MARK 3336 EXAM 1

Which of the following is NOT an accurate description of modern marketing?
A) Marketing is the creation of value for customers.
B) Marketing involves managing profitable customer relationships.
C) Marketing emphasizes selling and advertising exclusively.
D) Marketing involves satisfying customers’ needs.
E) Marketing is building value-laden exchange relationships with customers.
Marketing emphasizes selling and advertising exclusively.
According to management guru Peter Drucker, “The aim of marketing is to ________.”
A) maximize profits of the company
B) emphasize customer wants and not customer needs
C) make selling unnecessary
D) fulfill unrealistic customer expectations
E) sell products
make selling unnecessary
________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.
A) Research
B) Innovation
C) Manufacturing
D) Marketing
E) Production
Marketing
According to the five-step model of the marketing process, which of the following is the final step in creating value for customers?
A) designing a customer-driven marketing strategy
B) understanding the marketplace and customer needs
C) constructing an integrated marketing program that delivers superior value
D) building profitable relationships and creating customer delight
E) capturing value from customers to create profit and customer equity
building profitable relationships and creating customer delight
According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.
A) determine how to deliver superior value to customers
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct an integrated marketing program
understand the marketplace and customer needs and wants
________ are human needs that are shaped by culture and individual personality.
A) Necessities
B) Wants
C) Demands
D) Values
E) Exchanges
Wants
When backed by buying power, wants become ________.
A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges
demands
A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.
A) market offering
B) value proposition
C) brand positioning
D) market segment
E) market mix
market offering
Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
A) vendor lock-in
B) social loafing
C) value proposition
D) marketing myopia
E) conspicuous consumption
marketing myopia
When marketers set low expectations for a market offering, they run the risk of ________.
A) disappointing loyal customers
B) having to use an outside-in rather than an inside-out perspective
C) failing to attract enough customers
D) failing to understand their customers’ needs
E) incorrectly identifying a target market
failing to attract enough customers
________ is the act of obtaining a desired object from someone by offering something in return.
A) Valuation
B) Exchange
C) Market offering
D) Confiscation
E) Donation
Exchange
A(n) ________ is the set of actual and potential buyers of a product.
A) market
B) control group
C) subsidiary
D) focus group
E) audience
market
Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities.
A) positioning
B) marketing
C) outsourcing
D) production
E) logistics
marketing
The art and science of choosing target markets and building profitable relationships with them is called ________.
A) marketing management
B) positioning
C) marketing mix
D) market offering
E) differentiation
marketing
Selecting which segments of a population to serve is called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) differentiation
target marketing
Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?
A) customer lock-in
B) a cartel
C) marketing mix
D) value proposition
E) market segmentation
value proposition
Which of the following customer questions is answered by a company’s value proposition?
A) “Why should I buy your brand rather than a competitor’s?”
B) “What is your company’s estimated customer equity?”
C) “What are the costs involved in the production of your brand?”
D) “What is the budget allocated by your company for research and development?”
E) “What is the financial stability of your company?”
“Why should I buy your brand rather than a competitor’s?”
Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?
A) production concept
B) product concept
C) selling concept
D) marketing concept
E) societal marketing concept
production concept
Which of the following marketing management concepts is most likely to lead to marketing myopia?
A) customer-driven marketing concept
B) customer-driving marketing concept
C) societal marketing concept
D) marketing concept
E) product concept
product concept
Which of the following statements is true of the production concept?
A) It considers customer focus and value to be the paths to sales and profits.
B) It follows the customer-centered sense-and-respond philosophy.
C) It takes an outside-in perspective.
D) It calls for sustainable marketing.
E) It leads to companies focusing too narrowly on their own operations.
It leads to companies focusing too narrowly on their own operations.
The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features.
A) product
B) production
C) societal marketing
D) marketing
E) selling
product
Which of the following is the aim of the product concept?
A) improve the marketing of a firm’s best products
B) market only those products with high customer appeal
C) focus on the target market and make products that meet those customers’ demands
D) focus on making continuous product improvements
E) ensure that product promotion has the highest priority
focus on making continuous product improvements
Which of the following statements is true of the selling concept?
A) It requires minimum promotion efforts.
B) It creates long-term, profitable customer relationships.
C) It takes an outside-in perspective.
D) It is typically practiced with unsought goods.
E) It follows the customer-centered sense-and-respond philosophy.
It is typically practiced with unsought goods.
Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships?
A) the marketing concept
B) the production concept
C) the product concept
D) the selling concept
E) the societal marketing concept
the selling concept
Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?
A) the product concept
B) the production concept
C) the selling concept
D) the marketing concept
E) the societal marketing concept
the marketing concept
Which of the following follows a customer-centered “sense-and-respond” philosophy rather than a product-centered “make-and-sell” philosophy?
A) market segmentation
B) the production concept
C) the marketing concept
D) the inside-out perspective
E) marketing myopia
the marketing concept
A firm that uses the selling concept takes a(n) ________ approach.
A) outside-in
B) niche marketing
C) inside-out
D) societal marketing
E) customer-driven
inside-out
The marketing concept that starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers takes a(n) ________.
A) outside-in perspective
B) product-centered make-and-sell philosophy
C) inside-out perspective
D) consumer-generated marketing approach
E) telling-and-selling approach
outside-in perspective
The selling concept is typically practiced ________.
A) to balance consumers’ wants, company’s requirements, and the society’s long-run interests
B) with products that offer the most in terms of quality, performance, and innovative features
C) when the company focuses on building long-term customer relationships
D) with goods that buyers normally do not think of buying
E) by customer-driven companies
with goods that buyers normally do not think of buying
Which of the following is a characteristic of customer-driven marketing?
A) Companies understand customer needs even better than customers themselves do.
B) Customers are unaware of their needs.
C) Products are created that meet both existing and latent needs, now and in the future.
D) Customers know what they want.
E) Customers don’t know what is possible.
Customers know what they want.
An organization that understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future needs is said to practice ________ marketing.
A) customer-driven
B) customer-driving
C) affinity
D) societal
E) ambush
customer-driving
When customers don’t know what they want or don’t even know what’s possible, the most effective marketing strategy is ________ marketing.
A) customer-driven
B) customer-driving
C) societal
D) ambush
E) affinity
customer-driving
The societal marketing concept seeks to establish a balance between ________.
A) customer lifetime value and customer equity
B) an inside-out perspective and an outside-in perspective
C) consumer short-run wants and consumer long-run welfare
D) marketing mixes and market offerings
E) customer-driven marketing and customer-driving marketing
consumer short-run wants and consumer long-run welfare
________ refers to socially and environmentally responsible marketing that meets the needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
A) Ambush marketing
B) Evangelism marketing
C) Sustainable marketing
D) Database marketing
E) Affinity marketing
Sustainable marketing
The set of marketing tools a firm uses to implement its marketing strategy is called the ________.
A) promotion mix
B) product mix
C) marketing mix
D) market offering
E) marketing effort
marketing mix
Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.
A) customer lifetime value
B) customer-perceived value
C) customer relationship management
D) partner relationship management
E) customer equity
customer relationship management
Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty?
A) customer divestment
B) customer-managed relationships
C) the societal marketing concept
D) partner relationship management
E) customer relationship management
customer relationship management
________ is determined by a customer’s evaluation of the benefits and costs of a market offering relative to those of competing offers.
A) Customer-perceived value
B) Customer lifetime value
C) Share of customer
D) Customer-managed relationship
E) Brand value proposition
Customer-perceived value
It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.
A) objective value
B) perceived value
C) customer lifetime value
D) company image
E) society’s interests
perceived value
The primary key to delivering customer satisfaction is to match product performance with ________.
A) the competitor products’ performance
B) competitive prices
C) aggressive advertising
D) limited customer services
E) customer expectations
customer expectations
Which of the following terms refer to customers who make repeat purchases and tell others about their positive experiences with a product or service?
A) barnacles
B) customer evangelists
C) butterflies
D) surrogate customers
E) market mavens
customer evangelists
Which of the following strategies would a company most likely use to increase customer satisfaction?
A) decreasing the variety of offered services
B) divesting
C) lowering prices
D) “firing” unprofitable customers
E) limiting customer experiences with a brand
lowering prices
Hank is an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship with these customers would be the most profitable for him?
A) full partnerships
B) basic relationships
C) causal relationships
D) club marketing programs
E) inverse relationships
basic relationships
A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________.
A) a frequency marketing program
B) a basic relationship
C) a club marketing program
D) partner relationship management
E) sustainable marketing
a frequency marketing program
The marketing world is most likely embracing ________ because consumers wield greater power nowadays with a wealth of platforms for airing and sharing their brand views with other consumers.
A) partner relationship management
B) supply chain management
C) customer-managed relationships
D) market segmentation
E) consumer ethnocentrism
customer-managed relationships
Greater consumer control means that companies can no longer rely on ________.
A) promoting brand-consumer interaction
B) marketing by intrusion
C) creating market offerings and messages that involve consumers
D) developing marketing concepts with an outside-in perspective
E) marketing by attraction
marketing by intrusion
Through ________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services.
A) supply chain management
B) direct marketing
C) customer relationship marketing
D) customized marketing
E) inventory management
supply chain management
The final step in the marketing process is ________.
A) capturing value from customers
B) creating customer delight
C) creating customer lifetime value
D) understanding the marketplace
E) designing a customer-driven marketing strategy
capturing value from customers
“Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage.” The above statement specifically indicates loss in terms of ________.
A) customer-perceived value
B) marketing offerings
C) partner relationship management
D) customer lifetime value
E) value proposition
customer lifetime value
The portion of the customer’s purchasing that a company gets in its product categories is known as ________.
A) customer-perceived value
B) share of customer
C) customer insight
D) consumption function
E) induced consumption
share of customer
Apart from retaining good customers, most marketers want to constantly increase their “share of customer.” What does this mean in marketing terms?
A) Marketers want to increase their market share.
B) Marketers want to increase the share they get of the customer’s purchasing in their product categories.
C) Marketers want to diversify their operations and customize their products to cater to the entire market.
D) Marketers want to continuously increase their customers’ levels of satisfaction.
E) Marketers want to turn satisfied customers into delighted customers.
Marketers want to increase the share they get of the customer’s purchasing in their product categories.
________ is one of the best ways to increase share of customer.
A) Targeting new customers
B) Using bait and switch
C) Cross-selling
D) Divesting
E) Partnership marketing
Cross-selling
Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith targeting to increase?
A) shared value
B) share of customer
C) social responsibility
D) customer-generated marketing
E) customer loyalty
share of customer
Which of the following refers to the total combined customer lifetime value of all of the company’s current and potential customers?
A) share of customer
B) marketing mix
C) customer equity
D) target market
E) customer-perceived value
customer equity
In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________.
A) true friend
B) butterfly
C) stranger
D) barnacle
E) market maven
butterfly
Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?
A) barnacles
B) strangers
C) butterflies
D) true friends
E) cash cows
true friends
A financial services firm has several loyal customers who conduct business with them exclusively. However, the company has noticed that this customer group is the least profitable for the company, and in some cases, it increases their losses when engaging in business with this group. Which of the following customer groups is being referred to in this scenario?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) cash cows
barnacles
Following the change in consumer values and consumption patterns after the Great Recession, marketers have changed their marketing strategies to emphasize the ________ of their products.
A) image
B) value
C) durability
D) safety
E) uniqueness
value
Which of the following statements is true about the recession that began in 2008?
A) The economic crisis caused a short-term change in consumers’ spending habits.
B) The average home value increased after the stock market plunge.
C) Decreasing energy prices provided consumers with unexpected savings.
D) Consumers brought spending more in line with their incomes.
E) Consumers quickly regained confidence in the economy.
Consumers brought spending more in line with their incomes.
Which of the following statements about the Internet is most accurate?
A) Companies are relying less on the Internet to build relationships with customers and marketing partners.
B) After the dot-com meltdown of 2000, fewer consumers are using the Internet to buy products and services.
C) The Internet makes it easy for consumers to view, respond to, and create marketing content.
D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining.
E) The digital shift means that marketers can always control conversations about their brands.
The Internet makes it easy for consumers to view, respond to, and create marketing content.
Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use.
A) club marketing programs
B) social marketing campaigns
C) consumer-generated marketing campaigns
D) ambush marketing campaigns
E) frequency marketing programs
social marketing campaigns
As part of the rapid globalization of today’s economy, companies are selling more domestically produced goods in international markets and ________.
A) taking a local view of their industry
B) purchasing more supplies abroad
C) reducing competition within their industry
D) downplaying concerns for social responsibility
E) competing solely in traditional marketplaces
purchasing more supplies abroad
Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg’s want now has become a(n) ________.
A) need
B) necessity
C) demand
D) exchange
E) transaction
demand
Cathy’s Clothes is a small yet successful retail chain that sells women’s clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.
A) ambush marketing
B) social marketing
C) societal marketing
D) target marketing
E) cause marketing
target marketing
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 ________.
A) marketing mixes
B) market segments
C) value propositions
D) market offerings
E) marketing intermediaries
market segments
Jolene’s firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm’s services through her large-scale promotional efforts. Jolene’s firm most likely practices the ________.
