BAM 306 Principles of Marketing Final Examination

 

 

  1. All of the following are accurate descriptions of modern marketing EXCEPT which one?
  2. Marketing is the creation of value for customers.
  3. Marketing is used by for-profit and not-for-profit organizations.
  4. Marketing is managing profitable customer relationships.
  5. Marketing involves satisfying customers’ needs.
  6. Selling and advertising are synonymous with marketing.

 

  1. Consumer research, product development, communication, distribution, pricing and service are

all core ________ activities.

  1. management
  2. exchange
  3. production
  4. customer relationship management
  5. marketing

 

  1. Which marketing orientation calls for aggressive promotional efforts and focuses on generating

transactions to obtain profitable sales?

  1. Product concept
  2. Selling concept
  3. Marketing concept
  4. Production concept
  5. Societal marketing concept

 

  1. Which of the following reflects the marketing concept philosophy?
  2. “We build them so you can buy them.”
  3. “You won’t find a better deal anywhere.”
  4. “We don’t have a marketing department; we have a customer department.”
  5. “We’re in the business of making and selling superior products.”
  6. “When it’s profits versus customers’ needs, profits will always win out.”

 

  1. Building, keeping and growing profitable relationships by delivering customer value and

satisfaction is called ________.

  1. Customer relationship management
  2. Societal marketing
  3. Customer perceived value
  4. Customer lifetime value
  5. Database marketing

 

 

 

 

  1. You are an assistant marketing director for a firm in a market with many low-margin customers.

What type of relationship would be most profitable for you to develop with these customers?

  1. Basic partnerships
  2. Full partnerships
  3. Club programs
  4. Basic relationships
  5. Selective relationships

 

  1. Which of the following is the total combined customer lifetime values of all a company’s

current and potential customers?

  1. Customer equity
  2. Share of customer
  3. Customer lifetime value
  4. Profitability
  5. Share of market

 

  1. Jolene’s firm markets preplanning services for a mortician. She finds that most of her target

market wants to avoid discussing their future funeral needs and she must somehow first get

their attention. Jolene’s firm most likely practices the ________.

  1. selling concept
  2. social marketing concept
  3. marketing concept
  4. production concept
  5. societal marketing concept

 

  1. The Niketown running club that organizes twice weekly evening runs and follow-up meetings in

the Nike Store is an example of which of the following?

  1. A basic customer relationship
  2. A club marketing program
  3. A structural benefit provided for top customers
  4. A frequency marketing program
  5. A partner relationship

 

  1. A church targeting different demographic groups to increase attendance is an example of

________.

  1. for-profit marketing
  2. not-for-profit marketing
  3. customer evangelism
  4. caring capitalism
  5. societal marketing

 

 

 

  1. Which of the following is NOT a step in the strategic planning process?
  2. Planning marketing and other functional strategies
  3. Defining the company mission
  4. Evaluating all members of the value chain
  5. Designing the business portfolio
  6. Setting company objectives and goals

 

  1. Which of the following can be a company division, a product line within a division or

sometimes a single product or brand?

  1. A PLC
  2. A market
  3. The BCG
  4. A value delivery network
  5. An SBU

 

  1. Which of the following does NOT accurately reflect a problem with the BCG matrix approach?
  2. It is difficult to define SBUs and measure market share and growth.
  3. It can be costly to conduct.
  4. It focuses on classifying current businesses.
  5. It can be time consuming to implement.
  6. It focuses on planning for the future.

 

  1. In a basic SWOT analysis the “T” stands for ________.
  2. timing
  3. trade
  4. trust
  5. threats
  6. tangible

 

  1. Saturn is “a different kind of company, a different kind of a car”; the Hummer is “like nothing else.”

Statements such as these reflect a firm’s ________.

  1. product portfolio
  2. marketing mix
  3. positioning
  4. target markets
  5. niche

 

  1. 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?
  2. The global environment
  3. The marketing mix
  4. The internal environment
  5. The macroenvironment
  6. The microenvironment
  7. A(n) ________ is defined as any group that has an actual or potential interest in, or impact on,

an organization’s ability to achieve its objectives.

