Midterm 3k3n5o

Principles of Marketing - Mid Term Exam Sample Questions 1) All of the following are accurate descriptions of modern marketing, EXCEPT which one? A) Marketing is the creation of value for customers. B) Marketing is managing profitable customer relationships. C) Selling and advertising are synonymous with marketing. D) Marketing involves satisfying customers' needs. E) Marketing is used by for-profit and not-for-profit organizations. Answer: C 2) ________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange. A) Selling B) Advertising C) Bartering D) Marketing E) Negotiating Answer: D 3) According to the simple five-step model of the marketing process, a company needs to ________ before deg a customer-driven marketing strategy. A) determine how to deliver superior value B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct key components of a marketing program Answer: D 4) What do companies call a set of benefits that they promise to consumers to satisfy their needs? A) market offering B) value proposition C) demand satisfaction D) need proposition E) evoked set Answer: B 5) Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? A) selling myopia B) marketing management C) value proposition D) marketing myopia E) the product concept Answer: D 6) A(n) ________ is the set of actual and potential buyers of a product. A) market B) audience C) group

D) segment

E) exchange

Answer: A 7) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A) All customers will be delighted. B) Customer-perceived value will increase. C) Customer evangelists will become unpaid salespersons for the service or product. D) Not all customers will be satisfied. E) The company will need to follow up with a demarketing campaign. Answer: D

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8) In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand temporarily or permanently. A) marketing B) demarketing C) value marketing D) surplusing E) negotiating Answer: B 9) The art and science of choosing target markets and building profitable relationships with them is called ________. A) marketing management B) positioning C) segmentation D) selling E) differentiation Answer: A 10) Selecting which segments of a population of customers to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) managing the marketing effort Answer: D 11) Which of the following is the set of benefits a company promises to deliver to the customer to satisfy their needs? A) a money-back guarantee B) low pricing C) good customer service D) a value proposition E) an attribute Answer: D 12) Which customer question is answered by a company's value proposition? A) "Why should I buy your brand rather than a competitor's?" B) "How does your brand benefit me and society?" C) "What are the costs and benefits of your brand?" D) "What kind of experience will I have with products and services associated with this brand?" E) "What are the benefits of being a loyal consumer of your brand?" Answer: A 13) The product concept says that a company should do which of the following? A) improve marketing of its best products B) market only those products with high customer appeal C) focus on the target market and make products that meet those customers' demands D) focus on making continuous product improvements E) make promoting products the top priority Answer: D 14) Which concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do? A) product B) production C) selling D) marketing E) equity Answer: D

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15) Customer-driven marketing usually works well when ________ and when customers ________. A) a clear need exists; are difficult to identify B) customers know what they want; are loyal to the brand C) a firm can deliver the goods desired; are thoroughly researched D) a clear need exists; know what they want E) a need exists; don't know what they want Answer: D 16) The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________. A) human welfare B) want satisfaction C) company profits D) short-run wants E) long-term needs Answer: C 17) The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A) promotion mix B) product mix C) marketing mix D) TQM E) marketing effort Answer: C 18) Of the following, which is the most important concept of modern marketing? A) customer relationship management B) societal marketing C) consumer-generated marketing D) properly trained salespeople E) low prices Answer: A 19) Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________. A) customer lifetime value B) customer perceived value C) customer relationship management D) database marketing E) societal marketing Answer: C 20) It is most accurate to say that customers buy from stores and firms that offer which of the following? A) the highest value for the dollar B) the highest customer-perceived value C) the highest level of customer satisfaction D) the most attractive company image E) the most concern for society's interests Answer: B

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21) ________ is defined as the customer's evaluation of the differences between all the benefits and all the costs of a marketing offer relative to those of competing offers. A) Customer equity B) Customer satisfaction C) Customer evangelism D) Customer-perceived value E) Marketing myopia Answer: D 22) iRobot, the makers of Roomba, have involved their customers in product development, marketing, and technical in an effort to foster which of the following? A) basic relationships B) customer delight C) selective relationship management D) customer-perceived value E) frequency marketing programs Answer: B 23) Using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering is referred to as ________. A) customer relationship management B) positioning C) database marketing D) selective relationship management E) marketing myopia Answer: D 24) Which of the following best explains why consumers have greater power and control in today's marketplace? A) The production concept and competition have lowered prices. B) Implementation of the product concept has resulted in continually improving products. C) Customer-driven marketing creates products and services that meet customers' future needs. D) More companies are implementing social marketing and weighing long-term costs and benefits. E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers. Answer: E 25) To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice ________. A) partner relationship management B) database marketing C) attractive Web site design D) customer equity E) consumer-generated marketing Answer: A 26) 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. A) supply chain management B) direct marketing C) partnership relationship marketing D) customized marketing E) equity marketing Answer: A

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27) The final step in the marketing process is ________. A) capturing value from customers B) creating customer loyalty C) creating customer lifetime value D) understanding the marketplace E) deg a customer-driven marketing strategy Answer: A 28) Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. Stew Leonard's concern is an illustration of which of the following? A) share of customer B) market share C) profitability D) customer lifetime value E) market share maintenance Answer: D 29) Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing ? A) Marketers want to increase their market share. B) Marketers want to increase the share they get of the customer's purchasing in their product categories. C) Marketers want to increase the profit margin with this target market. D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers. Answer: B 30) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty? A) barnacles B) strangers C) butterflies D) true friends E) big fish Answer: D 31) Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment? A) long-range planning B) short-range planning C) media planning D) strategic planning E) annual planning Answer: D 32) When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing ________. A) mission planning B) values planning C) strategic planning D) business-portfolio planning E) operations planning Answer: C