A) production concept
B) marketing concept
C) selling concept
D) product concept
E) societal marketing concept
selling concept
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.
A) product
B) production
C) selling
D) marketing
E) societal marketing
production
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.
A) product
B) production
C) selling
D) marketing
E) societal marketing
product
Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.
A) marketing concept
B) product concept
C) production concept
D) societal marketing concept
E) selling concept
societal marketing concept
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________.
A) brand loyalty
B) customer equity
C) customer-perceived value
D) customer lifetime value
E) a societal marketing campaign
customer-perceived value
Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________.
A) share of customer
B) customer satisfaction
C) customer equity
D) customer-perceived value
E) customer lifetime value
customer satisfaction
A gym equipment manufacturer encourages customers to become members of the firm’s Web site. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of ________.
A) a frequency marketing program
B) a basic customer relationship
C) a club marketing program
D) the selling concept
E) consumer-generated marketing
a club marketing program
Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization’s home page. Elisandra’s plan is an example of ________.
A) consumer-generated marketing
B) partner relationship management
C) customer lifetime value
D) community development around a brand
E) customer divestment
consumer-generated marketing
At Gina’s retail stores, the posted policy reads, “Without our customers, we don’t exist.” Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.
A) managing partner relationships
B) selling new products
C) attracting “butterflies”
D) converting “barnacles” to “strangers”
E) capturing customer lifetime value
capturing customer lifetime value
Kao Corp., a deodorant-manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.
A) societal marketing
B) the production concept
C) the selling concept
D) partner relationship management
E) consumer-generated marketing
consumer-generated marketing
Iceco Inc., an ice-cream manufacturing company, encourages all stakeholders, including the top management and employees at all levels in their stores, to consider individual and community welfare in their day-to-day decisions. This action undertaken by Iceco reflects ________.
A) environmentalism
B) social responsibility
C) the selling concept
D) partner relationship management
E) marketing myopia
social responsibility
A church targeting different demographic groups to increase attendance is an example of ________.
A) affinity marketing
B) not-for-profit marketing
C) societal marketing
D) evangelism marketing
E) affiliate marketing
not-for-profit marketing
Your state’s department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign.
A) ambush marketing
B) social marketing
C) inbound marketing
D) consumer-generated marketing
E) affiliate marketing
social marketing
Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
A) All customers will be delighted.
B) Customer-perceived value will increase.
C) All customers will directly turn into customer evangelists.
D) Not all customers will be satisfied.
E) Customers will not show interest in any other company’s products.
Not all customers will be satisfied.
Which of the following statements reflects the marketing concept?
A) focusing on making continuous product improvements
B) undertaking a large-scale selling and promotion effort
C) emphasizing an inside-out perspective
D) considering customer focus and value as the paths to sales and profits
E) focusing on a product-centered make-and-sell philosophy
considering customer focus and value as the paths to sales and profits
In which of the following situations has a company most actively embraced customer-managed relationships?
A) American Airlines awards frequent flyer points to returning customers.
B) Paige Premium Denim jeans provide a superior quality and a perfect fit.
C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company’s robotic vacuum cleaner.
D) Best Buy distinguishes between its best customers and its less profitable customers, stocking merchandise to appeal to each group.
E) Toyota develops a marketing presence on social networks and other online communities.
iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company’s robotic vacuum cleaner.
Which of the following statements is true about creating customer loyalty and retention?
A) Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.
B) Customer delight creates a rational preference and not an emotional relationship with the brand.
C) The aim of customer relationship management is to focus solely on customer delight.
D) Losing a customer hardly makes a difference to a company’s sales.
E) The aim of customer relationship management is to focus solely on customer satisfaction.
Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.
________ is the process of developing and maintaining a crucial fit between the organization’s goals and capabilities and its changing marketing opportunities.
A) Benchmarking
B) SWOT analysis
C) Market segmentation
D) Strategic planning
E) Diversification
Strategic planning
Which of the following is true with regard to strategic planning?
A) At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company.
B) A strategic plan deals with a company’s short-term goals.
C) Finding the game plan for long-run survival and growth is the focus of strategic planning.
D) The strategic plan is a statement of an organization’s purpose.
E) Strategic planning involves identifying segments of consumers with identical preferences.
Finding the game plan for long-run survival and growth is the focus of strategic planning.
Which of the following is the first step in strategic planning?
A) setting short-term goals
B) developing the business portfolio
C) defining the organizational mission
D) formulating the key marketing strategies
E) identifying the organization’s weaknesses and the threats it faces
defining the organizational mission
Which of the following is NOT a step in the strategic planning process?
A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating members of the company’s value chain
evaluating members of the company’s value chain
A ________ documents an organization’s purpose—what it wants to accomplish in the larger environment.
A) vision statement
B) mission statement
C) business portfolio
D) value proposition
E) product strategy
mission statement
Mission statements should ________ and be defined in terms of ________.
A) be technology oriented; meeting the self-actualization needs of customers
B) be product oriented; satisfying the esteem needs of customers
C) embody the company’s short-term plans; current opportunities
D) be market oriented; satisfying basic customer needs
E) address sales and profits; the net return on investments
be market oriented; satisfying basic customer needs
A mission statement serves as a ________.
A) statement of the organization’s net profits
B) plan for short-term sustainability
C) statement of the organization’s purpose
D) statement of the organization’s current liabilities
E) repatriation plan for the organization’s highly-skilled employees
statement of the organization’s purpose
Which of the following is NOT a market-oriented business definition?
A) “We empower customers to realize their dreams.”
B) “We make high-quality consumer food products.”
C) “We sell success and status.”
D) “We create the Hilton experience.”
E) “We bring innovation to every home.”
“We make high-quality consumer food products.”
Which of the following is NOT an example of product-oriented mission statements?
A) “We are an online library.”
B) “We run theme parks.”
C) “We sell athletic shoes.”
D) “We sell memorable experiences.”
E) “We rent hotel rooms.”
“We sell memorable experiences.”
Which of the following is a market-oriented mission statement?
A) “We empower customers to achieve their dreams.”
B) “We sell jumbo burgers.”
C) “We are an online library.”
D) “We are a low-cost airline.”
E) “We make porcelain figurines.”
“We empower customers to achieve their dreams.”
Mission statements should be ________.
A) meaningful and specific yet motivating
B) technology oriented
C) written solely for public relations purposes
D) focused on increasing sales or profits
E) strictly product oriented
meaningful and specific yet motivating
Companies that define their missions in terms of product or technology are considered myopic primarily because ________.
A) products and technologies result in low returns on investment
B) consumer preferences with regard to products and technologies are difficult to predict
C) consumer preferences for different product categories vary from time to time
D) products and technologies eventually become outdated
E) most consumers are not comfortable using sophisticated technologies during the buying process
products and technologies eventually become outdated
The collection of businesses and products that make up a company is called its ________.
A) strategic business unit
B) supply chain
C) strategic plan
D) business portfolio
E) internal value chain
business portfolio
Which of the following is the first step of business portfolio planning?
A) shaping the future portfolio by developing strategies for growth and downsizing
B) determining which businesses should receive more, less, or no investment
C) identifying internal strengths and weaknesses
D) identifying future opportunities
E) determining short-term goals
determining which businesses should receive more, less, or no investment
The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company.
A) SWOT analysis
B) benchmarking
C) business portfolio analysis
D) breakeven analysis
E) prospecting
business portfolio analysis
Which of the following best describes a strategic business unit (SBU)?
A) the internal value chain of a company
B) the supply chain of a company
C) the key businesses that make up a company
D) the key channel intermediaries of a service company
E) the key competitors of a company
the key businesses that make up a company
During portfolio analysis, a company ________ after identifying the key businesses that make up the company.
A) formulates a short-term marketing plan
B) assesses the attractiveness of its various SBUs
C) assesses its strengths and weaknesses
D) performs a SWOT analysis
E) assesses the effectiveness of its various channel intermediaries
assesses the attractiveness of its various SBUs
Most standard portfolio analysis methods evaluate SBUs on the ________.
A) potential for niche or global marketing
B) degree of product differentiation
C) strength of the market or industry position
D) accessibility to rural markets
E) number of successful business acquisitions
strength of the market or industry position
According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness.
A) product attribute
B) product design
C) market penetration
D) market growth rate
E) market segmentation
market growth rate
According to the Boston Consulting Group approach, ________ serves as a measure of company strength in the market.
A) relative market share
B) product development
C) market diversification
D) product attribute
E) market segmentation
relative market share
________ are a type of SBU that often require heavy investments to finance their rapid growth.
A) Cash cows
B) Question marks
C) Stars
D) Dogs
E) Bears
Stars
________ are low-growth, high-share businesses/products that need less investment to hold their market share.
A) Stars
B) Cash cows
C) Question marks
D) Dogs
E) Bears
Cash cows
Which of the following is true with regard to cash cows?
A) They are high-growth, high-share businesses or products.
B) They can be used to help finance the company’s question marks and stars.
C) They require significant cash to maintain market share.
D) They are low-share businesses and products.
E) They do not promise to be large sources of cash.
They can be used to help finance the company’s question marks and stars.
________ are low-share business units in high-growth markets that require a lot of cash to hold their share.
A) Stars
B) Dogs
C) Question mark
D) Cash cows
E) Bears
Question mark
By harvesting its SBU, a company would most likely be ________.
A) milking its short-term cash flow regardless of the long-term effect
B) selling it or phasing it out and using the resources elsewhere
C) investing just enough to hold the SBU’s current market share
D) investing more in the business unit to build its share
E) diversifying its product line
milking its short-term cash flow regardless of the long-term effect
Orion Inc. operates in many industries, including pharmaceuticals and food products. The company’s goal is to create “abundant and affordable food for all and a healthy environment.” This represents Orion’s ________.
A) marketing plan
B) product mix
C) business portfolio
D) marketing mix
E) mission statement
mission statement
Which of the following companies has a product-oriented business definition?
A) A luxury hotel, whose business definition is: “We sell out-of-the-world experiences to our guests.”
B) A real estate company, whose business definition is: “We sell dreams.”
C) A cosmetic company, whose business definition is: “We offer hopes and self-expression.”
D) A shoe manufacturer, whose business definition is: “We manufacture affordable and long-lasting shoes for all.”
E) A high-technology company, whose business definition is: “We sell inspirations.”
A shoe manufacturer, whose business definition is: “We manufacture affordable and long-lasting shoes for all.”
A company can ________ the SBU by selling it or phasing it out and using the resources elsewhere.
A) divest
B) promote
C) expand
D) harvest
E) hold
divest
Which of the following is true of the BCG matrix approach?
A) It is inexpensive to implement.
B) It does not have any limitations.
C) It considers market growth rate to be a measure of market attractiveness.
D) It describes consumer motivations and needs.
E) It does not consider relative market share to be a measure of company strength in the market.
It considers market growth rate to be a measure of market attractiveness.
The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________.
A) market segment
B) strategic business unit (SBU)
C) question mark
D) prospect
E) product portfolio
strategic business unit (SBU)
Modern strategic planning ________.
A) exclusively consists of a company’s short-term goals
B) is decentralized
C) does not involve cross-functional teams
D) does not take the overall mission of the company into consideration
E) is highly centralized
is decentralized
The BCG matrix approach is problematic in that it ________.
A) focuses on planning for the future at the cost of ignoring the present
B) focuses solely on current businesses and provides little scope for future planning
C) tends to undermine the importance of market growth rate as a measure of market attractiveness
D) tends to undermine the importance of relative market share as a measure of company strength in the market
E) fails to classify SBUs
focuses solely on current businesses and provides little scope for future planning
Which of the following is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification?
A) BCG matrix
B) analysis of variance (ANOVA)
C) product/market expansion grid
D) Harris matrix
E) SWOT analysis
product/market expansion grid
Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. This exemplifies ________.
A) product differentiation
B) product development
C) diversification
D) market penetration
E) market segmentation
market penetration
Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular LED televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy.
A) local marketing
B) market development
C) diversification
D) product adaptation
E) product development
market development
Which of the following companies has a market-oriented business definition?
A) An electronics company, whose business definition is: “We produce microchips.”
B) A hotel, whose business definition is: “We rent rooms.”
C) An apparel company, whose business definition is: “We make and sell women’s clothing.”
D) A cosmetic company, whose business definition is: “We sell hope and self-esteem.”
E) A pizzeria, whose business definition is: “We sell the world’s most delicious thin-crust pizzas.”
A cosmetic company, whose business definition is: “We sell hope and self-esteem.”
The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________.
A) star
B) bear
C) question mark
D) cash cow
E) dog
question mark
Which of the following is true with regard to the product/expansion grid?
A) It classifies SBUs into four distinct categories.
B) It is a useful device for identifying growth opportunities.
C) It helps companies analyze their internal strengths and weaknesses.
D) It functions on the premise that firms should downsize to regain market share.
E) It is a useful device for segregating customers into distinct categories.
It is a useful device for identifying growth opportunities.
Making more sales to current customers without changing a firm’s products is known as ________.
