MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following marketing management orientations focuses primarily on improving ...
... efficiencies along the supply chain? 1) _______
A) production concept
B) marketing concept
C) selling concept
D) product concept
E) social marketing concept
2) Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers. 2) _______
A) direct marketing
B) equity marketing
C) supply chain management
D) partnership relationship marketing
E) customized marketing
3) Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________. 3) _______
A) customer-perceived value
B) customer satisfaction
C) customer equity
D) customer lifetime value
4) To avoid traffic gridlock in large metro areas, a community might use ________ to discourage travelers from driving during peak commuting hours. 4) _______
B) the production concept
C) target marketing
E) market segmentation
5) Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept. 5) _______
C) societal marketing
6) Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong? 6) _______
B) short-term customers
D) true friends
7) ________ is the act of obtaining a desired object from someone by offering something in return. 7) _______
C) A value proposition
E) Value creation
8) Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities. 8) _______
A) customer relationship management
9) Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products? 9) _______
10) Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing. 10) ______
11) Which of the following does NOT accurately reflect a problem with the BCG matrix approach? 11) ______
A) It can be costly to conduct.
B) It can be time consuming to implement.
C) It is difficult to define SBUs and measure market share and growth.
D) It focuses on classifying current businesses.
E) It focuses on planning for the future.
12) Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This effort by Starbucks management is an example of ________. 12) ______
A) market development
B) product adaptation
C) product development
D) market penetration
13) The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________. 13) ______
A) downsizing; expanding
B) diversifying; penetrating
C) developing; growing
D) promoting; selling
E) harvesting; divesting
14) Which department in a company carries the primary responsibility for achieving profitable growth? 14) ______
A) product development
C) human resources
15) Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing organization into groups headed by a sales manager, an advertsing manager, and a customer-service manager. What type of organization is this? 15) ______
A) customer B) functional C) product D) geographic E) market
16) In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________. 16) ______
A) place B) product C) price D) promotion E) position
17) While a valuable planning tool, a problem with using the BCG matrix centers is that it focuses on ________ 17) ______
A) financial issues instead of the customer
B) the future instead of the present
C) the present instead of the future
D) the past instead of the present
E) the customer instead of suppliers
18) In the Boston Consulting Group approach, ________ serves as a measure of company strength in the market. 18) ______
A) market development
B) relative market share
C) market growth rate
D) market diversification
E) market segmentation
19) The ________ organizational format was first used by Procter and Gamble in 1929. 19) ______
B) customer management
C) geographic management
D) market management
E) product management
20) Which of the following descriptions most accurately characterizes Millennials? 20) ______
A) They have reached their peak earning and spending years.
B) They were once labeled "the MTV generation."
C) They are less ethnically diverse than Gen Xers.
D) They are children of baby boomers.
E) They have graduated from college and are taking over positions of power in the business world.
21) Which of the following is a potential downside to using patriotic themes in marketing programs? 21) ______
A) Americans are less confident in political organizations.
B) Patriotism has been on the decline in the past decade.
C) Few marketers currently use this technique.
D) Levels of patriotism fluctuate rapidly.
E) Such promotions can be viewed as attempts to gain from others' triumph or tragedy.
22) Your marketing department is currently researching the size, density, location, age, and occupations of your target market. Which environment is being researched? 22) ______
23) Noora DeLange is helping her company develop a marketing program for a new product line. The program involves emphasizing experience over acquisition and uses a marketing pitch that is less overt than the company's previous programs. The marketing program is most likely designed to appeal to which of the following demographic groups? 23) ______
A) nontraditional households
B) "micropolitan" populations
C) Gen Xers
E) manufacturing workers
24) You are directed to study the demographic, economic, natural, technological, political, and cultural factors that are larger societal forces affecting your company. What are you studying? 24) ______
A) the marketing mix
B) the macroenvironment
C) the microenvironment
D) the external environment
E) the global environment
25) Even the most liberal advocates of free-market economies agree that the system works best with ________ regulation. 25) ______
D) at least some
26) Which of the following descriptions most accurately characterizes the baby boomers? 26) ______
A) They are uninterested in adapting new technologies.
B) They are past their peak earning and spending years.
C) They hold 75% of the country's assets.
D) They are a shrinking market for new housing and home remodeling.
E) They are increasingly likely to retire early.
