MKTG330 Test Questions

Segmentation based on where prospective consumers live, work, and spend their leisure time is referred to as

geographic segmentation.

In order to identify its positioning strategy, firms need to

get feedback from the target market.

Once a firm identifies a segment, the firm

must use data to determine whether it should be pursued.

What is the key to creating value?

providing consumers with benefits that meet their needs and wants

Ground Café plans to engage in marketing activities that will increase sales of its organic whole bean Columbian coffee by 5 percent and its organic ground Italian espresso by 10 percent by the end of the year. This is an example of a(n) ________ marketing objective.

specific

A marketing strategy objective that provides direction and guidance is considered

specific.

Which of the following represents the three basic strategies for targeting markets?

undifferentiated targeting, differentiated targeting, and niche marketing

A firm has decided to replace the hand-held computers that employees use to take orders. In this case, the role of an order-taking employee in the buying center is the

user.

How often should firms undertake the task of strategic planning?

on a continual basis as conditions change

Which of the following statements defines market segmentation bases?

characteristics of consumers that influence their buying behavior

Graduate school would be considered a product purchased using ________ problem solving because it requires ________-level involvement.

extended; high

When consumers seek information beyond their personal knowledge and experience to support them in their buying decision, they are engaging in an

external information search.

Which marketing strategy is most likely being employed by a firm that is seeking to expand its business in foreign markets?

market development

Which marketing strategy would a firm be using if it decided to begin selling its products in another market, for example, region, state, or country, for the first time?

market development

Which growth strategy is being used when McDonald's offers "value meals" to customers in which the customer can upsize their order?

market penetration

The Audi A6 is a luxury sports sedan known for its muscular design and exceptional performance. The Audi brand evokes a sense of accomplishment and recognition; Audi owners are sure to be associated with reliability, hard work, and goal-orientation. If Audi were to utilize the VALS framework to segment its market for the Audi A6, which psychographic segment should it target?

Achievers

Alex, a tax accountant, decided to buy a car after receiving a raise in salary. He researched his options online and sought the opinions of friends who had recently purchased cars. In the context of the consumer decision-making process, what must Alex do next?

Alex must evaluate alternatives and decide which car will suit him best.

All of the following are direct competitors for T-Mobile except

Apple

Which of the following explains how market segmentation plays a key role in an organization's success?

By identifying the various needs and wants of customers

Which of the following is not true regarding corporate social responsibility (CSR) programs?

CSR programs are the sole responsibility of the marketing department.

Which of the following scenarios would most likely require an extensive external search for information?

Dustin and Janelle are looking to buy their first home.

The XYZ Company is concerned that they are losing their competitive advantage to the ABC Company. XYZ has decided to focus on the locational excellence element by producing high-quality widgets that provides value to customers and creating a work environment that is conflict-free for employees. Following this plan, they should be able to regain their competitive advantage through locational excellence in four to six months.

False

Which of the following statements is true about high-involvement purchases?

High-involvement products include more significant purchases that carry a greater risk to consumers if they fail.

How does evaluating product attributes help a firm highlight its competitive advantage?

It helps the firm identify the attributes that place its product in a special category of value to the customer.

Pet Plus Value Inc. has developed a new objective that states, "To increase sales of dog food." What is wrong with this objective?

It lacks measurability.

________ are the relatively homogenous groups of consumers that result from the segmentation process.

Market segments

________ allows firms to improve how they manage their employees, supply chain, and/or manufacturing processes to maximize customer value and sustain competitive advantage.

Operational excellence

________ decisions relate to location, distribution, inventory management, and even where to put an item in a store.

Place

Which statement best differentiates the place and promotion elements of the marketing mix?

Place includes the activities a firm undertakes to make its product available to potential customers; promotion refers to all the activities that communicate the value of a product and persuade customers to buy it.

________ is a strategy that focuses on providing high-quality and value-adding items for customers.

Product excellence

At which step in the marketing positioning process would a firm develop a perceptual map?

Step 1: Analyze Competitor's Positions

Which of the following statements about the dependent variable is true?

The dependent variable is the one being tested and measured.

A customer can walk into a McDonald's in India and order a vegetarian sandwich called the McPaneer Royale. This item, unique to this market, was created to appeal to India's largely vegetarian market and is a good example of the effects of globalization.

True

A marketing strategy that involves creating new goods and services for existing markets is a product development strategy.

True

One of the easiest ways for marketers to engage in sustainable marketing is to seek ways to cut costs using sustainable practices as a guideline.

True

In which case would the use of primary data be the most helpful?

Value City wants to determine if its price cuts on store-branded products have had an effect on what products customers decide to buy.

A recent survey conducted by U.S. News and World Report on the best overall hybrid car, ranked the Ford Fusion Hybrid as the best hybrid car for the money. For Ford, this represents

a competitive advantage.

A membership reference group is defined as

a group to which a consumer actually belongs.

