UNT MKTG3650 Exam 1 Practice Test

All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community and contribute goods and services to the economy. A. Be profitable B. Offer the lowest price C. Provide the largest selection possible D. Obey their customers E. Pay employees more than minimum wage

A. Be profitable

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. In calculating the sales forecast for the next year, marketers at Lil Angels use data from the past five years in order to identify any trends that surface. Additionally, marketers want to find out what family variables relate to those sales. Which of the following variables should the marketers use in relating to sales? What type of forecast method will they be using to relate the variables to sales trends? A. Demographic; regression analysis B. Family life cycle; market tests C. Behavioristic; time series analysis D. Psychographic; time series analysis E. Income ; regression analysis

A. Demographic; regression analysis

Panera is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Panera is doing so is to A. Increase customer value B. Decrease customer benefit C. Increase distribution expenses D. Increase customer costs E. Decrease promotion expenses

A. Increase customer value

Which of the following is not a characteristic that should be possessed by a marketing objective? A. It should be open-ended in terms of time B. It should specify a time frame for its accomplishment C. It should be consistent with both business-unit and corporate strategies D. It should be measurable E. It should be expressed in clear, simple terms

A. It should be open-ended in terms of time

Verizon implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations? A. Market B. Development C. Social D. Production E. Sales

A. Market

The FTC can issue a cease-and-desist order, which is an injunction to _____. A. Stop doing whatever caused the complaint B. Appear before the courts C. Pay for damages caused by negligence of the firm. E. close down the firm until further notice. D. Report to the FTC immediately

A. Stop doing whatever caused the complaint

By the turn of the twentieth century , the population of the United States had shifted to three large racial and ethnic groups. These groups are ______. A. African - Americans, Native American Indians, and Caucasians B. African - Americans, Hispanics, and Caucasians C. Asian, African- Americans , and Caucasians D. Hispanics, Native- American Indians, and Caucasians E. Asians, African - Americans, and Hispanics

B. African - Americans, Hispanics, and Caucasians

Bloomingdale's wants to learn about its consumer's attitudes toward online purchases. There are numerous studies that are available about consumers and online bullying, but Bloomingdale's believes its customers might be different from the usual online consumer profile, so they decide to conduct their own study. If Bloomingdale's were to use the available data about consumer attitudes, it would be using ___ data; however, If Bloomingdale's does its own study it would collect ____ data A. Primary; Secondary B. Secondary; primary C. Descriptive; primary D. Experimental; descriptive E. Secondary; descriptive

B. Secondary; primary

The fact that Southwest Airlines has a history of being able to retain its employees is a(n) ___ in its SWOT analysis. This low turnover creates more knowledgeable and satisfied employees, a potential___. A. Weakness; opportunity B. Strength; competitive advantage C. Opportunity; competitive advantage D. Threat ; market opportunity E. Strength; market opportunity

B. Strength; competitive advantage

As input for a presentation that you were jointly, authoring, one of your marketing analyst submitted the following summary of the characteristics of the four different types of market structures companies compete in: With respect to the classifications, a number of competitors and barriers to entry, which one of the following statements is correct? A. The monopoly structure is properly classified. B. The monopoly and oligopoly structures classifications should be reversed. C. The pure competition, and oligopoly structures are properly classified D. The oligopoly structure is properly classified. E. The monopolistic competition structure is properly classified

B. The monopoly and oligopoly structures classifications should be reversed.

Decreasing sales, increasing expenses, or decreasing profits ____. A. Should be carefully considered before collecting data B. Are to be expected during the marketing research process C. Are examples of symptoms that point to larger problems D. Are important considerations in designing the research project E. Usually have no effect on the marketing research process.

C. Are examples of symptoms that point to larger problems

Research designed to verify insights through an objective procedure to help marketers make decisions is called ______ research. A. Primary B. Exploratory C. Conclusive D. Hypothetical E. Secondary

C. Conclusive

Your company is in the final stages of deciding whether to launch a new product that you have been testing for the last six months. While the CEO of your company is very optimistic about the potential for the product, he is a skeptic by nature. He has asked you to conduct one last round of market research that will give him greater confidence in the product's prospects.​ Which of the following types of marketing research should you conduct to satisfy the CEO's concerns? A. Descriptive research B. Secondary research C. Conclusive research D. Exploratory research E. Focus group research

C. Conclusive research

Which of the following issues is an ethical issue in marketing research? A. Staffing the marketing research team appropriately B. Rising cost of marketing research C. Confidentiality issues in marketing research D. Clogging consumers email and mailboxes with promotional materials E. Using " big data" to sell products to consumers

C. Confidentiality issues in marketing research

Systems such as Acorn and PRIZM provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid_____. A. Demographic segmentation B. Geographic segmentation C. Geodemographic segmentation D. Behavioristic segmentation E. Market density analysis