A) market segmentation
B) market penetration
C) product diversification
D) product development
E) prospecting
market penetration
The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm’s current products. This is an example of ________.
A) market penetration
B) product development
C) mass marketing
D) market development
E) product adaptation
market development
The managers of Alfredo’s Pizza, a popular pizzeria in New York City, have been increasingly encouraging senior citizens to visit the pizzeria’s numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo’s Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, the managers of Alfredo’s Pizza are anticipating company growth through ________.
A) market development
B) product development
C) mass customization
D) niche marketing
E) product differentiation
market development
FencePro, a local company, has developed an entirely new mounting system for chain link fences. After acquiring a distributor, FencePro now has the ability to market its products nationwide. FencePro is most likely following a ________ strategy.
A) market penetration
B) market development
C) downsizing
D) product adaptation
E) product development
market development
Amor, a successful brand of women’s clothing, recently introduced a line of fitness equipment. This is an example of ________.
A) mass customization
B) niche marketing
C) diversification
D) prospecting
E) product adaptation
diversification
Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.
A) benchmarking
B) diversification
C) mass customization
D) product development
E) downsizing
product development
A women’s apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation
diversification
Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________.
A) niche marketing
B) local marketing
C) diversification
D) product adaptation
E) downsizing
diversification
Each department in a company that carries out value-creating activities can be thought of as a link in the company’s ________.
A) channel of intermediaries
B) external value stream
C) demand chain
D) internal value chain
E) supplier chain
internal value chain
RedFin manufactures diving equipment that is highly regarded by customers worldwide. Each department in RedFin contributes to its success and can be thought of as a(n) ________.
A) link in the company’s internal value chain
B) separate organization
C) independent subsidiary of the company
D) separate market segment
E) SBU
link in the company’s internal value chain
The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system is known as the ________.
A) business portfolio
B) supply chain
C) marketing mix
D) value delivery network
E) internal value chain
value delivery network
The marketing logic by which a company hopes to create customer value and achieve profitable customer relationships is referred to as the ________.
A) price
B) marketing implementation
C) value chain
D) marketing strategy
E) downsizing
marketing strategy
Market segmentation can be best described as the process of ________.
A) assigning specific human attributes to a given brand
B) dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
C) evaluating each market segment’s attractiveness and selecting one or more segments to enter
D) turning marketing plans into marketing actions to accomplish strategic marketing objectives
E) maintaining a strategic fit between organizational goals and changing marketing opportunities
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Which of the following is an element of the marketing mix?
A) place
B) education
C) needs
D) wants
E) esteem
place
Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________.
A) channel intermediary
B) line extension
C) market segment
D) product attribute
E) brand personality
market segment
In the context of a company’s marketing mix, ________ includes company activities that make the product available to target consumers.
A) position
B) place
C) price
D) promotion
E) branding
place
Arrow is “a different kind of company, manufacturing a different kind of a car”; the RoadPro is “like nothing else.” Statements such as these reflect a firm’s ________.
A) portfolio
B) marketing segment
C) positioning
D) marketing mix
E) mission statement
positioning
Paul Robinson has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company’s product. Paul has identified a(n) ________.
A) target market
B) market segment
C) niche market
D) product attribute
E) product design
market segment
Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, ________, differentiation, and positioning.
A) market targeting
B) marketing implementation
C) supply-chain analysis
D) price discrimination
E) market diversification
market targeting
Which of the following is true with regard to a market segment?
A) A market segment consists of consumers with dissimilar needs and preferences.
B) A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
C) Very few markets have segments.
D) Dividing the market into segments decreases the efficiency of the selling process.
E) Dividing the market into segments reduces composite demand.
A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
Alpha Motors offers “Green automobiles for a greener world.” This refers to the ________ of Alpha automobiles.
A) brand resonance
B) position
C) brand equity
D) hedonic value
E) added value
position
Which of the following refers to the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors?
A) market diversification
B) market segmentation
C) downsizing
D) customer relationship management
E) prospecting
market segmentation
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 ________.
A) new product
B) market segment
C) marketing intermediary
D) brand
E) product line
market segment
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter is known as ________.
A) market segmentation
B) diversification
C) market targeting
D) prospecting
E) downsizing
market targeting
Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus?
A) market follower
B) market challenger
C) early adopter
D) market nicher
E) laggard
market nicher
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers is known as ________.
A) positioning
B) segmenting
C) diversifying
D) prospecting
E) satisficing
positioning
Effective positioning begins with ________.
A) pricing
B) diversification
C) differentiation
D) promotion
E) segmentation
differentiation
Which of the following Ps in the marketing mix describes the goods-and-services combination the company offers to the target market?
A) price
B) promotion
C) product
D) place
E) package
product
In the marketing mix, design, packaging, services, and variety can be categorized under ________.
A) product
B) price
C) promotion
D) place
E) position
product
In the marketing mix, place includes ________.
A) logistics
B) discounts
C) sales promotion
D) advertising
E) packaging
logistics
________ refers to activities that communicate the merits of the product and persuade target customers to buy it.
A) Position
B) Promotion
C) Pricing
D) Segmentation
E) Prospecting
Promotion
Which of the following is true with regard to a SWOT analysis?
A) It classifies SBUs into four distinct categories.
B) It measures customer response to a new product.
C) It evaluates the company’s overall strengths.
D) It evaluates the growth potential of a market segment.
E) It ignores the threats faced by a company while assessing its situation in the market.
It evaluates the company’s overall strengths.
________ is an overall evaluation of the company’s strengths, weaknesses, opportunities, and threats.
A) Porter’s five forces analysis
B) A breakeven analysis
C) A regression analysis
D) A SWOT analysis
E) A cluster analysis
A SWOT analysis
In a SWOT analysis, which of the following would be considered a strength?
A) industry trends
B) technological shifts
C) environmental demands
D) performance challenges
E) internal capabilities
internal capabilities
In a SWOT analysis, ________ include favorable trends in the external environment.
A) strengths
B) challenges
C) weaknesses
D) opportunities
E) threats
opportunities
The main section of the marketing plan most likely presents a detailed ________ analysis of the current marketing situation.
A) breakeven
B) SBU
C) SWOT
D) regression
E) cluster
SWOT
A marketing plan begins with a(n) ________, which presents a brief summary of the main goals and recommendations of the plan for management review.
A) budget
B) opportunity analysis
C) threat analysis
D) executive summary
E) action program
executive summary
Many managers think that “doing things right,” or ________, is as important as, or even more important than, “doing the right things.”
A) strategy
B) planning
C) positioning
D) implementation
E) targeting
implementation
Ravenshaw Corp. assigns its sales and marketing people to specific countries, regions, and districts. Ravenshaw Corp. is most likely an example of a ________.
A) geographic organization
B) product organization
C) functional organization
D) niche marketer
E) mass marketer
geographic organization
The most common form of marketing organization is the ________ organization. Under this organization, different marketing activities are headed by an operational specialist.
A) geographic
B) product management
C) functional
D) customer management
E) market
functional
Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities. Berman Electronics is a(n) ________.
A) customer management organization
B) niche marketer
C) early adopter
D) functional organization
E) laggard
functional organization
Which of the following is true with regard to geographic organization?
A) It is the most common form of marketing organization.
B) Different marketing activities are headed by a functional specialist.
C) It requires salespeople to have international experience.
D) It reduces the overall efficiency of salespeople.
E) It allows salespeople to work with a minimum of travel time and cost.
It allows salespeople to work with a minimum of travel time and cost.
Which of the following is a major advantage of the market organization?
A) The company is organized around the needs of specific customer segments.
B) The company exploits bleeding-edge technologies to keep ahead in the market.
C) The company has a flat organizational structure.
D) The company allows its salespeople to settle into a specific territory.
E) The company caters to a single, small market segment.
The company is organized around the needs of specific customer segments.
More and more companies are shifting their brand management focus toward ________.
A) technology management
B) product management
C) customer management
D) functional management
E) geographic management
customer management
________ refers to measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.
A) Marketing control
B) Marketing implementation
C) Satisficing
D) Prospecting
E) Benchmarking
Marketing control
Marketing control involves ________ steps.
A) two
B) seven
C) nine
D) four
E) eight
four
All of the following steps pertain to the marketing control process EXCEPT ________.
A) setting goals
B) measuring performance
C) taking corrective action
D) defining the company’s mission
E) evaluating the causes of gaps between expected and actual performance
defining the company’s mission
The purpose of ________ is to ensure that the company achieves the sales, profits, and other goals set out in its annual marketing plan.
A) benchmarking
B) operating control
C) strategic control
D) SWOT analysis
E) a marketing audit
operating control
________ involves looking at whether a company’s key action plans are well-matched to its opportunities.
A) Operating control
B) Benchmarking
C) Strategic control
D) Regression analysis
E) Portfolio analysis
Strategic control
Harris Brown, the marketing manager at a small retail chain, wants to assess his firm’s strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose?
A) SWOT analysis
B) cluster analysis
C) portfolio analysis
D) regression analysis
E) Porter’s five forces analysis
SWOT analysis
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 ________.
A) weakness
B) strength
C) threat
D) opportunity
E) challenge
opportunity
Emerson Studios has designed its marketing organization along the lines of a ________ organization in which different marketing activities are headed by operational specialists.
A) geographic
B) product
C) functional
D) customer
E) market
functional
________ measures the profits generated by investments in marketing activities.
A) SWOT analysis
B) A marketing audit
C) Regression analysis
D) Return on marketing investment
E) Marketing budget evaluation
Return on marketing investment
________ refer(s) to meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.
A) Field automation systems
B) Market segments
C) Market share
D) Marketing dashboards
E) Line extensions
Marketing dashboards
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.
A) macroenvironment
B) microenvironment
C) technological environment
D) demographic environment
E) political environment
microenvironment
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?
A) marketing environment
B) marketing orientation
C) strategic planning
D) target markets
E) marketing mix
marketing environment
Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization.
A) macroenvironment
B) microenvironment
C) internal environment
D) marketing mix
E) marketing intermediaries
macroenvironment
Which of the following is a component of a firm’s microenvironment?
A) customer demographics
B) economic recessions
C) population shifts
D) marketing intermediaries
E) technological changes
marketing intermediaries
The interrelated departments within a company that influence marketing decisions form the ________ environment.
A) cultural
B) economic
C) internal
D) political
E) technological
internal
________ provide the resources needed by a company to produce its goods and services.
A) Retailers
B) Marketing services agencies
C) Resellers
D) Suppliers
E) Financial intermediaries
Suppliers
________ help companies stock and move goods from their points of origin to their destinations.
A) Retailers
B) Physical distribution firms
C) Marketing services agencies
D) Resellers
E) Suppliers
Physical distribution firms
________ include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods.
A) Financial intermediaries
B) Physical distribution firms
C) Resellers
D) Marketing services agencies
E) Wholesalers
Financial intermediaries
Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is most likely a ________.
A) financial intermediary
B) physical distribution firm
C) marketing services agency
D) reseller
E) wholesaler
marketing services agency
A company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. These organizations and groups are also known as ________.
A) media publics
B) marketing intermediaries
C) customers
D) citizen-action publics
E) internal publics
citizen-action publics
Which of the following groups influences the company’s ability to obtain funds?
A) financial publics
B) local publics
C) general publics
D) citizen-action publics
E) internal publics
financial publics
Which of the following is true with regard to media publics?
A) The primary function of this group is to protect the interests of minority groups.
B) This group carries news, features, and editorial opinion.
C) The primary function of this group is to critique the marketing decisions of companies.
D) This group includes neighborhood residents and community organizations.
E) This group directly influences the company’s ability to obtain funds.
This group carries news, features, and editorial opinion.
A consumer organization in Ohio has challenged the marketing decision of a local firm alleging it to be against the larger social interest. In this instance, the firm is challenged by a ________ public.
A) internal
B) general
C) government
D) citizen-action
E) media
citizen-action
Workers, managers, and members of the board are examples of ________ publics.
A) general
B) internal
C) local
D) citizen-action
E) media
internal
Which group includes neighborhood residents and community organizations?
A) local publics
B) government publics
C) internal publics
D) citizen-action publics
E) media publics
local publics
Price & Malone Corp., a company based in Houston, caters to a market of individuals and households that buy goods and services for personal consumption. Price & Malone caters to a ________ market.
A) business
B) reseller
C) government
D) consumer
E) wholesale
consumer
________ markets buy goods and services for further processing.
A) Business
B) Reseller
C) Wholesale
D) Consumer
E) Retail
Business
Government markets consist of government agencies that buy goods and services ________.
A) to produce public services
B) to resell at a profit
C) for further processing
D) for personal consumption
E) that are generally of poor quality
to produce public services
Rachel works for a furniture company in Ireland. She is responsible for buying and selling goods at a profit to small retailers. Rachel most likely operates in a ________ market.
A) business
B) reseller
C) wholesale
D) consumer
E) retail
reseller
LandPort Transportation and Omega Warehousing help companies move and stock goods from their manufacturing units to their destinations. These two businesses are examples of ________.