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33) Which of the following is the first step in strategic planning? A) set objectives and goals B) develop the business portfolio C) define the company mission D) plan marketing strategies E) identify threats and weaknesses Answer: C 34) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be? A) objectives and goals B) a mission statement C) a business portfolio D) marketing and functional strategies E) operational strategies Answer: B 35) ________ should be market oriented and defined in of ________. A) Annual plans; product needs B) Strategic plans; company needs C) Long-range plans; company needs D) Mission statements; customers' needs E) Objectives; competitors' threats Answer: D 36) Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to next be turned into detailed ________ that guide each level of the company. A) sets of strategies B) sets of tactics C) product mixes D) ing objectives E) sets of promotional tools Answer: D 37) Which of the following can be a company division, a product line within a division, or sometimes a single product or brand? A) a market B) the BCG C) an SBU D) a PLC E) a value delivery network Answer: C 38) After management has identified the key businesses making up its company, what is the next step in portfolio analysis? A) identifying businesses in which to invest B) assessing the attractiveness of its SBUs C) deciding whether to harvest any businesses D) completing short-range planning E) identifying SBUs Answer: B

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39) In the Boston Consulting Group approach, ________ provides a measure of market attractiveness. A) relative market share B) market development C) market penetration D) market growth rate E) market segmentation Answer: D 40) The BCG growth-share matrix classifies four types off SBUs. They are ________, ________, ________, and ________. A) product; price; promotion; placement B) sales; market share; price; promotion C) stars; cash cows; question marks; dogs D) planning; implementing; leading; controlling E) market penetration; market development; product development; diversification Answer: C 41) In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________. A) cash cows; stars B) question marks; dogs C) stars; question marks D) stars; cash cows E) dogs; cash cows Answer: D 42) ________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and other SBUs that need investment. A) Stars B) Cash cows C) Question marks D) Dogs E) Cats Answer: B 43) The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________. A) harvesting; divesting B) promoting; selling C) downsizing; expanding D) diversifying; penetrating E) developing; growing Answer: A 44) Making more sales to current customers without changing a firm's products is ________. A) market attractiveness B) market penetration C) market development D) product development E) diversification Answer: B

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45) Tim Hortons works to train people who come into Tim Hortons first thing in the morning for coffee and breakfast to return several times during the rest of the day. This effort by Tim Hortons management is an example of ________. A) market development B) product development C) diversification D) market penetration E) product adaptation Answer: D 46) A common practice among marketers is to identify and develop new markets for their existing products. This practice is called ________. A) market development B) product development C) market penetration D) market skimming E) dual adaptation Answer: A 47) Jack Welch, former CEO at General Electric, said that "Companies can't give job security, only ________ can." A) development B) growth C) good strategy D) customers E) efficiency Answer: D 48) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________. A) business portfolio B) low-cost operator C) product mix D) value delivery network E) value chain Answer: D 49) A sound marketing strategy begins with which of the following? A) customer analysis B) positioning C) differentiation D) promotion E) SWOT analysis Answer: A 50) Your firm is attempting to divide up the total market to determine the best segments it can serve. Which is the correct order of doing so? A) market segmentation, target marketing, market positioning B) target marketing, market positioning, market segmentation C) market positioning, market segmentation, target marketing D) market segmentation, market positioning, target marketing E) mass marketing, demographic segmentation, psychographic segmentation Answer: A 51) Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value. A) pricing B) aligning C) differentiating D) promoting E) placing Answer: C

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52) Which of the four Ps describes the goods-and-services combination the company offers to the target market? A) price B) promotion C) product D) place E) package Answer: C 53) In the marketing management functions, a SWOT analysis should ________ a marketing plan. A) precede B) coincide with C) follow D) evaluate E) take priority over Answer: A 54) In a basic SWOT analysis the "T" stands for ________. A) timing B) trust C) threats

D) trade

E) tangible

Answer: C 55) In SWOT analysis, which of the following would be considered a strength? A) internal limitations B) trends in the market C) favourable factors in the environment D) factors that challenge the company's performance E) internal resources Answer: E 56) A marketing plan begins with an executive summary, which quickly overviews goals and ________. A) budgets B) controls C) promotions D) recommendations E) obstacles Answer: D 57) Berman Electric, a chain of 18 appliance stores, has a marketing organization in which specialists head different marketing activities. What is this type of organization called? A) geographic B) product C) organic D) functional E) market Answer: D 58) Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________. A) marketing control B) strategic control C) operating control D) developmental control E) efficiency Answer: A 59) The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________. A) evaluating goals; measuring performance B) achieving goals; measuring performance C) taking corrective action; measuring performance D) measuring performance; taking corrective action E) taking corrective action; following up Answer: D

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60) Which of the following measures the profits generated by investments in marketing activities? A) SWOT analysis B) a marketing audit C) an executive summary D) marketing ROI E) a budget Answer: D 61) You are directed to study the actors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying? A) the macroenvironment B) the microenvironment C) the marketing environment D) the demographic environment E) the global environment Answer: B 62) 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? A) the macroenvironment B) the microenvironment C) the internal environment D) the marketing mix E) the global environment Answer: A 63) Banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods and services are referred to as ________. A) financial intermediaries B) physical distribution firms C) marketing services agencies D) resellers E) wholesalers Answer: A 64) Workers, managers, and of the board are all part of a company's ________ public. A) general B) internal C) local D) intermediary

