Marketing mid-term
___ is a customer's subjective assessment of benefits relative to costs in determiningthe worth of a product. A. Price assessment B. Marketing orientation C. Product assessment D. Value E. Monetary price
D-the customer's perceived cost-benefit analysis
United Airlines introduced a new "basic economy" seat category to better compete withdiscount airlines like Southwest and Spirit. Which of the following aspects of themarketing mix is United likely altering? A. Target market B. Distribution C. Promotion D. Price E. Product
D. Price
Which of the following components of attitude includes an individual's feelings and emotions toward the object or idea? A. Affective B. Behavioral C. Cognitive D. Psychological E. Perceptual
A-Attitudes: Cognitive (knowledge of), Affective (feelings about),Behavioral (actions regarding)
The use of price skimming discourages competitors from entering a market. A. True B. False
B- Price Skimming is a high price, which among other reasons, firms useto recover R&D costs, Generate High Profits, etc. This shouldencourage other suppliers to enter the marketing, hoping to cash in too.
Various stakeholders and ____ determine the acceptable standards ofconduct involving ethics. A. the federal government B. the industry leader's ethics C. governmental agencies D. the organization's ethical climate E. various self-regulating bodies
D-Ethical standards are determined by various stakeholders and the organization's ethical climate
If a company increased its price from $100 to $120 and the quantity demanded fell by 40%, the price elasticity of demand for this product is A. 4. B. −1/2. C. −2. D. 1/2. E. −4
Ep = % change in Qty [- 40%] Divided by % change in Price [+20%]➢ = - 40%/20%➢ = - 2
During the maturity stage A. some competitors are forced out. B. limited advertising expenditures are required to maintain market share. C. product modifications are unnecessary. D. there is less emphasis on changing a product's price. E. marketing strategies are rarely altered.
A-Not all competitors have the resources to maintain the product with continueddeclining profits. Note: Competitors are forced out in every stage of the PLC
A customer's interpretation and response to a price depends on what the customer receives from a purchase compared to what he or she gives up to make a purchase. A. True B. False
A-This is the definition of value and opportunity cost
Cognitive dissonance is most likely to occur during which part of the decision-making process? A. Purchase B. Problem recognition C. Post purchase evaluation D. Evaluation of alternatives E. Information search
C-Buyer's remorse happens after the actual purchase of the product. Cognitivedissonance occurs after the contradictory behavior/action has taken place
Emily is buying furniture for her apartment for the first time. She isspending considerable time and effort comparing the products thatdifferent stores offer. Which type of decision-making process is she using? A. Routinized B. Limited C. Extended D. Selective E. Intensive
C-Extended: Unfamiliar, Infrequent, & relatively Expensive Purchase requireconsiderable resources on Information Search & Evaluation of Alternative
An accountant buys a supply of pencils to be used in calculating the taxes of otherbusiness firms. Based on this information, pencils in this case would be considered what type of product? A. Business B. Consumer C. Convenience D. Raw material E. Process materials
A-One of the uses of business products is for the day to day operations of abusiness. That's the case here for pencils
The technique of sampling in marketing research is the process of selecting representative units from a total population (a sample)and being able to project the characteristics of the total population from the sample considered. A. True B. False
A-Sampling - The process of selecting representative units from a totalpopulation. The least bias selection process is Random Sampling
Marketing research is best defined as _______________________ A. an intuitive process for making decisions based on personal knowledge and experience to take advantage of market opportunities. B. the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. C. the collecting of data from secondary sources and internal documents. D. a framework for the day-to-day management and structuring of information gathered by marketers. E. the use of tools and methods to measure and interpret the effectiveness of a firm's marketing activities.
B-SWOT Analysis relies on marketing research for data and analyses
____ competitors provide very different products that satisfy the same basic customer need. A. Primary B. Product C. Brand D. Generic E. Total budget
D-different product, features, price but satisfies same need
Credit card companies maintain staffs of professionals whose primaryresponsibility is to monitor the activity on cardholders' accounts to spotpotential fraudulent purchases or stolen cards. These staffs are employed to prevent which of the following? A. Consumer misbehavior B. Consumer purchase complaints C. Consumer purchase remorse D. Consumer purchase excess E. Consumer misinformation
A-Potential fraud on the part of the consumer is Consumer Misbehavior
The final step in the marketing research process is ___________ A. reporting the research findings. B. interpreting research findings. C. making sure the marketing research was conducted in an ethical manner. D. putting the results into a written document that is technical and written in formal language. E. deciding what the next research project should investigate.
