Marketing (Exam 2) Quizzes

What are the 4 steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence
C) market segmentation, targeting, differentiation, and positioning
Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?
A) gender
B) income
C) occasion
D) usage rate
E) readiness stage
B) income
As in consumer segmentation, many marketers believe that ____ and ____ segmentation provide the best basis for segmenting business markets. A) geographic; demographic
B) user status; user loyalty
C) benefits; buying behavior
D) age and life-cycle; psychographic
E) income; usage rate
C) benefits; buying behavior
In general, a company should enter only segments in which it can ___ & ___.
A) offer lower prices; ship faster
B) offer superior value; gain advantages over competitors
C) offer superior value; ship faster
D) gain advantages over competitors; mass market its products
E) offer lower prices; develop customer loyalty
B) offer superior value; gain advantages over competitors
Using concentrated marketing, the Marketer goes after a ________ share of ________.
A) small; a small market
B) small; a large market
C) large; one or a few niches
D) large; the mass market
E) moderate; local
C) large; one or a few niches
Which group determines a product’s position relative to competing products? A) manufacturers
B) wholesalers
C) retailers
D) consumers
E) suppliers
D) consumers
Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for?
A) unique selling product
B) unique services practice
C) unique sales pitch
D) unique selling proposition
E) unique strategic practice
D) unique selling proposition
Which difficult-to-sustain positioning strategy attempts to deliver the “best-of-both”?
A) more-for-the-same
B) more-for-less
C) same-for-less
D) less-for-much-less
E) more-for-more
B) more-for-less
Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it and mass promotes it. This firm uses ________ marketing.
A) segmented
B) undifferentiated
C) nontraditional
D) differentiated
E) mass customization
B) undifferentiated
Sanderson Services is a small company that practices a marketing strategy in which its limited resources are used to go after a large share of two small niches. Sanderson practices which one of these strategies?
A) undifferentiated
B) differentiated
C) mass
D) concentrated
E) geographically dispersed
D) concentrated
We define a ________ as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
A) private brand
B) service variability
C) service
D) product
E) service encounter
D) product
________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
A) Shopping products
B) Unsought products
C) Specialty products
D) Industrial products
E) Line extensions
C) Specialty products
Public health campaigns to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________.
A) specialty products
B) social marketing
C) shopping products
D) consumer products
E) responsibility marketing
B) social marketing
In recent years, product safety and environmental responsibility have become major ________ concerns.
A) branding
B) packaging
C) product mix
D) service
E) product line
B) packaging
A ________ consists of all the product lines and items that a particular seller offers for sale.
A) product mix
B) brand line
C) consumer mix
D) packaging mix
E) line extension
A) product mix
Through ________, the service firm trains and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.
A) service inseparability
B) service intangibility
C) service variability
D) internal marketing
E) external marketing
D) internal marketing
Which of the following is NOT a desirable quality for a brand name?
A) It should suggest something about the product’s benefits and qualities.
B) It should be easy to pronounce, recognize, and remember.
C) The brand should almost always be a long word to get attention.
D) The name should translate easily into foreign languages.
E) It should be distinctive.
C) The brand should almost always be a long word to get attention.
________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.
A) A line extension
B) A brand extension
C) Interactive marketing
D) Service variability
E) Service intangibility
A) A line extension
Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) ________ product.
A) convenience
B) unsought
C) specialty
D) shopping
E) augmented
D) shopping
Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has brand ________.
A) extension
B) equity
C) specialty
D) service
E) endurance
A) extension
Which of the following is NOT a challenge presented by the product life cycle that a firm must face?
A) All products eventually decline.
B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through life-cycle stages.
C) A firm must be good at developing new products to replace aging ones.
D) A firm must be good at adapting its marketing strategies.
E) It is difficult to plot the stages as a product goes through them.
E) It is difficult to plot the stages as a product goes through them.
Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new-product innovation process?
A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing
C) crowdsourcing
For some ________, a simple description consisting of a word or picture might be sufficient.
A) concept tests
B) test markets
C) marketing strategies
D) product developments
E) business analyses
A) concept tests
Under what circumstances might it be wise for a company to do little or no test marketing?
A) when a new product requires a major investment
B) when management is not sure of the product
C) when management is not sure of the marketing program
D) when the product has no substitutes and is new in its category
E) when the costs of developing and introducing the product are low
E) when the costs of developing and introducing the product are low
Which of the following is a disadvantage of a team-based approach to new-product development?
A) It takes longer to get the right products to market.
B) The development effort is not as effective because of team members’ lack of expertise.
