Exam I: Multiple Choice Questions

Q. The two dimensions the BCG approach uses to evaluate and manage SBUs are ________. A) market growth rate and relative market share B) relative market share and market penetration C) relative market share and product development D) market growth rate and market development E) market growth rate and market penetration

*A. Market growth rate and relative market share. *

17. OXO markets its potato peeler to restaurant chains. Together, what do the restaurants' chef, prep cooks, general managers, finance officers, and buying managers represent? A. Consumers B. Buying Center C. Sample Sizes D. Ethnographic Researchers

*B. Buying Center* Chapter 5, Buying Unit.

7. Because the US population is aging, more consumers have mild arthritis issues. Using a SWOT analysis framework, what does this represent for OXO? A. Strength B. Weakness C. Opportunity D. Threat

*C. Opportunity* Chapter 2, SWOT Analysis

4. After the success of their toilet brush, OXO decides to make bathroom soap dispensers. Using the Product/Market Expansion Grid, OXO's strategy is: A. Market penetration B. Market development C. Product development D. Diversification

*C. Product Development* Chapter 2

Q. BIC's annual report says that it exists to "offer simple, inventive, and reliable solutions to everyday needs." A customer-focused, purposeful, aspirational declaration like this is also called a/an ____________. A. Long-term objective B. Mission statement C. Marketing plan D. Values statement

*B. Mission statement* See chapter 2.

Q. What is the name of the industry program (and icon) that shows when a digital ad has been targeted using prior web browsing behavior? A. Ad Choices B. Ad Blocker C. Opt-Out D. Retargeting

*A. Ad Choices* Chapter 4

Q. JetBlue's promise to put "You Above All" by "bringing humanity back to travel" is their ________. A) selling concept B) value proposition C) market offering D) production concept E) segmentation strategy

*B. Value proposition*

Q. ________ markets consist of individuals and households that buy goods and services for personal use. A) Consumer B) Business C) Retailer D) Government E) Wholesaler

*A. Consumer*

Q. Companies should invest in retaining all customers who purchase from them. A. True B. False

*B. False*

11) Companies today are moving away from target marketing and toward mass marketing. T) True F) False

*F. False*

Q. Which of the following statements about business buyers are true? A. As a whole, they spend more money than consumer buyers. B. They are more geographically dispersed than consumer buyers. C. They outnumber consumer buyers. D. Their demand is unrelated to consumer demand.

*A. As a whole, they spend more money than consumer buyers.* Chapter 4

16. Many customers have purchased OXO's higher-priced potato peeler once, but have not tried any other OXO products. These buyers represent which type of customer on the customer relationship management matrix? A. Butterflies B. Barnacles C. True Friends D. Strangers

*A. Butterflies* Chapter 1, Customer Relationship Management

Q. I splurged on an expensive vacation in Hawaii 7 years ago but haven't traveled much since. The resort likely now views me as a _______. A. Butterfly B. Stranger C. True Friend D. Barnacle

*A. Butterfly* See customer relationship management.

Q. If Coca-Cola wanted to study the impact of changing the taste of Coke on purchase preference, they could have undergone _____ research. A. Causal B. Usability C. Exploratory D. Descriptive

*A. Causal* See chapter 4.

Q. Customer Satisfaction relates to how well a market offering meets or surpasses ____________. A. customer expectations B. customer needs and wants C. marketing management orientations D. Marketing myopia

*A. Customer expectations* See Chapter 1

9) Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle- aged men, and the other line targets younger, up- and- coming professionals. Harry's most likely segments the consumer market based on ________ variables. A) demographic B) universal C) behavioral D) geographic E) psychographic

*A. Demographic*

6. What type of macroenvironmental force does the aging population represent? A. Demographic B. Economic C. Natural D. Technological E. Political F. Cultural

*A. Demographic* Chapter 3

Q. In terms of the number of customers in the market, there are _____ Business buyers vs. Consumer buyers. A. Fewer B. Greater C. The same

*A. Fewer*

Q. A customer's personal motives can have what type of influence on business buying behavior? A. Individual B. Organizational C. Environmental D. Interpersonal

*A. Individual*

2. Which of the following is true of competitive marketing intelligence? A) It can be obtained from information that is available in the public domain. B) It can predict a firm's future but not the pattern of forces in the market. C) It requires inside information from a competitors' internal database. D) It cannot be collected from internal sources of a firm such as employees and the sales force. E) It can be obtained from online databases only through subscription and a fee.