E) market

Answer: B 65) Percy Original caters to a market of individuals and households that buys goods and services for personal consumption. Percy Original caters to a ________ market. A) business B) reseller C) government D) consumer E) marketing intermediary Answer: D 66) Rachel Patino works for a wholesale company called Distributors Unlimited. She is responsible for buying and selling goods at a profit to small retailers. What is her market? A) business B) reseller C) wholesale D) consumer E) retail Answer: B

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67) Which of the following descriptions most accurately characterizes the baby boomers? A) They are increasingly likely to retire early. B) They are a shrinking market for new housing and home remodeling. C) They are past their peak earning and spending years. D) They control over 50 percent of the country’s wealth. E) They are uninterested in adapting new technologies. Answer: D 68) Large tween and teen markets belong to which demographic group? A) Generation X B) Millennials C) baby busters

D) baby boomers

E) Generation Z

Answer: B 69) Which of the following descriptions most accurately characterizes Millennials? A) They are children of baby boomers. B) They are less ethnically diverse than Gen Xers. C) They have reached their peak earning and spending years. D) They were once labeled "the MTV generation." E) They have graduated from college and are taking over positions of power in the business world. Answer: A 70) What percentage of people classified as “serious technology s” reside in Ontario? A) 6 B) 12 C) 25 D) 46

E) 62

Answer: D 71) Canadian cities are often surrounded by large suburban areas. Statistics Canada calls these combinations of urban and suburban populations ________. A) suburbs B) rural/urban areas C) metropolises D) census metropolitan areas E) geographic combos Answer: D 72) Fifteen percent of Canadian households report that they have a home office. These workers are referred to as the ________ market. A) micropolitan B) SOHO C) mobile D) independent E) contract Answer: B 73) Because of increasing ________, Canadians will demand higher quality products, books, magazines, travel, personal computers, and Internet services. A) numbers of nontraditional families B) family size C) levels of education D) social class awareness E) ethnic diversity Answer: C 74) Which of the following is an accurate statement about the diversity of the Canadian population? A) of visible minority groups could for roughly half of the population by 2017. B) Over 5 million Canadians identified themselves as visible minorities in the 2006 census. C) The Asian-Canadian percentage of the population is expected to remain steady in the next 50 years. D) Less than 8 ethnic groups in Canada are growing significantly and have well-developed media. E) Canadian ethnic populations are expected to slowly increase in the next few decades. Answer: B

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75) Which group has considerable spending power, as well as great need for tailored products and services, and represents 14.3 percent of the Canadian population (4.4 million people)? A) people with disabilities B) gays and lesbians C) visible minorities D) environmentalists E) millennials Answer: A 76) The ________ environment consists of factors that affect consumer purchasing power and spending patterns. A) cultural B) political C) technological D) economic E) natural Answer: D 77) A country with a(n) ________ economy has rich markets for many different kinds of goods. A) industrial B) service C) developing D) subsistence

E) multicultural

Answer: A 78) Value marketing is the strategy of offering consumers ________. A) high quality at a high price B) luxury quality at a high price C) lesser quality at a low price D) reasonable quality at a fair price E) little quality at a low price Answer: D 79) Which of the following groups of expenses uses up the most household income? A) food, housing, retirement planning B) housing, insurance, taxes C) food, housing, transportation D) housing, taxes, transportation E) food, travel, savings Answer: C 80) Ernst Engel's laws generally have been ed by recent studies. He discovered that as family income rises, the percentage spent on ________ declines and the percentage spent on ________ remains about constant. A) food; clothing B) clothing; recreation/entertainment C) food; transportation D) food; housing E) recreation/entertainment; savings Answer: D 81) Which of the following has encouraged marketers to pursue environmentally sustainable strategies? A) the competition act B) the black market C) the green movement D) deregulation E) green intervention Answer: C

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82) Legislation affecting business around the world will continue to ________. A) become standardized B) increase C) remain steady D) decrease E) threaten the American domestic economy Answer: B 83) The legislation created that requires certain commodities to be properly labelled or described in advertising for the purpose of indicating material content or quality is called the ________. A) Competition Act B) Food and Drug Act C) Consumer Packaging and Labelling Act D) National Trade-mark and True Labelling Act E) Motor Vehicle Safety Act Answer: D 84) Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers, and to ________. A) protect the interests of society B) regulate prices C) increase world trade D) regulate monopolies E) promote social responsibility Answer: A 85) The recent rash of business scandals and increased concerns about the environment have created fresh interest in the issues of ________ and ________. A) ethics; promotion responsibility B) ethics; social responsibility C) finances; employee discrimination D) management ethics; insider trading E) promotion; pricing Answer: B 86) Cause-related marketing is a(n) ________. A) response to customer needs B) primary form of environmental awareness C) primary form of corporate giving D) response to corporate legislative problems E) attempt to influence consumers' core beliefs Answer: C 87) A society's basic values, perceptions, preferences, and behaviours are all part of its ________ environment. A) social B) cultural C) political D) cultural-economic E) natural Answer: B 88) A society's ________ are expressed in how people view themselves, organizations, society, nature, and the universe. A) social codes B) cultural values C) demographics D) public policies E) economies Answer: B