A-Reporting research findings (step 5 in the research process)
In general, which of the following competitive structures is an organization leastlikely to operate?A. Oligopoly B. Pure competition C. Monopolistic competition D. Total budget competition E. Monopoly
B-the one market structure in which the orgnization is completely(almost) powerless in using pricing tools to manage the marketing mix
The marketing concept is a philosophy that states that an organization should try tosatisfy customers' needs and also ___ A. produce high-quality products. B. increase sales. C. achieve the organization's goals. D. increase market share. E. coordinate its activities to increase production.
C- satisfy the customer & meet the organizations goals at the same time
Southwest Airlines' planes are easily recognizable even when in the air due to their vibrantcolor scheme, striped tail, distinctive font, and striped heart. Southwest carries this colorscheme and heart symbol throughout much of its communication—airport signs, print andtelevision advertising, even its smartphone app. This use of color, font, and symbols to convey Southwest Airlines' personality is an example of a(n) A. mission statement. B. marketing plan. C. corporate identity. D. ethics statement. E. corporate logo.
C-All these describe the unique symbols, personalities, and philosophiesof Southwest Airlines. They also describe a compelling integratedmarketing strategy
In order for the marketer to achieve effective market segmentation, which of the following conditions must exist? A. Consumers' needs for the product must be homogeneous. B. The segments must be small enough to manage effectively. C. The segment must have enough profit potential to justify the development of a separate marketing mix for the segment. D. It must be possible to do a regression analysis on potential segments. E. The firm must be able to sell effectively to the chosen segment with a specificsales price.
C-At least one segment must have enough profit potential to justify developingand maintaining a special marketing mix for it
Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and A. middle majority. B . late adopters. C. innovators. D. middle adopters. E. non-adopters
C-First adopters of new products, followed by early adopters.
When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct ____ research. A. descriptive B. experimental C. exploratory D. analytical statistical E. conclusive
C-Research conducted to gather more information about a problem or to make atentative hypothesis more specific
The three most widely recognized types of consumer decision making are A. responsive behavior, planned behavior, and impulsive decision making. B. internal problem solving, external problem solving, situational behavior. C. limited problem solving, extended problem solving, and routinized response behavior. D. planned problem solving, impulse buying, and limited decision making. E. extended problem solving, enduring problem solving, and situational decision making
C-Routinized Response, Limited, & Extended Decision Making
Product testing for reliability and quality helps to ensure a consumer's right to___________ A. performance. B. be heard. C. choose. D. safety. E. be informed.
D- Product Reliability & Quality are major Safety Measures inConsumerism. The Right to Safety is its No.1 Major Social Concern.
Walmart's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers. A. strategic window B. organizational opportunity advantage C. market opportunity D. competitive advantage E. market requirement
D-Competitive Advantage: Using the company's competencies to outperformcompetitors in delivering the marketing mix in the marketplace
Which of the following statements about implementing an ethics and legal compliance program is false? A. It requires taking reasonable steps in response to violations of standards. B. It helps create a buffer zone on issues that could trigger serious legal complications for the company. C. It requires consistent enforcement of standards from the code of conduct. D. It rarely needs to be revised. E. It requires open communication.
D-Like strategic plans, Codes must be periodically evaluated andmodified where needed. The marketing environment is dynamic
Kroger is involved in identifying and analyzing a target market. The firm thendevelops a marketing mix to satisfy individuals in that market to gain long-termcompetitive advantages. Based on this example, Kroger is creating a____ A. Marketing Tactic. B. Corporate Strategy. C. Mix Strategy. D. Marketing Strategy. E. Target Design.
D-Marketing Strategy: A plan of action for identifying and analyzing a targetmarket and developing a marketing mix to meet the needs of that market
You have just been promoted to vice president of marketing for your firm. Unlikeyour predecessor, you believe the firm can increase its sales in a market byfocusing on more than one segment of the market. You recognize that doing someans your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating? A. An undifferentiated targeting strategy B. A broad-based targeting strategy C. A heterogeneous targeting strategy D. A differentiated targeting strategy E. A concentrated targeting strategy
D-This strategy targets at least Two Segments, which may incur AdditionalCosts, but has the Potential for Increased Sales. Differentiated Strategy Defined.
An organization's business goals should be derived from its A. strategic business plan. B. marketing strategy. C. marketing plan. D. mission statement. E. strategic plan.