  1. competitor
  2. intermediary
  3. public
  4. team
  5. market

 

  1. Which type of market buys goods and services for further processing or for use in the production process?
  2. Wholesale
  3. Reseller
  4. Retail
  5. Consumer
  6. Business

 

  1. Of the following diversity segments in the American population, which is currently the largest?
  2. Asian Americans
  3. African Americans
  4. Adults with disabilities
  5. Telecommuters
  6. Hispanics

 

  1. Value marketing is the strategy of offering consumers ________.
  2. little quality at a low price
  3. luxury quality at a high price
  4. reasonable quality at a fair price
  5. lesser quality at a low price
  6. high quality at a high price

 

  1. Many firms today use RFID technology to ________.
  2. move toward environmental sustainability
  3. track patterns of consumer online behavior
  4. identify new target markets
  5. track products through various points in the distribution channel
  6. analyze threats and opportunities in the macroenvironment

 

  1. A company or association’s ________ is designed to help guide responses to complex social responsibility

issues.

  1. discretion in enforcing regulations
  2. core value system
  3. cause-related marketing
  4. privacy policy
  5. code of ethics
  6. Watching the cultural trends of how people view society, observers have noted that since September 11, 2001, marketers responded to the increased ________ of Americans with special

products and promotions.

  1. patriotism
  2. distrust
  3. loyalty
  4. belligerence
  5. foreign intolerance

 

  1. LandPort Transportation and Omega Warehousing move and store the products your company sells. The two businesses are examples of ________.
  2. geographic segments
  3. resellers
  4. marketing intermediaries
  5. marketing services agencies
  6. physical distribution firms

 

  1. Innovations is a producer of electronic circuits that power a variety of technological devices produced by other companies. Innovations sell its products to ________ markets.
  2. consumer
  3. internal
  4. financial
  5. government
  6. business

 

  1. With an expected increase in ethnic diversity within the American population, marketers are most

likely to place a greater emphasis on which of the following?

  1. “Us and them” paradigms
  2. Differing advertising messages
  3. Mass marketing
  4. Geographic segmentation
  5. Tiered markets

 

  1. Despite the data glut that marketing managers receive, they are most likely to complain that

they lack which of the following?

  1. Enough information of the right kind
  2. Primary information
  3. Searchable information
  4. Timely information
  5. Secondary information

 

 

 

  1. A marketing information system (MIS) consists of people and procedures to assess information

needs, ________, and help decision makers analyze and use the information.

  1. critique the needed information
  2. develop the needed information
  3. test market the information
  4. experiment to develop information
  5. question the needed information

 

  1. The real value of a company’s marketing research and information system lies in the ________.
  2. variety of contact methods it uses
  3. amount of data it generates
  4. quality of customer insights it provides
  5. efficiency with which it completes studies
  6. marketing information system it follows

 

  1. ________ is the systematic design, collection, analysis and reporting of data relevant to a specific

marketing situation facing an organization.

  1. Causal research
  2. The marketing information system
  3. Marketing research
  4. Competitive marketing research
  5. Competitive marketing intelligence

 

  1. Observational research is best suited for gathering ________ data.
  2. primary
  3. dependent
  4. secondary
  5. causal
  6. competitive

 

  1. What are the two main types of research instruments used to collect primary data?
  2. Personal interviews and online marketing research
  3. Focus groups and online databases
  4. Online panels and experiments
  5. Questionnaires and mechanical devices
  6. Surveys and samples

 

  1. Which of the following is the best advice about creating research questionnaires?
  2. Use simple and direct language.
  3. Avoid any personal questions that may make some respondents uncomfortable.
  4. Ask difficult questions in the beginning to “weed out” uninterested respondents.
  5. Questions should not be arranged in any particular order.
  6. Ask personal questions in the middle of the instrument.

