Marketing 340 Final Exam
Which of the following is an example of a horizontal conflict in a distribution channel?
A Ford car dealer complaining that another Ford dealer is underpricing the same models
A product concept is ________.
A detailed version of a product idea stated in meaningful consumer terms
Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________.
A straight rebuy
Which of the following is the most effective way for a company to ship perishable goods over long distances, if its key requirement is speed?
Air transport
Companies that adopt value-added pricing ________.
Attach value-added features and services to differentiate their offers and support their higher prices
Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.
Behavioral
________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.
Brand equity
Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________.
Brand extension
________ involves using an existing brand name for a new product category.
Brand extension
A ________ brings buyers and sellers together and assists in negotiations.
Broker
________ and ________ do not take title to goods, and they perform only a few channel functions.
Broker; agents
Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?
Business analysis
According to the model of buyer behavior, which of the following is one of the two primary parts of a "buyer's black box"?
Buyer's decision process
The decision-making unit of a purchasing organization is called its ________.
Buying center
Which of the following product mix pricing strategies involves pricing products that must or can only be used with the main product?
Captive product pricing
Experimental research is best suited for gathering ________ information.
Casual
The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.
Concept testing
Which of the following statements reflects the marketing concept?
Considering customer focus and value as the paths to sales and profits
The buyer decision process consists of five stages. Which of the following is NOT one of these stages?
Conspicuous Consumption
At its most basic form, a marketing channel consists of the producer and the ________.
Consumer
The economic environment consists of economic factors that affect ________.
Consumer purchasing power
In the context of media timing, ________ means scheduling ads evenly within a given period.
Continuity
Which of the following types of products are generally priced the lowest?
Convenience products
The ________ environment consists of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.
Cultural
Which of the following is one of the other stimuli present in a buyer's environment apart from a marketing stimuli?
Cultural Stimuli
According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.
Decline
Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
Demographic Segmentation
Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.
Derived
Companies that take a proactive stance toward the marketing environment are most likely to ________.
Develop strategies to change the environment in their favor
When market segments are conceptually distinguishable and respond distinctively to various marketing mix elements and programs, they are said to be ________.
Differential
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.
Differentiated marketing
Effective positioning begins with ________.
Differentiation
Which of the following statements is most likely true about direct marketing?
Direct marketing provides opportunities for building customer engagement
Florian Fasteners recently introduced a new line of products. In order to promote its product, it sent samples to the addresses of a few select customers. Which of the following types of marketing is evident from this example?
Direct-mail marketing
________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.
Discount stores
Market segmentation can be best described as the process of ________.
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Big Mike's Health Food Store sells nutritional energy foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.
Dynamic pricing
If demand changes greatly with a small change in price, the demand is ________.
Elastic
Which of the following is an advantage of using digital catalogs?
Eliminates printing and mailing costs
"At Trader Joe's, our mission is to provide all our customers the best food and beverage values to be found anywhere, and the information to make informed buying decisions." This is a product-oriented business definition. True or False?
False
Convenience stores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services. True or False?
False
Direct marketing seldom occurs on a one-to-one, interactive basis True or False?
False
Direct-mail programs are typically stand-alone programs and cannot be integrated with a broader marketing campaign. True or False?
False
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is known as market diversification. True or False?
False
In a direct marketing channel, the producer sells directly to the intermediaries, who in turn sell directly to the customers. True or False?
False
Line extension refers to extending an existing brand name to new product categories True or False?
False
Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process. True or False?
False
Marketing researchers can conduct their own searches of secondary data sources by using mail questionnaires and interviewing individuals. True or False?
False
Supermarkets are located near residential areas and are open long hours, seven days a week; they carry a limited line of high-turnover goods. True or False?
False
The distribution strategy during the decline stage of PLC involves building more intensive distribution networks. True or False?
False
The marketing mix consists of people, property, planning, and position. True or False?
False
The single most important demographic trend in the United States that marketers should understand is the changing family structure of the population. True or False?
False
The technological environment is predominantly static. True or False?
False
When using public relations, the company pays for space and time in the media. True of False?
False
What is the most important consumer buying organization in society?
Family
The business marketer normally deals with ________ than the consumer marketer does.
