Marketing Practice Questions
Over the last decade, the rise of peer-to-peer platforms such as Airbnb and Uber represent a combination of which macroenvironmental forces?
Economic, Technological, and cultural
A marketing intermediary would most likely help a firm by __________
moving the firm's goods from production points to distribution centers
________ is best suited for descriptive research
a survey
Market segments that can be effectively reached and served are said to be
accessible
In regards to the three levels of product, _________ consists of the product features, design, quality level, brand name, and packaging
actual product
Which of the following is a commercial source of product information?
dealer web sites
During the _____ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years.
decline
During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years
decline
Which of the following is a social factor that influences consumer buying behavior?
family
Denta Clean's decision to add a whitening toothpaste to its current line of toothpaste is an example of product line ________
filling
Monfax Corporation insures manufacturers, distributors, and consumers against the loss or damage of goods during transportation after a purchase or sale. In this case, Monfax is an example of a
financial intermediary
Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?
find new market segments for the brand
Reseller markets consist of
firms that buy goods and services for further processing
Which of the following is most likely categorized as a business market?
firms that buy goods and services for further processing
Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the US, such as midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to _______-
geographic location
Which of the following statements is most likely true about product life cycle?
growht is a period of rapid market acceptance and increasing profits
In the _____ stage, a firm most likely faces a trade-off between high market share and high current profit
growth
Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the product life cycle
maturity
In the _________ stage, a firm most likely faces a trade-off between high market share and high current profit
growth
A strategy for company growth that involves increasing sales to current market segments without changing the product is known as __________
market penetration
Under Armour increasing its advertising spending and offering an ever-increasing range of styles and colors in its original apparel line is an example of a __________ strategy
market penetration
Dividing a market into several sections of customers is known as ________
market segmentation
_______ is the proccess of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior
market segmentation
Which of the following statements is most likely true about unsought products?
marketers use aggressive advertising to convince consumers to buy unsought products
When the product is in the ____________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition
maturity
When the size, purchasing power, and profiles of a marekt segment can be determined, the market segment is said to be ________
measurable
The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as
micromarketing
____________ consists of inviting 6 to 10 people to talk about a product, service, or organization. A trained moderator is involved in the discussion.
moderated focus groups
Appliances Galore is continually updating its line of refrigerators to reflect market trends and customer needs. Although the product class is in maturity stage of the product life cycle, they maintain healthy sales of their line of refrigerators by continually ______
modifying the product
Appliances Galore is continually updating its line of refrigerators to reflect market trends and customer needs. Although the product class is in the maturity stage of the product life cycle, they maintain healthy sales of their line of refrigerators by continually ________
modifying the product
Marketing the same product to a huge customer base without any customization is referred to as ________
mass marketing
which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices?
more-for-less
Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the hgih prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a ___________ value proposition.
more-for-more
Using a ___________ positioning strategy, companies can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price.
more-for-the-same
A baby boomer decides to purchase a BMW to impress others with her success. This illustrates the importance of understanding the role of __________ in the marketing process
motive
Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ______
multiple segmentation bases
Fargo Inc. has carbonated beverage manufacturer that has many manufacturing plants around the world. It is planning to shift from using thermal power to wind power for its manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of energy. This scenario depicts Fargo's concern for its __________ environment.
natural
A category of ethnographic research used to observe consumers in a natural context in virtual and mobile spaces is referred to as ______
netnography
Annie Carson, the owner of Annie's Dairy Bar, is considering opening a second location. She evaluates several potential sites by assessing traffic patterns, neighborhood conditions, and the locations of competitors. Annie is engaging in ________
observational research
In a SWOT analysis, which of the following would be considered a weakness of a company?
obsolete technologies used by the company
Which of the following is true of question formats in questionnaires?
open-ended questions are useful in exploratory research to find out what people think
___________- are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others
opinion leaders
General Motors is looking to take advantage of the rise in self-driving technology and begin training their employees with knowledge to service these vehicles in the future. In a SWOT analysis, what does this strategy refer to?
opportunities
_________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
perception
The most effective sources of information about a product tend to be _______-
personal
_______ refers to the unique psychological characteristics that distinguish a person or group
personality
In a marketer's macroenvironment, the _________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society
political
Simone bought two bottles of wine from two vineyards in Bordeaux. When asked for an opinion on the quality of the wines, she later mentioned that the Pontet Canet tasted like alcoholic grape juice, but the Chateau Margaux had a crisp taste that she really enjoyed. Which of the following stages of the buyer decision process do Simone's remarks reflect?
postpurchase behavior
Eastline, a manufacturer of outdoor patio furniture, positions its products as superior in weatherproofing and durability. This is an example of ___________ differentiation.