 

  1. You have been asked to locate secondary data for your small organization’s research needs.

Which of the following is NOT a common source for this type of research?

  1. Online surveys
  2. The U.S. Small Business Administration
  3. The Bureau of Economic Analysis
  4. The U.S. Census Bureau
  5. Competitors’ Web sites

 

  1. Nathan Zabalas owns a regional chain of drug stores. Before expanding nationwide, Nathan is

conducting marketing research to determine the best options for opening new stores. He plans

to start by collecting secondary data. Which of the following is NOT a source of secondary

data that Nathan might use?

  1. Yankelovich’s Monitor
  2. Local chambers of commerce
  3. Commercial online databases
  4. Online questionnaires
  5. Web search engines

 

  1. Although more price-conscious than other population segments, ________ consumers tend to

be strongly motivated by quality and selection. Brands are important. They seem to enjoy

shopping more than other ethnic groups do.

  1. African American
  2. upper lower
  3. Asian American
  4. upper middle
  5. mature

 

  1. ________ are groups to which an individual wishes to belong, as when a young basketball

player hopes to play someday for the Los Angeles Lakers.

  1. Aspirational groups
  2. Leisure groups
  3. Leading adopter groups
  4. Membership groups
  5. Social class groups

 

  1. A ________ consists of the activities people are expected to perform according to the persons

around them.

  1. lifestyle
  2. tradition
  3. life cycle
  4. role
  5. motive

 

  1. A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction.
  2. perception
  3. motive
  4. stimulus
  5. tradition
  6. culture

 

  1. Maslow’s theory is that ________ can be arranged in a hierarchy.
  2. decisions
  3. stimuli
  4. beliefs and attitudes
  5. human needs
  6. perceptions

 

  1. People tend to interpret new information in a way that will support what they already believe.

This is known as:

  1. selective attention.
  2. selective attitude.
  3. selective retention.
  4. selective perception.
  5. selective distortion.

 

  1. ________ describes changes in an individual’s behavior arising from experience.
  2. Cognitive dissonance
  3. Perception
  4. Lifestyle
  5. Learning
  6. Attitude shift

 

  1. According to one analyst, a Harley-Davidson motorcycle can make you feel like “the toughest,

baddest guy on the block.” Harley-Davidson promotes its motorcycles with images of

independence, freedom and power. Harley-Davidson has created a(n) ________.

  1. attitude
  2. brand motivation
  3. brand personality
  4. life-cycle stage
  5. brand self-image

 

 

 

 

 

 

  1. Bob’s job description has been changed. The rationale for the changes made no sense to

Bob when they were explained. Bob continued to perform most of his job duties as usual. He

has engaged in ________.

  1. subliminal attention
  2. selective attention
  3. perceptual defense
  4. selective attitude
  5. selective interpretation

 

  1. An invitation to go skiing for the weekend forced Donna to look at her current wardrobe. She

decided she needed a much warmer coat. Donna was in which stage of the purchase decision?

  1. Information search
  2. Problem screening
  3. Product evaluation
  4. Need recognition
  5. Situational analysis

 

  1. Dips in the economy and the instant price comparisons made possible by the Internet have

both contributed to ________.

  1. increased consumer price sensitivity
  2. decreased consumer price sensitivity
  3. a more direct relationship between supply and demand
  4. a less direct relationship between supply and demand
  5. decreased brand loyalty

 

  1. Another name for systems selling is ________ selling.
  2. blanket contract
  3. negotiated contract
  4. solutions
  5. vendor-managed inventory
  6. periodic purchase

 

  1. Which of the following types of factors influencing members of a buying center are typically

the most difficult for marketers to assess?

  1. Political
  2. Organizational
  3. Economic
  4. Technological
  5. Interpersonal

 

 

 

 

  1. Status, empathy and persuasiveness are all examples of ________ influences on business

buyer behavior.

