MAR 3024 Midterm

Direct investment offers the firm complete control over its operations in the foreign country. A. True B. False

A

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy. A. True B. False

A

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. Combined, these four firms have A. a sustainable competitive advantage. B. violated laws governing competition. C. identical marketing mixes. D. achieved product excellence. E. customer excellence.

A

Understanding the marketplace and a customer's needs and wants is fundamental to marketing success. A. True B. False

A

________ is the cost to the customers or the fee the bank charges those customers for borrowing money. A. Interest B. A service charge C. Tax D. Tariff E. A user fee

A

In the past, manufacturer's representatives did not have real-time inventory data about the products they were selling. Today, manufacturer's representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to become more value driven by A. sharing information across the organization. B. building relationships with government regulators of marketing institutions. C. keeping prices below those charged by competitors. D. evaluating strategic competitive partnerships. E. balancing customers' benefits and costs.

A

Jenny was buying the company's first digital copier, and she involved all of the company's department heads in the decision. Jenny spent weeks evaluating options, inviting RFPs, and negotiating with vendors before she finally made a purchase decision. This buying situation would most likely be classified as a A. new buy. B. modified rebuy. C. straight rebuy. D. modified buy.

A

Limited problem solving usually relies on A. past experience more than on external information. B. situational stimuli and attitudes. C. external searches for information. D. financial analysis of performance risk. E. evaluation of the universal set.

A

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations. A. True B. False

A

Marketing ethics can involve societal issues such as the sale of products or services that may damage the environment or global issues such as the use of child labor. A. True B. False

A

Maryam phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available-to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________ growth strategy. A. product development B. market penetration C. product proliferation D. market development E. diversification

A

More than 12 million of LinkedIn's users are small business owners, making it an excellent resource for entrepreneurs to network with like-minded firms, identify the best vendors, or build brand reputation. A. True B. False

A

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 buy things they hadn't planned to buy, or make A. impulse purchases. B. limited problem-solving decisions. C. extended problem-solving decisions. D. ritual consumption purchases. E. affective alternative decisions.

A

One of the reasons marketers use loyalty segmentation is A. the high cost of finding new customers. B. government tax incentives. C. accounting difficulties associated with identifying new customers. D. rapid population increases. E. the failure of micromarketing as a workable strategy.

A

The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the ________ stage of the business-to-business buying process. A. vendor negotiation B. product specification C. need recognition D. vendor performance assessment E. RFP

A

The buying decision is likely to be most complex and take longest to complete in a(n) ________ B2B buying situation. A. new buy B. modified rebuy C. straight rebuy D. adapted buy E. generic buy

A

The consumer's level of involvement can lead to two types of buying decisions: ________ or ________ A. extended problem solving; limited problem solving. B. culturally influenced; autonomous. C. economic; social. D. physiological/safety; esteem/self-actualization. E. habitual; extended.

A

The final step in the process of creating a social media campaign is to A. monitor the program. B. develop a budget. C. identify the target audience. D. design the elements of the campaign. E. set goals.

A

The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country. A. True B. False

A

The next broad wave of mobile applications is likely to expand the use of wireless payments through applications such as Apple Pay, Google Wallet, Master Card's Easy Pay, and Softcard Mobile Wallet, all of which enable customers' phones to serve as m-wallets. A. True B. False

A

The power adapters Dell sells with its computers are built by small companies that specialize in power-related accessories. When Dell purchases its power adapters from these small companies, it is engaged in B2B marketing. A. True B. False

A

Value-oriented marketers constantly measure A. perceived customer benefits against the costs of their offerings. B. the desire to achieve against the need for a stable source of supply. C. the goal of efficiency against the price charged by competitors. D. promotional effectiveness against ethical advertising standards. E. the problem of price maximization against cost-efficiency.

A

When Hakim asked Marta where she wanted to go for lunch, she said Chili's because she went there at least once a week and always liked it. Marta conducted an internal search for information. A. True B. False

A

While on vacation, Martha had her camera stolen. Not wanting to waste vacation time shopping for a new camera, Martha simply purchased another camera just like her old one. For Martha, the ________ was low. A. perceived benefit versus perceived cost of search B. locus of control for this decision C. determinant attribute for this decision D. universal set of camera options E. prepurchase dissonance factor

A

________ are the three types of attribute sets. A. Universal, retrieval, and evoked B. University, relatives, and expression C. United, relations, and exploration D. Urban, random, and exchange E. Unanimity, rule, and express