A) resellers
B) marketing services agencies
C) financial intermediaries
D) physical distribution firms
E) wholesalers
physical distribution firms
Sparks Inc. has a growing ________ market in the U.S. consisting of individuals and households that buy Sparks’ products for personal use.
A) consumer
B) government
C) business
D) international
E) financial
consumer
Sparex Inc., is a manufacturer of metal bolts that are used by Boilex Inc., to manufacture heavy machineries. In this instance, Sparex acts as a ________.
A) financial intermediary
B) supplier
C) retailer
D) customer
E) local public
supplier
Jonathan works for a firm that assists companies in promoting, distributing, and selling their products to end consumers. The firm Jonathan works for is a ________.
A) licensor
B) supplier
C) marketing intermediary
D) local public
E) general public
marketing intermediary
Cape Sky Inc., an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The Cape Sky logo and name are displayed throughout the race course. Cape Sky most likely sponsors this event in order to appeal to which of the following types of publics?
A) financial publics
B) citizen-action publics
C) government publics
D) general publics
E) internal publics
general publics
The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently studying the size, density, location, age, and occupation of its target market. Which of the following environments is being studied in this scenario?
A) demographic environment
B) political environment
C) economic environment
D) technological environment
E) cultural environment
demographic environment
The 83 million children born between 1977 and 2000 are known as the ________.
A) Generation X
B) Millennials
C) baby boomers
D) Silent Generation
E) Lost Generation
Millennials
The single most important demographic trend in the United States is the ________.
A) changing age structure of the population
B) mobility of families
C) changing family structure of the population
D) increasing number of professional jobs
E) increasing birth rate
changing age structure of the population
Among the generational groups in U.S population, the ________ are still the wealthiest generation in U.S. history.
A) baby boomers
B) Generation Xers
C) Millennials
D) echo boomers
E) Silent Generation
baby boomers
Which of the following is true of the baby boomers?
A) They tend to see themselves as far older than they actually are.
B) They represent a rapidly shrinking market for new housing and home remodeling.
C) They are long past their peak earning and spending years.
D) They control an estimated 80 percent of the United States’ personal wealth.
E) They have utter fluency and comfort with digital technology.
They control an estimated 80 percent of the United States’ personal wealth.
Which of the following is true of Gen Xers?
A) They are considerably larger than the boomer generation.
B) They were the first to grow up in the Internet era.
C) They are less educated than the baby boomers.
D) They are more materialistic than the Millennials.
E) They rarely research a product before purchasing it.
They were the first to grow up in the Internet era.
Which of the following generation groups is the most educated to date?
A) Lost Generation
B) baby boomers
C) Millennials
D) Generation X
E) Silent Generation
Generation X
Which of the following generational groups, born between 1977 and 2000, is also referred to as the echo boomers?
A) Generation Xers
B) Millennials
C) Lost Generation
D) baby boomers
E) Silent Generation
Millennials
Marketers often split the ________ into teens and young adults.
A) Generation X
B) Millennials
C) Silent Generation
D) baby boomers
E) Lost Generation
Millennials
Which of the following is true of the Millennials?
A) They are the children of baby boomers and were born between 1977 and 2000.
B) They control an estimated 80 percent of the personal wealth in the U.S.
C) They have reached their peak earning and spending years.
D) They were the first to grow up in the Internet era.
E) They are less immersed in technology than Gen Xers.
They are the children of baby boomers and were born between 1977 and 2000.
Which among the following generational groups is most fluent and comfortable with digital technology?
A) Generation X
B) Millennials
C) Baby Boomers
D) Silent Generation
E) Lost Generation
Millennials
Which of the following is a result of a significant increase in the number of women in the workforce?
A) increase in the consumption of convenience foods
B) decrease in the number of vacation trips planned and booked by women
C) increase in the number of single income households among couples
D) decrease in the demand for consumer goods
E) decrease in the demand for financial services
increase in the consumption of convenience foods
In the context of geographical shifts in population, the migration toward ________ areas has resulted in a rapid increase in the number of people who telecommute.
A) urban
B) remote
C) rural
D) metropolitan
E) micropolitan
micropolitan
Which of the following is a trend that depicts the increasingly nontraditional nature of today’s American families?
A) the low percentage of working women in the workforce
B) the low percentage of married couples with children
C) the sharply declining number of dual-income families
D) the sharply declining number of stay-at-home dads
E) the decreasing reliance on convenience foods and services
the low percentage of married couples with children
Over the past two decades, the U.S. population has shifted toward the ________.
A) Northern states
B) Northeast states
C) Sunbelt states
D) Midwest states
E) Cornbelt states
Sunbelt states
Which of the following has lost population in the past two decades?
A) California
B) Florida
C) the Western states
D) the Northeast states
E) the Southern states
the Northeast states
In the 1950s, Americans made a massive exit ________.
A) from the South to the Northeast
B) from the West to the Midwest
C) to foreign countries
D) from the cities to the suburbs
E) from the coastal towns to the cities
from the cities to the suburbs
An increasing number of American workers currently work from their homes or remote offices and conduct their business by phone or the Internet. These trend has created a ________.
A) booming real estate market in the big cities
B) booming SOHO market
C) decline in the demand for convenience foods
D) decline in the demand for financial services
E) steady increase in global enterprises
booming SOHO market
Currently, in the United States, job growth is the weakest for ________.
A) white collar workers
B) manufacturing workers
C) salespeople
D) telecommuters
E) professional workers
manufacturing workers
Micropolitan areas are ________.
A) likely to have a higher crime rate than metropolitan areas
B) less likely to attract telecommuters
C) likely to offer the same advantages as metropolitan areas
D) less likely to offer market expansion opportunities
E) generally unattractive to niche marketers
likely to offer the same advantages as metropolitan areas
Currently, in the United States, job growth is the strongest for ________.
A) blue collar workers
B) manufacturing workers
C) professional workers
D) construction workers
E) sanitation workers
professional workers
With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on ________.
A) geographic segmentation
B) targeted advertising messages
C) mass marketing
D) “do well by doing good” missions
E) corporate giving
targeted advertising messages
Which of the following is an accurate statement about the diversity of the American population?
A) African Americans represent the largest non-white segment of the population.
B) More than 40 million people living in the United States were born in another country.
C) By 2050, the Asian population is estimated to hold steady at 4.7 percent.
D) By 2050, Hispanics are estimated to be 10 percent of the population.
E) The United States has become more of a “melting pot” than a “salad bowl.”
More than 40 million people living in the United States were born in another country.
By 2050, ________ will be an estimated 30 percent of the U.S. population.
A) African Americans
B) Asians
C) Hispanics
D) Native Americans
E) Native Hawaiians
Hispanics
Which of the following situations is expected to enhance the use of targeted advertising messages by marketers?
A) increase in derived demand in the market
B) increase in ethnic populations
C) rising global inflation rates
D) inadequate quality control
E) low advertising budgets
increase in ethnic populations
Which of the following is true with regard to the diversity segment of U.S. adults with disabilities?
A) Most individuals with disabilities are active consumers.
B) The market represented by U.S. adults with disabilities is smaller than that represented by African Americans or Hispanics.
C) The diversity segment, U.S. adults with disabilities, is a rather unattractive segment for the tourism industry.
D) The annual spending power of U.S. adults with disabilities is less than $100 billion.
E) Most companies are reluctant to reach out to consumers with disabilities.
Most individuals with disabilities are active consumers.
The economic environment consists of economic factors that affect ________.
A) cultural patterns of communities
B) entrepreneurial orientation of a population
C) the quality of technological innovation
D) consumer purchasing power
E) the natural environment
consumer purchasing power
A country with a(n) ________ economy consumes most of its own agricultural and industrial outputs and offers few market opportunities.
A) industrial
B) service
C) technological
D) subsistence
E) developing
subsistence
A country with a(n) ________ has rich markets for many different kinds of goods.
A) industrial economy
B) gift economy
C) barter economy
D) subsistence economy
E) natural economy
industrial economy
A value marketer is most likely to ________.
A) offer consumers superior quality of goods and services at a very high price
B) offer consumers only those products that are associated with status and prestige
C) offer consumers low quality goods and services at very low prices
D) offer consumers a balanced combination of product quality at a fair price
E) deny discounts to consumers to increase profits
offer consumers a balanced combination of product quality at a fair price
Which of the following statements about income distribution in the United States is NOT true?
A) Over the past several decades, the rich have grown richer.
B) Over the past several decades, the middle class has grown phenomenally.
C) Over the past several decades, the poor have remained poor.
D) The top 20 percent of earners capture over 50 percent of all income.
E) The top five percent of American earners get nearly 22 percent of the country’s adjusted gross income.
Over the past several decades, the middle class has grown phenomenally.
Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the ease of preparing and eating Wholesome Soups. Print, television, and Internet ads feature teens enjoying Wholesome Soups in between classes and during study breaks. Wholesome Soups’ new marketing campaign is most likely aimed at which of the following?
A) Baby Boomers
B) the LOHAS market
C) Gen Xers
D) Millennials
E) the SOHO market
Millennials
Mary Adams is helping her company develop a marketing program for a new product line. The program is designed to appeal most to less materialistic consumer groups who are likely to prize experience, not acquisition. The marketing program is most likely designed to appeal to which of the following demographic groups?
A) Generation X
B) Millennials
C) Echo Boomers
D) Silent Generation
E) Lost Generation
Generation X
Which of the following demographic trends is the most likely cause for a rapid increase in telecommuting?
A) the migration toward micropolitan and suburban areas
B) the migration from rural to metropolitan areas
C) the increasing number of traditional households
D) the growing percentage of married couples who do not have children
E) the declining number of manufacturing workers in today’s workforce
the migration toward micropolitan and suburban areas
Seth Hoffman’s chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel. Which of the following would be the LEAST effective component of a marketing plan for Seth to take advantage of this opportunity?
A) develop a presence on LGBT-oriented social networking sites
B) position his agency as focused on specialized experiences
C) implement a mass marketing campaign
D) place specially-targeted ads in gay-themed publications
E) advertise on LOGO, the cable television network aimed at gays and lesbians and their friends and family
implement a mass marketing campaign
The physical environment affecting marketing activities is referred to as the ________ environment.
A) economic
B) natural
C) cultural
D) political
E) social
natural
The so-called green movement encouraged companies to ________.
A) actively resist social change
B) operate freely in the black market
C) go beyond government regulations
D) institute deregulation
E) curb organizational anarchy
go beyond government regulations
As a consequence of the green movement, many companies are developing strategies and practices that support ________.
A) government intervention
B) environmental sustainability
C) deregulation
D) mass marketing
E) rapid exploitation of natural resources
environmental sustainability
Many firms today use RFID technology to ________.
A) identify new target markets
B) analyze threats and opportunities in the macroenvironment
C) move toward environmental sustainability
D) track products through various points in the distribution channel
E) track patterns of online consumer behavior
track products through various points in the distribution channel
Many companies use RFID product labels on their goods, which exemplifies the ________ environment in business.
A) natural
B) political
C) economic
D) demographic
E) technological
technological
A firm dumping chemical wastes in the local waterbody is ________.
A) actively resisting social change
B) contributing to organizational anarchy
C) engaging in a “do well by doing good” mission
D) adopting a proactive stance toward the marketing environment
E) contributing to increased pollution
contributing to increased pollution
New technologies most likely lead to ________.
A) economic imbalance in society
B) reduced exports
C) trade deficits
D) an increased demand for unskilled labor
E) fresh markets and opportunities
fresh markets and opportunities
Which of the following is most likely a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission?
A) The time between new product ideas and their introduction to the market has decreased.
B) Annual spending on research and development has decreased.
C) Research costs for companies have risen.
D) Product innovation has significantly declined.
E) Marketers have grown increasingly apathetic toward meeting safety standards.
Research costs for companies have risen.
The ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
A) socio-legal
B) cultural
C) political
D) technological
E) economic
political
Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
guide commerce
Laws are passed to define and prevent unfair competition primarily because ________.
A) business executives tend to favor pure monopolies
B) businesses sometimes try to neutralize threatening firms
C) governments in free market economies tend to nationalize ailing firms
D) private lobbying hurts the interests of national and state governments
E) most MNEs in advanced economies are averse to invest in emerging markets
businesses sometimes try to neutralize threatening firms
Funco Inc., a toy manufacturer, sold plastic racing cars that were manufactured with toxic materials, which threatened the health of several children. Under which of the following acts is Funco most likely to be prosecuted?
A) Child Protection Act
B) Children’s Online Privacy Protection Act
C) Magnuson-Moss Warranty Act
D) CAN-SPAM Act
E) Wheeler-Lea Act
Child Protection Act
The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce.
A) Sherman Antitrust Act
B) Lanham Trademark Act
C) Fair Packaging and Labeling Act
D) CAN-SPAM Act
E) Magnuson-Moss Warranty Act
Sherman Antitrust Act
The ________ limits the number of commercials aired during children’s programs.
A) Children’s Online Privacy Protection Act
B) Child Protection Act
C) Fair Packaging and Labeling Act
D) Children’s Television Act
E) Consumer Product Safety Act
Children’s Television Act
A company or association’s ________ is designed to help guide responses to complex social responsibility issues.
