MAR 100 Midterm Review - Fall 2012

BMCC

Mar 100

Midterm Review

Professor J Tepfer

Fall 2012

MAR 100 midterm review - Fall 2012

Multiple Choice

Identify the choice that best completes the statement or answers the question.

____1._____ is a set of activities used to implement a management orientation that stresses customer satisfaction.

a. / Planning strategy
b. / Customer management
c. / Marketing
d. / A control system
e. / Reciprocity

____2.Which of the following occurs when people give up something in order to receive something they would rather have?

a. / Exchange
b. / Synergy
c. / Transformation
d. / Leveraging
e. / Reciprocity

____3.The concept of exchange is important to marketing because:

a. / if all the conditions for an exchange are in place, then the exchange will be completed
b. / exchange provides money to marketers
c. / marketing activities help to create exchange
d. / marketing activities are a requirement for exchange to take place
e. / money is the only medium of exchange for business marketers

____4.A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.

a. / customer
b. / exchange
c. / product
d. / market
e. / production

____5.Market-oriented firms primarily focus their efforts upon:

a. / improving the technological skills and competitive advantages of the firm
b. / satisfying the organization’s needs for low overhead
c. / achieving the company’s societal responsibilities inexpensively
d. / distributing goods and services
e. / satisfying the wants and needs of their customers

____6.Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing patronage. After flying a certain number of miles or flying a specified number of times, the frequent-flyer program participant earns a free flight or some other award such as free lodging. Airlines that use frequent-flyer programs are practicing:

a. / commitment selling
b. / transaction marketing
c. / transformational marketing
d. / marketing engineering
e. / relationship marketing

____7.A market-oriented firm defines its business in terms of:

a. / goods and services
b. / the benefits its customers seek
c. / employee empowerment
d. / competitive position
e. / customer satisfaction

____8.Heinz has announced that they plan to grow the company through an accelerated push into emerging markets such as China, Indonesia, and India in the next ten years. This is an example of:

a. / tactical objectifying
b. / contingency plan
c. / strategic planning
d. / marketing implementation
e. / horizon planning

____9.The focus of an organization’s mission statement should be on:

a. / the products it wishes to sell
b. / the market it wishes to serve
c. / its social responsibilities
d. / the desires of government regulators
e. / technologies it understands well

____10.Smucker’s purchased Folgers Coffee in 2008. The option to buy Folgers represented a(n) _____ to Smucker’s.

a. / opportunity
b. / strength
c. / weakness
d. / threat
e. / burden

____11.Each labor and delivery room at the new Dekalb County Medical Center has hardwood floors, soft lighting, and mission-style furniture. The facility also features a stone fireplace in the lobby, a bistro-style restaurant, and VIP suites for discerning mothers-to-be. This unique design and furnishings give the medical center a:

a. / profit-enhanced advantage
b. / competitive advantage
c. / quality objectivity
d. / strategic strength
e. / tactical opportunity

____12.iTunes has a(n) _____, as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have.

a. / targeted market position
b. / sustainable competitive advantage
c. / strategic focus
d. / situational strength
e. / opportunistic privilege

____13.LVMH, a maker of luxury goods, has expanded its products offerings into China, Russia, India, and the Middle East. This exemplifies a _____ strategy.

a. / market development
b. / product development
c. / market penetration
d. / diversification
e. / product expansion

____14.Russell Athletic, which is part of Berkshire Hathaway, Inc., is a market leader in sports apparel, an industry that is growing rapidly. Russell Athletic is an example of a(n) _____ according to the portfolio matrix.

a. / star
b. / question mark
c. / problem child
d. / exclamation point
e. / widow

____15.All of the following are basic strategies resulting from a portfolio analysis EXCEPT:

a. / harvest
b. / build
c. / hold
d. / divest
e. / milk

____16.Golden Valley Microwave Foods, Inc. is the manufacturer of ACT II popcorn. In its early years, the company had trouble financing the development and marketing of products for the microwave, so it chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this arrangement?

