BAM 306 Final Exam Principles of Marketing
BAM 306 Final Exam Principles of Marketing
BAM 306 Principles of Marketing Final Exam
Question 1. All of the following are accurate descriptions of modern marketing EXCEPT which one?
- Marketing is the creation of value for customers.
- Marketing is used by for-profit and not-for-profit organizations.
- Marketing is managing profitable customer relationships.
- Marketing involves satisfying customers’ needs.
- Selling and advertising are synonymous with marketing.
Question 2. Consumer research, product development, communication, distribution, pricing and service are all core ________ activities.
- customer relationship management
Question 3. Which marketing orientation calls for aggressive promotional efforts and focuses on generating transactions to obtain profitable sales?
- Product concept
- Selling concept
- Marketing concept
- Production concept
- Societal marketing concept
Question 4. Which of the following reflects the marketing concept philosophy?
- “We build them so you can buy them.”
- “You won’t find a better deal anywhere.”
- “We don’t have a marketing department; we have a customer department.”
- “We’re in the business of making and selling superior products.”
- “When it’s profits versus customers’ needs, profits will always win out.”
Question 5. Building, keeping and growing profitable relationships by delivering customer value and satisfaction is called ________.
- Customer relationship management
- Societal marketing
- Customer perceived value
- Customer lifetime value
- Database marketing
Question 6. 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?
- Basic partnerships
- Full partnerships
- Club programs
- Basic relationships
- Selective relationships
Question 7. Which of the following is the total combined customer lifetime values of all a company’s current and potential customers?
- Customer equity
- Share of customer
- Customer lifetime value
- Share of market
Question 8. 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 ________.
- selling concept
- social marketing concept
- marketing concept
- production concept
- societal marketing concept
Question 9. 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?
- A basic customer relationship
- A club marketing program
- A structural benefit provided for top customers
- A frequency marketing program
- A partner relationship
Question 10. A church targeting different demographic groups to increase attendance is an example of ________.
- for-profit marketing
- not-for-profit marketing
- customer evangelism
- caring capitalism
- societal marketing
Question 11. Which of the following is NOT a step in the strategic planning process?
- Planning marketing and other functional strategies
- Defining the company mission
- Evaluating all members of the value chain
- Designing the business portfolio
- Setting company objectives and goals
Question 12. Which of the following can be a company division, a product line within a division or sometimes a single product or brand?
- A PLC
- A market
- The BCG
- A value delivery network
- An SBU
Question 13. Which of the following does NOT accurately reflect a problem with the BCG matrix approach?
- It is difficult to define SBUs and measure market share and growth.
- It can be costly to conduct.
- It focuses on classifying current businesses.
- It can be time consuming to implement.
- It focuses on planning for the future.
Question 14. In a basic SWOT analysis the “T” stands for ________.
Question 15. 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 ________.
- product portfolio
- marketing mix
- target markets
Question 16. 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?
- The global environment
- The marketing mix
- The internal environment
- The macroenvironment
- The microenvironment
Question 17. 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.
Question 18. Which type of market buys goods and services for further processing or for use in the production process?
Question 19. Of the following diversity segments in the American population, which is currently the largest?
- Asian Americans
- African Americans
- Adults with disabilities
Question 20. Value marketing is the strategy of offering consumers ________.
- little quality at a low price
- luxury quality at a high price
- reasonable quality at a fair price
- lesser quality at a low price
- high quality at a high price
Question 21. Many firms today use RFID technology to ________.
- move toward environmental sustainability
- track patterns of consumer online behavior
- identify new target markets
- track products through various points in the distribution channel
- analyze threats and opportunities in the macro environment
Question 22. A company or association’s ________ is designed to help guide responses to complex social responsibility issues.
- discretion in enforcing regulations
- core value system
- cause-related marketing
- code of ethics
Question 23. 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.
- foreign intolerance
Question 24. LandPort Transportation and Omega Warehousing move and store the products your company sells. The two businesses are examples of ________.
- geographic segments
- marketing intermediaries
- marketing services agencies
- physical distribution firms
Question 25. Innovations is a producer of electronic circuits that power a variety of technological devices produced by other companies. Innovations sell its products to ________ markets.
Question 26. 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?
- “Us and them” paradigms
- Differing advertising messages
- Mass marketing
- Geographic segmentation
- Tiered markets
Question 27. Despite the data glut that marketing managers receive, they are most likely to complain that they lack which of the following?
- Enough information of the right kind
- Primary information
- Searchable information
- Timely information
- Secondary information
Question 28. A marketing information system (MIS) consists of people and procedures to assess information needs, ________, and help decision makers analyze and use the information.
- critique the needed information
- develop the needed information
- test market the information
- experiment to develop information
- question the needed information
Question 29. The real value of a company’s marketing research and information system lies in the ________.
- variety of contact methods it uses
- amount of data it generates
- quality of customer insights it provides
- efficiency with which it completes studies
- marketing information system it follows
Question 30. ________ is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization.
- Causal research
- The marketing information system
- Marketing research
- Competitive marketing research
- Competitive marketing intelligence
Question 31. Observational research is best suited for gathering ________ data.