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89) Trends in people's views of organizations indicate that which of the following has increased in the past twenty years? A) employees' loyalty to their employers B) confidence in Canadian political organizations C) a loss of confidence in big businesses D) distrust in small, local businesses E) employees' view of work as a source of satisfaction Answer: C 90) Which trend related to people's attitudes towards others suggests less demand for theatre-going and greater demand for home improvement, home office, and home entertainment products? A) the green movement B) globalization C) cocooning D) renewed patriotism E) sustainability Answer: C 91) The ________ is specifically focused on future company needs only. A) societal marketing concept B) strategic planning concept C) sustainable marketing concept D) marketing concept E) consumer business concept Answer: B 92) A long-standing charge against intermediaries is that they mark up prices beyond the ________. A) value of their services B) delivery charges C) going market price D) promotion cost E) resale value Answer: A 93) A heavily promoted brand of flu medicine sells for much more than a virtually identical store-branded product. Critics would likely charge that promotion for the branded flu medicine adds only ________ to the product rather than functional value. A) consistency B) strength C) psychological value D) quality E) informational value Answer: C 94) ________ persuades people to buy goods they had no thought of buying. A) Sustainable marketing B) High pressure selling C) Strategic marketing D) Redlining E) Reverse redlining Answer: B

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95) The success of the Tom Dennis Ford dealership has been built largely on return customers and word-of-mouth recommendations. The majority of sales are made to customers who have purchased a vehicle at the dealership before or who know someone who had a positive experience purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership most likely knows that using high-pressure selling does not work if the dealership wants to ________. A) achieve short-term gains B) move last year's models C) obey local and federal law D) build long-term relationships with customers E) maintain a database Answer: D 96) Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called? A) product failure B) short-term planning C) planned obsolescence D) nonfunctional warranty E) expressed dissatisfaction Answer: C 97) Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers. A) car and truck B) housing and construction C) food and beverage D) consumer electronics and computer E) financial and entertainment Answer: D 98) On a deeper level, our wants and values are influenced not only by marketers but also by all of the following, EXCEPT ________. A) family B) education C) religion D) cultural background E) intermediaries Answer: E 99) Large marketing companies can use patents and heavy promotion spending to ________. A) acquire smaller companies B) bear the social costs of their operations C) set up barriers for others wanting to enter the industry D) achieve economies of scale E) offset cultural pollution Answer: C

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100) After Sony and Microsoft soundly beat and outsold Nintendo's GameCube in the Video Game War of 2001, the smallest of the three game platform makers needed a new plan. The resulting Wii system, with its intuitive motion-sensitive controller and interactive games, appealed not only to teen boys but also to their sisters, moms, dads, and even grandparents. The system immediately outsold both the PlayStation 3 and Xbox 360. This is a successful example of ________ marketing. A) consumer-oriented B) innovative C) customer-value D) societal E) sense-of-mission Answer: B 101) A marketing information system (MIS) consists of people and procedures to assess information needs, ________, and help decision makers analyze and use the information. A) experiment to develop information B) test market the information C) develop the needed information D) critique the needed information E) question the needed information Answer: C 102) Marketing information from which type of database usually can be accessed more quickly and cheaply than other information sources? A) external B) LexisNexis C) Dun & Bradstreet's D) internal E) Hoover's Answer: D 103) ________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. A) Marketing data B) Marketing intelligence C) Sales management D) Customer intelligence E) Competitive intelligence Answer: B 104) Which of the following statements regarding marketing intelligence is true? A) The advantage of using competitive intelligence is negligible. B) All marketing intelligence is available for free. C) Marketing intelligence relies upon privately held information. D) Marketing intelligence relies upon publicly available information. E) Marketing intelligence gathering is more focused on gaining insights into consumer activities than competitors' activities. Answer: D

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105) ________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A) The marketing information system B) Marketing intelligence C) Marketing research D) Competitive intelligence E) Causal research Answer: C 106) What is the first step in the marketing research process? A) developing a marketing information system B) defining the problem and research objectives C) developing the research plan for collecting information D) implementing the research plan E) hiring an outside research specialist Answer: B 107) Your colleague is confused ing the marketing research process, as he knows that something is wrong but is not sure of the specific causes to investigate. He seems to be having problems with ________, which is often the hardest step to take. A) developing the research plan B) determining a research approach C) defining the problem and research objectives D) selecting a research agency E) obtaining marketing intelligence Answer: C 108) In the second step of the marketing research process, research objectives should be translated into specific ________. A) marketing goals B) information needs C) dollar amounts D) research methods E) information sources Answer: B 109) Secondary data consists of information ________. A) that already exists somewhere but is outdated B) that does not currently exist in an organized form C) that already exists but was collected for a different purpose D) used by competitors E) that researchers can only obtain through surveys and observation Answer: C 110) Information collected from online databases is an example of ________ data. A) primary B) secondary C) observational D) experimental Answer: B 111) Which form of data below can usually be obtained more quickly and at a lower cost than the others? A) primary B) survey research C) experimental research D) secondary E) observational research Answer: D

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E) ethnographic

112) Your assistant wants to use secondary data exclusively for the current research project. You advise him that the use of secondary data has some potential problems. Which of the following is NOT one of them? A) It may not exist. B) It may not be relevant. C) It is generally more expensive to obtain than primary data. D) It may not be current. E) It may not be impartial. Answer: C 113) Which method could a marketing researcher use to obtain information that people are unwilling or unable to provide? A) observational B) survey C) questionnaire D) focus groups E) personal interviews Answer: A 114) ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has all the following advantages EXCEPT which one? A) low cost per respondent B) may encourage more honest answers C) has an average response rate D) no interviewer to bias respondents' answers E) can collect large amounts of information Answer: C 115) Which of the following methods has the poorest response rate? A) mail B) telephone C) personal