C. Geodemographic segmentation

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of new products? A. Regression methods B. Time series analysis C. Market tests D. Customer surveys E. Executive judgment

C. Market tests

Strategic planning requires _______ to facilitate the process of assessing opportunities or threats from competitors. A. Internet surveys B. Consumer data C. Marketing research D. International marketing E. Marketing analytics

C. Marketing research

An organization's business goals should be derived from its _____. A. Strategic business plan B. Marketing plan C. Mission statement D. Marketing strategy E. Strategic plan

C. Mission statement

Hayden, a buyer for a medium-sized company, is assessing the value of competing software products to use in his firm. Which of the following would NOT be a customer benefit considered in his determination of this product's value? A. Ease of installation B. Availability of technical support C. Monetary price D. Availability of trainning assistance E. Speed of delivery

C. Monetary price

A recent meeting of the council of supply chain management professionals featured an executive from Dell, which is known for its ability to customize computers to customers' needs, as well as their ability to provide quality products and economical prices through the retail channel. The executive discussed the firms capabilities regarding the ability to produce products that are built to order and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer, even though it was built to their specifications. As a result of the customer trend, dell began forging relationships with retailers, such as Walmart to provide a limited number of computer models in the retailer store. In order to fulfill the orders to Walmart, Dub was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different models of transportation. For example, Dub was able to shift from a focus on air transportation to over the road trucking, which enabled it to cut costs in some areas. As Dell shifted from a built order manufacturing to a make to stock manufacture, it also had to make investments in customer analytics to identify customer needs, as well as collect insight regarding pricing. This customer insight was especially important to the retail partners, like Walmart, which requires its vendors to justify product stock decisions, and provide proof that retail inventory will set at the projected price points. Dels ability to modify its business model by forging relationships with retailers such as Walmart, as well as customer insights has helped the company achieve its revenue and profitability goals. Which environmental factor is exemplified by customer trend that consumers were no longer willing to wait 7 to 10 days for a bill to order computer and lead Dell to modify its business model to become a make the stock manufacture? A. Legal and regulatory B. Technological C. Sociocultural D. Economic E. Competitive

C. Sociocultural

Business decisions made in creating a marketing mix _____. A. Must always be consistent with the firms opportunities B. Are made before a target market is identified C. Are unchangeable once they are agreed upon by management D. Are only as good as the organization understanding of the need of the target market E. Usually take place when a strategic window is open

D. Are only as good as the organization understanding of the need of the target market

More than half of the research of technology created is paid for by______. A. Large universities B. Corporations C. State and local governments D. The federal government E. Private investors

D. The federal government

When a business has relatively small number of customers, a preferred method of forecasting is _______. A. A market test B. Trend analysis C. The Delphi technique D. Regression analysis E. A customer forecasting survey

E. A customer forecasting survey

Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. What targeting approach is Volkswagen using? A. Multi Segment B. Concentrated C. Strategic D. Undifferentiated E. Differentiated

E. Differentiated

Harley- Davidson Harley Owner Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) ____ over other motorcycle manufacturers. A. Sustainable competitive advantage B. Effective competitive advantage C. Uncontrollable competitive advantage D. Controllable advantage E. Sustainable marketing advantage

TBD Answer is supposed to be Sustainable competitive advantage, but is keyed wrong

Miranda has a great idea for a new shoe store. When she first conceived of the idea, she believed her target market would be the entire shoe market. However, as she learned more about marketing, she realized that different types of consumers were looking for different types of footwear. She also learned that some segments of the population would be much more profitable than others. Miranda has used a number of variables to divide the market into different groups, including those that use shoes as a status symbol, those that use shoes for sports, and those who wear shoes simply because they are comfortable. At what stage of the target market selection process is Miranda currently? A. Step 3 :Develop market segment profiles B. Step 2: Determine which segmentation variables to use C. Step 4: Evaluate relevant market segments D. Step 5: Select specific target markets E. Step 1: Identify the appropriate targeting strategy

A. Step 3 :Develop market segment profiles

A firms is trying to determine whether it would be advantageous to adopt a new computer system with advanced software. It is investigating how this computer system will improve its own operational efficiency. It is also examining trends in the industry to determine the impact that adopting this computer system might have on customers and society at large. The firm is engaging in ______. A. Technology assessment B. Monopolistic Competition C. Environmental analysis D. Economic forecasting E. Self-regulation