Far fewer but far larger buyers
Which of the following is true with regard to strategic planning?
Finding the game plan for long-run survival and growth is the focus of strategic planning.
McPherson's, an ice cream retailer, recently entered into an agreement that allows independent business people at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example?
Franchise organization
The number of times an average person in the target market is exposed to a message is known as the ________ of the message.
Frequency
________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.
Geographic Segmentation
When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________.
Good-value pricing
If a company ________, it should adopt a product sales force structure, in which the sales force specializes along product lines.
Has numerous and complex products
Conflict which occurs among firms at the same level of the marketing channel is known as ________ conflict.
Horizontal
New-product development starts with ________.
Idea generation
A marketing channel which consists of one or more intermediaries is known as a(n) ________ marketing channel.
Indirect
Primary data consist of ________.
Information collected for the specific purpose at hand
Cameron loves to own and be up-to-date on the latest technological gadgets available in the market. Among his friends, he is always the first to own the latest electronic gadgets. He loves trying out new products before others. Cameron most likely belongs to the ________ adopter group.
Innovator
Which of the following is an advantage of using an internal database?
Internal databases can be accessed more quickly and cheaply than other information sources.
Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?
Introduction
Cost-plus pricing ________.
Involves adding a standard markup for profit
Which of the following is most likely true about e-mail marketing?
It is used by marketers to send highly targeted messages
Which of the following statements best explains why idea screening may be the most important step of new-product development?
It saves the company money in product development costs by going ahead with only the product ideas that are likely profitable
Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.
Limited-service
For which of the following would a company use an exclusive distribution strategy?
Luxury cars
Which of the following is an example of trade promotion?
Manufacturers offering free merchandise to resellers who feature a certain flavor or size
A(n) ________ is the set of actual and potential buyers of a product or service.
Market
When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.
Market Targeting
Making more sales to current customers without changing a firm's products is known as ________.
Market penetration
Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________.
Market segment
When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy.
Market-skimming
Which of the following is a primary disadvantage of viral marketing?
Marketers have little control over who receives a viral message
Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers?
Marketing environment
The set of marketing tools a firm uses to implement its marketing strategy is called the ________.
Marketing mix
An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.
Marketing segments
Marketing the same product to a huge customer base without any customization is referred to as ________.
Mass marketing
When the size, purchasing power, and profiles of a market segment can be calculated, the market is ________.
Measurable
Dan has been directed to study the actors close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.
Microenvironment
________ marketing features marketing messages, promotions, and other content delivered to on-the-go consumers through their portable electronic devices.
Mobile
Specialty stores carry ________ with ________ within them.
Narrow product lines; deep assortments
The physical environment affecting marketing activities is referred to as the ________ environment.
Natural
Which budgeting method entails defining specific promotion goals, determining the necessary tasks, and estimating the costs to determine a promotion budget?
Objective-and-task method
Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________.
Opportunity
Selling accessory products along with the main product is referred to as ________ pricing.
Optional-product
It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.
Perceived value
Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result.
Percentage-of-sales
________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions.
Perceptual positioning maps
Which of the following is true with regard to personal selling?
Personal selling entails personal presentations by a firm's sales force for the purpose of making sales and building customer relationships.
________ refers to the unique psychological characteristics that distinguish an individual or group.
Personality
Which of the following is true with regard to price?
Price is the sum of all the values that customers give up to gain the benefits of having a product.
In the beginning of the buying process, Timothy Perry, a product development manager, noticed that the raw materials that were being procured from his company's regular supplier were of poor quality. Consequently, he decided to change the existing supplier as a remedial measure. The stage of the buying process in which Timothy identified the quality breach represents the ________ stage.
Problem recognition
Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept.
Product
Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.
Production
Which of the following is the first step in the personal selling process?
Prospecting and qualifying
Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?
Psychological pricing
Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events?
Public relations
Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product.
Pull
________ are low-share business units in high-growth markets that require a lot of cash to hold their share.
Question mark
A product in the maturity stage will most likely require ________ advertising.
Reminder
Which of the following exemplifies a service?
Retail
Which of the following is a marketing intermediary?
Retailers
All of the following are basic types of compensation plans for salespeople EXCEPT ________.