a. / Product
b. / Place
c. / Price
d. / Public relations
e. / Promotion

____17._____ refers to the moral principles or values that generally govern the conduct of an individual or a group.

a. / Righteousness
b. / Social consensus
c. / Sustainability
d. / Virtue
e. / Ethics

____18.NSTAR Gas & Electric Company in Boston provides continuing financial support for an injury prevention program run by the Children’s Hospital Boston. This funding is an example of:

a. / corporate social responsibility
b. / ethical conveyance
c. / a duty to engage in cause marketing
d. / a right to engage in social marketing
e. / multiculturalism

____19.The movement to develop and market products designed to minimize negative effects on the physical environment or to improve the environment is known as:

a. / enviromarketing
b. / green marketing
c. / cause marketing
d. / social marketing
e. / minimalist marketing

____20.A(n) _____ is a defined group that managers feel is most likely to buy a firm’s product.

a. / target market
b. / buying center
c. / aggregated unit
d. / consumer cluster
e. / demographic sample

____21.Marketing managers cannot control _____, but they can sometimes influence it.

a. / where advertising is placed
b. / the external environment
c. / the sales force
d. / the distribution strategy
e. / product pricing

____22.The growth of dual-income families has resulted in:

a. / burnout
b. / a sense of entitlement
c. / decreased discretionary income
d. / decreased GNP
e. / increased purchasing power

____23.The study of people’s vital statistics, such as age, race and ethnicity, and location, is called:

a. / cultural sociology
b. / psychometrics
c. / ecology
d. / ethnography
e. / demography

____24._____ is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.

a. / Inflation
b. / Recession
c. / Depression
d. / Consumer break-even
e. / Price escalation

____25.Laws and regulations of various governments and their ongoing development and change are an example of _____ factors that are part the external environment of all organizations.

a. / economic investment
b. / political and legal
c. / research and development
d. / competitive
e. / demographic

____26.Refer to E-cigarettes. E-cigarette manufacturers claim they are not trying to sell this product to children. Rather, they are offering an alternative to combustible tobacco for committed smokers. These smokers comprise the manufacturers’:

a. / target market
b. / buying center
c. / consumer cluster
d. / demographic sample
e. / mass market

____27.Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in:

a. / international selling schemes
b. / borderless commerce
c. / global marketing standardization
d. / global logistics
e. / global marketing

____28.Many people fear world trade because it:

a. / will inevitably lead to inflation
b. / will cause living standards to increase at a slower rate
c. / causes some people to lose their jobs as production shifts abroad
d. / has brought entire nations out of poverty
e. / has increased per capita income for some countries

____29.Claiborne, Inc. produces leather accessories for motorcycle riders and is in the first stage of creating its global business. This means that Claiborne:

a. / operates in one country and sells to others
b. / has set up a foreign subsidiary
c. / operates an entire line of business in another country
d. / has top executives and core corporate functions in different countries
e. / operates in every country in the world

____30.A company that is capital intensive:

a. / has an altered fiscal strategy for overseas operations
b. / spends more on equipment than on labor
c. / makes better use of benchmarking than other types of business
d. / creates employment monopolies
e. / must engage in countertrading due to restrictive foreign legislature

____31.A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT:

a. / culture
b. / political structure and actions
c. / its marketing mix
d. / natural resources
e. / demographic makeup

____32.A soft drink manufacturer thinking of investing in a bottling plant in the Czech Republic should know the nation is proud of the fact it is among the world’s biggest beer drinkers. Czechs consume an average of one-half liter of beer a day for every man, woman, and child in the country. The _____ environment of this country could very easily prevent the soft drink bottling company from succeeding.

a. / demographic
b. / economic
c. / cultural
d. / political
e. / technological

____33.Who offers low-interest loans to developing nations?

a. / World Bank
b. / International Monetary Fund
c. / Federal Reserve
d. / International Reserve
e. / United Nations

____34.A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries. Factors such as median age, gender, and literacy rates would determine the success of its global expansion.