  1. organizational
  2. individual
  3. cultural
  4. interpersonal
  5. environmental

 

  1. B-to-B e-procurement yields many benefits. These include all of the following EXCEPT:
  2. elimination of much of the paperwork associated with traditional ordering procedures.
  3. elimination of inventory problems.
  4. reduced transaction costs.
  5. reduced order processing costs.
  6. more efficient purchasing for both buyers and sellers.

 

  1. Sage, Inc. provides food services to schools, hospitals and nursing homes in the Midwest.

Management at Sage is involved in the ________ market.

  1. institutional
  2. global
  3. local
  4. government
  5. not-for-profit

 

  1. All of the following are difficulties associated with selling to government buyers EXCEPT:
  2. low sales volume.
  3. considerable paperwork.
  4. bureaucracy.
  5. regulations.
  6. large group decision making.

 

  1. Most newspapers use ________ so they do not need to rely on only one supplier to provide the

tons of paper that they use annually.

  1. blanket contracting
  2. multiple sourcing
  3. vendor-managed inventory
  4. single sourcing
  5. cross-docking

 

  1. Which of the following is the most popular method for segmenting markets?
  2. Demographic
  3. Behavioral
  4. Gender
  5. Psychographic
  6. Geographic
  7. When Positive Image, Inc. caters to clothing, cosmetics and toiletries markets, it most likely

uses which type of segmentation?

  1. Gender
  2. Readiness
  3. Geographic
  4. Behavior
  5. Occasions

 

  1. When a business market segment is large or profitable enough to serve, it is termed ________.
  2. actionable
  3. measurable
  4. substantial
  5. accessible
  6. differentiable

 

  1. Mass marketers, such as Target and Venture Stores, often ignore market segment differences

and target the whole market with one offer. What is their approach to segmenting?

  1. Micromarketing
  2. Undifferentiated marketing
  3. Target marketing
  4. Concentrated marketing
  5. Differentiated marketing

 

  1. The 55-year-old baby boomers share common needs in music and performers. When a music

company decides to serve this group, the group is called a(n) ________.

  1. niche market
  2. target market
  3. market segment
  4. undifferentiated market
  5. micro market

 

  1. A product’s position is based on important attributes as perceived by ________.
  2. competitors
  3. managers
  4. consumers
  5. market conditions
  6. suppliers

 

  1. Which positioning strategy offers consumers a “good deal” by offering equivalent-quality

products or services at a lower price?

  1. less-for-much-less
  2. more-for-the-same
  3. more-for-less
  4. same-for-less
  5. all-or-nothing
  6. “Less-for-much-less” positioning involves meeting consumers’ ________.
  7. lower quality requirements in exchange for a lower price
  8. high quality requirements at the lower possible price
  9. high quality requirements at a discounted rate
  10. quality performance requirements at a lower price
  11. lower quality requirements at the lowest possible price

 

  1. Product planners need to consider products and services on three levels. Each level adds

more customer value. The most basic level is the ________, which addresses the question,

“What is the buyer really buying?”

  1. core customer value
  2. co-branding
  3. actual product
  4. augmented product
  5. exchange

 

  1. Which of the following capital items is NOT considered accessory equipment?
  2. buildings
  3. hand tools
  4. desks
  5. chairs
  6. lift trucks

 

  1. In recent years, product safety and environmental responsibility have become major ________

concerns.

  1. packaging
  2. product line
  3. service
  4. branding
  5. product mix

 

  1. A ________ is a group of products that are closely related because they function in a similar

manner, are sold to the same customer groups, are marketed through the same type of

outlets, or fall within given price ranges.

  1. convenience product
  2. private brand
  3. product bandwidth
  4. product line
  5. line extension

 

 

 

 

  1. An alternative to product line stretching is ________, adding more items within the present

range of the line.