*A. It can be obtained from information that is available in the public domain.*

Q. Which of the following is true of an undifferentiated (mass) market strategy? A. It is less expensive than a differentiated strategy B. It is more expensive than micromarketing C. It is more relevant than micromarketing D. It is more relevant than a differentiated strategy

*A. It is less expensive than a differentiated strategy.*

Q. In terms of order revenue, business transactions are typically _____ vs. consumer transactions. A. Larger B. Smaller C. The same

*A. Larger*

Q. I tend to upgrade my phone to the newest model only after a majority of people have already adopted it. This makes me a/n ___________. A. Late mainstream adopter B. Early adopter C. Lagging adopter D. Early mainstream adopter

*A. Late mainstream adopter.*

5. OXO notices that the US population is aging. This represents an example of a change in the company's _________. A. Macroenvironment B. Value proposition C. Microenvironment D. Customer Loyalty

*A. Macroenvironment* Chapter 3.

8) ________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior. A) Market segmentation B) Mass marketing C) Market targeting D) Positioning E) Differentiation

*A. Market Segmentation*

Q. A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment. A) mission statement B) market portfolio C) marketing objective D) marketing strategy E) strategic plan

*A. Mission statement.*

9. OXO offers additional design benefits and charges higher prices than its competition. This represents which value proposition? A. More for more B. Same for more C. More for same D. Less for more

*A. More for more* Chapter 6.

Q. Bic believes that saving handwriting will serve short-term customer needs and their long-term welfare. This represents which marketing management orientation? A. Societal Marketing Orientation B. Customer Relationship Orientation C. Sustainable Orientation D. Product Orientation

*A. Societal Marketing Orientation.* See chapter 1, marketing management orientations.

15. When OXO first developed a potato peeler, its adoption rate was influenced by its relative advantage vs. products that already existed in the market. A. True B. False

*A. True* Chapter 5, Factors influencing adoption rate.

Q. According to the five- step model of the marketing process, the first step in marketing is ________. A) understanding the marketplace and customer needs and wants B) engaging customers, building profitable relationships, and creating customer delight C) designing a customer- driven marketing strategy D) constructing an integrated marketing program that delivers superior value E) capturing value from customers to create profits and customer equity

*A. Understanding the marketplace and customer needs and wants.* See Chapter 1.

2. OXO's mission is "to create innovative consumer products that make everyday living easier." Is this a market-oriented mission statement? A. Yes B. No

*A. Yes* Chapter 2

Q. The value of an offering is its perceived ______ minus its perceived ___________. A. benefits; price B. benefits; costs C. usefulness; price D. wants; needs

*B. Benefits; costs* Chapter 1, Slide 44.

Q. Buyer discomfort caused by post- purchase conflict is known as ______________ A. customer satisfaction B. cognitive dissonance C. the customer journey D. the sales funnel

*B. Cognitive dissonance.*

Q. When deciding among possible value propositions, marketers consider their price and unique benefits relative to their ____________. A. suppliers B. competitors C. macroenvironment D. Mission statements

*B. Competitors*

Q. This headline reflects which macro environmental force? "Retailers should focus on aging baby boomers, not millennials, as profit centers." A. Cultural B. Demographic C. Technological D. Economic E. Natural

*B. Demographic*

Q. Dividing the market up based on customers' gender is an example of which segmentation variable? A. Geographic B. Demographic C. Psychographic D. Behavioral

*B. Demographic* Chapter 5

Q. Which type of targeting focuses on going after several market segments, with a separate offering for each? A. Undifferentiated marketing B. Differentiated marketing C. Niche marketing D. Micromarketing

*B. Differentiated Marketing* Chapter 5

5) Which of the following is a social factor that influences consumer buying behavior? A) personality B) family C) life- cycle stage D) occupation E) economic situation

*B. Family*

Q. Aeropostale launches a campaign targeting preteens ages 11-12. What generation does the store hope to reach? A. Millennials B. Generation Z C. Generation Y D. Generation X

*B. Generation Z* See demographic environment, chapter 3.