a. / demographic
b. / lifestyle
c. / natural
d. / cultural
e. / economic

____35._____ is a legal process whereby a firm agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge in return for a fee or royalty.

a. / A joint venture
b. / Divestment
c. / Licensing
d. / A principal-agent agreement
e. / A contract manufacturing arrangement

____36.Franchising is a form of:

a. / contract marketing
b. / international exporting
c. / licensing
d. / direct exporting
e. / countertrading

____37.According to the text, which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?

a. / Product adaptation
b. / Product divestment
c. / Product penetration
d. / Market substitution
e. / Product licensing

____38._____ is generally defined as the sale of an exported product at a price lower than that charged for the same or a like product in the home market of the exporter.

a. / Export reengineering
b. / Crossdocking
c. / Boycotting
d. / Dumping
e. / Countertrading

____39.The processes individuals use when making a purchase decision are called:

a. / consumer behavior
b. / marketing
c. / consumerism
d. / perceptual mapping
e. / database mining

____40.Sam was driving when someone ran a stop sign and totaled his car. His car cannot be repaired, so he realized he’s going to have to get another one. What stage of the consumer decision-making process does this represent?

a. / Need recognition
b. / Purchase
c. / Evaluation of alternatives
d. / Postpurchase behavior
e. / Information search

____41.Extending a well-known and respected brand name from one product category to another product category is referred to as:

a. / brand stretching
b. / brand extensions
c. / brand bouncing
d. / brand transfer
e. / brand building

____42.Andrea just purchased a trip to Jamaica as a present to her husband for their tenth wedding anniversary. Andrea is anxious about the trip, afraid Bill will not like her choice of location and worried she spent too much money. Andrea is experiencing:

a. / selective dissatisfaction
b. / temporal distortion
c. / perceptual disharmony
d. / cognitive dissonance
e. / self-actualization involvement

____43._____ is characterized by low involvement, a short time frame, an internal-only information search, and low costs.

a. / Limited decision making
b. / Routine response behavior
c. / Emotional buying
d. / Intensive decision making
e. / Temporally-limited behavior

____44.A value or attitude deemed acceptable by a group is called a(n):

a. / expectation
b. / reference
c. / aspiration
d. / opinion
e. / norm

____45.Opinion leaders are:

a. / wealthy, well-educated individuals
b. / experts on all high-involvement consumer goods
c. / usually the same individuals for all social classes
d. / people who influence others
e. / easy to locate and target

____46.Because her mother only went to the supermarket once a month, this is how Monique prefers to do her grocery shopping. One of the reasons Monique is such an efficient shopper is that, like her mother, Monique believes, “Waste not, want not.” The passing down of norms and values to Monique is an example of:

a. / consumerism
b. / the socialization process
c. / acculturation
d. / the roles opinion leaders play in business decision making
e. / the role of society in consumer decision making

____47._____ is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.

a. / Secondary marketing
b. / Interactive marketing
c. / Business marketing
d. / High-level marketing
e. / Industrial marketing

____48.A cooperative agreement between business firms is called a:

a. / shared capital contract
b. / global partner development strategy
c. / strategic alliance
d. / joint contract
e. / comarketing effort

____49.IBM and Cisco work together to provide banks with the products and services they need to manage their multiple locations. In other words, the two companies have joined in a:

a. / retail cooperative
b. / direct investment venture
c. / transactional relationship
d. / strategic alliance
e. / synergistic relationship

____50.The demand for consumer goods often affects the demand for business products. This characteristic of business markets is called _____ demand.

a. / elastic
b. / inelastic
c. / fluctuating
d. / derived
e. / joint

____51.When demand for a product is _____, an increase or decrease in the price of the product will not significantly affect demand for the product.

a. / responsive
b. / elastic
c. / inelastic
d. / derived
e. / bundled

____52.Electric cars will increase the demand for electricity, which will then dramatically increase demand for the equipment needed to provide consumers with the electricity. This dramatic increase is due to the:

a. / demand fluctuator principle
b. / joint demand principle or division effect
c. / inelastic demand effect
d. / circumlocution effect
e. / accelerator principle