prodcut
the ________ concept holds that consumers will favor goods and services that offer the most in quality, performance, and innovative features.
product
Under Armour's decision to add athletic shoes to its apparel line in 2006 is an example of a ____________ strategy
product development
Bose promises "better sounds through research." This is an example of _______
product differentiation
henry ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This most likely reflects the ___________.
production concept
______ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristivs
psychographic
The most common research instrument, whether administered in person, by phone, by email, or online is the
questionnaire
What are the two main types of research instruments used to collect primary data?
questionnaires and mechanical devices
JJ Distributors LTD. buys electronic products from manufacturers for wholesale and sells them to various retail outlets. To which of the following markets does JJ Distributors LTD directly cater?
reseller markets
Which of the following is true of the growth stage of the product life cycle
sales start climbing quickly
Which positioning strategy offers a value for consumers by providing the same brands as competitors at a lower price?
same-for-less
Sally purchased a newly introduced moisturizing lotion. By attempting to find out if the lotion's perceived performance matched her expectations, Sally was measuring her level of customer __________.
satisfaction
Information collected from commercial online databases or through internet search engines are examples of ______ data
secondary
Flipping through the channels on TV, most commercials are quickly forgotten because of
selective attention
Derek believes that Nike has the longest lasting tennis shoes. He meets a professional tennis player who claims that Adidas has the longest lasting tennis shoes. Due to _______, he rejects the tennis player's claim and considers it to be a lie.
selective distortion
Fans of the Detroit Lions believe that the team will win a Super Bowl in the next five years. These fans can accurately remember radio hosts who have made the same claims. Interestingly, they can't remember any radio hosts who have said the opposite. Which perceptual process best explains this behavior?
selective retention
_______ means that consumers are likely to remember good points made about brands they favor and forget the good points made about competing brands.
selective retention
Service variability means that ______
service quality depends on when, where, and how they are provided
Major appliances, furniture, and clothing are typical examples of ________ products
shopping
Which of the following would not be considered part of a company's demographic environment?
shortages of raw materials
Hallmark's classic "When you care enough to send the very best" slogan appeals to which need category in Maslow's hierarchy?
social
According to conspicuous consumption, lavish or wasteful spending is thought by some consumers to enhance ______
social presitge
According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as ______________
stars
A ________ reflects the general esteem given to the different roles of a person by society
status
According to Maslow's hierarchy of needs, which of the following is most likely an esteem need?
status
There is no added benefit of eating with a silver spoon. The fact that they are used mainly when guests arrive show that they are an item whose main purpose is to show others the _____ of the owner
status
In SWOT analysis, __________ refer to internal capabilities that may help a company reach its objectives
strengths
Colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a ______
style
colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a _______
style
When a market segment is large or profitable enough to serve, it is termed ________-
substantial
America Honda purchases over $20 billion worth of auto parts and materials every year. _______ are key players in the company's success.
suppliers
Dollar general profitability appeals to families with more modest means. The retailer's approach is most likely referred to as ______.
target marketing
In the past, consumers would obtain information about products and services from television, newspapers and word-of-mouth. Nowadays, they are more likely to obtain informaiton from websites, social media, and virtual word-of-mouth. Which change in the macroenvironment does this example best represent?
technological
Which of the following is an example of a shopping product?
television
Which of the following is an example of a media public?
television station
Which of the following sources constitutes the internal database of a company?
the company's sales records
Which of the following concepts calls for sustainable marketing?
the societal marketing concept
Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as _________ marketing
undifferentiated
Which of the following is an approach where firms target a whole market based on common consumer needs?
undifferentiated marketing
Consumer products that the buyer either does not know about or knows about but does not normally consider buying are referred to as __________ products
unsought
Fads are characterized by their _______
unusually high sales and rapid decline
In a SWOT analysis, ___________ refer to internal limitations that may interfere with a company's ability to achieve its objectives
weaknesses
Specialty products are consumer products and services that customers generally buy _______
without making comparisons
________ offer a cheaper and more convenient method of accessing survey respondents in marketing research
Internet surveys
ToyBox is a toy manufacturer based in the UK. Which of the following indicates that the company is following a market penetration strategy?
It acquires toy rights for a popular cartoon character to boost its sales
Which of the following is true of competitive marketing intelligence?
It can be obtained from information that is available in the public domain
Which of the following is part of the microenvironment of a company's marketing environment?
Just-in-time inventory system used by the company when making purchase decisions
__________ is the art and science of choosing target markets and building profitable relationships with them
Marketing management
Which of the following is the most financially strapped generation in the post-recission era?