  1. co-branding
  2. service marketing
  3. interactive marketing
  4. product mixing
  5. product line filling

 

  1. A company can increase its business in four ways. Which is NOT one of these ways?
  2. It can add new product lines, thus widening its product mix.
  3. It can lengthen its existing product lines.
  4. It can add more versions of each product and thus deepen its product mix.
  5. It can increase the consistency of its product mix.
  6. It can discontinue some of its lines.

 

  1. All of the following are methods for developing a differentiated service offer, delivery or image

EXCEPT ________.

  1. increasing the quantity of service by giving up some durability
  2. having more reliable customer-contact people
  3. designing a superior delivery process
  4. developing symbols and branding
  5. offering innovative features

 

  1. The total financial value of a brand is estimated through the process of brand ________.
  2. equity
  3. positioning
  4. differentiation
  5. extension
  6. valuation

 

  1. A ________ involves the use of a successful brand name to launch new or modified products

in a new category.

  1. private brand
  2. line extension
  3. brand symbol
  4. brand extension
  5. product line

 

  1. Under what circumstances might it be wise for a company to do little or no test marketing?
  2. When the product has no substitutes and is new in its category
  3. When the costs of developing and introducing the product are low
  4. When a new product requires a major investment
  5. When management is not sure of the product
  6. When management is not sure of the marketing program
  7. The team-based new-product development approach uses cross-functional teams that overlap

the steps in the process to achieve which of the following goals?

  1. Save time and increase effectiveness
  2. Speed product to market and reduce costs
  3. Increase effectiveness and employee satisfaction
  4. Save time and eliminate errors
  5. b and d

 

  1. ________ is the product life cycle period when sales fall off and profits drop.
  2. Decline
  3. Growth
  4. Introduction
  5. Development
  6. Maturity

 

  1. All of the following are stages in the PLC EXCEPT ________.
  2. growth
  3. decline
  4. maturity
  5. introduction
  6. adoption

 

  1. Mattel’s Barbie is an example of an age-defying product. Barbie, simultaneously timeless and

trendy, is in the ________ stage of the PLC.

  1. introduction
  2. adoption
  3. growth
  4. decline
  5. maturity

 

  1. It’s What’s Hip, a chain of 18 music and CD stores, has discovered that carrying a weak

product during the decline stage of the PLC can be very costly to a firm, and not just in profit

terms. Which one of these is NOT likely to be one of those costs?

  1. Takes up much of management’s time
  2. Requires advertising and sales force attention
  3. Frequent price and inventory adjustment
  4. Negatively affects the company’s reputation
  5. Requires too much focus on new-product development

 

  1. Price is the only element in the marketing mix that produces ________.
  2. variable costs
  3. stability
  4. outfixed costs
  5. expenses
  6. revenue
  7. Walmart is famous for using what important type of value pricing?
  8. Cost-plus pricing
  9. Competition-based pricing
  10. Penetration pricing
  11. Everyday low pricing
  12. Break-even pricing

 

  1. Costs that do not vary with production or sales level are referred to as ________.
  2. target costs
  3. variable costs
  4. fixed costs
  5. total costs
  6. unit costs

 

  1. With target costing, marketers will first ________ and then ________.
  2. determine a selling price; target costs to ensure that the price is met
  3. use skimming pricing; penetrating pricing
  4. design the product; determine its cost
  5. build the marketing mix; identify the target market
  6. identify the marketing mix; determine product cost

 

  1. A company should set prices that will allow ________ to receive a fair profit.
  2. producers
  3. competitors
  4. the market
  5. consumers
  6. resellers

 

  1. In the case of services, captive product pricing is called ________ pricing.
  2. segmented
  3. by-product
  4. two-part
  5. bundle
  6. optional product

 

  1. Companies involved in deciding which items to include in the base price and which to offer as

options are engaged in ________ pricing.

  1. optional product
  2. skimming
  3. product bundle
  4. captive product
  5. by-product

 

  1. What type of pricing is being used when a company temporarily prices its product below the

list price or even below cost to create buying excitement and urgency?