27) Which of the following demographic groups has NOT seen a percentage increase in the past 50 years? 27) ______
A) nontraditional households
B) women working outside of the home
C) men staying at home with their children
D) women staying at home with their children
E) nonfamily households
28) What is the purpose of a data warehouse? 28) ______
A) to analyze data
B) to identify and discard outdated data
C) to organize internal and external data by relevance
D) to gather and integrate information a company already has
E) to interpret data
29) Which type of research would be best suited for identifying which demographic groups prefer diet soft drinks and why they have this preference? 29) ______
30) Managers often start with ________ research and later follow with ________ research. 30) ______
A) descriptive; causal
B) descriptive; exploratory
C) causal; exploratory
D) causal; descriptive
E) exploratory; causal
31) The most common research instrument used is the ________. 31) ______
B) focus group
C) live interviewer
D) mechanical device
E) people meter
32) You want to observe how often consumers listen to music throughout their day and what different audio devices they use. You are also interested in how consumers store and access their own music collections. You should conduct ________ research. 32) ______
33) Four common sources of internal data include the accounting department, operations, the sales force, and the ________. 33) ______
B) marketing department
34) Which of the following is NOT considered a source of marketing intelligence? 34) ______
B) causal research
C) key customers
E) activities of competitors
35) A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept. 35) ______
A) reference groups
E) personal characteristics
36) The starting point of understanding a consumer's response to various marketing efforts is the ________ of a buyer's behavior. 36) ______
B) postpurchase feeling
C) postpurchase dissonance
E) stimulus-response model
37) A customer's lifestyle can be measured by using the AIO dimensions. What does AIO stand for? 37) ______
A) Acknowledgements, Interests, Observations
B) Activities, Interests, Opinions
C) Adoptions, Interests, Occupations
D) Achievement, Involvement, Organizations
E) Accommodation, Investment, Orientation
38) Marketers are always trying to spot ________ in order to discover new products that might be wanted. 38) ______
C) cultural shifts
39) ________ is never simple, yet understanding it is the essential task of marketing management. 39) ______
A) Brand personality
B) Understanding the difference between primary and secondary data
C) Consumer buying behavior
D) Consumption pioneering
E) Early adoption
40) Shane Sudendorf is an active member of her sorority, two intramural teams, and a service organization at her college. She also actively participates on two online social networks, posting information about her day along with her thoughts on music, food, fashion, and culture. From this description, which of the following is the best way to describe Shane? 40) ______
A) a status symbol
B) a brand ambassador
C) a member of the RBC Youth segment
D) a member of the RBC Builder segment
E) an opinion leader
41) Which of the following was most likely being used when Boeing received orders for $100 million in spare parts in the first year its Web site was in operation? 41) ______
A) blanket contracting
C) a reverse auction site
D) an intranet
E) single sourcing
The following questions refer to the scenario below.
A-1 Stampings, Inc., produces 14 metal stampings for the automotive industry. Due to industry design changes, for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation.
In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.
42) In this scenario, which of the following had the greatest influence on the business buying behavior at A-1 Stampings? 42) ______
A) organizational structure
B) technological changes
C) regulatory developments
D) individuals' risk attitudes
E) shifting authority
43) All of the following are difficulties associated with selling to government buyers EXCEPT ________. 43) ______
A) considerable paperwork
B) large group decision making
D) low sales volume
44) Following a purchase, the buyer and seller would both monitor which phase of the new-task buying situation? 44) ______
A) supplier selection
B) performance review
C) value analysis
D) order-routine specifications
E) vendor analysis
45) You regularly purchase cleaning supplies for your custodial staff, using the same vendor and ordering relatively consistent amounts of the same products with each purchase. This is an example of a ________ situation. 45) ______
A) value analysis
B) straight rebuy
C) new task
D) solution selling
E) modified rebuy
46) As a purchasing agent, Benni Lopez buys goods and services for use in the production of products that are sold and supplied to others. Benni is involved in ________. 46) ______
A) post-purchase dissonance
B) consumer buying behavior
C) retail buyer behavior
D) interpretive business research
E) business buyer behavior
47) You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are ________. 47) ______
48) You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________. 48) ______
A) value profiling
B) differentiated marketing
C) its value proposition
D) capturing the consumers' attention
E) target marketing
49) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. 49) ______
A) market targeting
D) mass marketing
E) concentrated marketing
50) Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies? 50) ______
B) geographically dispersed
51) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? 51) ______
A) unique selling product
B) unique services practice
C) unique selling proposition
D) unique strategic practice
E) unique sales pitch
52) ________ involves designing and producing the container or wrapper for a product. 52) ______
A) Product line B) Service C) Branding D) Labeling E) Packaging
53) 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. 53) ______
A) private brand
B) service encounter
D) service variability
