Marketing Midterm 1 questions

Sheryl works at Southwest Airlines as a digital marketer. A major part of her job is communicating with customers, answering questions and letting them know about how the airline offers them the best in customer value. Sheryl is working to create long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges with customers. This is an example of _______. a. customer loyalty programs b. a sales orientation c. customer lifetime value d. relationship marketing e. the marketing mix

d

Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called a. opportunities. b. threats. c. market strategies. d. market niches. e. strengths.

A

Personal trainers cannot complete their work without their clients present because of the ____ feature of services. a. inseparability b. perishability c. heterogeneity d. tangibility e. intangibility

A

The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is a. product development. b. business analysis. c. test marketing. d. commercialization. e. concept testing.

A

A specialty product a. is purchased frequently. b. requires purchase planning, and the buyer will usually not accept substitutes. c. requires minimal effort to purchase. d. is generally less expensive than other items in the same product class. e. prompts the purchaser to make comparisons among alternatives.

B

A target market a. ​involves a large number of customers. b. ​is a specific group of customers on whom an organization focuses its marketing efforts. c. is the same as a salesperson's prospective client list. d. ​is a customer group classified as people with similar demographic characteristics. e. already has several competitors vying for customers' business.

B

Companies that compete for the same limited financial resources of the same customers are known as ____ competitors. a. generic b. total budget c. brand d. product e. oligopolic

B

Demand-based pricing most closely relates to the ____ of services. a. inseparability b. perishability c. intangibility d. customer contact aspect e. heterogeneity

B

One disadvantage of test marketing a new product is that a. the results give little indication of the product's future success. b. competitors may copy the product. c. price, advertising, and packaging cannot be varied from market to market. d. it might fail before it can be commercialized. e. the product is distributed on a regional basis.

B

A product line is defined as a. products that are sold by the same firm or a division of a firm. b. products that an organization makes available to consumers. c. a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations. d. products that can be designated as a unique offering among the organization's products. e. a specific group of products that are offered to the market.

C

A representative product taken from a lot or batch, evaluated, and purchased refers to a. trust. b. negotiated inspection. c. sampling. d. homogeneous selection. e. description.

C

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy. a. differentiated b. undifferentiated c. selective d. concentrated e. focused

D

In which stage of the product life cycle do profits begin to decrease? a. Decline b. Maturity c. Recovery d. Growth e. Introduction

D

Marketers primarily focus their environmental analysis on ____ competitors. a. generic b. primary c. regional d. brand e. product

D

Marketing environmental forces are often _______. a. interdependent b. controllable c. easy to predict d. non-influential e. stable

a

Which stakeholders are the focal point of all marketing activities? a. Customers b. Employees c. Suppliers d. Communities e. Regulators

a

Lumos Labs, the maker of brain-training app Lumosity, released advertisements that claimed its app was able to prevent Alzheimer's. The Federal Trade Commission fined Lumos Labs $2 million, saying that the company did not have the science to back up its ads. What type of marketing mix variable is involved in this situation? a. Pricing b. Promotion c. Distribution d. Product e. Exchange

b

Anthony works at a local electronics retailer. He has two customers in particular that he sees regularly. One customer, Mr. Johnson, comes in frequently asking about new deals. However, he rarely buys anything, and when he does buy something it is usually small. The other customer, Mr. Montoya, comes in a little less frequently. He does not purchase products all the time, but when he does the products are expensive. Anthony recognizes that Mr. Montoya is a more valuable customer over time than Mr. Johnson. He has therefore worked hard to develop a strong relationship with Mr. Montoya. What marketing method is Anthony most likely using to direct his actions? a. Customer feedback b. The marketing concept c. Customer lifetime value d. A customer loyalty program e. A sales orientation

c

Charlotte loves her mom's edible cookie dough recipe, and she assumes everyone else will too. She starts a cookie dough business. Charlotte views promotion, such as advertising and personal selling, as the most important activities needed to sell her product. She figures that consumers only have to learn about her product before becoming loyal and steadfast customers. What type of orientation does Charlotte seem to embrace? a. Production orientation b. Exchange orientation c. Sales orientation d. Promotion orientation e. Market orientation

c

Lime is using social media to ask consumers about the qualities they desire in an electric scooter. The firm hopes to develop a new type of electric scooter based on the feedback it receives. Which marketing mix variable is Lime addressing? a. Pricing b. Promotion c. Distribution d. Product e. Exchange

d

Which of the following sentences is true about a marketing exchange? a. An exchange only needs to provide a benefit to one party. b. Products in an exchange must be traded for money. c. An exchange will always take place if four conditions are met. d. It requires four conditions to take place. e. Seeing an advertisement is an example of an exchange.