A

An example of the ________ effect is when BMW gained in-depth information about visitors to a popular Chinese social media site, and used that information to determine which visitors were likely to be luxury car buyers and targeted advertising toward them. A. information B. connected C. media D. social E. interconnected

A

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect? A. making product decisions B. pricing the product C. deciding where and how to sell the product D. developing a promotional plan E. managing the exchange function of marketing

A

Christy, a marketing executive who was born in 1962, advocated that her company focus on a print campaign for its new line of lipsticks rather than spending money on online ads. This point of view may be attributed to the fact that she is a member of which generational cohort? A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. Millennials

A

Consultative buying centers use one person to make a decision but solicit input from others before doing so. A. True B. False

A

Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ. A. True B. False

A

Firms have come to realize that good corporate citizenship through socially responsible actions should be a priority because it will help their bottom line in the long run. A. True B. False

A

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is A. substantial. B. responsive. C. profitable. D. reachable. E. identifiable.

A

Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the ________ era of marketing. A. production-oriented B. retailing-oriented C. market-oriented D. value-based marketing E. sales-oriented

A

In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) ________ strategy. A. product development B. operational excellence C. market development D. market penetration E. customer excellence

A

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company A. differentiated its product. B. streamlined its delivery process. C. created a new class of micromarketing. D. defined consumers' basic needs. E. redefined mass customization.

A

In delivering value, marketing firms attempt to find the most desirable balance between A. the need to provide benefits to customers and keep down costs. B. the desire to satisfy customers and the desire to satisfy employees. C. the need for product improvement and the need for advertising. D. the need for value and the perception of value. E. explicit versus implicit value.

A

A friend of yours is starting a new business. She is confident that her product is superior to her competitors' and doesn't want to budget any money for marketing. You would recommend that she rethink her position on marketing for all of the following reasons except A. marketing focuses on the product, but only as one element; three other areas are promotion, price, and place. B. marketing isn't essential now, but it will be in a year or two when the product takes off. C. marketing helps new ventures organize, operate, and assess risk. D. marketers are skilled at communicating the value of the product to potential customers. E. marketers help address unmet customer needs, regardless of the size of the firm.

B

A mission statement describes the specific actions a firm will take to achieve its goals. A. True B. False

B

A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order. A. True B. False

B

As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized that problems in ________ exist in many African markets. A. transportation B. communication C. distribution D. commerce E. population

B

Consumers' needs and wants, as well as their ability to purchase, depend on a host of factors that remain consistent over time. A. True B. False

B

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

B

Global expansion often begins with A. franchising. B. exporting of goods. C. joint ventures. D. direct investment. E. strategic alliances.

B

In the ethical decision-making metric, the question that asks "Would I want the person I admire most to see me doing this?" applies to the A. moral mentor test. B. admired observer test. C. person in the mirror test. D. publicity test. E.transparency test.

B

Isaac is looking for ways to offer new goods and services to his existing customers. He is pursuing a market development strategy. A. True B. False

B

Jeff opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on? A. promotion B. price C. place D. product E. prototype

B

Mary wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with A. opening a franchise. B. exporting her products. C. forming a strategic alliance with another company. D. entering a joint venture with a local firm. E. making a direct investment in another country.

B

Product penetration is one of the four major growth strategies. A. True B. False

B

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes A. only the actual price they pay at the register. B. the value of their time and energy. C. the excitement they experience in finding an item they desire. D. the time the product was full price and didn't sell. E. the savings to the store of not having to display the products neatly on shelves.

B

Strategic efforts to supply consumers with environmentally friendly merchandise are called A. reduce, reuse, recycle. B. green marketing. C. the green generation. D. the inconvenient truth. E. earth marketing.

B

The local skydiving team is buying new parachutes. The team's coach has invited all team members to make recommendations, after which he will select the successful vendor. The skydiving team's buying center has a(n) ________ organizational culture. A. democratic B. consultative C. consensus D. autocratic E. bureaucratic

B

The most basic corporate social responsibility to employees is to ensure the highest pay for the work performed. A. True B. False

B

Which of these trade agreements represents the highest level of integration among participating nations? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA

B

A company is assessing opportunities in the BRIC companies and determines that ________ is one of the youngest populations in the world and is increasingly adopting global attitudes. A. Russia B. Brazil C. India D. Italy E. China

C

All of the following are questions posed in the ethical decision-making metric except A. Will I be able to look at myself in the mirror and respect what I see? B. Would the person I admire most engage in this activity? C. Will this action help advance my career? D. Would I want to see this action described on the front page of the local paper? E. Can I give a clear explanation for my action?