54) Berkowitz Piano Company can expand its product line in one of two common ways. Which of the following is one of those ways? 54) ______
A) line mixing
B) line filling
C) social marketing
D) internal marketing
E) product mix
55) The strongest brands go beyond attributes or benefit positioning; they are positioned on ________. 55) ______
A) strong beliefs and values
B) desirable benefit
C) customer image
D) good packaging
E) service inseparability
56) Following the decision to "time" the introduction of the new product, a company must decide ________ to launch the new product. 56) ______
A) to what degree
E) all of the above
57) In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers. 57) ______
B) physical or symbolic
58) Because of ________, a company cannot make its product illegally similar to a competitor's already established product. 58) ______
A) product warranties
B) patent laws
C) product liability
D) anti-monopoly laws
E) the Consumer Product Safety Act
59) New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released. Sales must be estimated before costs can be estimated. Which of the following did your text recommend for forecasting sales? 59) ______
A) considering the sales history of similar products and conducting surveys of market opinions
B) considering the history of market opinions
C) conducting surveys of competitors
D) applying the PLC concept
E) none of the above
60) ________ pricing works only if that price actually brings in the expected level of sales. 60) ______
C) Target profit
61) ________ describes how responsive demand will be to a change in price. 61) ______
A) Price elasticity
B) Break-even pricing
C) Target costing
E) The demand curve
62) Ryanair offers free flights to a quarter of its customers and rock-bottom prices to many of its other customers. Ryanair then charges for all extra services, such as baggage handling and in-flight refreshments. Which of the following best describes Ryanair's pricing method? 62) ______
A) cost-plus pricing
B) image pricing
C) low-cost pricing
D) high-low pricing
E) value-added pricing
63) Rent, electricity and executive salaries are examples of ________. 63) ______
A) variable costs
B) fixed costs
C) accumulated costs
D) total costs
E) marketing costs
64) Which of the following reflects the marketing concept philosophy? 64) ______
A) "We're in the business of making and selling superior products."
B) "We don't have a marketing department; we have a customer department."
C) "You won't find a better deal anywhere."
D) "When it's profits versus customers' needs, profits will always win out."
E) "We build them so you can buy them."
65) ________ is one of the best ways to increase share of customer. 65) ______
A) Targeting new customers
C) Using bait and switch
D) Partnership marketing
E) Relationship selling
66) Which of the following is an example of consumer-generated marketing? 66) ______
A) Toyota's presence in online communities
B) Neiman Marcus's InCircle Rewards program for its best customers
C) Nike's Nike Plus running Web site
D) The Lexus Covenant aimed at creating customer delight
E) MasterCard's use of "Priceless" commercials shot by customers
67) The process of customer-driven marketing involves which of the following? 67) ______
A) marketing analysis; planning; implementation; feedback
B) analysis; targeting; implementation; control
C) problem identification; information search; decision; implementation
D) product; price; promotion; adaptation
E) market segmentation; target marketing; differentiation; positioning
68) Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is ________. 68) ______
B) short-term oriented
D) product oriented
69) Favorite Memories specializes in serving gift shoppers that major competitors overlook and ignore. Which of the following best describes Favorite Memories? 69) ______
A) market challenger
B) market follower
C) market seeker
D) market nicher
E) full market coverer
70) Large tween and teen markets belong to which demographic group? 70) ______
A) Generation Z
C) baby busters
D) baby boomers
E) Generation X
71) Which of the following American government agencies is charged with setting and enforcing pollution standards? 71) ______
A) the Federal Energy Regulatory Commission
B) the Environmental Protection Agency (EPA)
C) the Consumer Product Safety Commission
D) the Food and Drug Administration (FDA)
E) the Federal Trade Commission (FTC)
72) Which of the following has encouraged marketers to pursue environmentally sustainable strategies? 72) ______
A) the green movement
B) the black market
C) the EPA
D) green intervention
Refer to the scenario below to answer the following questions.
Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason has seen a decline in demand for office cleaning. Surprisingly, the competitive environment appears relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information?primarily through pamphlets and Web sites?but also from a few phone calls?to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.
73) Jason wanted to better understand how his customers assess service quality. This is an example of a ________. 73) ______
A) research plan
B) marketing research problem
C) research objective
D) research method
E) research approach
74) Marketing information from which type of database usually can be accessed more quickly and cheaply than other information sources? 74) ______
D) Dun & Bradstreet's
75) When customers have a low involvement in a purchase but perceive significant brand differences, they will most likely engage in ________. 75) ______
A) brand conviction buying behavior
B) complex buying behavior
C) variety-seeking buying behavior
D) dissonance-reducing buying behavior
E) habitual buying behavior
76) Almost all major purchases result in ________, or discomfort caused by postpurchase conflict. 76) ______
B) need recognition
C) purchase decisions
D) cognitive dissonance
77) Which of the following statements about the supplier selection stage of the business buying decision process is true? 77) ______
A) Price and warranty are the only two factors businesses consider before making a purchase decision.