A) code of ethics
B) marketing plan
C) non-disclosure policy
D) privacy policy
E) non-compete clause
code of ethics
The boom in Internet marketing has created a new set of social and ethical issues. Critics worry most about ________.
A) accessibility
B) puffery in advertising
C) online privacy issues
D) sustainability
E) issues pertaining to efficiency
online privacy issues
Cause-related marketing has become a primary form of ________.
A) quality control
B) corporate fraud protection
C) corporate giving
D) legislative lobbying
E) price discrimination
corporate giving
The ________ environment consists of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.
A) social
B) cultural
C) political
D) physical
E) natural
cultural
Marketers should understand that people’s core beliefs and values tend to be ________.
A) fixed
B) highly flexible
C) similar around the world
D) constantly and rapidly changing
E) easily influenced by secondary beliefs
fixed
Mercury Inc., an American MNC, is currently planning to enter the promising consumer goods market in India. The firm will most likely discover that ________ beliefs and values are more open to change in India.
A) inherited
B) secondary
C) primary
D) core
E) traditional
secondary
A society’s ________ are expressed in how people view themselves and others, organizations, society, nature, and the universe.
A) social codes
B) cultural values
C) demographics
D) public policies
E) norms
cultural values
Which of the following is most likely true with regard to people’s views of organizations in contemporary America?
A) In the American workplace, there has been an overall increase in organizational loyalty.
B) Most Americans are confident in their employers and are unlikely to switch jobs as frequently as in the past.
C) The past two decades have seen a sharp decrease in confidence in and loyalty toward America’s business organizations.
D) Most U.S. workers view work as a source of personal satisfaction and organizational pride.
E) In the last decade, corporate scandals and layoffs had little impact on people’s confidence in U.S. firms.
The past two decades have seen a sharp decrease in confidence in and loyalty toward America’s business organizations.
People vary in their attitudes toward their society—while ________ defend it, malcontents want to leave it.
A) reformers
B) patriots
C) activists
D) environmentalists
E) historical revisionists
patriots
Which of the following is a potential downside to using patriotic themes in marketing programs?
A) Consumers rarely respond to patriotic marketing messages in a favorable manner.
B) A consumer’s societal orientation has no visible impact on product consumption.
C) Patriotism could be viewed as an attempt to gain from a nation’s triumphs.
D) Patriotic Americans may have less disposable income than reformers.
E) Mass marketing has limited appeal among patriotic Millennials.
Patriotism could be viewed as an attempt to gain from a nation’s triumphs.
Consumers in the “lifestyles of health and sustainability” (LOHAS) market are more likely to seek ________.
A) alternative medicine
B) perfumes made from animal products
C) clothing made of fur
D) leather goods
E) foods high in saturated fat
alternative medicine
The fact that people are dropping out of organized religion doesn’t mean that they are abandoning their faith. Some futurists have noted a renewed interest in ________, perhaps as a part of a broader search for a new inner purpose.
A) taming nature
B) the fine arts
C) charitable giving
D) spirituality
E) materialism
spirituality
A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of each of its sales is donated to local after-school programs for underprivileged youth. This is an example of ________.
A) cause-related marketing
B) generational marketing
C) sustainable marketing
D) market segmentation
E) product differentiation
cause-related marketing
Taurus Automobile’s Arrow is the first mass-produced hybrid vehicle, known for its fuel efficiency and environmental friendliness. The Arrow is most likely to become popular in the ________ market.
A) SOHO
B) LOHAS
C) LGBT
D) business
E) Millennials’
LOHAS
Ursula Jenkins, a fifty-one-year-old school teacher from Nebraska, believes that people should choose a profession they like, which is an example of Ursula’s ________.
A) secondary belief
B) core belief
C) core value
D) work ethic
E) moral code
secondary belief
A pastor from Kansas believes that adultery is immoral. This refers to the pastor’s ________.
A) secondary belief
B) acquired belief
C) social identity
D) core belief
E) cultural orientation
core belief
Rather than assuming that strategic options are bounded by the current environment, firms adopting a(n) ________ to the marketing environment develop strategies to change the environment.
A) environmental stance
B) proactive stance
C) reactive stance
D) relativist approach
E) no-compromise approach
proactive stance
Companies that take a proactive stance toward the marketing environment are most likely to ________.
A) develop strategies to change the environment in their favor
B) passively accept the marketing environment
C) resist organizational change
D) discourage innovation
E) consider technological advances more disruptive than beneficial
develop strategies to change the environment in their favor
Sarah Parker is a senior manager in a manufacturing firm that hires lobbyists to influence legislation that affects the manufacturing industry. Sarah’s firm takes a(n) ________ stance toward the marketing environment.
A) reactive
B) proactive
C) adversarial
D) passive
E) altruistic
proactive
Which of the following is most likely influenced by marketers?
A) population shifts
B) core cultural values
C) income distribution
D) ethnic diversity
E) media
media
With the recent explosion of information technologies, ________.
A) most marketing managers are overloaded with data and often overwhelmed by it
B) most marketing managers are concerned solely about the duplication of content
C) companies have ceased to feel the need for marketing information systems
D) companies have ceased to maintain internal databases
E) it has become more difficult and expensive to obtain primary data
most marketing managers are overloaded with data and often overwhelmed by it
Brad works with a reputed retailer and leads a team that collects market information from a wide variety of sources ranging from marketing research studies to monitoring online conversations where consumers discuss Brad’s firm or its products. Brad’s team uses this information to arrive at a better understanding of consumer behavior and their buying motives. This, in turn, allows Brad’s firm to successfully generate more value for consumers. Brad leads the ________ team.
A) product development
B) strategy implementation
C) human resource
D) customer relationship management
E) customer insights
customer insights
A(n) ________ consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.
A) enterprise planning system (EPS)
B) enterprise information system (EIS)
C) marketing information system (MIS)
D) corporate performance management (CPM)
E) geographic information system (GIS)
marketing information system (MIS)
An MIS is used to ________.
A) generate product interest
B) develop marketing plans
C) identify demographic trends
D) assess information needs
E) test hypotheses about cause-and-effect relationships
assess information needs
An MIS user should most likely be able to ________.
A) implement new technology
B) increase order requests
C) develop customer insights
D) analyze employee turnover
E) establish short-term objectives
develop customer insights
The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help of sophisticated tools and techniques, they develop the data needed by marketing managers to evaluate the market share of the company’s different products and also to gain valuable market insights. This mix of people and procedures at HoneyCamp Foods that generate actionable marketing insights represents a(n) ________.
A) enterprise planning system
B) product mix
C) underground economy
D) marketing information system
E) niche market
marketing information system
Diana, a senior marketing manager of a pizzeria in North Florida, is currently researching electronic collections of consumer information within the company network to arrive at crucial marketing decisions. In this instance, Diana is using ________.
A) ethnographic research
B) internal databases
C) netnographic research
D) data warehouses
E) spatial databases
internal databases
Information in a company’s database can come from many sources. An advantage of harnessing such information is to ________.
A) eliminate employee turnover
B) achieve a high degree of employee empowerment
C) gain competitive advantage
D) gain access to mass markets
E) eliminate resource dependency
gain competitive advantage
Which of the following is an advantage of using an internal database?
A) Data always remains current in internal databases.
B) Highly sophisticated equipment and techniques are not required for maintaining internal databases.
C) Internal databases can be accessed more quickly and cheaply than other information sources.
D) Internal databases require less maintenance efforts.
E) Information obtained from internal databases is almost always sufficient for making marketing decisions.
Internal databases can be accessed more quickly and cheaply than other information sources.
Which of the following is a disadvantage of using information from internal databases?
A) Obtaining information from internal databases is both time consuming as well as expensive.
B) It is impossible to verify information obtained from internal databases.
C) Using information from internal databases leads to biased research findings.
D) Internal information may be incomplete or in the wrong form for making marketing decisions.
E) Internal databases do not support highly sophisticated technologies which makes it difficult to store large volumes of data.
Internal information may be incomplete or in the wrong form for making marketing decisions.
________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
A) Data warehousing
B) Competitive marketing intelligence
C) SWOT analysis
D) Ethnographic research
E) Customer relationship management
Competitive marketing intelligence
The marketing department of a reputed firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives?
A) ethnographic research
B) blindspots analysis
C) data warehousing
D) competitive marketing intelligence
E) customer relationship management
competitive marketing intelligence
Which of the following statements is true regarding competitive marketing intelligence?
A) The advantage of using competitive marketing intelligence is negligible.
B) The goal of competitive marketing intelligence is to improve recruiting efforts.
C) Competitive marketing intelligence relies upon costly internal databases.
D) Competitive marketing intelligence relies upon publicly available information.
E) Companies using competitive marketing intelligence routinely ignore consumers’ online chatter.
Competitive marketing intelligence relies upon publicly available information.
Which of the following refers to a marketing intelligence technique?
A) interviewing customers randomly
B) increasing the annual budget for R&D
C) investing heavily on primary research
D) implementing product diversification
E) benchmarking competitors’ products
benchmarking competitors’ products
Which of the following most likely refers to a person who is charged with sifting through online customer conversations and passing along key insights to marketing decision makers?
A) chief creative officer
B) chief communications officer
C) brand manager
D) chief listening officer
E) programmer analyst
chief listening officer
Firms use competitive marketing intelligence to ________.
A) create and sustain market monopolies
B) counter the adverse effects of organizational anarchy
C) perpetuate organizational learning
D) gain early warnings of competitor moves and strategies
E) strengthen weak ties with industry competitors
gain early warnings of competitor moves and strategies
________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
A) Niche marketing
B) Total quality management
C) Marketing research
D) Breakeven analysis
E) Causal research
Marketing research
Which of the following is true with regard to marketing research?
A) The marketing research process depends primarily on sophisticated internal databases.
B) The marketing research process requires assessing macroeconomic forces.
C) Marketing research gives marketers insights into customer motivations.
D) Marketing research eliminates the need for a SWOT analysis.
E) Marketing research is a simple two-step process.
Marketing research gives marketers insights into customer motivations.
Which of the following is the first step in the marketing research process?
A) developing a marketing information system
B) defining the problem and objectives of the study
C) developing the research plan
D) implementing the research plan
E) interpreting and reporting the findings
defining the problem and objectives of the study
Which of the following is the final step of the marketing research process?
A) developing the research plan
B) implementing the research plan
C) interpreting and reporting the findings
D) selecting a research agency
E) defining the research objectives
interpreting and reporting the findings
Which of the following is the objective of causal research?
A) to test hypotheses about cause-and-effect relationships
B) to gather preliminary information that will help suggest hypotheses
C) to describe things, such as the market potential for a product
D) to assign a cause to a seemingly random event
E) to predict the effect of a random event on unrelated entities
to test hypotheses about cause-and-effect relationships
In ________ research, the objective is to gather preliminary information that will help define the problem and suggest hypotheses.
A) exploratory
B) statistical
C) causal
D) analytic
E) descriptive
exploratory
The research plan ________.
A) provides comprehensive marketing intelligence about competitors
B) outlines sources of existing data and spells out the specific research approaches
C) does not include sampling plans
D) does not include contact methods
E) precedes the definition of research objectives
outlines sources of existing data and spells out the specific research approaches
Ramona Adams, a marketing manager working in an American firm, is about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling price of the product. Ramona is involved in ________ research.
A) exploratory
B) descriptive
C) causal
D) constructive
E) ethnographic
causal
Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink?
A) internal research
B) descriptive research
C) causal research
D) exploratory research
E) demographic research
descriptive research
Secondary data consist of ________.
A) information collected for the specific purpose at hand
B) data that does not age
C) information that already exists somewhere, having been collected for another purpose
D) information collected from conducting personal, in-depth interviews
E) data that is unreliable and unsuitable for the purpose of making marketing decisions
information that already exists somewhere, having been collected for another purpose
Primary data consist of ________.
A) data that does not age
B) data obtained from the public domain
C) information collected for the specific purpose at hand
D) information that already exists somewhere, having been collected for another purpose
E) information that is the least expensive and the easiest to obtain
information collected for the specific purpose at hand
Information collected from Internet search engines is an example of ________.
A) primary data
B) secondary data
C) binary data
D) low-level data
E) disposable data
secondary data
Commercial online databases are rich sources for obtaining ________.
A) primary data
B) secondary data
C) customer insights
D) low-level data
E) binary data
secondary data
Which of the following is true about secondary data?
A) It is always current and, unlike primary data, it does not have to be updated.
B) Unlike primary data, it can be obtained by using direct surveys and questionnaires by the company.
C) It cannot provide extra information a company is looking for.
D) It can be obtained more quickly and at a lower cost than primary data.
E) It requires more effort compared to gathering primary data.
It can be obtained more quickly and at a lower cost than primary data.
Which of the following is a disadvantage of using secondary data?
A) Secondary data is generally not appropriate for consumer products.
B) Collecting secondary data is time consuming.
C) Few sources exist for secondary data.