In marketing terms, what is a person looking to satisfy if he or she feels deprived of basic necessities such as food, clothing, shelter, transportation or safety?

a need

Sal has heard a lot about his town's country club. He heard it has a great golf course, tennis courts and dining room. In addition, many of Sal's business partners belong to the club. Although he doesn't have the money to join the club now, Sal hopes to be able to in the future. What type of reference group would the country club be for Sal?

an aspirational reference group

Corporate social responsibility refers to

an organization's obligation to maximize its positive impact and minimize its negative impact on society.

Needs are states of felt deprivation that

are a basic part of our human makeup.

A product possesses a ________ when it enjoys a superior position over competing products because consumers believe it has more value than other products in its category.

competitive advantage

One concern about using social media, like Twitter, to compile marketing research data is

consumer privacy.

Every year the high school hosts a faculty-staff basketball game to raise money for the American Heart Association. Along with a cash donation, the local Subway restaurant donates sandwiches that the high school can sell at the game to earn extra money for the charity. By doing so, Subway is engaged in

corporate philanthropy.

A firm that markets domestically does not need to worry about the government artificially controlling the value of its currency—something it must face when marketing globally. This is a phenomenon known as

currency manipulation.

A local diner holds a top spot for customer-centric food establishments in the area. Customers continuously boast about their positive experience dining in the establishment and employees always tell customers, "You are the reason we are successful; hope to see you again soon!" Given this information, the local diner is most likely employing which element of excellence?

customer

Phineas lost his sunglasses in the ocean and did not have an extra pair on him. He remembered seeing an Ocean Bound kiosk right near the food stands on the beach, so he headed over there to purchase himself a new pair. Ocean Bound was able to satisfy a consumer need through effective application of which geographic segmentation variable?

customer convenience

The perceived benefits, both monetary and nonmonetary, that customers receive from a product compared to the cost associated with obtaining it is referred to as

customer value.

A global marketing strategy consciously addresses

customers, markets, and competition throughout the world.

A retailer inflated the price of its leather jackets so that when it put the jackets on sale, it appeared to customers that they were getting a better deal than they really were. This is an example of which social criticism of marketing?

deceptive pricing

Which of the following lists comprise the four broad bases of market segmentation?

demographic, geographic, psychographic, behavioral

A company that sells beef sandwiches across the country makes the sandwich with green chilies and jalapenos in the Southwestern states but makes it with green peppers in the Northeastern states. This is an example of a(n) ________ targeting strategy.

differentiated

Rico's firm manufactures homemade salsa. His product is sold around the country, but he adds extra jalapenos to his product sold in Texas, New Mexico, and Arizona because those customers prefer the extra heat and spice. Rico also markets the product differently based on the region of the country where it is sold. This represents what type of targeting strategy?

differentiated

A fitness gear shop that typically sells workout clothes and running shoes has begun selling cell phone and tablet cases in the attempt to capitalize on its visual brand. This strategy exemplifies

diversification.

Amazon.com started out as a bookseller; it now sells a range of products from apparel to furniture to food, as well as offers live-stream video through its Amazon Prime service. Amazon's decision to move beyond books correlates with which type of marketing growth strategy?

diversification.

Better Bags sells fashionable, all-purpose bags of various sizes made from recycled materials such as paper, cork, and plastic. After analyzing the accessories market in town and noticing that no other shop sells fashionable, environmentally friendly bags, it decided to move its operation from online only to its own shop on Main Street, right next to a supermarket that continues to use plastic bags (though it does sell reusable grocery bags for 99 cents each). Most shoppers who go into the supermarket are commuters who usually go in the evening and walk out with few enough items to fit inside their brief cases or purses, though some will walk out holding overflow items in their hands. However, the shoppers want to carry as little as possible on their walk or bus rides home. The shop did well during its first six months, especially among

environmentally conscious young professionals who rely on public transportation to get around.

In his job interview, Fenton was asked about his GPA, his leadership experience, skill sets, and his work experience. These questions were asked by the employer to compare Fenton to the other applicants and are referred to as

evaluative criteria.

Consumer tastes for everything change from time to time, which is why it is important to constantly evaluate customer ________ when deciding how to best position a product.

feedback

The ________ is one of the world's largest, spending billions of dollars a year. Adherence to certain policies, procedures, and documentation obligations is especially critical when working with this market.

government market

To increase the likelihood that consumers will make a purchase, firms must not only emphasize the specific benefits of their good or service, but also how those benefits are ________ to the consumer.

important

A firm using a market penetration strategy is trying to accomplish which of the following?

increase market share among existing customers

Ethical standards are important to the marketing research industry because they help gain the trust of consumers. Without that trust,

individuals will be less willing to participate in research.

Marketers must realize that the consumer is unlikely to engage in any of the subsequent steps of the buying process if he or she

is not aware of a problem or does not recognize a need.