B) Price is the only factor businesses consider before making a purchase decision.
C) Buyers do not negotiate for better terms before making a final supplier selection.
D) Before selecting a supplier, many companies consider the supplier's reputation, ethical corporate behavior, and honest communication.
E) Even companies that have adopted a total quality management approach consider price to be the most important factor in choosing a supplier.
78) Don Brady is responsible for obtaining price quotations from various vendors. After reviewing them, Don then determines whether or not to include the vendor on the approved vendor list. Don apparently plays two roles, that of ________ and ________. 78) ______
A) gatekeeper; influencer
B) decider; buyer
C) buyer; influencer
D) buyer; gatekeeper
E) user; buyer
79) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? 79) ______
80) In target marketing, the issue is not really who is targeted, but rather ________ and for ________. 80) ______
A) how; where
B) how; what
C) why; what
D) where; how long
E) why; how long
81) ________ occurs when two established brand names of different companies are used on the same product. 81) ______
A) Brand equity
D) Internal marketing
E) A brand extension
82) Most manufactured materials and parts are sold directly to ________. Price and service are the major marketing factors; branding and advertising tend to be less important. 82) ______
B) industrial users
D) brand extensions
83) Although test marketing costs can be high, they are often small when compared with ________. 83) ______
A) management's approval and acceptance
B) the final results
C) research and development costs
D) stockholders' confidence
E) the costs of a major mistake
84) If demand changes greatly with a small change in price, we say the demand is ________. 84) ______
85) A(n) ________ is the set of actual and potential buyers of a product. 85) ______
A) market B) exchange C) audience D) group E) segment
86) Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment." 86) ______
A) business portfolio
C) value-delivery network
D) marketing development
87) A society's basic values, perceptions, preferences, and behaviors are all part of its ________ environment. 87) ______
88) A consumer is most likely to be paid a small fee for participating in which of the following? 88) ______
A) a mail-in survey
B) a focus group interview
C) an Internet survey
D) a telephone interview
E) an observational interview
89) The consumer can obtain information from any of several sources. Which of the following is NOT one of these types of sources? 89) ______
A) attitude B) public C) commercial D) experiential E) personal
90) Which of the following is most likely true about a straight rebuy? 90) ______
A) It occurs when a buyer wants to locate the best deal on the market.
B) It requires little customer relationship management.
C) It often involves products with low risks.
D) It involves more opportunities for "out" buyers than other types of purchasing situations do.
E) It is more complex than a new-task situation.
91) When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation. 91) ______
C) age and life cycle
92) ________ involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, and regions. 92) ______
A) Place marketing
B) Interactive marketing
C) Social marketing
D) Idea marketing
E) Organization marketing
93) When a product enters the maturity stage, the company should consider ________. 93) ______
A) dropping the product
B) harvesting the product
C) modifying the product, market, or marketing mix
D) maintaining the product
E) divesting the product
94) If demand hardly changes with a small change in price, we say the demand is ________. 94) ______
A) at break-even pricing
C) market penetrating
95) To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice ________. 95) ______
A) database marketing
B) consumer-generated marketing
C) attractive Web site design
D) customer equity
E) partner relationship management
Refer to the scenario below to answer the following questions.
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbor.
"There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added. We provide a ‘total package' of entertainment. Plus, we try to change our rides and various attractions from time to time."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
96) Fun-Spot's mission is ________. 96) ______
D) too focused on profits
E) too specific
97) Jack Weiss recently won a $10 million lottery. Jack's life will change a great deal, particularly how he spends money. According to Engel's laws, Jack is LEAST likely to change the percentage of his income that he spends on which of the following? 97) ______
98) To address concerns about the misuse of research study findings, several highly regarded marketing associations have developed ________. 98) ______
A) customer relationship management guidelines
B) behavioral targeting "Do Not Track" lists
C) bans against using "cookies"
D) codes of research ethics
E) chief privacy officer job descriptions
99) 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 or she is exposed is called ________. 99) ______
A) selective attitude
B) selective attention
C) selective distortion
D) selective perception
E) selective retention
100) The demand for many business goods and services tends to change more, and more quickly than the demand for consumer goods and services does. This is referred to as ________ demand. 100) _____
A) supplier B) derived C) fluctuating D) inelastic E) elastic