A. Technology assessment

Your quarterly strategic planning meeting will be held next month. You will schedule all the brainstorming and discussion activities for the meeting in a sequence and structure consistent with the hierarchy of the traditional strategic planning process. Which of the following sequence of activities should you schedule in order to be most consistent with the hierarchy of the traditional strategic planning process? A. 1. Complete and economic environment, analysis; 2. Develop the company's mission and goals; 3. Develop business unit strategies; 4. Complete a SWOT analysis for each business unit; 5. Develop functional area goals and objectives. B. 1. Develop the company's mission and goals; 2. Develop business unit strategies; 3. Complete a SWOT analysis for the company; 4. Develop functional area goals and objectives C. 1. Develop functional area goals and objectives; 2. Complete a SWOT analysis for the company; 3. Develop business unit strategies; 4. Develop the company's mission and goals. D. 1. Develop the company's mission and goals; 2. Develop business unit strategies; 3. Complete an economic environment analysis; 4. Develop functional area goals and objectives.

B. 1. Develop the company's mission and goals; 2. Develop business unit strategies; 3. Complete a SWOT analysis for the company; 4. Develop functional area goals and objectives

High-volume data collected from social networks, RFID, retailer scanning, purchases,logistics, and production that marketers can use to discover unique insights and make more knowledgeable marketing decisions is best characterized as ______. A. Sampling data B. Big data C. Marketing analytics D. Single-source data E. Secondary data

B. Big data

The director of marketing for 3M tapes tells the rest of the management team. "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications? A. Question Mark B. Cash cow C. Dog D. Problem child E. Star

B. Cash cow

To fully appreciate what an effective marketing concept means to the firm, the marketer must first understand that __________ is the major focus of the marketing concept. This in turn should enable the firm to ________. Ultimately , this all leads to ______. A. Regulatory compliance; earn long-term profits; reduced regulatory costs B. Customer satisfaction; earn long-term profits; increased shareholder value C. Employee satisfaction; earn long-term profits; positive labor relations D. Selling products; earn long-term profits; organizational stability E. Securing management; earn long-term profits; management continuity

B. Customer satisfaction; earn long-term profits; increased shareholder value

The main focus of a marketing information system is on ______. A. The coordination of external information sources B. Data storage and retrieval C. lassifying data into the proper information categories D. Gathering information on competitive activity E. The accurate maintenance of inventory levels

B. Data storage and retrieval

Consumer confidence is at a low during period of ____. A. Recession B. Depression C. Recovery D. Prosperity

B. Depression

In 2009 the Coca-Cola Company recently introduced the "Freestyler," a new free-standing soda dispenser where consumers can choose from over 120 different types of soda and customize their drink. Freestylers would take the place of typical dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser, Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soda machines. Coca-Cola's collection of this information is an example of _________ while the analysis of its impact on the potential for the new "Freestyler" is an example of _______________. A. Strategizing; environmental scanning B. Environmental scanning; environmental analysis C. Strategic management; environmental scanning D. Environmental analysis; environmental strategy E. An environmental force; environmental scanning

B. Environmental scanning; environmental analysis

The first step in the strategic performance evaluation is to ______. A. Reduce the difference between actual and desired standards B. Establish performance standards C. Take corrective action D. Evaluate actual performance E. Compare actual performance and standards

B. Establish performance standards

Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-house in 2007. The i-house is one of the first of its kind, designed as an updated, modern version of the modular, home, offered as a base home plus add-ons known as pods. The base home is a one bedroom, one bath, 734 square-foot version at a price of around $80,000. There is also a 1000 square-foot version for around $100,000. All versions may add on the additional one room pods, which are shipped to your location and constructed on site. The homes offer galvanized, metal roofing, corrugated steel siding, VOC-free paint, and a "butterfly" roof that collects rainwater. The i-house uses 30% less energy than a similar square-foot home and offers green characteristics of solar panels, tankless, water, heaters, and low flow faucets. In addition, it comes with bamboo flooring, a renewable resource. The modular, pre-fabricated design offers endless options for creating the customers, home, and its engineered building system cuts down on construction waste. Due to the green affects of the i-house, the state governments have given it a tax abatement for any sales taxes. The i-house's reduction of energy use, renewable resources as materials, "pod" customization, reduction of construction waste, and tax abatement status is/are examples of reaction to which environmental forces? A. Political and sociocultural B. Political economic; sociocultural, and technological C. Political and economic D. Political, sociocultural, economic E. Sociocultural and economic

B. Political economic; sociocultural, and technological

What is the final step in establishing an implementation timetable? A. Identifying the activities to be performed B. Organizing activities in their proper order C. Separating activities to be performed in sequence from those performed simultaneously D. Assigning responsibility for completing each activity E. Determining time required for completion.