D) online

E) individual

Answer: A 116) Which of the following is NOT a disadvantage of telephone interviews? A) They are more expensive to conduct than mail questionnaires. B) Interviewer bias is introduced. C) Under time pressures, some interviewers might cheat. D) Interviewers can explain some questions and probe more deeply on others. E) Potential respondents may refuse to participate. Answer: D 117) Which form of marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and ments? A) individual interviewing B) Internet surveys C) telephone surveys D) ethnographic research E) observational research Answer: A 118) Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is too small, it is likely to be difficult to ________. A) find enough secondary data to the findings B) orchestrate cooperation among participants C) encourage honest responses to questions D) generalize from the results E) find a representative sample Answer: D 18

119) Which of the following is NOT an advantage of Web-based research? A) speed B) low costs C) almost instantaneous results D) control over who respondents are E) ease of istration Answer: D 120) Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population. A) group B) target group C) population D) sample E) audience Answer: D 121) You generally need to ask three questions when developing a sampling plan. Which of the following questions is part of that process? A) Who should be left out of the sample (sampling exclusion)? B) How should we the sample (sampling approach)? C) Why should respondents by selected (sampling justification)? D) How should participants be chosen (sampling procedure)? E) How much should we pay the participants (sampling costing)? Answer: D 122) What are the two main types of research instruments used to collect primary data? A) surveys and samples B) questionnaires and mechanical devices C) focus groups and online databases D) online s and experiments E) personal interviews and online marketing research Answer: B 123) Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try? A) customer satisfaction management B) more sophisticated hardware C) customer relationship management D) decreased marketing intelligence E) a marketing information system Answer: C 124) What is the purpose of a data warehouse? A) to organize internal and external data by relevance B) to gather and integrate information a company already has C) to interpret data D) to analyze data E) to identify and discard outdated data Answer: B 125) In CRM, findings about customers discovered through ________ techniques often lead to marketing opportunities. A) data warehousing B) data mining C) customer strategy D) customer loyalty management E) value network Answer: B

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126) What source of marketing information provides those within the company ready access to research information, stored reports, shared work documents, information for employees and other stakeholders, and more? A) an intranet B) an extranet C) the Internet D) marketing research E) marketing intelligence Answer: A 127) Marketing information is only valuable when it is used to ________. A) simplify management's job B) identify a target market C) please shareholders D) increase efficiencies in the supply chain E) make better marketing decisions Answer: E 128) With a minimal effort, small organizations can obtain ________ data. A) observational B) experimental C) touch point

D) primary

E) secondary

Answer: E 129) Behavioural targeting, the practice of ________, is being used by more and more companies. A) tracking customers' activities and rewarding customer loyalty B) managing customer relationships C) mining and analyzing data from data warehouses D) tracking consumers' online movements and using this information to target ads to them E) observing and interacting with consumers in their natural environments Answer: D 130) Your marketing department is attempting to improve strategic decision making, track competitors' actions, and provide early warning of opportunities and threats. To achieve this goal, which of the following would be the best for your department to use? A) internal databases B) external databases only C) company reports only D) marketing intelligence E) the Internet Answer: D 131) Most large companies research ________ buying decisions to find out what they buy, where they buy, how and how much they buy, when they buy, and why they buy. A) market B) permanent C) consumer D) social E) group Answer: C 132) Which of the following questions represents the marketer's perspective on the pre-purchase issues stage of the consumption process? A) How does a consumer decide that he or she needs a product? B) I s acquiring a product a stressful or a pleasant experience? C) What does the consumer’s purchase say about the consumer? D) How are consumer attitudes toward products formed and changed? E) Does this person tell others about his or her experiences with the product? Answer: D

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133) Consumer purchases are influenced strongly by _______, social, personal, and psychological factors. A) financial B) cultural C) competitive D) political

E) legal

Answer: B 134) ________ is(are) the most basic cause of a person's wants and behaviour. A) Culture B) Brand personality C) Cognitive dissonance D) Societal factors E) Selective perception Answer: A 135) ________ are becoming a very attractive market: they are the ideal market for travel, restaurants, high-tech home entertainment products, and convenient services A) Aboriginal Canadians B) Tweens C) Mature consumers D) Chinese Canadians E) Teenagers Answer: C 136) Which of the following is NOT true of mature consumers? A) The best strategy is to appeal to their active, multidimensional lives. B) They are an ideal market for "do-it-for-me" services. C) High-tech home entertainment products appeal to them. D) They place more importance on brand names and are more brand loyal than of other age groups. E) They are a good market for cosmetics and personal care products. Answer: D 137) ________ are society's relatively permanent and ordered divisions whose share similar values, interests, and behaviours. A) Social classes B) Cultures C) Reference groups D) Attitudes E) Lifestyles Answer: A 138) ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. A) Opinion leaders B) Habitual buyers C) Social networkers D) Stealth marketers E) Buzz marketers Answer: A 139) Opinion leaders are sometimes referred to as ________. A) the influentials B) the upper uppers C) the middle class D) buzz marketers E) networkers Answer: A