Fields & Greens is a farm-to-table restaurant that boasts great food and a unique atmosphere. When you walk into the restaurant, you're immediately struck by the light streaming through the floor-to-ceiling windows, the open floor plan punctuated by picnic-style tables of various sizes, and the soundtrack of birds singing and brooks babbling. Fields & Greens' marketers wanted to bring the outdoors in with the hopes of appealing to nature lovers and outdoor recreationalists. What psychographic variable is Fields & Greens applying in this case?

lifestyle

Stores such as Bass Pro Shops focus their attention on consumers who like to fish, hunt, and pursue other outdoor activities. This represents the form of segmentation called ________ segmentation.

lifestyle

Faye is an advocate for a greener environment and makes it a point to lead an eco-friendly existence. Talon, a car manufacturer, launches a hybrid car that uses fuel more efficiently and cuts down on carbon emissions by 60 percent. Its marketing campaign depicts its car, replete with environment-friendly features, cruising through the countryside. Of the personal factors that influence the consumer decision-making process, Talon's marketing campaign is most likely to appeal to Faye's

lifestyle.

It has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cupcakes. So, rather than open a bakery that offers a wide variety of baked goods, Shelly has decided to open a specialty cupcake shop to cater to that market only. This is an example of

market segmentation.

The combination of activities that represent everything a firm can do to influence demand for its good, service, or idea is called the

marketing mix.

A firm's ________ is the set of marketing actions taken to accomplish marketing objectives leading to higher profits, stronger brands, and larger market share.

marketing strategy.

Market segmentation involves dividing a larger market into smaller market segments based on

meaningfully shared characteristics.

The combination of activities that represent everything a firm can do to influence demand for its good, service or idea is referred to as the marketing

mix

This form of B2B e-marketing allow customers to access their accounts in real time, track their orders, and even message with their delivery drivers.

mobile applications

Marketers can classify business-to-business buying situations into three general categories

new buy, straight rebuy, and modified rebuy.

The Built-Rite mowing company has been selling its lawnmowers to retail outlets for years. The company has decided it wants to tap into new markets, so it is looking to sell its mowing tractors to county institutions for mowing grass along public highways. If the county institutions purchase the Built-Rite mowers, it would be an example of a(n)

new buy.

Michaels is an arts and crafts shop that sells everything from paint to silk flowers. If Michaels were to pursue a diversification growth strategy, which of the following actions would most align with this strategy?

open a Michaels café

Wants are the form that human needs take and are shaped by

personality, family, and previous experiences.

In ethical decision making, what element of the marketing mix is affected when a firm is deciding whether or not to outsource jobs to other members of the supply chain?

place

Directly related to the value consumers place on a product, the element of ________ is one of the most important strategic decisions a firm faces.

price

One way that companies can capture value from customers is through

price

The first step in the consumer decision-making process is

problem recognition.

The most visible form of excellence that emphasizes high-quality and value-adding products or services is known as ________ excellence, whereas ________ excellence focuses on keeping the customer at the center of all marketing activities.

product; customer

As it relates to customers, the aim of marketing is to

provide customers with value.

Shibu has completed his review of different types of laptops and has decided on the model that best suits his graphic design needs. He prefers to pay off the laptop in installments, so he is talking with the sales representative about payment options, which is a common consideration during which stage of the consumer purchase decision process?

purchase

As a wholesaler, Charlie buys large amounts of meat products from various livestock farms around his county and redistributes them to different grocery stores and restaurant retailers in his town for profit. These retailers then sell the same products directly to the end user. In this scenario, Charlie, the supermarkets, and the restaurants exemplify

reseller markets.

Viktor ran out of laundry detergent, so he walked down to the corner store to purchase more. Even though he noticed that other brands were on sale, he ended up buying his usual, his go-to detergent. Viktor made a consumer purchase based on _____ problem solving.

routine

The variations of the consumer purchase decision process include

routine, limited, and extended problem solving.

Yuri is a new car owner and has invested in the best auto insurance to satisfy which of the following on Maslow's hierarchy of needs?

safety need

If a product is needed immediately, consumers are more likely to pay more for a product or service and spend less time evaluating choices. This is because consumers are looking to

save time.

Data that are collected for purposes other than for the goal of answering the specified research question is known as

secondary data.

Which market segment criterion refers to the fact that segments must be large enough for the firm to make a profit by serving them?

substantial

Once marketers at Levi's discovered that growing the cotton needed to make its jeans used a great deal of water, it joined the Better Cotton Initiative to teach farmers how to grow cotton with less water. This is an example of Levi's commitment to

sustainable marketing.

A market segment is measurable if

the size and purchasing power of the segment can be clearly identified.

By placing products in a more accessible location, marketers can often increase their profits on individual items while still providing value to their customers. Which situational and personal influence on consumer behavior are marketers considering in this case?

time

What is the purpose of market scanning?

to identify direct and indirect competitors

The decider in a buying center may choose the good or service to be purchased by the firm, but not do the actual purchasing. This is the role of the buyer, whose primary responsibility is

to submit the purchase to the salesperson in a formal transaction.