Q. Using the sales funnel framework, a rational, considered purchase of an expensive item typically follows what process? A. Do, Know, Feel B. Know, Feel, Do C. Feel, Do, Know D. Know, Do, Feel

*B. Know, Feel, Do*

Q. The BCG Growth Matrix should be adapted to help companies survive in unpredictable markets. This involves all of the following steps EXCEPT: A. Accelerating the pace of innovation B. Less experimentation C. Increasing the number of "Question Marks" D. Selecting investments and divestments in a disciplined way

*B. Less experimentation*

Q. In terms of time, the business decision process is typically _____ vs. the consumer decision process. A. Shorter B. Longer C. The Same

*B. Longer*

12. OXO appoints a "Chief Listening Officer" charged with monitoring online customer conversations about kitchen gadgets and company competitors. This is what type of Marketing Information? A. Internal data B. Marketing intelligence C. Marketing research D. Online focus groups

*B. Marketing Intelligence* Chapter 4, Developing Marketing Intelligence

3) ________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A) Commercialization B) Marketing research C) Integrated marketing D) Test marketing E) Exclusive distribution

*B. Marketing Research*

Q. Many companies are using _____ to gain more speed, scale, and efficiency from its ethnographic research efforts. A. in-house research teams B. mobile apps C. customer surveys D. online focus groups

*B. Mobile Apps.* See chapter 4.

10) ________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. A) Mass marketing B) Positioning C) Market targeting D) Differentiation E) Market segmentation

*B. Positioning*

8. Despite having been originally developed for them, consumers with hand dexterity issues want a potato peeler that helps them forget about their limitations. A product's distinctive and desirable place vs. competitors in the minds of target customers is called its _____. A. mission statement B. positioning C. targeting D. segmentation

*B. Positioning* Chapter 6, Differentiation & Positioning.

Q. AT&T's "the best 4G network" represents which marketing management orientation? A. Production concept B. Product concept C. Selling concept D. Marketing concept

*B. Product Concept* See marketing management orientations.

Q. Offering modified or new products to current markets represents which expansion strategy? A. Market penetration B. Product development C. Market development D. Diversification

*B. Product development* See chapter 2, identifying future opportunities.

Q. In the Growth Share Matrix (aka BCG Matrix), SBUs that represent new innovations/ new product launches typically start in which quadrant? A. Star B. Question mark C. Dog D. Cash cow

*B. Question Mark* See chapter 2, review.

Q. The sales funnel is an outdated model because _______. A. shoppers use search engines to research purchases B. shoppers expand and contract their set of choices throughout the process C. consumers shop online D. triggers are more impulsive

*B. Shoppers expand and contract their set of choices throughout the process.*

14. If my mother uses an OXO potato peeler and encourages me to buy one, my consumer behavior is being influence by what? A. Cultural factors B. Social factors C. Personal factors D. Psychological factors

*B. Social Factors* Chapter 5, Factors Influencing Consumer Behavior

Q. Some customers have continued to purchase Bic pens for many years, and prefer more expensive designs and colors. To which customer relationship group do these customers likely belong? A. Strangers B. True Friends C. Barnacles D. Butterflies

*B. True Friends* See chapter 1, customer relationship management.

Q. __________ are internal limitations that may interfere with a company's ability to achieve its objectives. A. Strengths B. Weaknesses C. Opportunities D. Objections E. Threats

*B. Weaknesses* See chapter 2, SWOT Analysis.