D-mission statement is the long term combined objective
Which of the following is NOT a requirement or characteristic of a market? A. The need for a specific product in a specific product category B. The authority to buy a product C. The willingness to use buying power D. The ability to purchase a product E. A large number of people or organizations
E- The size of the community, group, or population is not a condition for a market to exist
Barney has to decide whether to travel to Chicago by train or airplane. Travelingby train would take longer, giving him potentially less time to spend in Chicago.However, traveling by air would be much more expensive. The train as a form of transportation is what type of competitor to air travel? A. Brand B. Product C. Monopolistic D. Total-budget E. Generic
E- different product, features, and price, but satisfies the same basic need transportation
The four major competitive structures are A. monopolies, limited competition, oligopolistic competition, and pure competition. B. monopolies, oligopolies, oligopolistic monopolies, and pure competition. C. brand, product, total budget, and generic. D. pure competition, heavy competition, moderate competition, and lightcompetition. E. oligopolies, monopolies, monopolistic competition, and pure competition.
E- self explanatory
Which of the following agencies regulates marketing activities the most? A. Environmental Protection Agency B. National Advertising Review Board C. Better Business Bureau D. Food and Drug Administration E. Federal Trade Commission
E- the FTC enforces federal consumer protection laws
In the strategic planning process, marketers conduct their SWOT analyses before developing corporate and business-unit strategies. A. True B. False
B- SWOT is an operational variable that derives from the overall corporate and business unit strategy
What percent of all civilian workers in the United States perform marketing activities? A. 50% B. 25 - 33% C. 51 - 75% D. 25 - 49% E. 100%
B- up to a 3rd of civilian workers in the United States
A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix. A. True B. False
B-A differentiated targeting strategy is when the organization targets twoor more markets by developing a separate marketing mix for eachsegment
An undifferentiated targeting strategy does not target a single market with one marketing mix.A. True B. False
B-An undifferentiated targeting strategy does target a single market withone marketing mix.
Crimson Hexagon is a marketing research company that markets primarily toconsumer products organizations. Crimson Hexagon provides products that are most likely considered A. component parts. B. business services. C. MRO supplies. D. process ideas. E. installations
B-Crimson Hexagon is a service provider
Alex is getting ready for her wedding. She is obsessed with buyingthe perfect wedding dress. Her involvement with the dress is an example of enduring involvement. A. True B. False
B-Enduring Involvement refers to an ongoing and long-term involvementwith a product or product category. This situation is a possible one-time purchase. The obsession (psychological) comes with the occasion
Marketers that attempt to influence and change the various environmental forces have a(n) ____ response to these forces. A. reactive B. proactive C. inactive D. radioactive E. counteractive
B-Firms that devote resources to environmental scanning, analyses, andstrategic planning are proactively trying to mitigate potential negativeimpact and seize opportunities in the marketplace at the same time
The main difference between marketing research and a marketing information system is that the MIS is an information-gathering process for specific situations whereas marketing research provides continuous data input. A. True B. False
B-MIS is a framework for managing and structuring information gathered regularlyfrom sources inside and outside the organization. Therefore, MIS, not Marketing Research relies on Continues Data Input. Marketing Research is more Project Based, for specific market inquiries
Indicate whether the statement is true or false. Once initiated, the consumer buying decision processalways leads to a purchase
B-The consumer may abandon the buying decision at any stage in thebuying decision-making process
For most firms in the United States, demand curves are A. C-shaped. B. downward sloping to the right. C. completely horizontal. D. upward sloping to the right. E. completely vertical.
B-These are standard demand curves whereby, the quantity demanded increasesas price decreases, and vice versa
Dunlop managers notice that when the number of tires the company sellsincreases from 1,000,000 to 1,000,001, total revenue rises $35. The $35represents the firm's A. price elasticity. B. average variable revenue. C. average total cost. D. average revenue. E. marginal revenue.
E- the increased revenue resulted from the 1 additional unit sold
Why would a company use the undifferentiated strategy? A. The undifferentiated strategy is expensive to implement but tends to produce the most sales. B. The market is made up of individuals or organizations with diverse need for products in a specific product class. C. The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. D. The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. E. The needs of individual consumers in the target market for a specific productare similar, so the organization can satisfy most customers with a singlemarketing mix
E-A homogeneous market does not require segmentation therefore, a singlemarketing mix can satisfy most customers.
Comcast uses a segmentation strategy for its cable TV packages basedon market characteristics such as age, gender, or income. Which of the following category of segmentation variables is Comcast using? A. Psychographic B. Behavioristic C. Geographic D. Product-related E. Demographic
E-Age, Gender, Income, + (Ethnicity, Occupation, Race, Education, etc.)are all Demographic Variables in Market Segmentation
A firm has conducted market research and found that customer satisfactionwith its product is quite high. Nonetheless, repurchase behavior is very low.The research design evidently has a problem with ___________ A. reporting findings. B. reliability. C. generalizability. D. secondary data. E. validity
E-Validity: A research method measures what it is supposed to measure. Thisresearch has clearly failed to identify the customer loyalty question