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140) Companies who use brand ambassadors are participating in ________. A) opinion leading B) traditional marketing C) buzz marketing D) direct marketing E) values marketing Answer: C 141) MySpace.com and YouTube are both examples of ________. A) buzz marketing B) opinion leaders C) online social networks D) early adopters E) word-of-mouth marketing Answer: C 142) Which of the following best explains why a rush of marketers now participate in established online social networks? A) Social networking has been proven to be more effective than traditional marketing. B) Social networks allow companies to have greater control over brand-related content than other media do. C) of social networking sites are unlikely to tune out personalized advertising messages. D) Companies have found their own social networks to be unsuccessful. E) Consumers are more likely to view peer-to-peer communication as credible. Answer: E 143) The ________ is the most important consumer buying organization in society; the roles and influences of different have been researched extensively. A) family B) social class C) hip group D) subculture E) reference group Answer: A 144) People change the goods and services they buy over time because of the two changing factors of ________. A) belief and attitude B) perception and personality C) age and life-cycle stage D) groups and learning E) family and tradition Answer: C 145) All of the following make up a person's lifestyle EXCEPT ________. A) AIO dimensions B) interests C) dissonance-reducing buying behaviour D) opinions E) work Answer: C

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146) A customer's lifestyle can be measured by using the AIO dimensions. What does AIO stand for? A) Activities, Interests, Opinions B) Achievement, Involvement, Organizations C) Accommodation, Investment, Orientation D) Acknowledgements, Interests, Observations E) Adoptions, Interests, Occupations Answer: A 147) Researchers found that a number of well-known brands tended to be strongly associated with one particular trait, such as Jeep with "ruggedness." Which of the following would a marketer use to describe a specific mix of human traits that may be attributed to a particular brand? A) brand perception B) product image C) brand personality D) brand concept E) brand equity Answer: C 148) Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities; that is, "we are what we have." Under this premise, consumers ________. A) buy products to their self-images B) use brand personalities C) are affected by subconscious motivations D) are attracted to products that fit in with their existing attitudes E) conduct the information search Answer: A 149) The term ________ refers to qualitative research designed to probe consumers' hidden, subconscious motivations. A) perception analysis B) opinion leader C) motivation research D) need recognition investigation E) depth research technique Answer: C 150) Maslow's theory is that ________ can be arranged in a hierarchy. A) stimuli B) beliefs and attitudes C) perceptions D) human needs E) decisions Answer: D 151) Which of the following is NOT part of Maslow's Hierarchy of Needs? A) physiological needs B) safety needs C) stimulus needs D) self-actualization needs E) social needs Answer: C

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152) What is the LEAST pressing in Maslow's Hierarchy of Needs? A) physiological needs B) social needs C) esteem needs D) self-actualization needs E) safety needs Answer: D 153) ________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world. A) Personality B) Perception C) Selective grouping D) Learning E) Self-actualization Answer: B 154) 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 ________. A) selective retention B) selective distortion C) selective attitude D) selective attention E) selective perception Answer: D 155) People tend to interpret new information in a way that will what they already believe. This is called ________. A) selective retention B) selective distortion C) selective attitude D) selective attention E) selective perception Answer: B 156) People forget much of what they learn. They tend to retain information that s their attitudes and beliefs. This is called ________. A) selective attention B) selective retention C) selective attitude D) selective distortion E) perceptual vigilance Answer: B 157) Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________ advertising. A) alternative evaluation B) subliminal C) perceptual D) innovative E) comparative Answer: B

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158) When consumers are highly involved with the purchase of an expensive product and they perceive significant differences among brands, they most likely will undertake ________. A) habitual buying behaviour B) complex buying behaviour C) reflective buying behaviour D) habitual buying behaviour E) variety-seeking buying behaviour Answer: B 159) The buyer decision process consists of five stages. Which of the following is NOT one of these stages? A) need recognition B) information search C) variety-seeking buying behaviour D) purchase decision E) postpurchase behaviour Answer: C 160) Almost all major purchases result in ________, or discomfort caused by postpurchase conflict. A) need recognition B) cognitive dissonance C) purchase decisions D) legitimization E) dissatisfaction Answer: B 161) Pat thought he had received the best deal on his new car. Shortly after the purchase, Pat started to notice certain disadvantages of his new car as he learned more about other cars available. Pat is experiencing ________. A) postpurchase culture B) selective perception C) postpurchase dissonance D) purchase decision E) information evaluation Answer: C 162) Cameron loves to know about and purchase the most up-to-date technological gadgets. Among his friends, he is almost always the first to own the newest electronic product. Often the products that Cameron buys become adopted by large groups of consumers, but occasionally Cameron will purchase a product that is adopted by only a small portion of the population. To which of the following adopter groups does Cameron belong? A) innovator B) early adopter C) early majority D) late majority E) laggards Answer: A 163) There are many sets of ________ purchases made for each set of ________ purchases. A) consumer; business B) tangible; intangible C) service; product D) business; consumer E) product; service Answer: D