D) Gathering secondary data is costly.
E) Relevant secondary data can be difficult to locate.
Relevant secondary data can be difficult to locate.
Beth Williams works for a marketing research company in Chicago. Her current research involves finding the market potential for a client’s new line of sports apparel. Given her objective, which of the following types of research is the most suitable for Beth?
A) causal research
B) constructive research
C) statistical research
D) descriptive research
E) exploratory research
descriptive research
A company sent a trained observer to watch and interact with consumers in their natural environments in order to gain deeper insights on consumer needs. This is an example of ________.
A) viral marketing
B) survey research
C) ethnographic research
D) experimental research
E) niche marketing
ethnographic research
Which of the following is a valid source of secondary data?
A) personal letters and correspondence
B) Internet search engines
C) ethnographic research
D) direct surveys
E) interviews
Internet search engines
Which of the following is true with regard to gathering secondary data?
A) Gathering secondary data involves costly fees to government agencies.
B) Commercial online databases contain primary rather than secondary data.
C) Internet search engines can be useful sources of relevant secondary data.
D) It is illegal for firms to purchase secondary data from outside suppliers.
E) Secondary data eliminates the need for primary data in most cases.
Internet search engines can be useful sources of relevant secondary data.
________ involves gathering primary data by closely examining relevant people, actions, and situations.
A) Observational research
B) Survey research
C) Telephone interviewing
D) Causal research
E) Group interviewing
Observational research
________, a form of observational research, involves sending observers to watch and interact with consumers in their natural environments.
A) Group interviewing
B) Ethnographic research
C) Survey research
D) Experimental research
E) Causal research
Ethnographic research
Which of the following is true of ethnographic research?
A) It is a type of experimental research which involves evaluating group responses.
B) It involves sending observers to watch and interact with consumers in their natural environments.
C) It is a traditional quantitative research approach.
D) Information used in this mode of research is mainly derived from secondary data sources.
E) It is a form of survey research.
It involves sending observers to watch and interact with consumers in their natural environments.
________ research involves observing customers in a natural context on the Internet.
A) Causal
B) Netnography
C) Survey
D) Ethnographic
E) Geomarketing
Netnography
Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using ________.
A) niche marketing
B) experimental research
C) product differentiation
D) ethnographic research
E) viral marketing
experimental research
________ involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, or buying behavior. It is the most widely used method for primary data collection.
A) Experimental research
B) Causal research
C) Ethnographic research
D) Survey research
E) Exploratory research
Survey research
Which of the following is most likely an advantage of survey research?
A) The flexibility of survey research is high; it can be used to obtain many different kinds of information in many different situations.
B) Survey research allows researchers to observe respondents closely in their natural environments.
C) The chances of getting dishonest feedback are almost negligible with survey research.
D) The attitudes and motives of the customers can be easily determined through survey research.
E) The data gathered in survey research is impartial and free from bias as the surveys are done in-person to evaluate consumer behavior.
The flexibility of survey research is high; it can be used to obtain many different kinds of information in many different situations.
Which of the following is true about survey research?
A) It involves sending observers to watch and interact with consumers in their natural environments.
B) It is best suited for gathering causal information.
C) It involves selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
D) The level of flexibility in survey research is lower than most other research methodologies.
E) Survey research is the most widely used method for primary data collection.
Survey research is the most widely used method for primary data collection.
While looking for ideas on how to craft a user-friendly dishwasher, the designers of a dishwasher-manufacturing company spent 10 days observing people use their dishwashers in their homes. In this instance, the designers were conducting a(n) ________.
A) survey research
B) experimental research
C) quantitative marketing research
D) ethnographic research
E) causal research
ethnographic research
________ refers to gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
A) Experimental research
B) Constructive research
C) Observational research
D) Survey research
E) Descriptive research
Experimental research
Experimental research is best suited for gathering ________ information.
A) exploratory
B) causal
C) random
D) unstructured
E) descriptive
causal
Observation is best suited for ________.
A) exploratory research
B) constructive research
C) experimental research
D) descriptive research
E) survey research
exploratory research
Kinger Burgers came out with a new hamburger and, before including it into its main menu, released it in two different cities with two different prices. The marketers at Kinger Burgers then analyzed the different levels of purchase made at these two different places, planning to using the information to help them set a nationwide price for the new offering. This is an example of ________.
A) ethnographic research
B) descriptive research
C) DIY research
D) experimental research
E) survey research
experimental research
Which of the following is true with regard to mail questionnaires?
A) The response rate of mail questionnaires is often very low.
B) Mail questionnaires are highly flexible.
C) The researcher has maximum control over the mail questionnaire sample.
D) Mail questionnaires are unsuitable for collecting large amounts of information about respondents.
E) Respondents always provide honest answers to personal questions on mail questionnaires.
The response rate of mail questionnaires is often very low.
Wilma Roberts is conducting research to determine consumers’ personal grooming habits. Because of the personal nature of the survey questions involved, Wilma wants to select the contact method that is most likely to encourage respondents to answer honestly and that will allow her to easily collect large amounts of data. Which of the following is best suited to meet Wilma’s requirements?
A) mail questionnaires
B) telephone interviews
C) individual interviews
D) focus group interviews
E) immersion group discussions
mail questionnaires
Which of the following contact methods is the most cost-effective?
A) telephone interviews
B) individual interviews
C) in-depth interviews
D) online surveys
E) group interviews
online surveys
Loft Industries sells roof trusses to contractors and builders and is currently looking for honest feedback on its services. However, in the past, most of its efforts to procure feedback from customers did not yield any meaningful data. According to the marketing managers of Loft Industries, feedback was more polite than honest. Which of the following contact methods should Loft Industries most likely use to maximize its chances of receiving honest and impersonal feedback?
A) online focus groups
B) telephone interviews
C) mail questionnaires
D) group interviews
E) personal interviews
mail questionnaires
Ursula Williams owns a small publishing company in Utah and has a very restrictive budget for the market research she currently needs to conduct. She requires a large sample size for her research in order to arrive at insightful conclusions. Additionally, she wants to have excellent control over her sample. Keeping in mind her restrictive budget and other specifications, which of the following methods of contact would you advise Ursula to use?
A) telephone interviews
B) individual interviews
C) online surveys
D) mail questionnaires
E) focus group interviews
online surveys
Which of the following is an advantage of telephone interviews?
A) They are more cost-effective than mail questionnaires.
B) Interviewer bias is absent.
C) The quantity of data collected is greater compared to personal interviewing.
D) The speed with which data is collected is high.
E) Response rates tend to be higher than those of mail questionnaires.
The speed with which data is collected is high.
For her current research project, Margaret Rogers wants to select a sample in which every member has a known and equal chance of selection. In other words, Margaret is looking for a ________.
A) simple random sample
B) convenience sample
C) stratified random sample
D) judgment sample
E) quota sample
simple random sample
Melissa Thomas leads the marketing research division at Tronics Inc., a manufacturing company based in Alabama. To improve future sales of the company’s products, she has decided to collect customer opinions and feedback on the current products offered by her company. For this purpose, Melissa is looking for a highly flexible contact method which can be used to gather large amounts of data within the least possible time. In this instance, which of the following contact methods is most likely to hold the highest appeal for Melissa?
A) online surveys
B) in-depth interviews
C) telephone interviews
D) individual interviews
E) mail questionnaires
online surveys
Which form of marketing research involves talking with people in their homes or offices, on the street, or in shopping malls?
A) individual interviewing
B) focus-group interviewing
C) telephone interviewing
D) mail questionnaires
E) observational research
individual interviewing
________ consists of inviting 6 to 10 people to meet with a trained moderator to talk about a product, service, or organization.
A) Telephone interviewing
B) Individual interviewing
C) A mail questionnaire
D) An online survey
E) Focus group interviewing
Focus group interviewing
Jake Adams works for a marketing research firm and is currently conducting research for a company that wants to investigate multiple international markets for the possibility of expansion. Internet-based survey research would be the most attractive research option for Jake if his client ________.
A) places a high emphasis on speed
B) requires a small sample size
C) places a high emphasis on following intrusive research methods
D) wants to exercise full control over the online sample
E) places a high emphasis on ethnographic research
places a high emphasis on speed
Happy Pets, a company manufacturing pet foods and accessories, created a membership club for its regular customers called “I Love My Pet.” This group consists of animal lovers selected by the company to complete product-related polls, chat with product developers, and provide feedback about specific products. Which of the following best describes “I Love My Pet”?
A) primary group
B) immersion group
C) mob
D) dyad
E) triad
immersion group
Redrunners Inc., a manufacturer of sports merchandise, is gathering customer opinions about the firm’s new sports shoe line. A team of researchers in the company invited 8 regular customers to talk about the new line of shoes, asking why they chose to buy the shoe and what they disliked most about its design. A moderator was present to monitor the discussion. Which of the following types of contact methods has Redrunners used in this instance?
A) individual interviewing
B) mail questionnaire
C) group interviewing
D) mass survey
E) mall intercept
group interviewing
Which of the following is an example of an open-end question?
A) How is voting going to help the nation?
B) Do you like driving on the highway?
C) How many children do you have?
D) Would you like to try a sample?
E) Are your friends in town?
How is voting going to help the nation?
Which of the following is most likely a disadvantage of focus group interviewing?
A) Focus group interviewing does not connect secondary data with primary data.
B) Focus group interviewing is less flexible compared to mail questionnaires.
C) Consumers in focus groups are always open and honest about their real feelings, behaviors, and intentions in front of other people.
D) Focus group interviewing involves small samples to keep time and costs down, which makes it hard to generalize from the results.
E) The moderator in a focus group interview has poor control over the group of respondents.
Focus group interviewing involves small samples to keep time and costs down, which makes it hard to generalize from the results.
Which of the following questions is an example of a closed-end question?
A) Why do you think some people are more comfortable taking risks than others?
B) How can I improve my presentation skills?
C) Why do you think a single vote makes a difference?
D) Would you like to try our new ice cream flavor?
E) What is the best way to prevent weeds in a garden?
Would you like to try our new ice cream flavor?
To overcome problems in focus group interviewing, some companies employ small groups of consumers who interact directly and informally with product designers without a focus group moderator present. Such groups are known as ________.
A) dyads
B) consumer guilds
C) virtual communities
D) immersion groups
E) primary groups
immersion groups
Which of the following is true about Internet-based survey research?
A) The effectiveness of Internet-based survey research is invariably affected by the interviewer’s bias.
B) Internet-based survey research is less flexible compared to mail questionnaires.
C) Internet-based survey research is characterized by high speed and low costs.
D) Typically, the quantity of data gathered in Internet-based survey research is low.
E) The response rate of Internet-based survey research is lower than that of mail questionnaires.
Internet-based survey research is characterized by high speed and low costs.
Which of the following is a disadvantage of online focus groups?
A) Responses are not instantaneous.
B) Controlling the online sample is difficult.
C) Results take a long time to tabulate and analyze.
D) Facility, technology, and travel costs are very high.
E) Researchers are unable to view the sessions in real-time.
Controlling the online sample is difficult.
A(n) ________ is a segment of the population selected for marketing research to represent the population as a whole.
A) dyad
B) immersion group
C) primary group
D) sample
E) triad
sample
In a simple random sample, ________.
A) every member of the population has a known and equal chance of selection
B) the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview
C) the researcher selects the easiest population members from which to obtain information
D) the population is divided into mutually exclusive groups and random samples are drawn from each group
E) the researcher finds and interviews a prescribed number of people in each of several categories
every member of the population has a known and equal chance of selection
Which of the following refers to a probability sample in which the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview?
A) quota sample
B) judgment sample
C) cluster sample
D) stratified random sample
E) simple random sample
cluster sample
Which of the following refers to a nonprobability sample in which the researcher selects the easiest population members from which to obtain information?
A) quota sample
B) judgment sample
C) convenience sample
D) stratified random sample
E) simple random sample
convenience sample
Which of the following refers to a nonprobability sample in which the researcher uses his or her evaluation techniques to select population members who are good prospects for accurate information?
A) quota sample
B) judgment sample
C) convenience sample
D) stratified random sample
E) simple random sample
judgment sample
Which of the following refers to a nonprobability sample in which the researcher finds and interviews a prescribed number of people in each of several categories?
A) quota sample
B) judgment sample
C) convenience sample
D) stratified random sample
E) simple random sample
quota sample
In collecting primary data, marketing researchers have a choice of two main research instruments, ________.
A) reference books and journals
B) questionnaires and mechanical devices
C) social networks and internal databases
D) commercial online databases and search engines
E) open-source directories and blogs
questionnaires and mechanical devices
While creating research questionnaires, researchers must particularly avoid the use of ________.
A) biased phrasing
B) simple language
C) closed-end questions
D) logical question arrangement
E) open-end questions
biased phrasing
________ refers to the measurement of brain activity to learn how consumers feel and respond.
A) Biometrics
B) Demographics
C) Sampling
D) Neuromarketing
E) Psychographics
Neuromarketing
After a research instrument is selected, the next step in the marketing research process is to ________.