C) Levels of risk can be more easily controlled.
D) Organizational confusion and tension can affect the process.
E) The process does not work with the shorter life cycles of many of today’s products.
D) Organizational confusion and tension can affect the process.
In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?
A) growth
B) product development
C) maturity
D) introduction
E) adoption
D) introduction
Manufacturers must comply with specific laws regarding ________.
A) profit margins
B) product quality and safety
C) product harvesting
D) distribution channel length
E) product life cycles
B) product quality and safety
Mattel’s Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the ________ stage of the PLC.
A) introduction
B) growth
C) maturity
D) decline
E) adoption
C) maturity
When Kraft focused on cost-cutting with its older and established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.
A) extend
B) maintain
C) drop
D) harvest
E) review
D) harvest
JoAnn Fabrics, Inc. has just created a new combination of colors and fabric types. The firm wants to be sure of the way consumers think about its new product. The firm is concerned with the product ________.
A) idea
B) screening
C) image
D) commercialization
E) presentation
C) image
________ is the amount of money charged for a product or service.
A) Value
B) A demand
C) Price
D) A wage
E) Salary
C) Price
Value-based pricing is the reverse process of ________.
A) variable cost pricing
B) cost-plus pricing
C) cost-based pricing
D) good-value pricing
E) value-added pricing
C) cost-based pricing
Fixed costs ________ as the number of units produced increases.
A) decrease
B) increase
C) divide in half
D) remain the same
E) increase at a diminishing rate
D) remain the same
Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This is known as ________.
A) variable costs
B) cost-plus pricing
C) value-based pricing
D) break-even price
E) penetration pricing
B) cost-plus pricing
Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking.
A) competition-based pricing
B) target return pricing
C) fixed cost pricing
D) value-based pricing
E) customer-based pricing
B) target return pricing
________ that influence pricing decisions include the nature of the market and other environmental factors.
A) Internal factors
B) Value factors
C) External factors
D) Target factors
E) Domestic factors
C) External factors
Under ________, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) anti-trust agreements
A) pure competition
If demand changes greatly with a small change in price, we say the demand is ________.
A) variable
B) inelastic
C) value-based
D) elastic
E) fixed
D) elastic
Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games. This is an example of ________.
A) good-value pricing
B) add-on pricing
C) product-support pricing
D) value-added pricing
E) cost-based pricing
D) value-added pricing
A company faces fixed costs of $100,000 and variable costs of $8.00/unit. It plans to directly sell its product to the market for $12.00. How many units must it produce and sell to break even?
A) 20,000
B) 25,000
C) 40,000
D) 50,000
E) not enough information to calculate
B) 25,000
A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles.
A) pricing by-product
B) pricing structure
C) pricing loop
D) pricing cycle
E) pricing bundle
B) pricing structure
Which of the following is a reason that a marketer would choose a penetration pricing strategy?
A) to ensure the company has the ability to increase prices once demand decreases
B) to focus on the rapid achievement of profit objectives
C) to appeal to different consumer segments with different levels of price sensitivity
D) to create markets for highly technical products
E) to discourage competition from entering the market
E) to discourage competition from entering the market
Using product bundle pricing, sellers combine several products and offer the bundle ________.
A) as a functional unit
B) at a reduced price
C) as a complete self-service package
D) as a reward to loyal customers
E) at a premium price
B) at a reduced price
Consumers are less likely to use price to judge the quality of a product when they ________.
A) lack information
B) lack skills to use the product
C) have experience with the product
D) are shopping for a specialty item
E) cannot physically examine the product
C) have experience with the product
The Internet offers ________, where the price can easily be adjusted to meet changes in demand.
A) captive pricing
B) dynamic pricing
C) basing-point pricing
D) price bundling
E) cost-plus pricing
B) dynamic pricing
Which of the following is a reason for a company to raise its prices?
A) to address the issue of over demand for a product
B) to win a larger share of the market
C) to use excess capacity
D) to boost sales volume
E) to balance out decreasing costs
A) to address the issue of over demand for a product
When a firm improves the quality and increases the price of a product in reaction to a competitor making a price reduction, the firm is ________.
A) moving its brand into a less competitive position
B) negatively positioning its product
C) moving its brand into a higher price-value position
D) creating a “fighter brand”
E) narrowing its target market
C) moving its brand into a higher price-value position
Comparison pricing claims are legal if they are truthful. However, sellers should not advertise a price reduction unless ________.
