchase C. safety D. psychological E. situational
D. psychological
100. Personal selling can take place in all of the following situations EXCEPT A. face-to-face. B. over the Internet. C. by telephone. D. through the newspaper. E. video teleconferencing.
D. through the newspaper.
78. Radio frequency identification tags are A. selective distribution designs used to maximize geographic efficiency. B. electronic discount information tags used to provide reduced prices to select customers. C. CPFR demand scheduling data tags. D. tiny computer chips that transmit information about a container's contents. E. information tags used for floor-ready merchandising.
D. tiny computer chips that transmit information about a container's contents.
10. In order to effectively communicate value to target markets, marketers must first: A. consider the cost of alternative media. B. use the Internet. C. redesign ads to meet media specifications. D. understand their customers. E. hire the right ad agency.
D. understand their customers.
97. A distribution center is typically operated by A. the marketing department. B. vertically integrated consumer networks. C. retailers, manufacturers, or distribution specialists. D. corporate-government joint ventures. E. electronic data interchange services.
C. retailers, manufacturers, or distribution specialists.
16. Which of the following is the most effective technique used by retailers to combat lost sales from price check apps used by customers shopping in brick and mortar stores? A. offering mobile applications to check other websites B. developing in-store demonstration kiosks for big ticket items C. roaming salespeople with smartphones who can immediately price match competitors D. advertising on Flickr and YouTube E. using FourSquare to build customer patronage
C. roaming salespeople with smartphones who can immediately price match competitors
15. From a marketing perspective, what role is played by professional bloggers? A. engaging customers on behalf of companies B. introducing new products to the marketplace C. sharing videos and photos of products D. recruiting employees E. reviewing and giving product recommendations
C. sharing videos and photos of products
13. When measuring social media effectiveness, one important measure is the number of people in an individual's social networks. This is referred to as A. influence. B. the extended network. C. social reach. D. target audience. E. information flow.
C. social reach.
32. Differences in weather and climate create opportunities for A. concentrated targeting. B. geographic segmentation. C. benefit segmentation. D. psychographic segmentation. E. demographic segmentation.
B. geographic segmentation.
59. Because services are __________, it is often difficult for marketers to convey the benefits to consumers. A. variable B. inseparable C. intangible D. perishable E. substantial
C. intangible
98. In the past, __________ dominated supply chains. A. retailers B. manufacturers C. government agencies D. wholesalers E. distributors
D. wholesalers
87. _______________ refers to the process by which the receiver interprets the sender's message. A. Decoding B. Stealth marketing C. Precoding D. Encoding E. Tracking
A. Decoding
70. ____________ are costs that remain constant as the volume of production increases or decreases. A. Fixed costs B. Variable costs C. Beneficial costs D. Contribution per unit costs E. Break-even point costs
A. Fixed costs
5. Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps. A. Marketing mix B. Marketing channel C. Marketing plan D. Marketing era E. Marketing implementation
A. Marketing mix
89. In the AIDA model, A. advertising leads to interest, which hopefully leads to desire and then, action. B. awareness leads to integration, which hopefully leads to desire and then, action. C. awareness leads to interest, which hopefully leads to desire and then, action. D. awareness leads to interest, which hopefully leads to desire and then, attention. E. awareness leads to interest, which hopefully leads to determination and then, action.
A. advertising leads to interest, which hopefully leads to desire and then, action.
51. In many cases, pioneers lose their market lead and initial market share to imitators who A. capitalize on the pioneers' weaknesses. B. create similar products with reduced value to consumers. C. utilize alpha-beta testing. D. ignore patents and copyrights. E. target late maturity consumers.
A. capitalize on the pioneers' weaknesses.
23. Globalization refers to the process by which goods, services, capital, people, and ideas A. are onshored and offshored. B. flow across national borders. C. are integrated through IMF facilitation. D. form joint ventures. E. affect corporate culture.
B. flow across national borders.
43. A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products. A. product line B. product mix C. product mix breadth D. line extension E. brand extension
A. product line
90. If marketing communications are effective, they will A. result in purchases by some consumers receiving the communications. B. offset any negative publicity the firm may have received. C. minimize the number of communication channels used by the firm. D. generate interest in the product in over half the consumers who receive the communications. E. include all steps of the AIDA model with equal weighting to each step.
A. result in purchases by some consumers receiving the communications.
93. One of the advantages of personal selling over other types of marketing communications is that A. salespeople can customize their message for a specific buyer. B. personal selling almost always costs less than other marketing communication alternatives. C. personal selling has greater reach than advertising. D. cold calling is easier than direct mail advertising. E. personal selling requires less training than other types of selling.
A. salespeople can customize their message for a specific buyer.
9. In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called: A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.
