Principles of Marketing Final

A

Kent works in the public relations department of his company. He sends a news release about a new product offering to several newspapers and television stations. Kent knows from past experience that even when the media use his news releases, they often release the information at inopportune times. They will also sometimes cut out what Kevin believes are the most important points to make the news fit. However, Kent accepts these disadvantages because free publicity offers the advantage of: A. credibility B. target market awareness C. timeliness D. accuracy E. feasibility

True

Procter & Gamble has a wider product mix than does Baskin Robbins.

True

Public relations is a broad set of communication efforts used to create and maintain favorable relationships between the organizations and its stakeholders.

True

Radio copy should consist of short, familiar terms.

True

Retailers purchase products and resell them to final consumers.

False

Salespeople's perception of brand advertising is negatively related to their effort and performance.

False

Secondary data are data collected from inside the organization; primary data are those collected from outside the organization.

True

Selecting a convenient location is important to the distribution of a nonprofit service.

B

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as: A. marketing synthesis. B. relationship marketing. C. a marketing orientation. D. the marketing concept. E. strategic marketing.

A

Zoe is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time? A. location B. production depth C. product mix D. category management E. retail positioning

False

From a cultural perspective, countries that are members of the European Union tend to act as a single entity.

False

The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.

True

The marketing concept is a management philosophy, not a second definition of marketing.

False

Wholesalers do not engage in selling to reseller, government, or institutional users.

True

​Marketing planning and implementation are inextricably linked in successful businesses.

False

​Stars are profitable products that usually generate more cash than is required to maintain share.

B

​When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to _____ the brand from one that appealed to older men to a new, younger target market. A. transfer B. reposition C. adapt D. update E. revitalize

True

An embargo occurs when a government suspends trade with a particular country.

True

An on-site computer interview is a variation of the shopping mall intercept interview.

D

As a result of the escalating use of digital media, some of the marketer's control over dispensing product information has been placed: A. in danger B. under the authority of the government C. in the hands of the company's competitors D. in the hands of the consumer E. in the hands of the stockholders

True

Basic and extended warranties can reduce risk, a major customer cost.

True

Buzz marketing is an attempt to incite publicity and public excitement surrounding a product through a creative event.

False

By law, manufacturers must be identified on the labels of private brands.

A

Companies that sell products with high profit margins are more likely to use _______. Companies selling products whose sales are directly related to product availability will most likely use _______. A. exclusive and intensive B. exclusive and selective C. selective and intensive D. selective and inclusive E. intensive and exclusive

A

Henry's little brother Christopher joined the Boy Scouts recently. Henry notices that in addition to wearing the Boy Scout uniform, Christopher has been better about keeping his everyday clothes neat and clean, has been searching online for camping gear, and has become interested in "green" products. Henry believes that the Boy Scouts are now a reference group for Christopher because he: A. has taken on many of the values, attitudes, or behaviors of group members B. became a formal member of the group C. became familiar with the group's activities D. looked for info from the members of the group regarding buying decisions E. cannot control his involvement with the group

E

If Florida Gas and Electric increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be: A. elastic B. minimal C. minor elasticity D. variable E. inelastic

A

If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product?​ A. avoiding competition positioning B. head-to-head competition positioning C. positioning based on price D. target market positioning E. positioning based on style

False

If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is displaying advocacy advertising.

B

If a retailer orders a quantity of merchandise to be delivered to his store in Albuquerque and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price. A. FOB destination B. FOB factory C. transfer D. postage-stamp E. base-point

True

In general, corporate executives prefer research reports that are short, clear, and simply expressed.

C

In marketing, family packaging means: A. packaging products in a quantity suitable for use for an average-sized family B. putting a set of related products all in the same package C. making all of a company's or product line's packaging look similar D. putting the same brand name on all of the company's products E. designing and selling only products that are related

E

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective. A. product quality B. market share C. survival D. profit E. status quo

True

Marketers may try to change consumers' attitudes toward a product if they feel that a significant number of consumers have strong negative attitudes toward it.

True

Marketers spend more on sales promotion than on advertising, and sales promotion appears to be a faster-growing area than advertising.

C

Marketing research is a process designed to gather information: A. exclusively about a company's customers. B. from the company's database. C. not currently available to decision makers. D. about the needs and desires of employees. E. concerning the interpretation of the company's sales goals.

False

Materials handling is important in efficient warehouse operations but has little to do with customers' ultimate satisfaction with a product.

C

Miles, sales manager for Enterprise Lumber, tells Julian, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs? A. carrying B. replenishment C. stockout D. safety stock E. reorder

False

Nonprice competition does not permit unique product features, higher product quality, and customer service.