Millennial
A trained researcher sits with 6 to 10 people to talk about the efforts of a new charitable organization. The researcher is careful not to interfere too heavily in the conversation and interrupts only to ask questions and keep it focused. This is an example of:
Moderated focus groups
The societal marketing concept holds that __________
a company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment
Which of the following is most likely true of a product in the maturity stage of the product life cycle?
a slowdown occurs in sales growth
Ainsworth is a toy manufacturer based in Australia. Which of the following most likely indicates that Ainsworth is following a diversification strategy?
Ainsworth enters the U.S. market with a line of children's clothing
Sunglass hut offers minor repairs on any purchase of sunglasses over $300 for an extra $19.99 at the time of purchase. What level of product does this represent?
Augmented product
After Bobby searches for affordable tickets to a Detroit Tigers game, he starts to see ads for the Detroit Tigers when visiting another website. This is known as:
Behavioral targeting
BlueBear is a shoe manufacturer based in the US. Which of the following indicates that the company is following a market development strategy?
BlueBear introduces its shoes in the Indian and South-East Asian markets.
When firms use symbols, colors, or characters to convey their personalities, they are using __________ differentiation
image
________ is the final step in the marketing research process
Collecting and analyzing the data
In the US, people aged 25 and younger are the least religious among the entire populations. Which macroenvironmental force best explains this phenomenon?
Cultural
More than ever, consumers are turning away from traditional religious practices and towards secondary values and belief systems as a direct result of ongoing changes in the ________ environment.
Cultural
Religious leaders sometimes criticize young peoples' overconsumption of social media. For example, they claim that information posted on networking sites is more influential than the bible. Which change in the macroevnironment does this example most likely represent?
Cultural
In most marketing research projects, what type of research is conducted first?
exploratory
Which of the following is the first stage of the buyer decision process?
need recognition
Which of the following is true about the introduction stage of a new product
sales growth tends to be slow
Abel now has the buying power to purchase the computer that he wanted to buy six months ago. Abel's want has most likely become a ___________
Demand
An MBA student is asked to gather preliminary information about interest in a new service being offered in Detroit. After, the student is tasked with describing the market potential for the service, such as the attitudes of potential customers. Which types of marketing research is the student conducting?
Exploratory and descriptive
Based on a product's lifecycle, _________ tend to grow slowly, remain popular for a while, then decline slowly.
Fashions
Which generational group is characterized as the most educated and the least materialistic?
Generation X
Which of the following statements is most likely true about the product life cycle?
Growth is a period of rapid market acceptance and increasing profits
Which of the following statements regarding marketing intelligence is true?
Marketing intelligence is the systematic collection, monitoring, and analysis of publicly available information
Company and brand positioning should be summed up in a ______
Positioning statement
________ data consist of information collected for the specific purpose at hand.
Primary
Within online tracking and targeting, ______ mines individual online social connections and conversations from social networking sites.
Social Targeting
Based on a product's lifecycle, a _____________ has a cycle showing several periods of renewed interest
Style
________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, and preferences, and buying behavior.
Survey research
Which of the following is most likely a true statement about baby boomers?
They are the wealthiest generation in US history
Which of the following is true of perceptual positioning maps?
They are used to analyze consumer perceptions of a brand relative to competing products or brands
Which of the following is most likely true about companies that take a proactive stance toward the marketing environment?
They develop strategies to change the marketing environment
P&G "Tide Loads of Hope" program provides mobile laundromats and loads of clean laundry to families in disaster-stricken areas. This is an example of ________ marketing.
cause-related
dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called _________ segmentation
behavioral
a practice called ________ allows marketers to use online data to target ads and offers to specific customers
behavioral targeting
The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as _______ segmentation.
benefit
Which of the following is part of the actual product for a pair of sunglasses?
brand name
Dextora Technologies manufactures microprocessors and caters exclusively to private manufacturers that produce high-end computers. Which type of market does Dextora directly target?
business market
Vernon Inc would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of _______ research.
causal
Ursa Martin, a book publisher, has decided to work with Hope in Children, a charity foundation that helps feed and educate children in poor countries. Ursa MArtin has decided that a percentage of revenue from every book it sells will go to the charity. The books are marketed by conveying this message to customers. Which of the following marketing techniques describes Ursa Martin's association with Hope in Children?
cause-related marketing
Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?
change the packaging of the toy
A consumer advocacy group challenges a firm's decision to build a new warehouse in a small community. The advocacy group is an example of a ____________ public.
citizen-action
Which of the following sources of product information can marketers control completely?
commercial
Hammond corp. operates in the highly aggressive electronics market. The firm aims to obtain early warnings of opportunities and threats caused by the actions of other firms that are doing well in the industry. Which of the following sources would best serve Hammond's purpose?