B. cash cows.
94. ______________ is a method of prospecting in which salespeople telephone or visit potential customers without appointments. A. Qualified lead calling B. Integrated sales support C. Relationship selling D. Cold calling E. Role reversal selling
D. Cold calling
71. Break-even analysis is useful because it allows managers to A. quantify the relationship between price elasticity and product elasticity. B. reposition products based on their break-even positioning revenue. C. estimate the quantity they will need to sell at a given price to break even. D. determine the relationship between price and quantity demanded. E. analyze the different elements contributing to their variable costs.
C. estimate the quantity they will need to sell at a given price to break even
8. If a firm wants to develop a sustainable competitive advantage, it should: A. begin an aggressive campaign to buy up competitors. B. copy the innovative features of other firms that are attractive to customers. C. examine its operations and customer relations to identify significant things competitors cannot easily copy. D. increase its marketing budget so that it outspends its competitors. E. arrange to meet with competitors to discuss how to avoid direct competition.
C. examine its operations and customer relations to identify significant things competitors cannot easily copy.
46. One important purpose of a brand is to A. sell advertising space. B. minimize product line depth needed to be effective. C. increase consumer recognition and awareness of product offerings. D. protect product packaging. E. meet government regulations.
C. increase consumer recognition and awareness of product offerings
3. One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in A. higher prices than the market leader charges. B. increased competition. C. long-term relationships. D. strong connections among competing firms in the marketplace. E. lower prices.
C. long-term relationships.
11. Keyword analysis refers to the study of people's queries on search engines. A. True B. False
True
33. When selecting a target market, firms should attempt to A. decide between demographic and geographic segmentation methods. B. seek out opportunities to customize products. C. develop a strong communication plan. D. match the firm's competencies with a market segment's attractiveness. E. reposition the brand.
D. match the firm's competencies with a market segment's attractiveness.
36. From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about A. secondary data retrieval systems. B. exploitation by foreign marketers. C. their ability to get credit cards. D. preserving their right to privacy. E. the unstructured nature of market research.
D. preserving their right to privacy.
69. Variable costs, primarily labor and materials, are those costs that vary with A. seasonal demand. B. quality of the product. C. automation. D. production volume. E. all of these.
D. production volume.
99. Which of the following is NOT a communication channel used in the IMC process? A. Radio B. Television C. Newspaper D. Internet E. Supply chain
E. Supply chain
91. As the number of communication media has increased, the task of understanding how best to reach target customers has A. shifted from creating a value proposition to revising a value proposition. B. increased the use of rule-of-thumb targeting. C. become easier. D. focused on reducing the lagged effect of marketing communications. E. become more complex.
E. become more complex.
95. Often, inexperienced salespeople mistakenly believe that during the sales call, they should A. listen carefully to the customer. B. pay attention to body language. C. note the office environment. D. act positively. E. do all the talking.
E. do all the talking.
26. According to purchasing power parity theory, if __________ is/are in equilibrium, products will cost the same in each country. A. imports and exports B. consumer spending C. interest rates D. domestic products E. exchange rates
E. exchange rates
61. When __________ are authorized to make decisions to help their customers, service quality generally improves. A. consultants B. middle managers C. corporate executives D. production control managers E. frontline employees
E. frontline employees
73. Manufacturers use wholesalers and retailers because A. they have no other choice. B. they do not cost much. C. they create value for customers through convenience and cost savings. D. wholesalers control retailers. E. most manufacturers are not familiar with logistics.
E. most manufacturers are not familiar with logistics.
80. Retailing is defined as the set of business activities that A. focuses on a firm's core values. B. focuses on transactions, but not relationships. C. adds value to products and services sold to final consumers. D. separates wholesaling from manufacturing. E. only occurs in brick-and-mortar space.
E. only occurs in brick-and-mortar space.
20. Maslow's Hierarchy of Needs includes physiological needs at the lowest level and self-actualization at the top. The three levels in between are A. material goods, safety, and love. B. community, family, and self. C. safety, stability, and striving. D. health, wealth, and happiness. E. safety, love, and esteem
E. safety, love, and esteem
82. The key factor distinguishing retailers from other members of the supply chain is that A. they sell to consumers, businesses, and government. B. they sell to everyone. C. they use advertising to generate demand. D. they rarely engage in personal selling. E. they sell to customers for their personal use.
E. they sell to customers for their personal use.
58. Many product dominant firms use quality service A. as a way to minimize the cost of production. B. to support a standards gap. C. as a way to increase the perishability of their products. D. to install a voice of the customer program. E. to maintain a sustainable competitive advantage.
E. to maintain a sustainable competitive advantage.
25. The BRIC countries are Bolivia, Russia, Italy and China. A. True B. False
False
6. STP refers to segmentation, testing, and promotion. A. True B. False
False
7. The components of a SWOT analysis are Strengths, Weaknesses, Opportunities and Tactics. A. True B. False
False