B

One of the guaranteed constants in the global business environment is A. nationalism B. instability C. tariffs D. taxes E. war

B

One of the most important benefits of e-marketing is the ability of marketers and: A. vendors to share resources B. customers to share info C. government regulators to share info D. comp to share info E. customers to obtain digital info

E

Premium-priced products are usually marketed through: A. complex marketing channels. B. intensive or selective distribution. C. intensive or selective distribution. D. exclusive distribution only. E. selective or exclusive distribution.

C

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of: A. width of product mix B. product mix consistency C. depth of product mix D. a market mix E. a promotion mix

True

Procurement involves the processes to obtain resources to create value through sourcing, purchasing, and recycling, including materials and information.

True

Product advertising is often used to stimulate demand directly.

B

Shortly after moving into their new home, Elizabeth and Philip Jennings purchase and install smoke detectors and an alarm system. The Jennings are concerned about fulfilling their need for: A. survival. B. safety C. Self-actualization D. esteem E. belonging

D

The consumer buying decision process involves _______ stages. The first stage is ____________, and the last stage is _____________. A. 5, evaluation of alts, postpurchase eval B. 5, information search, purchase C. 6, problem recognition, purchase D. 5, problem recognition, postpurchase eval E. 6, evaluation of alts, ppurchase

D

The first phase of international marketing research recommended by experts should A. gather primary data using methods such as focus groups and telephone surveys to refine a firm's understanding of specific customer needs and preferences. B. gather secondary data using methods such as focus groups and telephone surveys to refine a firm's understanding of specific customer needs and preferences. C. hire a research firm with experience in the country of interest. D. involve a detailed search for and analysis of secondary data. E. involve a careful consideration of the firm's code of conduct.

C

The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also: ​A. increase market share. B. ​increase sales. C. achieve the organization's goals. ​D. produce high-quality products. ​E. coordinate its activities to increase production.

E

The marketing concept: A. Is a definition of marketing to attract customers. B. Focuses on selling and advertising to achieve organizational goals. C. Focuses on production and selling to achieve organizational goals. D. Is a strategy for achieving organizational goals by following management intuition. E. Is a management philosophy that affects all organizational activities.

False

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

E

The two main reasons for criticism of promotional activities are that promotion: A. has some flaws and it is deceptive B. is deceptive and causes prices to rise C. pervades daily lives and creates needs in us D. creates needs and encourages materialism E. has some flaws and it pervades our daily lives

B

The verbal portion of an advertisement, including headlines, body, and signature, is called the: A. artwork B. copy C. storyboard D. layout E. script

A

Third Eye Research, a marketing communications and strategy consulting firm, is assisting a client to understand the effects of promotional offers on consumer purchases. Its consultants propose the company consider offering three different versions of a coupon that would be mailed to purchasers. The value of the coupon would be manipulated, and the company could track the return of the coupon and how much money was spent by the purchaser. Third Eye suggests three different versions of the coupon: $1, $3, and $5. The client would select three groups of consumers to receive the coupon offer and a random process would be utilized to determine which coupon offer a consumer would receive. The research will provide important insights about consumer purchasing habits and which coupon offer would lead to the highest level of sales and coupon redemption. This is an example of ______________ research. A. experimental B. focus-group C. observation D. descriptive E. conclusive

A

To have some of its cereals highlighted in an advertisement mailed out by Kroger grocery stores, Kellogg agreed to pay a portion of Kroger's costs associated with the advertising mailer. Kellogg's payment is designed to: A. facilitate reseller support B. encourage product trial C. retain loyal customers D. identify prospects E. reduce sales fluctuations

C

United Arab Emirates currently limits the number of Michael Kors bags that can be imported during a one-year period, since Michael Kors bags are made in New York, USA. This is an example of a(n) A. exchange control limit B. embargo C. quota D. import tariff E. supply limit

A

When Jennifer buys organic produce for her household using a channel with just one intermediary, that intermediary is classified as a: A. retailer B. Wholesaler C. broker D. functional middleman E. producer

D

When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using ____ pricing. A. markup B. demand-based C. differential D. cost-plus E. expense-based

C

When consumers research products online and then go to an actual store to make their purchase, the practice is known as: A. digital retailing B. showrooming C. webrooming D. dual-line retailing E. digital merchandising

D

Which of the following best defines the interest stage in the product adoption process? A. the buyer tries to find the product in a retail store B. the buyer considers the benefits and determines whether to try the product C. the buyer tries the product to determine its usefulness D. the buyer seeks info and is receptive to learning about the product E. the buyer uses objective sources to learn about the product

D

Which of the following countries has the highest GDP? A. Japan B. china C. the uk D. the us E. Canada

D

Which of the following is most judgmental? A. Stratified sampling B. Random sampling C. Probability sampling D. Quota sampling E. Quota sampling

B

Which of the following statements applies to media planning? A. Characteristics of the product are the most important consideration in selecting the media for a campaign. B. The message content affects the types of media used for an advertising campaign. C. The location of the advertising target is irrelevant in media planning. D. Total media dollars spent on advertising have decreased over the last 30 years. E. Regardless of the message to be conveyed, newspapers are one medium that is appropriate for almost any circumstances.