A) select a sampling method
B) interpret the research findings
C) implement the research plan
D) evaluate alternatives
E) select a research approach
implement the research plan
Customer relationship management (CRM) helps ________.
A) firms monitor and minimize employee turnover
B) customers manage information about different sellers in the market
C) firms manage customer touch points to maximize customer loyalty
D) customers locate the best deals in the market
E) firms create artificial demand in the market
firms manage customer touch points to maximize customer loyalty
Customer information is buried deep in the separate databases and records of different company departments. To overcome such problems, many companies are now turning to ________ to manage detailed information about individual customers.
A) neuromarketing
B) customer needs marketing
C) customer relationship management
D) ethnographic research
E) netnography research
customer relationship management
Which of the following is true about customer relationship management (CRM)?
A) Data mining has limited applicability in CRM activities.
B) Sophisticated analytical tools are sparingly used in CRM activities.
C) CRM reduces the number of customer touch points.
D) CRM aims to maximize customer loyalty.
E) CRM enables firms to compare various product and service categories.
CRM aims to maximize customer loyalty.
What is the purpose of a data warehouse?
A) to obtain secondary data and integrate it with primary data
B) to gather and integrate data in a central, accessible location
C) to interpret the meaning of the data obtained
D) to prevent the theft of customer data
E) to identify and discard outdated data
to gather and integrate data in a central, accessible location
In CRM, ________ techniques are used to sort through data and locate useful findings about customers.
A) data warehousing
B) data mining
C) niche marketing
D) data conservancy
E) mass marketing
data mining
A successful CRM program is expected to help a company achieve all of the following EXCEPT ________.
A) provide higher levels of customer service
B) develop deeper customer relationships
C) create offers tailored to meet specific customer requirements
D) understand the competition better
E) pin-point high value customers and cross-sell products
understand the competition better
Ralph Goldsmith works for Zenith Inc., a leading cosmetic company based in Illinois. At Zenith, Ralph’s primary responsibility revolves around digging deeply into customer data to gain valuable insights about customer needs, motives, and attitudes. This data is, in turn, used by Zenith to personalize its customers’ shopping experiences. Ralph’s position at Zenith requires him to focus primarily on ________.
A) customer sales
B) human resource management
C) risk assessment
D) financial analysis
E) customer relationship management
customer relationship management
Joe Kerry, owner of a small bakery, wants to obtain marketing insights to improve his business. Joe has a limited budget and would like to gather free secondary data. What is the best option for Joe?
A) mail questionnaires
B) focus group interviews
C) Internet search engines
D) personal interviews
E) commercial online databases
Internet search engines
Often, international researchers must collect their own primary data because ________.
A) reliable secondary data is both scarce and difficult to find
B) information from commercial online databases is unreliable
C) it is cheaper to obtain primary data than secondary data
D) it is easier to obtain primary data than secondary data
E) it is illegal in some countries to track customer data
reliable secondary data is both scarce and difficult to find
For international researchers, ________ is the most obvious obstacle.
A) language
B) technology
C) infrastructure
D) motivation
E) political risk
language
Which of the following is true with regard to problems faced by international researchers?
A) Translation of questionnaires increases research costs and risks of error.
B) Erratic purchasing patterns limit data reliability and validity.
C) More often than not, cultural differences enrich research findings.
D) Diverse markets always yield conflicting data.
E) The primary data obtained by international researchers are almost always error prone.
Translation of questionnaires increases research costs and risks of error.
Which of the following is most likely true about international research?
A) The availability of good secondary data makes international research rewarding.
B) The costs of conducting international research are much higher than the benefits offered.
C) Technology enables customer responses to be translated quickly and accurately.
D) Costly international research is necessary if firms want to succeed in foreign markets.
E) Interpretations of data are fairly consistent among different countries.
Costly international research is necessary if firms want to succeed in foreign markets.
Consumers who mistrust marketing research are more likely to ________.
A) consider marketing research initiatives as genuine endeavors aimed at heightening customer satisfaction
B) believe that marketers rarely use personal data to manipulate consumer behavior
C) believe that the misuse of research findings is highly unlikely
D) consider marketing research efforts, such as interviewing, intrusions on consumer privacy
E) feel positive about being personally interviewed by marketers
consider marketing research efforts, such as interviewing, intrusions on consumer privacy
While collecting sensitive customer data, market researchers should adhere to all of the following guidelines EXCEPT ________.
A) asking only for the information needed
B) using information responsibly to provide value
C) providing respondents with the research firm’s contact information
D) sharing information without the customer’s authorization
E) explaining to respondents how the information will be used
sharing information without the customer’s authorization
In a company, the job of a chief privacy officer (CPO) is to ________.
A) ensure timely product deliveries
B) detect patent infringements and copyright violations
C) safeguard the privacy of a firm’s customers
D) engage in niche marketing
E) safeguard the privacy of senior executives
safeguard the privacy of a firm’s customers
All the individuals and households that buy or acquire goods and services for personal consumption make up the ________.
A) consumer market
B) market offering
C) market mix
D) subculture
E) social class
consumer market
Which of the following is a marketing stimuli?
A) economic stimuli
B) price stimuli
C) technological stimuli
D) social stimuli
E) cultural stimuli
price stimuli
Which of the following is one of the other stimuli present in a buyer’s environment apart from a marketing stimuli?
A) product stimuli
B) cultural stimuli
C) price stimuli
D) place stimuli
E) promotion stimuli
cultural stimuli
Which of the following best describes divisibility of an innovation that influences the rate of adoption?
A) It is the degree to which the innovation is difficult to understand.
B) It is the degree to which the results of using the innovation can be observed or described to others.
C) It is the degree to which the innovation appears superior to existing products.
D) It is the degree to which the innovation may be tried on a limited basis.
E) It is the degree to which the innovation fits the values and experiences of potential consumers.
It is the degree to which the innovation may be tried on a limited basis.
According to the model of buyer behavior, which of the following is one of the two primary parts of a “buyer’s black box”?
A) technological stimuli
B) buyer’s decision process
C) buyer’s spending habits
D) social stimuli
E) promotion stimuli
buyer’s decision process
Marketing stimuli consist of the four Ps. Which of the following is NOT one of these?
A) product
B) packaging
C) price
D) promotion
E) place
packaging
Which of the following statements is true of cultural factors that influence consumer behavior?
A) Cultural influences on buying behavior are identical across countries.
B) Social classes show distinct product and brand preferences in areas such as clothing and travel.
C) Subcultures include nationalities and racial groups, but exclude religions.
D) Subcultures are groups within which each individual has a unique and distinct value system.
E) Hispanic Americans and African Americans are examples of racially-segregated groups and not subcultures.
Social classes show distinct product and brand preferences in areas such as clothing and travel.
In the model of buyer behavior, which of the following is NOT a major type of force or event in the buyer’s environment?
A) economic
B) technological
C) social
D) political
E) cultural
political
Which of the following statements is true of social classes?
A) Social classes are society’s temporary divisions.
B) Members of a social class have unique and distinct values, interests, and behaviors.
C) People within a social class tend to exhibit similar buying behavior.
D) Income is the single factor that determines social class.
E) Social classes universally exhibit identical product and brand preferences.
People within a social class tend to exhibit similar buying behavior.
________ is the most basic determinant of a person’s wants and behavior.
A) Culture
B) Brand personality
C) Cognitive dissonance
D) Caste
E) Selective perception
Culture
Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations.
A) cultural universals
B) reference groups
C) subcultures
D) monocultures
E) social networks
subcultures
Which of the following product characteristics refers to the degree to which the innovation appears superior to existing products?
A) compatibility
B) divisibility
C) communicability
D) relative advantage
E) complexity
relative advantage
Which consumer group tends to show more brand loyalty and make shopping a family event, with children having a big say in the purchase decision?
A) Hispanic Americans
B) African Americans
C) Arabs
D) working class consumers
E) lower class consumers
Hispanic Americans
________ consumers are one of the fastest-growing U.S. population subsegments and are expected to surge to nearly 30 percent of the total U.S. population by 2050.
A) African American
B) Hispanic American
C) Asian American
D) Baby Boomer
E) Millennial
Hispanic American
Although more price-conscious than other population segments, ________ consumers tend to be strongly motivated by quality and selection, and give importance to brands.
A) lower upper
B) African American
C) Asian American
D) Filipino
E) working class
African American
________ consumers are the most affluent U.S. demographic segment and are expected to have an annual buying power approaching $775 billion by 2015.
A) Hispanic American
B) African American
C) Asian American
D) Silent Generation
E) Generation X
Asian American
Many companies use several ethnically specific themes in their mainstream marketing strategy. This is because several marketers have realized that insights gleaned from ethnic consumers can influence their broader markets. This type of marketing is known as ________.
A) cross-cultural marketing
B) buzz marketing
C) social media marketing
D) ambush marketing
E) ethical marketing
cross-cultural marketing
________ are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.
A) Social classes
B) Societal norms
C) Reference groups
D) Universal cultures
E) Social networks
Social classes
Which of the following statements is true regarding social classes in the United States?
A) Social class is determined by income alone.
B) Lines between social classes in the United States are fixed and rigid.
C) Social classes show distinct product preferences in clothing and automobiles.
D) Wealth is more critical than education level in measuring social class.
E) People are relegated to a permanent social class in the United States.
Social classes show distinct product preferences in clothing and automobiles.
Family is one of the ________ factors that influence consumer behavior.
A) regional
B) social
C) personal
D) psychological
E) business
social
________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday for the Los Angeles Lakers.
A) Membership groups
B) Aspirational groups
C) Leading adopters
D) Laggards
E) Disassociative groups
Aspirational groups
________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others.
A) Opinion leaders
B) Innovators
C) Surrogate consumers
D) Stealth marketers
E) Laggards
Opinion leaders
Opinion leaders are also referred to as ________.
A) influentials
B) lower uppers
C) innovators
D) laggards
E) surrogate consumers
influentials
________ are ambassadors who share their passion for a company’s products with large circles of friends and acquaintances in return for insider knowledge and other rewards.
A) Leading adopters
B) Brand evangelists
C) Surrogate consumers
D) Market mavens
E) Innovators
Brand evangelists
Companies that use brand ambassadors are most likely involved in ________ marketing.
A) ambush
B) spam
C) buzz
D) viral
E) database
buzz
Facebook and Second Life are both examples of ________.
A) brand alliances
B) opinion leaders
C) social networks
D) early adopters
E) market mavens
social networks
Which of the following is characteristic of online social networks?
A) use of one-way communication techniques
B) negligible adoption rates
C) guaranteed positive results
D) easy methods to measure results
E) user-controlled content
user-controlled content
What is the most important consumer buying organization in society?
A) family
B) social class
C) membership group
D) subculture
E) reference group
family
A ________ consists of the activities an individual is expected to perform according to the people around him/her.
A) motive
B) role
C) lifestyle
D) life cycle
E) perception
role
A buyer’s decisions are influenced by ________ such as the buyer’s age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept.
A) personal characteristics
B) stereotypes
C) perceptions
D) attitudes
E) psychographics
personal characteristics
Consumer information provider PersonicX uses a life-stage segmentation system that places U.S. households into one of 21 different life-stage groups. According to PersonicX’s groups, which of the following refers to the group consisting of young, energetic, well-funded couples and young families who are busy with their careers, social lives, and active recreation?
A) Taking Hold
B) Beginnings
C) Transition Times
D) Our Turn
E) Golden Years
Taking Hold
________ is a person’s pattern of living as expressed in his/her psychographics, and it includes the individual’s activities, interests, and opinions.
A) Personality
B) Culture
C) Lifestyle
D) Motive
E) Social class
Lifestyle
In the context of the AIO dimensions for measuring consumers’ lifestyles, “A” stands for ________.
A) activities
B) achievements
C) admirations
D) attitudes
E) associations
activities
________ refers to the unique psychological characteristics that distinguish an individual or group.
A) Groupthink
B) Belief
C) Perception
D) Personality
E) Self-awareness
Personality
Which of the following terms refers to a specific mix of human traits that may be attributed to a particular brand?
A) brand perception
B) brand identity
C) brand personality
D) brand concept
E) brand equity
brand personality
Shoez Inc., a manufacturer of shoes, has recently launched a brand of sturdy shoes ideal for hiking and other outdoor activities. Which of the following brand personalities could be best associated with the new brand?
A) sincerity
B) excitement
C) sophistication
D) competence
E) ruggedness
ruggedness
Many marketers use the self-concept premise that people’s possessions contribute to and reflect their identities—that is, “we are what we consume.” According to this premise, consumers ________.
A) buy products to support their self-images
B) rarely identify with brand personalities
C) are affected by opinion leaders
D) compare product brands
E) conduct primary research
buy products to support their self-images
A person’s buying choices are influenced by four major psychological factors. Which of the following is NOT one of these factors?
A) motivation
B) perception
C) association
D) learning
E) beliefs
association
A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction.
A) stimulus
B) perception
C) culture
D) motive
E) tradition
motive
According to Freud, a person’s buying decisions are primarily affected by ________.