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164) Hewlett-Packard and Dell buy Intel microprocessor chips because consumers buy personal computers. This demonstrates an economic principle called ________. A) elastic demand B) fluctuating demand C) derived demand D) t demand E) market demand Answer: C 165) The Pure Drug Company produces insulin, a product with a very stable demand, even though the price has changed several times in the past two years. Insulin is a product with ________ demand. A) t B) service C) inelastic D) elastic E) fluctuating Answer: C 166) Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying decision process is more ________ than the consumer buying decision process is. A) formalized B) creative C) relationship-oriented D) independent E) concentrated Answer: A 167) In a typical organization, buying activity consists of two major parts: the buying ________ and the buying ________. A) committee; time B) time; reorder point C) economic order quantity; reorder point D) centre; decision process E) deciders; influencers Answer: D 168) Which business buying situation is the marketer's greatest opportunity and challenge? A) modified rebuy B) straight rebuy C) new task D) multiple rebuys E) system rebuy Answer: C 169) In which type of buying situation would a supplier most likely focus on maintaining product and service quality? A) straight rebuy B) modified rebuy C) new task D) systems task E) solutions task Answer: A

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170) You just lost a major because a competitor provided the most complete system to meet the customer's needs and solve the customer's problems, and made the sale. In other words, the competition beat you with ________. A) solutions selling B) team selling C) cross-functional skill D) customer relationship management E) promotions Answer: A 171) A ________ consists of the actual s of products, those who control buying information, those who influence the decisions, those who do the actual buying, and those who make the buying decisions. A) supplier development team B) cross-functional team C) buying centre D) quality management centre E) partnership management team Answer: C 172) In routine buying situations, which of the buying centre have formal or informal power to select or approve the final suppliers? A) s B) influencers C) gatekeepers D) deciders E) buyers Answer: D 173) A(n) ________ controls the flow of information to others in the buying centre. A) B) influencer C) buyer D) gatekeeper

E) decider

Answer: D 174) Don Amspacher, in his role on the buying committee, provides information for evaluating the alternative purchase decisions and helps define and set specifications for evaluating alternatives for purchasing. Don is a(n) ________. A) B) influencer C) decider D) gatekeeper E) buyer Answer: B 175) When competing products differ greatly, business buyers are more able for their purchase choices and tend to pay more attention to ________. A) economic factors B) emotional choice C) intuition D) personal factors E) creative factors Answer: A 176) Which environmental factor is the reason that many companies now are more willing to buy and hold larger inventories of scarce materials to ensure adequate supply? A) the level of primary demand B) the economic outlook C) the cost of money D) culture and customs E) shortages in key materials Answer: E

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177) The major influences on the buying process at General Aeronautics include company policies and systems, technological change, and economic developments. The influences on the buying process in this scenario are most accurately categorized as ________ and ________. A) individual; environmental B) organizational; interpersonal C) individual; organizational D) environmental; interpersonal E) organizational; environmental Answer: E 178) Which of the following types of factors influencing of a buying centre are typically the most difficult for marketers to assess? A) economic B) technological C) interpersonal D) organizational E) political Answer: C 179) Which of the following is an example of an internal stimulus that might lead to the business buying process stage of problem recognition? A) A buyer gets a new idea from an ment. B) A buyer gets a new idea at a trade show. C) A buyer is unhappy with a current supplier's price. D) A buyer receives a call from a salesperson offering better service . E) A buyer learns about a new product at an industry convention. Answer: C 180) Business marketers often alert customers to potential problems and then show how their products provide solutions. These marketers are hoping to influence which stage of the business buying process? A) general need description B) alternative evaluations C) problem recognition D) order-routine specification E) performance review Answer: C 181) In which stage of the business buying process is a supplier most likely to provide a buyer with information about the values of different product characteristics? A) problem recognition B) general need description C) supplier search D) supplier selection E) order-routine specification Answer: B 182) During which stage of the business buying process is a buyer most likely to conduct a value analysis, carefully studying components to determine if they can be redesigned, standardized, or made less expensively? A) proposal solicitation B) general need description C) order-routine specification D) performance review E) product specification Answer: E

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183) In the generally accepted stages of the business buying process, the step following problem recognition is ________. A) proposal solicitation B) supplier search C) product value analysis D) general need description E) performance review Answer: D 184) Which of the following statements about the supplier selection stage of the business buying decision process is true? A) Price is the only factor businesses consider before making a purchase decision. B) Even companies that have adopted a total quality management approach consider price to be the most important factor in choosing a supplier. C) Price and warranty are the only two factors businesses consider before making a purchase decision. D) Buyers do not negotiate for better before making a final supplier selection. E) Before selecting a supplier, many companies consider the supplier's reputation, ethical corporate behaviour, and honest communication. Answer: E 185) In which stage of the business buying process is a supplier's task to make sure that the supplier is giving the buyer the expected satisfaction? A) problem recognition B) performance review C) supplier search D) supplier selection E) order-routine specification Answer: B 186) Following a purchase, the buyer and seller would both monitor which phase of the new-task buying situation? A) order-routine specifications B) supplier selection C) performance review D) value analysis E) vendor analysis Answer: C 187) Instead of focusing on managing individual purchases, a seller should focus on managing the ________. A) building a good reputation in the marketplace B) organizational environment C) use of blanket contracts D) order-routine specifications E) total customer relationship Answer: E 188) Which of the following would allow a company to create direct procurement s with suppliers such as Dell or Office Depot through which company buyers can purchase equipment, materials, and supplies directly? A) an intranet B) an extranet C) buying centres D) a reverse auction E) a trading exchange Answer: B