Question 32. What are the two main types of research instruments used to collect primary data?
- Personal interviews and online marketing research
- Focus groups and online databases
- Online panels and experiments
- Questionnaires and mechanical devices
- Surveys and samples
Question 33. Which of the following is the best advice about creating research questionnaires?
- Use simple and direct language.
- Avoid any personal questions that may make some respondents uncomfortable.
- Ask difficult questions in the beginning to “weed out” uninterested respondents.
- Questions should not be arranged in any particular order.
- Ask personal questions in the middle of the instrument.
Question 34. 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?
- Online surveys
- The U.S. Small Business Administration
- The Bureau of Economic Analysis
- The U.S. Census Bureau
- Competitors’ Web sites
Question 35. 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?
- Yankelovich’s Monitor
- Local chambers of commerce
- Commercial online databases
- Online questionnaires
- Web search engines
Question 36. 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.
- African American
- upper lower
- Asian American
- upper middle
Question 37. ________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday for the Los Angeles Lakers.
- Aspirational groups
- Leisure groups
- Leading adopter groups
- Membership groups
- Social class groups
Question 38. A ________ consists of the activities people are expected to perform according to the persons around them.
- life cycle
Question 39. A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction.
Question 40. Maslow’s theory is that ________ can be arranged in a hierarchy.
- beliefs and attitudes
- human needs
Question 41. People tend to interpret new information in a way that will support what they already believe. This is known as:
- selective attention.
- selective attitude.
- selective retention.
- selective perception.
- selective distortion.
Question 42. ________ describes changes in an individual’s behavior arising from experience.
- Cognitive dissonance
- Attitude shift
Question 43. 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) ________.
- brand motivation
- brand personality
- life-cycle stage
- brand self-image
Question 44. 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 ________.
- subliminal attention
- selective attention
- perceptual defense
- selective attitude
- selective interpretation
Question 45. 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?
- Information search
- Problem screening
- Product evaluation
- Need recognition
- Situational analysis
Question 46. Dips in the economy and the instant price comparisons made possible by the Internet have both contributed to ________.
- increased consumer price sensitivity
- decreased consumer price sensitivity
- a more direct relationship between supply and demand
- a less direct relationship between supply and demand
- decreased brand loyalty
Question 47. Another name for systems selling is ________ selling.
- blanket contract
- negotiated contract
- vendor-managed inventory
- periodic purchase
Question 48. Which of the following types of factors influencing members of a buying center are typically the most difficult for marketers to assess?
Question 49. Status, empathy and persuasiveness are all examples of ________ influences on business buyer behavior.
Question 50. B-to-B e-procurement yields many benefits. These include all of the following EXCEPT:
- elimination of much of the paperwork associated with traditional ordering procedures.
- elimination of inventory problems.
- reduced transaction costs.
- reduced order processing costs.
- more efficient purchasing for both buyers and sellers.
Question 51. Sage, Inc. provides food services to schools, hospitals and nursing homes in the Midwest. Management at Sage is involved in the ________ market.
Question 52. All of the following are difficulties associated with selling to government buyers EXCEPT:
- low sales volume.
- considerable paperwork.
- large group decision making.
Question 53. Most newspapers use ________ so they do not need to rely on only one supplier to provide the tons of paper that they use annually.
- blanket contracting
- multiple sourcing
- vendor-managed inventory
- single sourcing
Question 54. Which of the following is the most popular method for segmenting markets?
Question 55. When Positive Image, Inc. caters to clothing, cosmetics and toiletries markets, it most likely uses which type of segmentation?
Question 56. When a business market segment is large or profitable enough to serve, it is termed ________.
Question 57. 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?
- Undifferentiated marketing
- Target marketing
- Concentrated marketing
- Differentiated marketing
Question 58. 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) ________.
- niche market
- target market
- market segment
- undifferentiated market
- micro market
Question 59. A product’s position is based on important attributes as perceived by ________.
- market conditions
Question 60. Which positioning strategy offers consumers a “good deal” by offering equivalent quality products or services at a lower price?
Question 61. “Less-for-much-less” positioning involves meeting consumers’ ________.
- lower quality requirements in exchange for a lower price
- high quality requirements at the lower possible price
- high quality requirements at a discounted rate
- quality performance requirements at a lower price
- lower quality requirements at the lowest possible price
Question 62. 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?”
- core customer value
- actual product
- augmented product
Question 63. Which of the following capital items is NOT considered accessory equipment?
- hand tools
- lift trucks
Question 64. In recent years, product safety and environmental responsibility have become major ________ concerns.
- product line
- product mix
Question 65. 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.
- convenience product
- private brand
- product bandwidth
- product line
- line extension
Question 66. An alternative to product line stretching is ________, adding more items within the present range of the line.
- service marketing
- interactive marketing
- product mixing
- product line filling
Question 67. A company can increase its business in four ways. Which is NOT one of these ways?
- It can add new product lines, thus widening its product mix.
- It can lengthen its existing product lines.
- It can add more versions of each product and thus deepen its product mix.
- It can increase the consistency of its product mix.
- It can discontinue some of its lines.