C

An Internet site whose purpose is to be a major starting point for users when they connect to the web and is often used by smaller companies in the RFP process is referred to as a(n) A. podcast. B. Internet channel. C. web portal. D. buying center. E. search engine.

C

As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and A. currency differences. B. antidiscrimination regulations prohibiting segmentation and targeting in developing countries. C. differences in the way consumers see themselves and in the way they see products and services. D. complications due to franchising issues. E. the taxes imposed by some foreign countries on marketing activities.

C

B2B partners often connect to each other on the Internet through special ________ designed to facilitate information exchanges and transactions. A. search engines B. web masters C. web portals D. web routes E. gatekeepers

C

Current research points to which pricing model for apps as the most effective? A. in-app purchases B. paid apps C. freemium apps D. ad-supported apps E. paid apps with in-app purchases

C

Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, and sees no value in corporate social responsibility. Elena's attitude is A. typical of nearly all manufacturers. B. a reaction to regulatory directives of the U.S. government. C. consistent with the views of other critics of corporate social responsibility. D. insupportable in the 21st century. E. unethical.

C

Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in A. rural areas. B. smaller states. C. New York, Los Angeles, San Francisco, and Chicago. D. coastal resort areas. E. Great Lakes agricultural areas.

C

Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center? A. leader B. initiator C. influencer D. decider E. gatekeeper

C

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are most likely pursuing which macro strategy? A. product excellence B. purchase excellence C. locational excellence D. customer excellence E. operational excellence

C

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. establish the overall strategy or objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified.

C

The first step in the process of creating a social media campaign is to A. identify the target audience. B. design the elements of the campaign. C. set goals. D. develop a budget. E. monitor the program.

C

This type of thought-sharing site typically provides the highest level of control for companies. A. personal blog B. professional blog C. corporate blog D. Google+ E. Flickr

C

Which of the following is true regarding modern gender roles? A. Gender roles are a constant cultural norm. B. Modern standards require firms to produce gender neutral advertising for every product. C. Gender roles have been blurred in the past several years. D. Gender boundaries should never be crossed in marketing efforts. E. Gender roles are unimportant to marketers.

C

Which of the following statements regarding corporate social responsibility is true? A. It incorporates higher purpose and a caring culture. B. Social responsibility is at the core of the business through the higher purpose and viewing the community and the environment as stakeholders. C. It sees limited overlap between the business and society, and between business and the planet. D. It takes a holistic, ecosystem view of business as a complex adaptive system. E. It understands that decisions are ethically based.

C

Which step in the buying process is most likely to happen in a straight rebuy situation? A. product specification B. RFP process C. need recognition D. proposal analysis E. supplier selection

C

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy A. is the cheapest option. B. requires the use of advanced advertising techniques. C. rarely works. D. is likely more costly than an undifferentiated strategy. E. is ineffective without multiple brand names.

D

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except A. purchasing power. B. interest rates. C. inflation. D. age. E. currency exchange rates.

D

Which of the following is the third step in the marketing planning process? A. evaluate using a matrix B. define the business mission C. perform situation analysis D. identify and evaluate opportunities E. implement marketing mix and allocate resources

D

YouTube is an example of which type of social media site? A. social networking B. thought sharing C. social bookmarking D. media sharing E. microblogging

D

A key to successful marketing is determining how to meet the correct balance of ________ needs that best appeals to the firm's target markets. A. functional and social B. postpurchase and prepurchase C. safety and situational D. psychological and physiological E. functional and psychological

E

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is not one of these factors? A. political B. cultural C. demographic D. technological E. ethical

E

Global marketers are under constant pressure to simplify distribution channels in order to A. improve promotion efficiency. B. reduce trade deficits. C. afford tariffs. D. meet trade agreement guidelines. E. reduce costs.

E

How does your text describe how social media firms help marketers connect with their customers? A. by helping firms establish an Internet presence B. by allowing firms to capture customer information C. by allowing customers to search for products more easily D. by helping firms appear more "hip" to customers E. by helping build connections between customers and firms

E

In terms of the 4E framework, in order for a firm's offer to excite its targeted customers, the offer must be A. substantial. B. unique. C. tangible. D. easy to understand. E. relevant.