d

Customers choose to go to Buffalo Wild Wings based upon the value they place on the total product—including the food, service, atmosphere of the restaurant, and more. The process consumers use to determine value is highly _______. a. scientific b. detailed c. narrow d. objective e. subjective

e

You are advising a local nonprofit on strategy. The nonprofit supports cancer research and relies entirely on donations. You recommend that the nonprofit engage in marketing activities. The executive director tells you that because it is a nonprofit that does not engage in selling activities and has a small budget, the nonprofit has no use for marketing. You disagree and explain that marketing is not just for for-profit organizations. You explain the different ways the nonprofit can engage in marketing without changing its practices or the mission. Which of the following marketing activities would be most feasible for this nonprofit? a. Engage in extensive marketing research to determine what its contributors want b. Purchase an advertisement in a state newspaper that is popular in the local community about the nonprofit c. Send out coupons for the organization's products in the local bulletin d. Get volunteers to sell T-shirts and other items at the nonprofit's major events e. Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event

e

A group of brands that a consumer views as alternatives for possible purchase is called a(n) a. consideration set. b. evaluative group. c. framing set. d. alternative set. e. awareness set.

A

An attitude is a. one's evaluation, feelings, and behavioral tendencies toward an object or idea. b. a competence in performing activities. c. a person's behavior caused by information and experience. d. a set of actions that a person in a particular position is supposed to perform. e. an internal trait that makes a person unique.

A

As far as prices are concerned, environmentalists believe prices should a. reflect the direct cost as well as the cost of air, water, and soil used. b. be based on the renewability of the resources used to make the product. c. be based on the cost of materials used to manufacture the product. d. be determined by the supply and demand of products in the marketplace. e. include a large tax to defray the costs of environmental compliance.

A

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications. a. functional b. formal c. aesthetic d. package e. quality

A

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation. a. lifestyle b. personality c. family life cycle d. social class e. psychographic

A

Selective exposure refers to a. targeting only certain parts of the total market. b. admitting only certain inputs into consciousness. c. remembering inputs that support personal feelings and beliefs and forgetting those that do not. d. the circumstances or conditions that exist when a consumer is making a purchase decision. e. the process of selecting, organizing, and interpreting information inputs to produce meaning.

B

The Boston Consulting Group's matrix is based on the a. idea that a firm's market share and market attractiveness are the important factors for a marketing strategy. b. philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy. c. assumption that a firm's actions have a profitable impact on marketing strategy. d. idea that a product's market growth rate and market attractiveness determine the marketing strategy. e. business position and market attractiveness of the firm.

B

To find a target market, a firm can use one of these targeting strategies. a. Socioeconomic strategy and the psychological strategy b. Undifferentiated strategy, the concentrated strategy, and the differentiated strategy c. Product differentiation strategy and the customer differentiation strategy d. Demographic strategy and the psychographic strategy e. Total market strategy and the undifferentiated strategy

B

Which type of business market tends to have the most complex buying procedures? a. Reseller b. Government c. Retailer d. Producer e. Institutional

B

​Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix. a. price b. distribution c. exchange d. product e. promotion

B

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike. a. price b. promotion c. product d. distribution e. good

C

During the search for products and evaluation of possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way. a. strategic b. vendor c. value d. cost e. profit

C

People for the Ethical Treatment of Animals (PETA) has demonstrated against the sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes most directly represents a ____ force for fur retailers. a. technological b. legal c. sociocultural d. self-regulatory e. political

C

Problem recognition occurs when a consumer a. is exposed to a television advertisement desired state and an actual condition. b. searches for information to resolve a problem. c. becomes aware that there is a difference between a desired state and an actual condition. d. recognizes a need and evaluates information to resolve a problem. e. evaluates her or his purchase.

C

Convenience products are a. items that require some purchase planning and for which the buyer often will not accept substitutes. b. frequently purchased items that are found in certain retail outlets. c. items that are expensive but are easy to purchase. d. relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. e. frequently purchased items for which buyers are willing to exert considerable effort.

D

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called a. co-ops. b. monopolies. c. reciprocity. d. partnerships. e. alliances.

D

Segmentation variables for consumer markets are usually grouped into four categories: a. demographic, geographic, religion, and income. b. geographic, demographic, psychographic, and attitudes. c. geopolitical, income, behavioristic, and psychographic. d. demographic, geographic, psychographic, and behavioristic. e. attitudes, lifestyles, behaviors, and gender.

D

The focal point of all marketing activities a. are profits. b. are sales. c. are products. d. are customers. e. is the marketing mix.

D

The most basic principles of marketing ethics are _____________ to encourage marketers to conform to society's expectations for conduct. a. economic responsibilities b. universally accepted behaviors c. included in the marketing code of ethics d. written as laws and regulations e. philanthropic responsibilities

D

The process of putting marketing strategies into action is called a. the marketing action plan. b. marketing action. c. marketing control. d. marketing implementation. e. marketing auditing.

D

What do environmentalists set as an objective for profitability? a. Companies should surpass the strictest environmental standards even if it negatively affects profitability. b. Profitability should not be a concern when addressing issues of environmental importance. c. Companies will never be profitable if they comply with environmental standards, so taxpayers must subsidize all production. d. Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace. e. Companies will be more profitable if they work hard to protect the environment because consumers will reward their efforts through loyalty.

