Managerial Marketing Exam 1 Practice questions

Which of the following is a difference between a code of ethics and morals?

A code of ethics is a culmination of principles that help in making the decision of what is good or bad, while morals are the beliefs of the individual or group as to what is right or wrong.

When thinking about the characteristics of a market, willingness to buy can by illustrated by which of the following?

Alex is ready to use the $400 he earned mowing lawns all summer to purchase a GoPro camera from Best Buy.

When you dine at a restaurant and order a hamburger, the implied warranty could be:

An implied warranty is an unwritten guarantee that the good or service is fit for the purpose for which it was sold. When you order a hamburger from a restaurant, the implied warranty is that it is edible

How should an organization identify its most valuable customers?

By understanding what drives loyalty in customers

The _____ is aimed primarily at children's products, which are defined as those used by individuals 12 years old or younger.

Consumer Product Safety Improvement Act

_________ is the private label manufacturing by a foreign company.

Contract manufacturing

The _____ is a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.

Federal Trade Commission

The _____ was enacted because Congress was concerned about U.S. corporations' use of illegal payments and bribes in international business dealings.

Foreign Corrupt Practices Act (FCPA)

Which of the following statements is true of ethics training?

Giving employees a long list of dos and don'ts does not really help employees navigate the gray areas or adapt to a changing world market.

Which of the following statements is true of business markets?

In business markets, a single customer can account for a huge volume of purchases.

Which of the following statements is true of income?

Income level determines consumers' buying power.

Which of the following is true of an international joint venture?

It enables a local firm to acquire managerial skills and new technology.

Which of the following statements is true of packaging?

It holds contents together and protects goods as they move through the distribution channel.

Which of the following statements is true of the descriptive role of marketing research?

It includes gathering and presenting factual statements.

Which of the following statements is true of a secondary membership group?

It includes groups with which people interact in a less consistent and formal manner.

Which of the following statements is true of globalization?

It increases the productivity and growth of businesses.

Which of the following statements is true of corporate social responsibility (CSR)?

It is demonstrated by companies that consider their relationship to the society in which they operate.

Which of the following is an advantage of multiple-variable market segmentation?

It is more precise than single-variable segmentation.

In the context of use of secondary data in marketing research, which of the following statements is true of big data?

It is the exponential growth in the volume, variety, and velocity of information.

Which of the following defines the DISC of inshoring?

It is the practice of returning production jobs to the United States.

Which of the following statements is true of gross domestic product (GDP)?

It is the total market value of all final goods and services produced in a country for a given time period.

Which of the following statements is true of a company in the first stage of global business development?

It operates in its home country and sells its products in another country.

Which of the following best defines a product line?

It refers to a group of closely related product items.

According to traditional economic theory, which of the following statements is true of globalization?

It relies on competition to drive down prices and to increase product and service quality.

Which of the following statements is a difference between preconventional morality and postconventional morality?

Preconventional morality represents the most basic level of morality, while postconventional morality is the morality of a mature adult.

Which of the following statements is true of heterogeneous shopping products?

Prices, quality, and features vary greatly from product

Which of the following statements is true of marketing strategies that can be adopted for high-involvement products?

Promotion to the target market should be extensive and informative.

_____ states that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of the firm's operation.

Stakeholder theory

Which of the following is not true about effective strategic planning?

Strategic planning should be done on a yearly basis.

SWOT analysis stands for:

Strengths, Weaknesses, Opportunities, Threats

Which of the following statements refers to the target market strategy?

Target markets can be selected by appealing to the entire market with one marketing mix.

Which of the following statements is true of culture?

Technology has accelerated the rate of cultural change.

NAICS is a valuable tool because:

The NAICS is a valuable tool to business marketers because it can help them identify potential users of their products and services. Companies within the same classification group likely use the same types of raw materials, components, and production processes. Thus, if a supplier understands the needs and requirements of a few firms within a classification, they can predict requirements for all the firms in that category. Marketers can then use these codes to help create market potential estimates and tailor their messages to similar target markets.

In the context of competitive factors in the external business environment, which of the following statements is true?

The availability of resources for businesses has declined.

The category of business customers that accounts for the greatest volume of purchases in the in United States is:

The size of the business market exceeds the size of consumer markets.

Which of the following statements is true of the business market in the United States?

The size of the business market exceeds the size of consumer markets.

In the context of marketing research, which of the following statements is true of primary data?

They are information collected for the first time.

In the context of a marketing research project, which of the following statements is true of secondary data?

They can be obtained from sources within a company and outside the company

Which of the following statements is true of Asian Americans?

They have the highest average family income of all groups.

Which of the following statements is true of Internet surveys?

They make it easier to connect with people who are difficult to reach.

In the context of external environment, which of the following is true of natural resources?

Vast differences in natural resources result in major shifts of wealth among countries.

In the context of relationship marketing, _____ is the feeling of nurturing concern for, and dependence upon, another.

amae

African Americans in the United States

are more likely to patronize convenience, drug, and dollar stores than other groups.

When considering interaction between companies and customers online, _______ is the attention that social media attracts while ______ is the interactions between the brand and the audience, such as retweets or comments.

awareness; engagement

_____ are people born between 1946 and 1964.

baby boomers

In five years, Volkswagen sold only 57,000 of its Routan minivan. The company decided to stop producing the model and instead developed a new SUV, the Atlas. This illustrates that market segmentation:

can help marketers better allocate resources

The sole purpose of the _____ is to protect the health and safety of consumers in and around their homes.

consumer product safety commission

__________ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.

control

A company that suffers from marketing myopia:

defined their business in terms of goods and services rather than in terms of the benefits customers seek.