E

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena most likely operates in the ________ era of marketing. A. sales-oriented B. production-oriented C. retailing-oriented D. market-oriented E. value-based marketing

E

To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertical axis. A. sales dollars B. market size C. competitive intensity D. market profit potential E. market growth rate

E

What is Google+? A. an experimental, advanced search engine B. a website where users can work together to create documents C. a site offering analytical information about website usage D. a video-sharing site intended for businesses E. a social networking site

E

When airlines created frequent-flyer programs, they were among the first retailers to embrace A. geographic segmentation. B. education segmentation. C. lifestyle segmentation. D. convenience segmentation. E. loyalty segmentation.

E

Which marketing activity is most directly served by the promotion element of the marketing mix? A. creating value B. capturing value C. producing value D. delivering value E. communicating value

E

Which of the following groups has never lived without easy access to the Internet and other digital technologies? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E.Generation Z

E

After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluating alternatives. ________ then review and refine these alternatives, and choose a course of action. A. Company leaders and managers B. Community leaders C. Key customers D. All stakeholders E. The firm's lawyers

A

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. To understand the differences between stores, the manager will probably next review the company's A. analysis of national trends in vitamins and herbal supplements, to help predict future sales. B. financial statements, to investigate current and past profits. C. brand awareness study, to assess national levels of awareness. D. implementation programs, to see if the promotion was handled consistently in the different stores. E. mission statement, to see if it needs adjusting.

D

A(n) ________ is a group of products that consumers may use together or perceive as similar in some way. A. promotional service B. STP C. market segment D. product line E. SBU

D

All of the following terms are generally associated with the definition of corporate social responsibility except A. voluntary. B. stakeholders. C. environmental impact. D. profit. E. social impact.

D

Compared to the average company, firms with strong ethical climates tend to A. have higher turnover. B. offer more goods and services. C. invest more in sales training software. D. be more socially responsible. E. employ more business development consultants.

D

Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the ________ phase of the strategic marketing planning process. A. situation analysis B. implementation C. brainstorming D. control E. planning

D

Elena is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would actually consider buying. These make up her ________ set. A. universal B. retrieval C. immediate D. evoked E. focus

D

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for children with disabilities. The letter writer is critical of a banner displayed at the event with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. Hisaoki's company failed to A. analyze the needs of the industry. B. promote the firm's corporate social responsibility efforts. C. choose a course of action. D. identify issues. E. brainstorm and evaluate alternatives.

D

If the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso-dollar exchange rate almost constant, which of the following would be true? A. The high inflation rate in Mexico would increase its citizens' purchasing power. B. The high inflation rate in Mexico would mean that its products would cost less overall. C. Mexican products would be less expensive, while U.S.-made products would become comparatively more expensive. D. Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive. E. U.S.-made products would become less attractive to purchase.

D

Imagine the use (or misuse) of data collected from consumers by a marketing research firm. One of the issues that might arise is the way the data are collected. At what step in the framework for ethical decision making would this issue be identified by the marketing research firm? A. Step 4 B. Step 5 C. Step 3 D. Step 1 E. Step 2

D

Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations? A. loyalty segmentation B. benefit segmentation C. psychographic segmentation D. geodemographic segmentation E. demographic segmentation

D

Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis? A. the number of children needing day care in the immediate area B. the fixed costs of operating the center C. the percentage of parents in the area who can both afford to send their child or children to day care and who are willing to do so D. the average number of school-age children in families sending a child to the day care center E. the price she would charge minus the variable cost of providing service to each child

D

Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael's favorite phrase, when confronted by the need to make a decision, is "Whatever." In marketing terms, Ryan is said to have a(n) ________ and Michael, a(n) ________. A. obsessive personality; laissez-faire approach B. formal search function; casual search function C. increased search anxiety; decreased search anxiety D. internal locus of control; external locus of control E. focused sense of information; unfocused sense of information

D

The United States imports more goods from China than it exports to China. This is known as A. gross national income (GNI). B. a trade surplus. C. gross domestic product (GDP). D. a trade deficit. E. an import imbalance.

D

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business? A. Nike should consider exiting the athletic shoe market. B. Nike should invest in the athletic shoe market only if it helps boost the sales of other products in fast-growing markets. C. Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive. D. Nike's athletic shoe business still requires some investment, but it is likely to produce excess resources that can be invested in other divisions of the company. E. Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities.

D

What type of analytic is used to understand what's popular and what's not on a firm's website, including page load times and site navigation? A. conversion B. social C. mobile D. content E. advertising

D