competitive marketing intelligence
After Rebecca saw that her neighbors bought a Rolls Royce, she upgraded her car to a Bentley. What behavior best explains Rebecca's actions
conspicuous consumption
Consumers acquire products that are status symbols because they are primarily engaging in:
conspicuous consumption
The "I am rich" app was an app distributed on iOS and cost $999.99. The app did not have any practical utility; it just showed a red ruby that displayed a message when pressed. What phenomenon best explains this behavior?
conspicuous consumption
A child in the US is exposed to many values including achievement and success, freedom, individualism, hard work, and material comfort. These are symbolic of American _______
culture
Brooke's Boutique plans to launch a new clothing line. For this purpose, the firm first conducts a survey to understand its target audience and identify the demographics of potential buyers. It then conducts experimental research to test whether customers associate discounted prices with lower product quality. Which types of research has the boutique employed in this case?
descriptive followed by casual
Coolers inc has decided to launch a new energy drink that will have the fewest calories among its competitors. To understand the market potential for the new drink and the demographics and attitudes of consumers who are likely to buy the product, Coolers should most likely use _______
descriptive research
Both product development strategies and diversification strategies involve _________
developing a new product
If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered _______ market segments
differentiable
Port orleans shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called _______ marketing
differentiated
A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets is called __________
diversification
Based on forces in the macroenvironment, __________ factors affect consumer purchasing power and spending
economic
Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect changes in the _______ environment of a company.
economic
A marketing firm has been assigned the task of watching trends in spending, personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers' _______
economic situations
A company that sells personal care products sends a trained observer to watch potential buyers in their natural environments. This is an example of ______ research.
ethnographic
Devon is in the market for a new car. She is seriously considering either a Honda Civic or a Toyota Corolla because they both have execellent quality and safety ratings and are comparable in price. Devon is in the ___________ stage of buyer decision process
evaluation of alternatives
A market researcher wants to find the cause-and-effect relationship between using organic ingredients in food and the subsequent consumption by customers. He invites ten respondents to his research firm and asks them to taste two identical dishes. The dishes were prepared in a similar manner, but one has natural herbs for flavoring, and the other has artificial flavors. This is an example of ______
experimental research
Burger Town introduced a new hamburger and released it in two different cities at two different prices. Marketers of burger town then analyzed the sales records of their outlets at the two cities, determined the price that resulted in better profits, and used the information to set a nationwide price for their new offering. This is an example of ________
experimental research
_________ are small groups of consumers who interact directly and informally with product designers without a moderator
immersion groups
Which type of market segmentation is generally used by marketers who sell luxury products targets to affluent segments of a population?
income
Marketing researchers engaging in _____, go to people's homes and ask them about their everyday purchases.
individual interviewing
At the extreme, micromarketing becomes ______ insofar as products and marketing programs are tailored to the needs and preferences of customers.
individual marketing
_______ are venturesome and try new ideas at some risk. They like to be the first to try a new product way before anyone else has.
innovator
A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic?
inseparability
What are the characteristics of a service?
inseparability, intangibility, perishability, variability
Unlike products, services cannot be seen, tasted, felt, heard, or smelled before purchase. This represents the ______ characteristics of services.
intangibility
Zappos recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through four weeks of customer loyalty training. This is referred to as _________ marketing
interactive
Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction is known as ________ marketing
internal
Data collected through online crowdsourcing platforms like Amazon's Mechanical Turk enable researchers to have access to thousands of respondents. ________ have become an efficient way of conducting online marketing research
internet surveys
Utopia 360 is a headset designed to work with your smartphone for simple yet striking augmented and virtual reality experiences. New to market, they are currently experiencing low sales, negative profits, and have only been able to sell their product for consumers that marketers would deem 'innovators.' Where in the product lifecycle is the Utopia 360?
introduction
Which of the following is true of survey research?
it is the most widely used method for gathering primary data
Jessica's friends would call her a 'traditionalist' as she often avoids acquiring new tech products for as long as possible. Jessica can be best described as a
lagging adopter
Consumers considered part of the 'family focused' group are further broken down into clusters such as 'cartoons and carpools' and 'kids and rent.' This information represents consumers'
life-cycle stage
Consumers considered part of the 'mature wealth' group are further broken down into clusters such as 'established elite' and 'corporate clout.' This information represents consumers'
life-cycle stage
Consumers considered part of the 'transition time' group are further broken down into clusters such as 'outward bound' and 'trucking' and 'styling.' This information represents consumers'
life-cycle stage
______ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores
local
In a SWOT analysis, which of the following would more likely be considered a weakness of a company?
low employee productivity due to a low number of vacation days
In the BCG growth-share matrix, question marks refer to products or businesses with a ___________.
low market share in a market with high growth prospects
Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization
marcoenvironment
The two dimensions the BCG approach uses to evaluate and manage SBUs are ________________
market growth rate and relative market share