Marketing 320F Final

False
Marketers can control the external environment in which their organizations operate.
True/False
True
Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies.
True/False
c. Target markets change over time as consumers drop in or out of the market, and as tastes change.
Which of the following statements best describes the typical target market?
a. Target markets only change when the features
and benefits of the product offering change.
b. Target markets are not strongly affected by
changes in the external environment.
c. Target markets change over time as consumers
drop in or out of the market, and as tastes
change.
d. A target market will remain stable over time,
including the same group of consumers.
e. Target markets cannot be specifically defined
according to age, income, or location, because
these factors are continually changing.
e. must be continually monitored by marketing managers.
The external environment:
a. does not change over time.
b. can be controlled in much the same manner as
the internal marketing mix.
c. does not have an impact on Fortune 500
companies.
d. cannot be influenced by marketing managers.
e. must be continually monitored by marketing
managers.
c. social
Americans’ core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxury goods are marketed. This phenomenon is an example of a(n) _____ factor.
a. demographic
b. technological
c. social
d. economic
e. political and legal
e. need recognition, information search, evaluation of alternatives, purchase, postpurchase behavior
The steps of the consumer decision-making process, in order, are:
a. need recognition, alternative aggregation,
reevaluation, purchase decision, postpurchase
behavior
b. need positioning, alternative aggregation and
divestment, purchase decision, postpurchase
evaluation
c. need positioning, stimulus response reactions,
evaluation of alternatives, purchase decision,
postpurchase evaluation
d. information search, need positioning, evaluation
of alternatives, product trial, purchase decision,
postpurchase satisfaction
e. need recognition, information search, evaluation
of alternatives, purchase, postpurchase behavior
a. consumer’s age
All of the following factors directly influence consumers’ level of involvement in the purchase process EXCEPT:
a. consumer’s age
b. previous experience with the product
c. social visibility of the purchased item
d. perceived risk of negative consequences as a
result of the purchase
e. financial risk associated with the product
c. derived demand
Company X sells their products exclusively to companies in the Y market. In estimating demand from their business customers, Company X must understand that this demand is actually _____________, which means that the demand for industrial products and services is driven by demand for consumer products and services.
a. secondary demand
b. primary demand
c. derived demand
d. selective demand
d. Segmentation, differentiation
What are the twin pillars of marketing?
a. Product, place
b. Customer relationships, promotion
c. Customer relationships, segmentation
d. Segmentation, differentiation
a. It will satisfy the segment’s specific needs
Why is targeting a specific group of customers usually more successful than trying to appeal to everyone?
a. It will satisfy the segment’s specific needs
b. Customer interests change
c. It costs less
d. It takes less effort
e. Geographic
A nationwide restaurant chain that varies its menu based on its location is an example of what kind of segmentation:
a. Psychographic
b. Benefits
c. Demographic
d. Usage
e. Geographic
a. Demographic
Clear Channel owns hundreds of radio stations across the U.S. How do they decide what kind of music to play on a particular station?
a. Demographic
b. Psychographic
c. Geographic
d. Usage
e. Benefits
False
Procter & Gamble markets six different brands of laundry detergent, each targeting a different market segment. This is an example of concentrated targeting.
True/False
False
Deciding who to target is the first step in market segmentation.
True/False
True
“One-size-fits-all” marketing is largely out of date.
True/False
e. product line
There are a number of detergents marketed under the Tide brand, including detergents with and without fabric softener, with and without bleach, with various pleasing smells, and fragrance-free formulations. These detergents are an example of Tide’s:
a. marketing mix.
b. product equity.
c. product mix.
d. mix consistency.
e. product line.
e. convenience
Tortilla chips are most likely _____ products, since they are purchased with little shopping effort.
a. generic
b. unbranded shopping
c. specialty
d. branded shopping
e. convenience
b. functional
NestlĂ©’s quest is to make some of its existing products more nutritious and provide a health benefit. This is an example of which type of product modification?
a. Ingredient
b. Functional
c. Brand
d. Extension
e. Style
d. Repositioning
A regional utility company needs to change consumers’ perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal?
a. Disintermediation
b. Use of product cannibalization
c. Adding new services to its product line
d. Repositioning
e. Contraction of the number of services offered
by the utility company
c. establishing the new-product strategy
The first stage of the new-product development process is:
a. exploring opportunities
b. the building of a prototype
c. establishing the new-product strategy
d. developing a business analysis
e. screening and concept testing
c. Developing a business analysis
During which stage of the process does the marketer lead the preliminary analysis and calculations for demand, cost, sales, and profitability?