A) it is a saving from the retail price
B) a “factory” price, if listed, is what it is claimed to be
C) a “wholesale” price, if listed, is what it is claimed to be
D) “comparable value items” are not actually imperfect goods
E) all of the above
E) all of the above
Bose prices its most expensive noise reduction earphones at $399.95, which is a full $100.00 more than its next most expensive earphones. It costs Bose only a few dollars more to make the most expensive earphones. Bose is using ________ pricing.
A) customer-segment
B) product-form
C) promotional
D) penetration
E) captive product
B) product-form
A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they would charge for models.
A) prestige pricing
B) predatory pricing
C) price bundling
D) dynamic pricing
E) price fixing
E) price fixing
Which of the following is NOT a typical supply chain member?
A) resellers
B) customers
C) intermediaries
D) government agencies
E) raw materials supplier
D) government agencies
At minimum, a marketing channel consists of a producer and a(n) ________.
A) wholesaler
B) agent
C) broker
D) intermediary
E) customer
E) customer
Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards. Joanie is experiencing ________.
A) a tying disagreement
B) channel conflict
C) channel disintermediation
D) third-party logistics
E) channel intermediation
B) channel conflict
The most common type of contractual relationship in business is the ________. A) franchise organization
B) administered marketing system
C) conventional marketing channel
D) corporate VMS
E) horizontal marketing system
C) conventional marketing channel
When a company is identifying its major channel alternatives, it should consider its choices in terms of ________ of intermediaries.
A) size, power, and profitability
B) power, cooperativeness, and location
C) types, number, and responsibilities
D) capacity, creativity, profitability
E) types, breadth, depth
B) power, cooperativeness, and location
It is most common for international marketers to ________ their channel strategies for each country.
A) extend
B) adapt
C) restrict
D) seek approval for
E) eliminate
B) adapt
________ logistics concerns the methods consumers use to send products to a producer for return or repair. A) Inbound
B) Reverse
C) Outbound
D) Vertical
E) Horizontal
A) Inbound
Lancaster Box Company wants to provide better customer service while trimming distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Lancaster Box is thinking of ________.
A) integrated logistics management
B) vendor-managed inventory
C) customer relationship management
D) third-party logistics
E) disintermediation
E) disintermediation
Which of the following is an example of horizontal channel conflict?
A) managers of two separate Holiday Inns disagreeing over what constitutes poor service
B) United Airlines competing with Northwest Airlines for customers
C) disgruntled factory workers complaining about a small pay raise
D) the BMW dealership in Fort Wayne complaining that the BMW dealership in Indianapolis is situated too close
E) A and D
A) managers of two separate Holiday Inns disagreeing over what constitutes poor service
Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution.
A) exclusive
B) intensive
C) quality
D) high-end
E) independent
________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediation
B) Retailing
________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.
A) Convenience stores
B) Department stores
C) Chain stores
D) Supermarkets
E) Hypermarkets
D) Supermarkets
________ are sometimes several stores grouped together. These stores offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.
A) Category killers
B) Factory outlets
C) Specialty stores
D) Superstores
E) Power centers
B) Factory outlets
A retailer’s ________ should differentiate the retailer while matching target shoppers’ expectations. One strategy is to offer merchandise that no other competitor carries.
A) agent
B) broker
C) product assortment
D) environment
E) distribution strategy
C) product assortment
A ________ contains between 15 and 40 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.
A) community shopping center
B) neighborhood shopping center
C) strip mall
D) regional shopping center
E) power center
A) community shopping center
The merging of consumers, products, prices, and retailers is called ________. A) retail conglomeration
B) consumer convergence
C) price merging
D) retail convergence
E) retail clustering
D) retail convergence
Touch-screen kiosks, customer-loyalty cards, handheld shopping assistants, and self-scanning checkout systems are all examples of how retailers use technology to ________.
A) maintain inventory costs
B) send information between stores
C) meet consumers’ expectations
D) produce more accurate forecasts
E) interact with suppliers
C) meet consumers’ expectations
Which wholesaler’s channel function is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers?
A) financing
B) transportation
C) buying and assortment building
D) warehousing
E) risk bearing
B) transportation
Today’s large, progressive wholesalers have successfully reacted to rising costs by ________.
A) relocating in low-rent, low-tax areas
B) investing in information technology systems
C) investing less money in expensive machinery
D) increasing their markup
E) reducing promotional activities
B) investing in information technology systems
7-Eleven has recently begun to redesign and restock its stores to offer a more upscale environment and products, such as house wines and fresh foods. 7-Eleven has changed its ________.
A) positioning
B) wholesaler
C) service level
D) size
E) relative prices
A) positioning
A company’s total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________.