When a business asks "What business are we in?" they are:

defining their business mission.

According to Ansoff's strategic opportunity matrix, _____ is a strategy of increasing sales by introducing new products into new markets.

diversification

Individualism, one of America's core values, asserts that

each person is unique and special in their own way.

Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan is called:

environmental scanning

A consumer's information search should yield a group of brands, sometimes called the buyer's _____ set, which are the consumer's most preferred alternatives.

evoked

To avoid cultural problems in international marketing, _____.

firms require a thorough understanding of a country's culture

Which of the following is the final step in the marketing research process?

following up

A target market is a group of people

for whom an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group.

In the context of use of primary data in marketing research, when researchers piggyback studies, they are actually

gathering data on two different projects using one questionnaire.

_____ are people born between 1979 and 1994.

generation Y

_____ was the first generation of latchkey children—products of dual-career households or, in roughly half of the cases, of divorced or separated parents.

generation x

A _____ identifies goods in terms of class or type and cannot be trademarked.

generic product name

Competitive intelligence:

helps managers assess their competition and vendors in order to become more efficient and effective competitors.

The _____ is the way an individual would like to be perceived.

ideal self-image

In thinking about the NAICS, companies at the ______ level have more in common than companies at the _____ level.

industry; subsector

_____ is a measure of the decrease in the value of money, generally expressed as the percentage reduction in value since the previous year.

inflation

In a(n) _____ information search, a person recalls information stored in the memory.

internal

A product:

is everything the customer receives in an exchange.

Strategic planning:

is the process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.

When thinking about modes of social control, acceptance of standards established by advocacy groups and trade associations:

is voluntary self-regulation by companies who wish to act ethically.

In the context of the strategies for selecting target markets, which of the following is a disadvantage of undifferentiated targeting?

it makes a company more susceptible to competitive inroads

According to Ansoff's strategic opportunity matrix, a company is most likely to be using a market development strategy when

it sells existing products to new and existing buyers.

_____ demand occurs when two or more items are used together in a final product.

joint

Single Grain's online content marketing successfully attracted customers such as Amazon and Uber. This illustrates the two most important goals for B-to-B content marketers:

lead generation and sales.

Consuming products that have a limited availability

leads to more consumer enjoyment than if the items were always available.

A company that uses a psychographic market segmentation strategy will be most interested in the _____ of its potential customers.

lifestyle

Which of the following is an individual fact or unique to consumers that influences their buying decisions?

lifestyle

Which of the following refers to the rules people develop as a result of cultural values and norms?

morals

In the context of the strategies for selecting target markets, a firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each has a(n) _____.

multisegment targeting strategy

Equality, one of America's core values, is a value that means

no one should expect to be treated differently from anybody else.

The greater the _____, the more likely it is that marketers will recognize a problem as unethical.

number of people affected by negative consequences

All of the following are reasons for failing to achieve a marketing objective except:

objectives were too specific.

When all the containers and boxes of a product line have a common look while still being able to keep their individual identities, it is considered to have _____.

package uniformity

_____ is a psychographic segmentation variable that reflects a person's traits, attitudes, and habits.

personality

The _____ classifies each strategic business unit (SBU) by its present or forecast growth and market share.

portfolio matrix

At the level of _____, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run.

postconventional morality

In the context of the marketing mix, _____ is often the most flexible of the four Ps—the quickest element to change.

price

Product mix width refers to the number of

product lines an organization offers.

When a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition, a _____ exists.

product/service differentiation competitive advantage

When a firm plans to enter a foreign market with an existing product, a one-brand-name strategy

provides for greater identification of the product from market to market.

In the context of the buying behavior of a family, _____ are those members of a family who actually exchange money for a product.

purchasers

_____ is measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas.

purchasing power

The Foreign Corrupt Practices Act (FCPA) has been criticized for:

putting U.S. corporations at a competitive disadvantage in international trade.

A(n) _____ is a period of economic activity characterized by negative growth.

recession

_____, an American value that strongly influences attitudes and lifestyles, states that every person should stand on his or her own feet.

self-sufficiency

With the introduction of the internet, many people thought that all B-to-B shopping would be completed online and the need for distributors would be eliminated. However, distributors perform important functions for business customers including all of the following except:

selling items at wholesale costs

Both large and small firms have embraced social media marketing because

sites such as Facebook, YouTube, and other social media are successful and are popular around the world.

When consumers search extensively for a particular item and are very reluctant to accept substitutes, that item is a(n) _____.

specialty product

The pyramid of corporate social responsibility

states that a business is expected to do what is right in addition to making profits.

A _____ is a homogeneous group of people divided on the basis of demographic characteristics, geographic regions, national and ethnic background, political beliefs, and religious beliefs.

subculture

Which of the following strategies should a company adopt to stimulate innovation?

talking to early adopters

Companies who seek a B Corp certification likely do so because:

they know that social responsibility positively impacts companies. of pressure from government and advocacy groups. they believe companies have a responsibility to help address social issues.

In the context of market segmentation, _____ segmentation divides a market by the amount of product bought or consumed.

usage-rate

Market research should be conducted:

when the expected value of the information is greater than the cost of obtaining it.

In the context of marketing research, the research design specifies

which research questions must be answered.