  1. Promotional pricing
  2. Basing-point pricing
  3. Referent pricing
  4. Segmented pricing
  5. Psychological pricing

 

  1. Which of the following is NOT an effective action that a company can take to combat a

competitor’s price cut on a product?

  1. Raise perceived value
  2. Launch a low-price “fighter brand”
  3. Improve quality and decrease price
  4. Reduce price
  5. Improve quality and increase price

 

  1. Intermediaries play an important role in matching ________.
  2. manufacturer to product
  3. product to region
  4. dealer with customer
  5. information and promotion
  6. supply and demand

 

  1. Companies today are placing greater emphasis on ________.
  2. profitability
  3. logistics
  4. co-op advertising
  5. efficiency
  6. conflict reduction

 

  1. ________ logistics controls the movement of products from points of production to consumers.
  2. Outbound
  3. Reverse
  4. Inbound
  5. Horizontal
  6. Vertical

 

 

 

 

 

 

 

  1. Which of the following is the best example of a direct channel?
  2. A farmer in Columbia sells flowers to an international broker who makes sure the flowers reach consumers in the United States.
  3. Family Dollar Store sells modeling clay to school-age children.
  4. A wholesaler sells candy to convenience stores who then sell it to store patrons.
  5. J&L Manufacturing Company sells drapery hardware to The Home Depot’s Design Center and the Design Center then sells it to consumers.
  6. Farmer Mintz sells corn to the Hughes household, who will eat it for supper.

 

  1. Specialty stores carry ________ with ________ within them.
  2. narrow product lines; shallow assortments
  3. wide product lines; deep assortments
  4. narrow product lines; deep assortments
  5. convenience items; mostly staples
  6. wide product lines; shallow assortments

 

  1. In-store demonstrations, displays, contests and visiting celebrities are examples of ________.
  2. broker promotions
  3. agent promotions
  4. sales promotions
  5. franchises
  6. product life-cycling

 

  1. Most shopping centers are ________ containing between 5 and 15 stores; they are close and

convenient for consumers.

  1. community shopping centers
  2. lifestyle centers
  3. strip malls
  4. power centers
  5. factory outlets

 

  1. ________ are the largest group of wholesalers. The group can be divided into the two broad

types of full-service and limited-service.

  1. Merchant wholesalers
  2. Specialty wholesalers
  3. Agents
  4. Manufacturer sellers
  5. Brokers

 

 

 

 

 

  1. The use of short-term incentives to encourage the purchase or sale of a product or service is

called ________.

  1. personal selling
  2. public relations
  3. sales promotion
  4. publicity
  5. direct marketing

 

  1. To communicate effectively, a marketing communicator must ________ the consumer’s field of

experience.

  1. reference
  2. share
  3. create
  4. compete with
  5. understand

 

  1. The six buyer-readiness stages include all of the following EXCEPT ________.
  2. conviction
  3. hesitation
  4. awareness
  5. knowledge
  6. liking

 

  1. All of the following are strategies a marketer would use to lead consumers into making the

final step toward a purchase EXCEPT which one?

  1. Use extensive “teaser” advertising
  2. Offer rebates
  3. Offer add-on features
  4. Offer special promotional prices
  5. Offer premiums

 

  1. An ad for Maybelline age-minimizing makeup in Ladies’ Home Journal magazine featured

actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new

makeup. In terms of the communication model, the sender of this message is ________.

  1. Ladies’ Home Journal
  2. the target market to whom Melina Kanakaredes appeals
  3. readers who redeem the $1-off coupon
  4. Maybelline
  5. Melina Kanakaredes

 

 

 

 

  1. Mercy University’s initial ads for the school’s new MBA program are most likely intended to

create ________.

  1. conviction
  2. awareness
  3. insistence
  4. liking
  5. preference

 

  1. All of the following are examples of cultural pollution EXCEPT ________.
  2. billboards marring beautiful scenery
  3. spam in an e-mail inbox
  4. ads in magazines
  5. commercials during serious programs
  6. street signs in an urban area