D. Assigning responsibility for completing each activity

The public is becoming more aware of how marketers' activities affect the welfare of customers and society. As a result, more firms are working to? A. Reduce the quality of their products in order to save money and provide less expensive products to their customers. B. Raise prices in order to increase their profits so that they can contribute to philanthropic causes. C. Reduce their profits by donating more time and money to improve social welfare and environmental conditions D. Create a responsible approach to developing long-term relationships with customers and society

D. Create a responsible approach to developing long-term relationships with customers and society

Johnson Floors sells all types of floor coverings to contractors and other business. It keeps a collection of information about all of its clients that can be easily accessed on the company's computer system. This collection of information is called a_______. A. Marketing decision support system B. Marketing information system C. Single - source data D. Database E. Management information system

D. Database

Old El Paso salsa believes that sales are increasing because consumers see salsa as a healthier alternative to more traditional dips and sauces. The company develops a research study to test his hypothesis. It designed an online survey and sent it to its customers to find out the reasons for purchasing salsa. Old El Paso in engaging in ___ research. A. Experimental B. Hypothesis C. Conclusive D. Exploratory E. Descriptive

D. Exploratory

Lucy always wanted to live in downtown San Francisco. For 10 years she has worked as a manager at an investment banking firm, where she is well-paid. However; the most affordable condo is still more than $1 million more than she wants to pay. Although Lucy has the money to purchase a condo, she cannot justify herself paying so much money for one person-even for a condo in the middle of downtown San Francisco. Lucy _____ part of the market condos in downtown San Francisco because she ________ to buy. A. Is not; lacks the authority B. Is; has the authority C. Is not; lack the desire D. Is not; lacks the willingness E. Is; has the ability

D. Is not; lacks the willingness

The successful marketer understands that the key to her success is the relationships her firm is able to develop with current customers and potential customers. Moreover, her goal is to achieve the full potential of each of these relationships for the benefit of the firm. This marketer clearly understand_____. A. That customers needs, desires and habits are homogeneous B. That the only way for the firm to increase profits is to constantly acquire new customers. C. The data is of limited use in helping the firm understand the needs of customers D. That customer loyalty leads to increasing long-term profitability for the firm E. That customer lifetime value includes only the value of what customers purchase from the firm

D. That customer loyalty leads to increasing long-term profitability for the firm

Which of the following is true about the marketing environment? A. Good marketers are able to anticipate all marketing environment before they rise B. Marketing environment forces usually do not impact one another C. Competitive marketing environment forces are the hardest to understand C. Changing marketing environment forces are always advantageous for marketers D. The effects of marketing environment forces can be difficult to predict

D. The effects of marketing environment forces can be difficult to predict

You will give the keynote address at the annual meeting of the American Manufacturing Association. You realize most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what marketing is in order to set the proper context for your speech. You define marketing as: A. The process of persuading or seeking to persuade a customer or organization to take a preferred course of action B. The process of speaking or writing in support or defense of a firm's products or services C. The process of proving that a product or service offered by an organization meets or exceeds customers expectations D. The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.

D. The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.

Rolls- Royce targets a very exclusive high-income market. Toyota, on the other hand, targets economy markets (Yaris), the environmentally- conscious market (Prius), and the higher-income market(Lexus). Rolls- Royce has adopted a _____ targeting strategy. Toyota has adopted a ______ targeting strategy. A. Undifferentiated; concentrated B. Concentrated; undifferentiated C. Differentiated; differentiated D. Undifferentiated; differentiated E. Concentrated; differentiated

E. Concentrated; differentiated

Higher prices can be used competitively to _______. A. Convey value B. Achieve higher market share C. Achieve greater profits D. Start a price war E. Establish a product's premium image

E. Establish a product's premium image

Alps Ski Co. is looking for new markets for both its brick and mortar retail stores and its catalog division. Alps Ski Co would most likely use a(n)_____ base for market segmentation of its stores and a(n)_____base for market segmentation of its catalog division. A. Environmental ; demographic B. Behavioristic; geographic C. Geographic; demographic D. Demographic ; psychographic E. Geographic; behavioristic

E. Geographic; behavioristic

The Transportation Division of the GE Corporation is located in a small city that has limited economic growth at this time. Due to the condition of the local school system, GE contributed $2 million to repair and revive it, stating that GE believed in education for the community. This action would imply that GE is in which level of the pyramid of social responsibility A. Ethical B. Legal C. Cost D. Economic E. Philanthropic

E. Philanthropic

Which of the following is not one of the major categories of consumer market segmentation variables? A. Behavioristic characteristics B. Geographic variables C. Psychographic dimensions D. Demographic characteristics E. Situational variables

E. Situational variables

Which of the following statements is incorrect? A. Business -unit strategy should be consistent with the corporate strategy B. Of the three levels of planning, corporate strategy is the broadest C. Strategic planning begins at the corporate level and proceeds through business-unit and marketers levels D. Marketing strategy should be consistent with both the business- unit and corporate strategies E. Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.

E. Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.