____53._____ is the primary promotional method for the sale of all business products.

a. / Direct mail
b. / Advertising
c. / Personal selling
d. / Public relations
e. / Trade promotions

____54.The three most important evaluative criteria for business-to-business purchases are quality, price, and:

a. / competitive offers
b. / service
c. / reliability
d. / assurance
e. / existing relationships

____55.In terms of how business buyers evaluate products and suppliers, the most important criterion is:

a. / price
b. / behavior
c. / quality
d. / personal relationships
e. / reciprocity

____56._____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.

a. / Perceptual mapping
b. / Positioning
c. / Micromarketing
d. / Market sampling
e. / Market segmentation

____57.The purpose of market segmentation is to:

a. / reduce the market down to a size the firm can handle
b. / divide the market into equal size and profit regions for sales territories
c. / group a large number of markets together, enabling a company to serve them simultaneously
d. / develop a generalized definition of the market as a whole
e. / enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

____58.The marketing researcher for Pooch Party, a manufacturer of toys for dogs, has noticed an increased trend in pet owners dressing their dogs in clothing. The researcher thinks there is a market for designer clothing for small- and medium-sized dogs, but he’s not sure if the segment is substantial. In this case, substantiality means the segment:

a. / has enough special stores, magazines, and other outlets that it will be possible to direct advertisements at this group
b. / is large enough to permit a profitable market effort toward its members
c. / exhibits a response rate to marketing variables different from the rates of other segments
d. / is too large and needs to be reduced to a more easily identifiable and measurable size
e. / will be difficult to develop a product to match this group of buyers

____59.Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise.

a. / geographic
b. / economic
c. / demographic
d. / benefit
e. / geodemographic

____60.Marketers use _____ to segment markets because this information is widely available, and factors such as age or gender are often related to consumer purchasing and consumption behavior.

a. / benefits
b. / psychographics
c. / demographics
d. / usage rates
e. / sociocultural attributes

____61.Redbook magazine targets what it calls “Redbook jugglers,” defined as 25- to 44-year-old women who must juggle family, husband, and job. According to a Redbook ad, “She’s the product of the ‘me generation,’ the thirty-something woman who balances home, family, and career—more than any generation before her, she refuses to put her pleasures aside. She’s old enough to know what she wants. And young enough to get it.” This is an example of _____ segmentation.

a. / demographic and psychographic
b. / benefit desired and usage rate
c. / geodemographic and benefit desired
d. / demographic and usage rate
e. / benefit desired and demographic

____62.A(n) _____ is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

a. / heterogeneous segment
b. / target market
c. / responsive segment
d. / aggregated market
e. / undifferentiated target

____63.When a firm serves two or more well-defined market segments with a distinct marketing mix for each, it is using a(n) _____ targeting strategy.

a. / undifferentiated
b. / concentrated
c. / niche
d. / multisegment
e. / pluralistic

____64.A potential disadvantage of multisegment targeting is _____, which occurs when sales of a new product cut into sales of a firm’s existing products.

a. / cannibalization
b. / synergy
c. / positioning
d. / demarketing
e. / inelastic demand

____65._____ is the development of a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general and is related to the place a product occupies in consumers’ minds relative to competing offerings.

a. / Market differentiation
b. / Diversification
c. / Combination marketing
d. / Positioning
e. / Market aggregation

____66.H&R Block launched a $100 million marketing campaign to parlay the company’s intimate knowledge of 20 million customers’ finances into other services like mortgages and investment advice. Block has great brand recognition, but consumers only care about it four months out of the year. H&R Block is attempting to _____ itself to make people think of it as a company offering services year-round.

a. / reposition
b. / reengineer
c. / demarket
d. / undifferentiate
e. / niche

____67.Which of the following is NOT an example of a product’s tangible feature?

a. / Brand equity
b. / Packaging
c. / Color
d. / Options
e. / Size

____68.There are many HD television sets on the market, and they vary so much on price, quality, and features that consumers often have trouble comparing them. An HD television would probably be considered a _____ product.