Salary plus company shares
A(n) ________ is an individual who represents a company to customers by prospecting, communicating, selling, servicing, information gathering, and/or relationship building.
Salesperson
A(n) ________ is a segment of the population selected for marketing research to represent the population as a whole.
Sample
________ are offers of a trial amount of a product.
Samples
________ means that the quality of services depends on who provides them as well as when, where, and how they are provided.
Service Variability
Service perishability means that ________.
Services cannot be stored for later sale or use
Which of the following is a pure tangible good?
Shampoo
Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith targeting to increase?
Share of customer
A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
Shopping center
The ________ style of advertising shows ordinary people clearly using a product in a normal setting.
Slice of life
________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.
Social Classes
Which of the following statements is true of cultural factors that influence consumer behavior?
Social classes show distinct product and brand preferences in areas such as clothing and travel.
For which of the following products would the intensive distribution strategy most likely be used?
Soft drinks
A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an example of a(n) ________.
Specialty product
Which type of retailer typically carries deep product assortments of narrow product lines?
Specialty stores
Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations.
Subcultures
Selecting which segments of a population to serve is called ________.
Target marketing
Many companies use RFID product labels on their goods, which exemplifies the ________ environment in business.
Technological
Geller Insurance calls qualified prospects to sell insurance. Which of the following forms of marketing is evident from this example?
Telemarketing
You want to advertise your new product. You want good mass marketing coverage and low cost per exposure. You also want to combine sight, sound, and motion and make the advertisement appealing to the senses. You should choose ________ as your advertising media.
Television
An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising.
Testimonial Evidence
A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this communications mix?
The promotion mix
Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all have ________.
The same message, look, and feel
The break-even volume is the point at which ________.
The total revenue and total cost curves intersect
Which of the following is true with regard to media publics?
This group carries news, features, and editorial opinion
Product mix length refers to the ________.
Total number of items a company carries within its product lines
Which of the following is true of using trucks as a transportation mode?
Trucks are highly flexible in their routing and time schedules
A product position is the way a product is defined by consumers on important attributes. True or False?
True
A sample is a segment of the population selected for marketing research to represent the population as a whole. True or False?
True
A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. True or False?
True
Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs. True or False?
True
Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. True or False?
True
Companies use PR to build good relations with consumers, investors, the media, and their communities. True or False?
True
Consumers are generally willing to make a special purchase effort to buy specialty products. True or False?
True
Consumers who have no past experience with a product are especially likely to judge it by its price. True or False?
True
Direct marketing is characterized by narrowly defined segments or individual buyers. True or False?
True
Disintermediation occurs when radically new types of channel intermediaries displace traditional ones. True or False?
True
Ethnographic research involves sending observers to watch and interact with consumers in their natural environments. True or False?
True
If the pull strategy is effective, then consumers will demand the product from channel members, who will in turn demand it from producers. True or False?
True
In a territorial sales force structure, as each salesperson travels within a limited geographic area, travel expenses are relatively small. True or False?
True
Internal databases usually can be accessed more quickly and cheaply than other information sources. True or False?
True
Market development involves company growth by identifying and developing new market segments for current company products. True or False?
True
Marketing success requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company's value delivery network. True or False?
True
Open-end questions are especially useful in exploratory research. True or False?
True
Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program. True or False?
True
Reminder advertising is ideal for maintaining customer relationships with mature products. True or False?
True
Sales promotion consists of short-term incentives to encourage the purchase of a product or service. True or False?
True
Service companies can differentiate their service delivery by having more able and reliable customer-contact people. True or False?
True
Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. True or False?
True
The aim of the entire value delivery network is to serve target customers and create strong relationships with them.
True
Two of the characteristics that are especially important in influencing an innovation's rate of adoption are relative advantage and compatibility. True or False?
True
While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.
True
According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.
Understand the marketplace and customer needs and wants
A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
Value delivery network
Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?
Value proposition
________ are human needs that are shaped by culture and individual personality.
Wants
Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers?
Warehousing
Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer?
When customers are willing to conduct their own locate-compare-select process
A reputed cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________.
Widened its product mix
Which of the following questions is an example of a closed-end question?
Would you like to try our new ice cream flavor?