A) family influences
B) societal expectations
C) brand images
D) cultural norms
E) subconscious motives
subconscious motives
________ refers to qualitative research designed to probe consumers’ hidden, subconscious motivations.
A) Perception analysis
B) Subliminal analysis
C) Motivation research
D) Need recognition
E) Market segmentation
Motivation research
A marketing research company asked members of a focus group to describe several brands as animals. This is an example of ________.
A) brand strength analysis
B) interpretive consumer research
C) quantitative research
D) buzz marketing
E) brand extension
interpretive consumer research
Maslow’s theory is that ________ can be arranged in a hierarchy.
A) marketing stimuli
B) personal beliefs
C) perceptions
D) human needs
E) decisions
human needs
Which of the following is NOT part of Maslow’s hierarchy of needs?
A) physiological needs
B) safety needs
C) spiritual needs
D) esteem needs
E) social needs
spiritual needs
According to Maslow’s hierarchy of needs, which of the following is the LEAST pressing need?
A) physiological needs
B) social needs
C) esteem needs
D) self-actualization needs
E) safety needs
self-actualization needs
________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
A) Motivation
B) Perception
C) Dissonance
D) Learning
E) Self-actualization
Perception
People cannot focus on all of the stimuli that surround them each day. A person’s tendency to screen out most of the information to which he is exposed is called ________.
A) subliminal retention
B) selective distortion
C) cognitive dissonance
D) selective attention
E) cognitive inertia
selective attention
People tend to interpret new information in a way that will support what they already believe. This is called ________.
A) selective retention
B) selective distortion
C) cognitive dissonance
D) selective attention
E) cognitive bias
selective distortion
________ means that consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands.
A) Selective attention
B) Selective retention
C) Cognitive dissonance
D) Selective distortion
E) Cognitive bias
Selective retention
Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________.
A) alternative evaluation
B) subliminal advertising
C) selective retention
D) cognitive dissonance
E) selective communication
subliminal advertising
________ describes changes in an individual’s behavior arising from experience.
A) Lifestyle
B) Learning
C) Perception
D) Cognitive dissonance
E) Selective attention
Learning
________ are minor stimuli that determine where, when, and how a person responds to an idea.
A) Cues
B) Drives
C) Reinforcers
D) Cognitions
E) Impulses
Cues
In the context of product characteristics that influence the rate of adoption, ________ refers to the degree to which the innovation fits the values and experiences of potential consumers.
A) communicability
B) relative advantage
C) compatibility
D) complexity
E) divisibility
compatibility
A(n) ________ is a descriptive thought that a person has about something.
A) lifestyle
B) motive
C) belief
D) attitude
E) cognition
belief
A(n) ________ is a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.
A) lifestyle
B) motive
C) belief
D) attitude
E) perception
attitude
When consumers are highly involved with the purchase of an expensive product and they perceive significant differences among brands, they most likely will exhibit ________.
A) consumer capitalism
B) complex buying behavior
C) consumer ethnocentrism
D) dissonance-reducing buying behavior
E) variety-seeking buying behavior
complex buying behavior
When consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands, they most likely will exhibit ________.
A) habitual buying behavior
B) complex buying behavior
C) impulse buying behavior
D) dissonance-reducing buying behavior
E) consumer capitalism
dissonance-reducing buying behavior
When customers have a low involvement in a purchase but perceive significant brand differences, they will most likely engage in ________.
A) complex buying behavior
B) dissonance-reducing buying behavior
C) habitual buying behavior
D) variety-seeking buying behavior
E) consumer ethnocentrism
variety-seeking buying behavior
Which of the following consumer buying behaviors is related to conditions of low-consumer involvement and little significant brand difference?
A) complex buying behavior
B) dissonance-reducing buying behavior
C) habitual buying behavior
D) variety-seeking buying behavior
E) consumer capitalism
habitual buying behavior
The buyer decision process consists of five stages. Which of the following is NOT one of these stages?
A) need recognition
B) information search
C) conspicuous consumption
D) purchase decision
E) postpurchase behavior
conspicuous consumption
The buying decision process starts with ________, in which the buyer spots a problem.
A) need recognition
B) information search
C) impulse purchases
D) buyer’s remorse
E) alternative evaluation
need recognition
If the consumer’s drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake ________.
A) consumer ethnocentrism
B) buyer’s remorse
C) a need recognition
D) an information search
E) cognitive dissonance
an information search
James has decided to buy a new vehicle. His brother John has recently purchased a new truck and recommends the same model to James. James finally decides to buy the same truck. Which of the following sources of information has most likely influenced James’ purchase decision?
A) experiential sources
B) public sources
C) personal sources
D) commercial sources
E) market mavens
personal sources
John has decided to buy a particular smartphone that his friend recommended. Which of the following sources of information has most likely influenced John’s purchase decision?
A) laggards
B) commercial sources
C) public sources
D) personal sources
E) market mavens
personal sources
The information sources that are the most effective at influencing a consumer’s purchase decision are ________. These sources legitimize or evaluate products for the buyer.
A) commercial
B) public
C) experimental
D) personal
E) attitudinal
personal
Marketers describe the way a consumer processes information to arrive at brand choices as ________.
A) alternative evaluation
B) information search
C) impulse buying
D) consumer capitalism
E) cognitive dissonance
alternative evaluation
Generally, the consumer’s purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. Which of the following is one of these factors?
A) economic risks
B) attitudes of others
C) cognitive dissonance
D) alternative evaluation
E) buyer’s remorse
attitudes of others
After the purchase of a product, consumers will be either satisfied or dissatisfied and engage in ________.
A) consumer capitalism
B) alternative evaluation
C) postpurchase behavior
D) consumer ethnocentrism
E) information searches
postpurchase behavior
The relationship between the consumer’s expectations and the product’s ________ determines whether the buyer is satisfied or dissatisfied with a purchase.
A) perceived performance
B) brand personality
C) market reach
D) consumer market
E) market share
perceived performance
Almost all major purchases result in ________, or discomfort caused by postpurchase conflict.
A) need recognition
B) cognitive dissonance
C) consumer ethnocentrism
D) conspicuous consumption
E) consumer capitalism
cognitive dissonance
When a customer feels uneasy about losing out on the benefits of a brand not purchased, she is likely to experience ________.
A) selective retention
B) selective attention
C) selective distortion
D) cognitive dissonance
E) consumer ethnocentrism
cognitive dissonance
Consumers learn about new products for the first time and make the decision to buy them during the ________.
A) need recognition stage
B) adoption process
C) evaluation process
D) trial process
E) quality assessment stage
adoption process
Which of the following is the adoption process stage at which the consumer considers whether trying the new product makes sense?
A) awareness
B) interest
C) evaluation
D) adoption
E) trial
evaluation
Which of the following is the final stage in the new product adoption process?
A) awareness
B) adoption
C) evaluation
D) interest
E) trial
adoption
Relative advantage, compatibility, complexity, divisibility, and communicability are all characteristics of ________.
A) alternative evaluations
B) the degree of buyer involvement
C) a product’s rate of adoption
D) unexpected situational factors
E) postpurchase behaviors
a product’s rate of adoption
Generation Xers, who were born between 1965 and 1976, share the childhood experiences of higher parental divorce rates, recession, and corporate downsizing. They tend to care about the environment and value experience over acquisition. Generation Xers make up a ________.
A) subculture
B) social class
C) social network
D) life-cycle stage
E) lifestyle
subculture
A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band’s fans will see them wearing the company’s shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a ________ to the band’s fans.
A) membership group
B) reference group
C) status symbol
D) subculture
E) lifestyle
reference group
Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for the latest fashion at great deals. Most of her friends and colleagues follow her fashion tips. Rachel portrays the image of a(n) ________.
A) surrogate consumer
B) laggard
C) opinion leader
D) brand personality
E) social networker
opinion leader
The latest trend in the United States involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients.
A) self-concept
B) subculture
C) lifestyle
D) personality
E) life-cycle
lifestyle
According to a customer, a Harley-Davidson motorcycle can make one feel like “the toughest, macho guy on the block.” Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a(n) ________.
A) motive
B) life-cycle stage
C) self-concept
D) brand personality
E) self-actualization need
brand personality
A marketer of women’s hair care products targeting Chinese customers created an advertising message that told women their hair could be worn any way they wanted as opposed to wearing it straight. The message suggested the women did not need to conform to the mainstream media definition of beauty. It is most accurate to say that this ad was based on an understanding of customers’ ________.
A) social class
B) life-cycle stage
C) self-concept
D) status
E) role
self-concept
Mark has long supported a particular brand of footwear and has always bought that brand of footwear. Recently, the footwear manufacturer was embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to purchase the same brand of footwear. It is most accurate to say that Mark displays ________.
A) selective distortion
B) cognitive dissonance
C) selective retention
D) selective attention
E) consumer ethnocentrism
selective distortion
Juana looked at the September issue of her favorite fashion magazine and did not find anything particularly interesting despite the fact that the magazine had several advertisements that were targeted at Juana’s demographic. The only thing that interested her was an article about an upcoming fashion show. Which consumer behavior is being illustrated in this instance?
A) subliminal advertising
B) groupthink
C) selective attention
D) social loafing
E) consumer ethnocentrism
selective attention
Stephanie and John wanted to purchase a high-end sports car. Stephanie wanted to buy one that had a unique, superior design. On the contrary, John wanted to buy a car with a powerful engine. They both viewed a commercial for a particular sports car which highlighted the cost, design, and power of the car. After viewing the ad, both had differing opinions about the car. Stephanie felt that the car’s price was acceptable, considering the superior and unique design. John thought that the car was expensive owing to the high power engine installed in it. Both used the information in different ways, focusing on issues that they each considered important. Which of the following concepts does this scenario demonstrate?
A) selective distortion
B) consumer ethnocentrism
C) selective retention
D) selective attention
E) cognitive dissonance
selective distortion
George is buying his first house. He has spent a month looking at houses and comparing them on attributes such as price and location. He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting ________.
A) variety-seeking buying behavior
B) complex buying behavior
C) consumer capitalism
D) dissonance-reducing buying behavior
E) marketing myopia
complex buying behavior
Pat thought he had received the best deal on his new car. Shortly after the buying the car, Pat started to notice certain disadvantages of his new car as he learned more about other cars available in the market. Pat is experiencing ________.
A) consumer ethnocentrism
B) conspicuous consumption
C) postpurchase dissonance
D) marketing myopia
E) consumer capitalism
postpurchase dissonance
For the past ten years, Bill and Margaret have saved money to go to the Super Bowl should their team, the Chicago Bears, reach the finals of the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. Since all packages are pretty much the same, they have chosen one that fits their budget. Bill and Margaret are most likely exhibiting ________.
A) complex buying behavior
B) dissonance-reducing buying behavior
C) habitual buying behavior
D) consumer capitalism
E) consumer ethnocentrism
dissonance-reducing buying behavior
Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead she does a lot of brand switching. Carrie exhibits ________.
A) dissonance-reducing buying behavior
B) complex buying behavior
C) habitual buying behavior
D) variety-seeking buying behavior
E) conspicuous consumption behavior
variety-seeking buying behavior
A particular automobile company works to keep its customers happy after each sale, aiming to delight each one of them in order to increase their customer lifetime value. Which of the following steps of the buyer decision process does the company exemplify?
A) need recognition
B) information search
C) evaluation of alternatives
D) purchase decision
E) postpurchase behavior
postpurchase behavior
An invitation to go skiing over the weekend forced Donna to look at her current wardrobe. She realized that she required a warmer coat. Which of the following stages of the buyer decision process does Donna exemplify?
A) product evaluation
B) situational analysis
C) need recognition
D) problem screening
E) information search
need recognition
Donna wants to buy a new coat. During the ________ stage of the buyer decision process she will ask her friends to recommend stores that sell good quality winterwear clothing. She will also go through newspapers and magazines to look out for offers and sales on coats.
A) product evaluation
B) alternative evaluation
C) need recognition
D) information search
E) purchase decision
information search
Robert has taken up cycling as a hobby and as a way to maintain his physical fitness. He wants to buy a hydration system since he will need a lot of water as he cycles. Having gathered a great deal of information, he has finally narrowed down his choices to three systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water. Robert is in the ________ stage of the buyer decision process.
A) need recognition
B) evaluation of alternatives
C) product trial
D) postpurchase evaluation
E) information search
evaluation of alternatives
Leona bought two different brands of wine from vineyards in Australia. When asked for her opinion about the wines, she said that one brand of wine tasted like alcoholic grape juice, but the other had a crisp taste that she really enjoyed. These statements were most likely made during the ________ stage of the buyer decision process.
A) information search
B) need recognition
C) alternative evaluation
D) purchase decision
E) postpurchase behavior
postpurchase behavior
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.
A) innovator
B) surrogate consumer
C) late mainstream
D) early mainstream
E) lagging
innovator
Which of the following would a marketer LEAST likely do to encourage habitual buying behavior?
A) dominate shelf space
B) run frequent reminder ads
C) keep shelves fully stocked
D) stress unique features in ads
E) offer lower prices and coupons
stress unique features in ads