4) A practice called ________ allows marketers to use online data to target ads and offers to specific customers. A) data analytics B) online targeting C) behavioral targeting D) online listening E) social media tracking

*C. Behavioral Targeting*

3. OXO's toilet brushes are the top-selling toilet brushes for the past 15 years, and the market is not growing. Using the BCG Growth Matrix for SBU analysis, OXO's toilet brushes are a: A. Star B. Question Mark C. Cash Cow D. Dog

*C. Cash Cow* Chapter 2, BCG Growth-ShareMatrix

Q. When customer expectations exceed their actual experiences, the result is _______________. A. satisfaction B. marketing myopia C. dissatisfaction D. market offerings

*C. Dissatisfaction.* See chapter 1. Customer satisfaction

Q. In 1985, Coca-Cola should have first undergone ______ research to gather preliminary info and create a hypothesis as to why people were drinking less cola. A. Causal B. Usability C. Exploratory D. Descriptive

*C. Exploratory* See chapter 4.

Q. In perceptual positioning maps, what does the size of each circle represent? A. Company size B. Profits C. Market share D. Price

*C. Market Share*

Q. A web usability study is an example of which type of marketing information? A. Marketing Intelligence B. Big Data C. Market Research D. Internal Data

*C. Marketing Research* See chapter 4.

Q. Actors close to the company that affect the organization's ability to serve its customers are part of the company's ______________. A. Competitors B. Market offerings C. Microenvironment D. Macroenvironment

*C. Microenvironment* See chapter 3.

Q. The best, but least sustainable, winning value proposition is _______. A. More for more B. More for the same C. More for less D. The same for less E. Less for much less

*C. More for Less*

Q. Which type of targeting focuses on going after a large share of one (or a few) target segments? A. Undifferentiated marketing B. Differentiated marketing C. Niche marketing D. Micromarketing

*C. Niche Marketing* Chapter 5

Q. For a soft drink company, dividing the market up based on preferred sport is an example of which segmentation variable? A. Geographic B. Demographic C. Psychographic D. Behavioral

*C. Psychographic* Chapter 5

7) According to Maslow's hierarchy of needs, which of the following is most likely an esteem need? A) hunger B) security C) status D) self- development E) love

*C. Status*

Q. Market Segments which are ____ are large enough to build a marketing plan around. A. Measurable B. Accessible C. Substantial D. Actionable

*C. Sustainable* Chapter 5

1. Which of the following demonstrates the real value of a company's marketing research and information system? A) the variety of contact methods it uses B) the tools it uses to gather information C) the quality of customer insights it provides D) the amount of data it generates E) the type of sampling plan it follows

*C. The quality of customer insights it provides.*

Q. Marketing is the process by which companies create _____________ for customers and capture __________ in return. A. products; revenue B. services; costs C. value; value D. problems; complaints

*C. Value; value.* See chapter 1 definition of marketing.

Q. A potential downside to using a mobile app for ethnographic research is that _____. A. it is less accurate than in- person ethnographic research B. this goes against regular customer behavior C. customers may forget to use it. D. it is time consuming

*C. customers may* forget to use it.

Q. Dividing the market up based on product usage level is an example of which segmentation variable? A. Geographic B. Demographic C. Psychographic D. Behavioral

*D. Behavioral* Chapter 5

Q. In the US, Bic's writing products SBU has high market share, but the market is shrinking. Using Business Portfolio Analysis (aka BCG Growth/Share Matrix), how would you classify this SBU? A. Star B. Monkey C. Dog D. Cash Cow

*D. Cash cow* See chapter 2, BCG.