D

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices. a. Service b. Generic c. Brand d. Product e. Price

D

​The first step in the strategic performance evaluation is to a. evaluate actual performance. b. ​take corrective action. c. compare actual performance and standards. d. establish performance standards. e. reduce the difference between actual and desired standards.

D

According to the text, a market is defined as a. a place to buy products. b. ​the buyers of the products that a company develops, promotes, prices, and distributes. c. the percentage of a group of customers that actually buys a specific product from a specific company. d. ​the specific group of customers on whom an organization focuses its marketing efforts. e. ​a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.

E

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications. a. operational b. quality c. feature d. functional e. aesthetic

E

Changing the hours of operation for a service business involves the ____ component of the marketing mix. a. product b. marketing concept c. price d. promotion e. distribution

E

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to a. make the quality of their services too tangible in the eyes of the customer. b. deliver on these promises and risk financial losses and the success of the company. c. make the appearance of their facilities consistent with their promises to customers. d. promise less than they can actually deliver and keep customers away. e. promise too much and cause customer expectations beyond what they can deliver.

E

Population density and city size are ____ variables used for market segmentation. a. environmental b. demographic c. geodemographic d. psychographic e. geographic

E

Which of the following is NOT a service product? a. Flight on Southwest Airlines b. Ariana Grande concert c. Dry cleaning of a suit d. Overnight stay at an Aloft Hotel e. Tennis racket

E

What is the first step for marketers in implementing the marketing concept? a. Engage in personal selling or advertising to promote products that customers desire b. Modify a communication system that allows information to be disseminated throughout the organization c. Establish an information system to discover customers' real needs d. Modify existing products to meet customer needs more effectively e. Develop a feedback system so customers can describe their thoughts about a product

c

During the holiday season, a Bluetooth speaker was in such high demand that it sold out quickly at a local Walmart. When Walmart tried to order more, it learned that the suppliers had so many orders to fill that it would not be able to fill Walmart's order for two weeks. What type of marketing mix variable does this problem involve? a. Pricing b. Promotion c. Exchange d. Product e. Distribution

e

Kroger decided to introduce a new product that appeals to Hispanic consumers. While the product is highly successful among Hispanic consumers, other ethnic groups seem to like the product as well. For this product, Hispanic consumers comprise Kroger's _______. a. marketing environment b. marketing mix c. community d. exchange e. target market

e

Subaru developed a new luxury car model, but, after performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Subaru had to make some changes in its marketing mix. Unfortunately, it made the mistake of launching its product right when a recession hit. As unemployment rose, sales of luxury products such as Subaru's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _______ force for Subaru, while the economic downturn is a(n) _______ factor. a. stable; unstable b. predictable; unpredictable c. uncontrollable; controllable d. unpredictable; predictable e. controllable; uncontrollable

e

The depth of a product mix is measured by the average number of a. convenience products as compared with the number of specialty products. b. different product lines offered by the company. c. different products offered in each product line. d. product features that the company offers. e. specialty products as compared with the number of convenience products.

C

Which of the following is the best example of a high-contact service? a. Newspaper delivery b. Dog training c. Plastic surgery d. Interior decorating e. Appliance repair

C

Samuel spent $500 on a new television set. How much of this price is likely to go toward marketing expenses? a. About $450 b. $500 c. About $250 d. Between $100 and $200 e. About $100

c

The essence of marketing is to develop satisfying _______ from which both customers and marketers benefit. a. target markets b. marketing mixes c. exchanges d. values e. environmental factors

c

Product-related ethical issues arise when marketers a. bribe salespeople to push one product over another. b. fail to disclose information to consumers about the risks associated with using a product. c. manufacture a product that is very similar to a competing product. d. provide consumers with inadequate information about how a product is priced. e. force channel intermediaries to behave in a specific manner.

B

The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as a. a monopoly. b. price sensitive. c. an oligopoly. d. monopolistic competition. e. opportunistic.

C

Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization? a. Marketing employee b. Vice president of marketing research c. Chief executive officer d. Product manager e. Marketing manager

C

Which of the following products would probably require extended decision making before a purchase? a. Products purchased as a result of social influences b. Products purchased frequently c. Expensive products d. Products that are purchased routinely e. Products to be purchased in the future

C

Within the buying center, ____ are technical personnel who develop product specifications and evaluate alternatives, while _____ actually choose the products. a. influencers; buyers b. deciders; buyers c. influencers; deciders d. gatekeepers; deciders e. users; buyers

C

The marketing concept is based upon the idea that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. During which orientation (time period) are marketers most likely to adopt the marketing concept? a. Promotion orientation b. Sales orientation c. Exchange orientation d. Production orientation e. Market orientation

e

Which of the following equations describes customer value? a. Customer value= income - price b. Customer value= customer costs - customer benefits c. Customer value= customer benefits - price d. Customer value= customer benefits - opportunity costs e. Customer value= customer benefits - customer costs

e

Which of the following is a major benefit of marketing? a. Marketing is the most important function of a business. b. Marketing prevents the sale of harmful products. c. Marketing activities are relatively low in cost. d. Marketing activities do not take up much time. e. Marketing knowledge enhances consumer awareness.

e