A) direct marketing
B) integrated marketing
C) the promotion mix
D) competitive marketing
E) target marketing
C) the promotion mix
Moving away from ________, marketers have been shifting toward highly focused marketing, spawning a new generation of more specialized and highly targeted communications efforts.
A) mass marketing
B) advertising
C) direct marketing
D) pull strategies
E) push strategies
A) mass marketing
To produce better communications consistency, a unified company image, and greater sales impact, some companies employ a(n) ________.
A) advertising agency
B) marketing communications director
C) public relations specialist
D) personal sales force
E) media planner
B) marketing communications director
To communicate effectively, a marketing communicator must ________ the consumer’s field of experience.
A) compete with
B) share
C) understand
D) create
E) reference
C) understand
A message showing a product’s quality, economy, value, or performance is called a(n) ________ appeal.
A) structural
B) rational
C) emotional
D) moral
E) standard
B) rational
Creating word-of-mouth campaigns by cultivating opinion leaders and getting them to spread information about a product or service to others in their communities is known as ________.
A) sales promotion
B) indirect marketing
C) buzz marketing
D) stealth marketing
E) public relations
C) buzz marketing
Perhaps the most logical budget-setting method is the ________ method because it is based on spending necessary to accomplish specific promotion goals.
A) percentage-of-sales
B) affordable
C) competitive-parity
D) objective-and-task
E) exponential smoothing
D) objective-and-task
Which promotional mix strategy directs marketing efforts toward final consumers? A) pull
B) blitz
C) push
D) buzz
E) pulse
A) pull
Mercy University’s initial ads for the school’s new MBA program are most likely intended to create ________.
A) liking
B) awareness
C) preference
D) insistence
E) conviction
B) awareness
Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their body shops use Glasis paint is an example of how a company uses ________.
A) word-of-mouth influence
B) public relations
C) buzz marketing
D) a push strategy
E) a pull strategy
E) a pull strategy
Demographic variables are the most popular bases for segmenting customer groups because they ________.
A) involve fewer attributes to consider
B) are easier to measure
C) do not involve stereotypes
D) create smaller segments
E) create more easily reached segments
B) are easier to measure
Through ________, brands can be differentiated on features, performance, or style and design.
A) people differentiation
B) channel differentiation
C) product differentiation
D) services differentiation
E) price differentiation
C) product differentiation
When Port Orleans Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing.
A) undifferentiated
B) individual
C) niche
D) differentiated
E) mass
D) differentiated
It is most accurate to say that successful niche marketing relies on a firm’s ________ and its ________.
A) greater knowledge of customers’ needs; special reputation
B) competitive advantage in comparison to mass-market companies; affordable pricing
C) superior products; value network partners
D) individual relationships with customers; positioning
E) marketing strategy; services
A) greater knowledge of customers’ needs; special reputation
Rasco Corp. segments its foreign markets by the income levels of a country’s population. This firm segments on what basis?
A) geographic factors
B) legal factors
C) political factors
D) economic factors
E) cultural factors
D) economic factors
Under what circumstances would local marketing be the most effective?
A) when regional demographics and lifestyles are similar
B) when pronounced similarities in lifestyles are present
C) when pronounced similarities in psychographics are present
D) when pronounced regional and local differences in demographics and lifestyles are present
E) when pronounced differences in psychographics are present
D) when pronounced regional and local differences in demographics and lifestyles are present
Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation.
A) user status
B) usage rate
C) occasion
D) psychographic
E) benefits sought
B) usage rate
The market segments your company is targeting are conceptually distinguishable and respond distinctively to various marketing mix elements and programs. Therefore, these segments are ________.
A) accessible
B) measurable
C) reachable
D) observable
E) differentiable
E) differentiable
When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand, it is using which segmentation variable?
A) geographic location
B) economic factors
C) political and legal factors
D) demographics
E) benefits sought
A) geographic location
As You Like It Inc. customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.
A) variable marketing
B) micromarketing
C) niche marketing
D) geographically dispersed marketing
E) undifferentiated marketing
B) micromarketing
The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are ________.
A) measurable
B) accessible
C) actionable
D) substantial
E) profitable
B) accessible
The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.
A) geographic
B) psychographic
C) user status
D) age and life-cycle
E) behavioral
E) behavioral
Ad man Rosser Reeves believed that firms should develop a USP for each brand and stick to it. What does USP stand for?
A) unique selling proposition
B) universal strategic practice
C) unique services practice
D) unique sales pitch
E) unique selling product
A) unique selling proposition