Question 68. All of the following are methods for developing a differentiated service offer, delivery or image EXCEPT ________.
- increasing the quantity of service by giving up some durability
- having more reliable customer-contact people
- designing a superior delivery process
- developing symbols and branding
- offering innovative features
Question 69. The total financial value of a brand is estimated through the process of brand ________.
Question 70. A ________ involves the use of a successful brand name to launch new or modified products in a new category.
- private brand
- line extension
- brand symbol
- brand extension
- product line
Question 71. Under what circumstances might it be wise for a company to do little or no test marketing?
- When the product has no substitutes and is new in its category
- When the costs of developing and introducing the product are low
- When a new product requires a major investment
- When management is not sure of the product
- When management is not sure of the marketing program
Question 72. 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?
- Save time and increase effectiveness
- Speed product to market and reduce costs
- Increase effectiveness and employee satisfaction
- Save time and eliminate errors
- b and d
Question 73. ________ is the product life cycle period when sales fall off and profits drop.
Question 74. All of the following are stages in the PLC EXCEPT ________.
Question 75. Mattel’s Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the ________ stage of the PLC.
Question 76. 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?
- Takes up much of management’s time
- Requires advertising and sales force attention
- Frequent price and inventory adjustment
- Negatively affects the company’s reputation
- Requires too much focus on new-product development
Question 77. Price is the only element in the marketing mix that produces ________.
- variable costs
- outfixed costs
Question 78. Walmart is famous for using what important type of value pricing?
- Cost-plus pricing
- Competition-based pricing
- Penetration pricing
- Everyday low pricing
- Break-even pricing
Question 79. Costs that do not vary with production or sales level are referred to as ________.
- target costs
- variable costs
- fixed costs
- total costs
- unit costs
Question 80. With target costing, marketers will first ________ and then ________.
- determine a selling price; target costs to ensure that the price is met
- use skimming pricing; penetrating pricing
- design the product; determine its cost
- build the marketing mix; identify the target market
- identify the marketing mix; determine product cost
Question 81. A company should set prices that will allow ________ to receive a fair profit.
- the market
Question 82. In the case of services, captive product pricing is called ________ pricing.
- optional product
Question 83. Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing.
- optional product
- product bundle
- captive product
Question 84. 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?
- Promotional pricing
- Basing-point pricing
- Referent pricing
- Segmented pricing
- Psychological pricing
Question 85. Which of the following is NOT an effective action that a company can take to combat a competitor’s price cut on a product?
- Raise perceived value
- Launch a low-price “fighter brand”
- Improve quality and decrease price
- Reduce price
- Improve quality and increase price
Question 86. Intermediaries play an important role in matching ________.
- manufacturer to product
- product to region
- dealer with customer
- information and promotion
- supply and demand
Question 87. Companies today are placing greater emphasis on ________.
- co-op advertising
- conflict reduction
Question 88. ________ logistics controls the movement of products from points of production to consumers.
Question 89. Which of the following is the best example of a direct channel?
- A farmer in Columbia sells flowers to an international broker who makes sure the flowers reach consumers in the United States.
- Family Dollar Store sells modeling clay to school-age children.
- A wholesaler sells candy to convenience stores who then sell it to store patrons.
- J&L Manufacturing Company sells drapery hardware to The Home Depot’s Design Center and the Design Center then sells it to consumers.
- Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
Question 90. Specialty stores carry ________ with ________ within them.
- narrow product lines; shallow assortments
- wide product lines; deep assortments
- narrow product lines; deep assortments
- convenience items; mostly staples
- wide product lines; shallow assortments
Question 91. In-store demonstrations, displays, contests and visiting celebrities are examples of ________.
- broker promotions
- agent promotions
- sales promotions
- product life-cycling
Question 92. Most shopping centers are ________ containing between 5 and 15 stores; they are close and convenient for consumers.
- community shopping centers
- lifestyle centers
- strip malls
- power centers
- factory outlets
Question 93. ________ are the largest group of wholesalers. The group can be divided into the two broad types of full-service and limited-service.
- Merchant wholesalers
- Specialty wholesalers
- Manufacturer sellers
Question 94. The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.
- personal selling
- public relations
- sales promotion
- direct marketing
Question 95. To communicate effectively, a marketing communicator must ________ the consumer’s field of experience.
- compete with
Question 96. The six buyer-readiness stages include all of the following EXCEPT ________.
Question 97. All of the following are strategies a marketer would use to lead consumers into making the final step toward a purchase EXCEPT which one?
- Use extensive “teaser” advertising
- Offer rebates
- Offer add-on features
- Offer special promotional prices
- Offer premiums
Question 98. 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 ________.
- Ladies’ Home Journal
- the target market to whom Melina Kanakaredes appeals
- readers who redeem the $1-off coupon
- Melina Kanakaredes
Question 99. Mercy University’s initial ads for the school’s new MBA program are most likely intended to create ________.
Question 100. All of the following are examples of cultural pollution EXCEPT ________.
- billboards marring beautiful scenery
- spam in an e-mail inbox
- ads in magazines
- commercials during serious programs
- street signs in an urban area