a. Screening and concept testing
b. The building of a prototype
c. Developing a business analysis
d. Establishing the new-product strategy
e. Exploring opportunities
b. All of these
A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of new product ideas that would allow it to compete more effectively?
a. The company’s employees
b. All of these
c. R&D
d. Customers who have requested its catalogs
e. Its foreign competitors
d. laggards
In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called:
a. late majority.
b. generics.
c. decliners.
d. laggards.
e. luddites.
d. distribution
All of the following are product characteristics influencing the rate of adoption EXCEPT:
a. observability.
b. complexity.
c. compatibility.
d. distribution.
e. relative advantage.
c. new product strategy stage
Which of the following is not one of the stages of the product lifecycle?
a. Decline stage
b. Introductory stage
c. New product strategy stage
d. Growth stage
e. Maturity stage
True
Profits typically reach their peak during the growth stage of the product life cycle.
True/False
False
Services tend to exhibit more search qualities than do tangible goods.
True/False
d. Incoherency
Which of the following is NOT one of the four unique elements to services?
a. Heterogeneity
b. Inseparability
c. Intangibility
d. Incoherency
e. Perishability
a. Tax return preparation
Which of the following services would be most likely to exhibit strong credence qualities?
a. Tax return preparation
b. A math tutorial service
c. Consulting services for insurance coverage
d. The repair of a leaky drain
b. decreases cash flow
All of the following are benefits of supply (value) chain management EXCEPT:
a. increases flexibility of supply chain activities.
b. decreases cash flow.
c. key means of differentiation for a firm.
d. reduces supply chain costs.
e. improves customer service.
d. trade promotions
All of the following are logistics components of the supply chain EXCEPT:
a. inventory control.
b. production scheduling.
c. order processing.
d. trade promotions.
e. warehousing and materials-handling.
c. dual or multiple distribution
Horizontal channel conflict occurs most often when manufacturers practice:
a. channel distribution.
b. direct distribution.
c. dual or multiple distribution.
d. trade loading.
e. promotional pricing.
c. Specialization or Division of labor
______ within the marketing channel can provide efficiencies and economies of scale as channel members take on tasks that best utilize their expertise or strategic relationships.
a. Overcoming quantity discrepancies
b. Overcoming temporal discrepancies
c. Specialization or Division of labor
d. Addressing assortment issues
e. Decreasing the distance between producers and
customers
d. transactional, logistical, and facilitating
The three basic functions channel intermediaries perform are:
a. assorting, accumulating, and allocating.
b. contacting, negotiating, and ownership.
c. promoting, distributing, and bulk-breaking.
d. transactional, logistical, and facilitating.
e. financing, mediating, and storing.
a. direct channel
One configuration of a marketing channel entails producers selling to consumers without any intermediaries in the channel. This is called a(n):
a. direct channel.
b. alternative channel.
c. limited distribution system.
d. reciprocal channel.
e. indirect channel.
a. Intensive
________ is a form of distribution aimed at having a product available in every outlet where target customers might want to buy it.
a. Intensive
b. Aggregated
c. Cumulative
d. Exclusive
e. Multiple
b. Strategic channel alliances
_____ use another manufacturer’s already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming.
a. Reverse channels
b. Strategic channel alliances
c. Nontraditional channelization
d. Relationship channels
e. Multiple distribution systems
d. Vertical conflict
______ is a clash of goals and/or methods that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer.
a. Channel partnering
b. Channel power
c. Arms-length relationship
d. Vertical conflict
e. Horizontal conflict
Mass and interpersonal
The two major categories of communications are:
channel
When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising, Castrol Syntec found a way to show consumers (in a virtual world) the brand’s power and performance. In the communication process, the game served as a(n) _____ for transmitting the message.
persuading
Innovyx is an email marketing service provider. It has a new ad campaign aimed at changing negative perceptions of email. The ads explain how much cheaper email advertising is than traditional advertising and what a high return on investment it can generate if used properly. Finally, the message ends by suggesting that companies wanting to promote their products give email a chance to show what it can do. This promotion has the task of:
unique selling proposition
M&M’s famous slogan, “Melts in your mouth, not in your hand,” is an example of a(n):
A frequent buyer program
Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service?
A listening platform with key word report capabilities
Angela and Dominic own Cincy by the Slice pizzeria. They are interested in keeping track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of which steps to take next. Which of the following resources would best meet their needs?
False
Cutting costs is the best way to maximize profitability.
True/False
True
Willingness to pay is a way to measure demand elasticity.
True/False
a. No, the increase in sales will not offset the decrease in margin.