B

Which of the following states what is to be accomplished through marketing strategies? A. Business-unit objectives B. Marketing objectives C. Corporate objectives D. Financial objectives E. Operational objectives

B

Which one of the following best characterizes a marketing information system (MIS)? A. An MIS is an orderly gathering of information that is not supplied through routine reporting systems such as sales reports and accounting data. B. An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses. C. An MIS is conducted on a special-project basis when needed. D. An MIS requires adjustments to its techniques to adapt to environmental circumstances and is in reality part of the accounting system. E. An MIS involves internal information collection about employees and customers.

B

Within the buying center, ____ are technical personnel who develop product specifications and evaluate alternatives, while _____ actually choose the products. A. users and buyers B. Influencers and deciders C. gatekeepers and deciders D. influencers and buyers E. deciders and buyers

C

You are considering hiring an outside consultant to help you improve your services business. You believe your most pressing issue is how to maintain consistent quality in the delivery of your services. Your customer surveys suggest you need to work on this very important issue. Based on this, you should be looking for a consultant who has experience in dealing with the _______________ issue related to services.​ A. inseparability B. perishability C. heterogeneity D. intangibility E. customer relationship

D

_____________ is a paid, nonpersonal communication about an organization and its products transmitted to a target audience through mass media. A. personal selling B. sales promo C. merchandising D. advertising E. public relations

D

A car dealership is altering how it determines its advertising appropriation. It is moving from an approach where it sets its budget based on projected revenue for the coming year to one in which it identifies the cost required to meet certain goals. It is switching from the _____ approach to the _____ approach.: A. competitive-matching; arbitrary B. percentage-of-sales; competitive-matching C. competitive-matching; objective-and-task D. percentage-of-sales; objective-and-task E. arbitrary; competitive-matching

False

A company wanting to maximize profits from its new product would use product-line pricing.

True

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

True

A feature article is longer than a news release and is written for a particular publication.

False

A news story about a product is an example of sales promotion.

False

A problem of digital marketing evaluations is that there are no methods to capture the metrics that indicate the outcomes of strategies.

False

A quota is the suspension, by a government, of trade in a particular product.

True

Ads for beauty products often suggest that purchasing these products will bring love, helping to fulfill one's social needs.

E

Advertising agencies typically receive: A. large fees from the companies whose ads they develop and place. B. a 15% commission from the company whose product they are helping advertise. C. a 10% commission from the advertising company and 10% from the media they use. D. a 25% commission paid by the media from which it makes purchases. E. a 15% commission paid by the media from which it makes purchases.

True

Although marketers may attempt to influence what a consumer learns, their attempts are seldom fully successful.

True

Amazon.com, eBay, Zappos, and a number of other companies engage in e-tailing through their websites.

A

C.J. Foods, a pet food maker, purchased Lortscher Animal Nutrition, Inc. (LANI), a miller and ingredient supplier, and now operates this division as a separate profit center within the firm. In this example, LANI is a(n) ____ unit of C.J. Foods. A. strategic business B. marketing C. dependent D. independent E. corporate

True

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.

False

Component parts usually need to be processed significantly before they are used in production.

False

Customers always interpret a higher price to mean higher quality.

False

Direct consumers of a nonprofit organization's products are called general publics.

E

Durable goods such as appliances generally reach their target markets through ____; goods such as automobile tires generally reach their target markets through _____. A. intensive and intensive B. exclusive and intensive C. selective and exclusive D. selective and intensive E. selective and selective

True

Marketing costs consume half of the buyers dollar.

False

Specific details regarding terms, credit arrangements, and technical assistance are worked out during the product specification stage of the buying decision process.

True

Statistical interpretation focuses on what is typical or what deviates from the average.

D

Suhail is shopping for a new suit to wear to an important interview. He really wants to impress his prospective employer and is shopping at many stores to find the right outfit. Suhail is using which type of consumer decision-making process? A. Routinized response behavior B. Habitual response C. Limited decision making D. extended decision making E. intensive decision making

False

Survey and observation are considered secondary data collection techniques.

True

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.