Q. Perceptual positioning maps are used to show a company the consumer perceptions of their brands vs. those of their _______. A. segments B. partners C. business customers D. competitors

*D. Competitors*

Q. Consider the Cultural forces in our macroenvironment. Persistent beliefs and values which are passed on from parents to children, and reinforced by schools, businesses, and religious institutions are called _______ values. A. Demographic B. Environmental C. Secondary D. Core

*D. Core*

Q. According to the BCG Growth Matrix, ________ are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash. A. Stars B. Question marks C. Cash cows D. Dogs

*D. Dogs* See BCG Growth Matrix, Chapter 2

Q. This headline reflects which macro environmental force? "Laid-off American workers are having better luck finding new jobs." A. Cultural B. Demographic C. Technological D. Economic E. Natural

*D. Economic*

13. Before getting into the toddler category, OXO gathered preliminary data to help define the main problem facing parents during feeding time. This represents what type of research? A. Internal data B. Causal C. Descriptive D. Exploratory

*D. Exploratory* Chapter 4, Marketing Research Objectives

Q. All of the following are benefits of business e-procurement, EXCEPT _____? A. Ability to purchase 24 hours/day B. Ability to purchase faster C. Access to rich product information D. Improved relationships between buyers and sellers

*D. Improved relationships between buyers and sellers*

Q. A call center report is an example of which type of marketing information? A. Marketing Intelligence B. Big Data C. Market Research D. Internal Data

*D. Internal Data* See chapter 4.

Q. A customer's influence in the company can have what type of influence on business buying behavior? A. Individual B. Organizational C. Environmental D. Interpersonal

*D. Interpersonal*

Q. ________ is the art and science of choosing target markets and building profitable relationships with them. A) Segmentation B) Positioning C) Differentiation D) Marketing management E) Value engineering

*D. Market management.* See chapter 1.

Q. Burger King's "Have it Your Way" slogan represents which marketing management orientation? A. Production concept B. Product concept C. Selling concept D. Marketing concept

*D. Marketing Concept* See marketing mangement orientations.

1. OXO focuses on making products that respond to their customers' needs and wants. What type of marketing management orientation does OXO have? A. Production Concept B. Product Concept C. Selling Concept D. Marketing Concept E. Societal Marketing Concept

*D. Marketing concept. * Chapter 1

6) ________ refers to the unique psychological characteristics that distinguish a person or group. A) Status B) Lifestyle C) Role D) Personality E) Attitude

*D. Personality*

11. OXO's television commercials show large, extended families bonding around their kitchen gadgets as they prepare Thanksgiving dinner together. Using Maslow's framework, which basic human need does this approach appeal to? A. Safety needs B. Physiological needs C. Esteem needs D. Social needs

*D. Social Needs* Chapter 5, Maslow's Hierarchy of Needs.

Q. Which of the following best describes a company's business portfolio? A) the target segments of the company's various businesses B) the list of all the marketing activities in which the company invests C) the company's strengths in terms of technology, people, and products D) the collection of businesses and products that make up the company E) the company's products or services in a particular market

*D. The collection of businesses and product that make up the company.*

Q. A growing number of college students have a laptop or tablet with them at all times. Using SWOT analysis, what does this represent for Bic? A. Strength B. Weakness C. Opportunity D. Threat

*D. Threat* See chapter 2, SWOT Analysis.

10. OXO's Universal Design approach focuses on what various segments have in common, rather than the unique needs of each segment. What market targeting strategy is this? A. Niche marketing B. Differentiated marketing C. Micromarketing D. Undifferentiated marketing

*D. Undifferentiated marketing* Chapter 6, Market Targeting Strategy

Q. Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. A) microenvironment B) supply chain C) internal environment D) marketing intermediary network E) macroenvironment

*E. Macroenvironment*

Q. Dividing a market into several sections of customers is known as ________. A) mass customization B) market positioning C) undifferentiated marketing D) value engineering E) market segmentation

*E. Market segmentation*

Q. This headline reflects which macro environmental force? "Drought threatens NH Dairy Industry." A. Cultural B. Demographic C. Technological D. Economic E. Natural

*E. Natural*

Q. Which of the following is part of the microenvironment of a firm's marketing environment? A) the cultural forces that exist in a society B) the political state of the country in which the firm exists C) the technological resources available to the company D) the different demographic trends in the market E) the suppliers who work with the company

*E. Supplier who work with the company.*

Q. Segmenting consumers based on the benefit they receive from your product is an example of ____ segmentation A. demographic B. geographic C. psychographic D. behavioral

D. Behavioral Chapter 5