Assume a firm sells 1M units of its product for $10 and has a 30% gross profit margin ($3). Cutting the price to $9.50 might stimulate unit sales by 10%. Will the assumed increase in sales volume offset the decrease in margin?
a. No, the increase in sales will not offset the
decrease in margin.
b. There is no way to tell without knowing variable
and fixed costs.
c. Yes, the increase in sales will offset the decrease
in margin due to increased demand.
e. YMS are mathematically complex systems to make use of underutilized capacity and reduce the cost of perishability.
Which of the following statements about yield management systems (YMS) is true?
a. YMS cannot be used by any other businesses
but services.
b. YMS are complex pricing systems used to set
equilibrium pricing points.
c. YMS eliminate the problem of simultaneous
production and consumption from services.
d. The first use of YMS was in the U.S. car industry
as it looked for ways to compete with imports.
e. YMS are mathematically complex systems to
make use of underutilized capacity and reduce
the cost of perishability.
e. the demand for the good and the cost to the seller.
Although many factors can influence price, the primary determinants are:
a. stage of the product life cycle and costs to the
consumer.
b. costs of manufacturing and distribution.
c. demand by the consumer and perceived quality.
d. distribution and promotion strategies.
e. the demand for the good and the cost to the
seller.
e. the firm is both customer driven and competitor driven.
With value-based pricing:
a. increased profitability for wholesalers will
increase the number of services they are willing
to perform.
b. consumers are more concerned about price
than quality.
c. additional long-term costs to manufacturers will
increase.
d. the firm is sales driven.
e. the firm is both customer driven and competitor
driven.
e. the demand for the good and the cost to the seller.
Imagine that you are planning a fund raising party for after the symphony, and you need a life-size grand piano cake. Or, you are a developer proposing a new shopping center to a group of investors, and you want to serve a cake shaped like an architectural rendition of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes. She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect to pay anywhere from $75 to $10,000 for one of Cecilia’s artistic creations, depending on complexity of design and size. She uses only the best ingredients, and no two cakes are ever quite alike. Although many factors determine the prices charged by Cecilia Villaveces Cakes, the two primary determinants are:
a. distribution and promotion strategies used by
the cake maker.
b. costs of manufacturing and distribution costs.
c. demand by the consumer and perceived quality.
d. stage of the product life cycle and costs to the
consumers.
e. the demand for the good and the cost to the
seller.
b. decriptive
To help understand why attendance at the team’s games was so poor, the Atlanta Falcons used marketing research to gather factual information. The organization used in-game surveys and end-of-season surveys of ticket holders. The gathering of factual statements is an example of marketing research in its _____ role.
a. objective
b. descriptive
c. predictive
d. historical
e. normative
d. predictive
Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if a social media advertising and engagement campaign they were considering that would be targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research.
a. descriptive
b. normative
c. objective
d. predictive
e. historical
a. identify and formulate the problem/opportunity to be studied.
The first step in the marketing research process is to:
a. identify and formulate the problem/opportunity
to be studied.
b. plan the research design.
c. collect the data.
d. specify the sampling plan.
e. analyze the marketplace.
d. secondary data
Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas. Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership—all information that was on hand and did not require any new research to locate. The market researcher looked at:
a. a closed study.
b. primary data.
c. priority databases.
d. secondary data.
e. a statistical analysis.
b. the research design
_____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed.
a. An autonomous director
b. The research design
c. The sampling plan
d. A secondary data use plan
e. The research collaborative plan
c. survey research
The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
a. experiments
b. observation research
c. survey research
d. single-source research
e. heuristic oriented
d. ethnographic
_____ research is the study of human behavior in its natural context, involving observation of behavior and physical setting.
a. Action-based
b. Experiment
c. Survey
d. Ethnographic
e. Visualization
d. What is the population or universe of interest?
In a study whose purpose is to determine the market for a vitamin that is to be chewed like bubble gum, what is the first question to be answered before a sampling plan is selected?
a. How often should the sample be redesigned?
b. Who can perform the actual sampling?
c. How large should the sample be in terms of its
measurement costs?
d. What is the population or universe of interest?
e. Must the sample be representative of the
population?
d. competitive intelligence
An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called:
a. differential competitive advantage.
b. an audit.
c. competitive research.
d. competitive intelligence.
e. industrial espionage.
c. web community
A carefully selected group of consumers who agree to participate in an ongoing online dialogue with a particular corporation is known as a(n):
a. web-based ethnographic group.
b. webinar.
c. web community.
d. online focus group.
e. focus blog.