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189) Reverse auctions, trading exchanges, and company buying sites are all ways that companies can participate in ________. A) secure extranets B) product value analysis C) vendor-managed inventory systems D) blanket contracts E) e-procurement Answer: E 190) Firewalls and encryption are ________. A) two commonly used techniques to safeguard Internet and extranet transactions B) two methods of communicating with e-commerce customers C) entirely reliable at keeping hackers away from sensitive company information D) two methods for increasing employee productivity E) effective methods for efficiently linking buyer and seller Web sites Answer: A 191) Sage, Inc., provides food services to schools, hospitals, and nursing homes in the Midwest. Management at Sage is involved in the ________ market. A) government B) not-for-profit C) local D) institutional E) global Answer: D 192) Many institutional markets are characterized by ________ and ________. A) low budgets; vague criteria B) special needs; vague criteria C) low budgets; captive patrons D) captive patrons; limited access E) mismanagement; disgruntled workers Answer: C 193) Government organizations tend to favour ________ suppliers over ________ suppliers. A) local; domestic B) unionized; nonunionized C) foreign; domestic D) domestic; foreign E) nonunionized; unionized Answer: D 194) All of the following are difficulties associated with selling to government buyers EXCEPT ________. A) considerable paperwork B) bureaucracy C) regulations D) low sales volume E) large group decision making Answer: D 195) What are the four steps, in order, to deg a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence Answer: C

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196) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs. A) efficiently B) convincingly C) intensely D) indirectly E) sporadically Answer: B 197) Even though several options are available at any one time, there ________ to segment a market. A) is one single best way B) is no single way C) is a most effective way D) are limited ways E) are four ways Answer: B 198) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments than other methods do B) create more easily reached segments than other methods do C) do not involve stereotypes D) are easy to measure in comparison to many other methods E) involve fewer attributes to consider than other methods do Answer: D 199) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender B) income C) occasion D) usage rate E) benefits sought Answer: B 200) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioural B) psychographic C) age and life cycle D) demographic E) geographic Answer: A 201) Which type of segmentation centres on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) behavioural B) psychographic C) occasion D) impulse E) emergency Answer: C 202) Markets can be segmented into groups of nons, ex-s, potential s, first-time s, and regular s of a product. This method of segmentation is called ________. A) status B) usage rates C) benefit D) behaviour E) loyalty status Answer: A

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203) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing Answer: C 204) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________. A) operating characteristics B) purchasing approaches C) situational factors D) personal characteristics E) educational status Answer: E 205) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) status; loyalty C) benefits; buying behaviour D) age and life-cycle; psychographic E) income; usage rate Answer: C 206) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable Answer: A 207) When a business market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable

E) differentiable

Answer: C 208) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable Answer: D 209) 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 ________. A) accessible B) measurable C) reachable D) differentiable E) observable Answer: D 210) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; differentiate its products E) identify behaviours; understanding spending power Answer: B

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211) Mass marketers, such as Wal-Mart and Zellers, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) micromarketing Answer: A 212) Fifty five-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) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market Answer: B 213) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) target D) individual E) niche Answer: B 214) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions Answer: C 215) Procter & Gamble sells four brands of laundry detergent in Canada, each designed for one of six laundry segments Procter & Gamble has identified. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment Answer: C 216) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; local Answer: C

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217) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. A) in malls in major cities B) in mail-order catalogs C) on the Internet D) near major competitors E) far from competitors Answer: C 218) Which of the segmenting strategies carries higher-than-average risks in consumer markets? A) concentrated B) mass C) differentiated D) undifferentiated E) multiple-segment Answer: A 219) As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing. A) niche B) mass C) differentiated D) undifferentiated E) micro Answer: E 220) Which of the following is NOT a drawback of local marketing? A) It can drive up manufacturing costs. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics problems. D) A brand's overall image might be diluted through too much variation. E) ing technologies are expensive. Answer: E 221) When a company interacts one-on-one with large numbers of customers to create customer-unique value by deg products and services tailor-made to individual needs, it is following ________. A) one-to-one marketing B) mass marketing C) mass customization D) differentiated marketing E) localization Answer: C 222) When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A) company resources B) degree of product variability C) product life-cycle stage D) product cost E) competitors' marketing strategies Answer: D

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223) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; expensive B) young; appealing C) vulnerable; marketing D) vulnerable or disadvantaged; controversial or potentially harmful E) unexpected; deceptive Answer: D 224) Sixteen leading Canadian food and beverage firms made a commitment to shift their advertising directed to children under 12 to the promotion of ________. A) vegetarian products only B) genetically modified foods C) healthier dietary choice and healthy active living D) whole-grain baked goods E) vitamin-enhanced bottled water Answer: C 225) In target marketing, the issue is not really who is targeted, but rather ________ and for ________. A) why; what B) how; what C) why; how long D) where; how long E) how; where Answer: B 226) According to one expert, cited in the text, products are created in the factory, but brands are created in the ________. A) retail outlet B) supermarket C) R&D lab D) mind E) boardroom Answer: D 227) A company or store gains a(n) ________ by differentiating its products and delivering more value. A) competitive advantage B) positioning advantage C) cost advantage D) efficiency advantage E) synergy Answer: A 228) A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. A) prices B) nonprice factors C) people D) customer service E) location Answer: C 229) When firms use symbols, colours, or characters to convey their personalities, they are using ________ differentiation. A) image B) people C) company D) reputation E) subliminal Answer: A 230) A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one? A) important B) distinctive C) divisible D) affordable E) recognizable Answer: C

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231) The answer to the customer's question "Why should I buy your brand?" is found in the ________. A) quality image B) customer services C) value proposition D) differentiation E) pricing and promotion structure Answer: C 232) Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves? A) Different people want a greater selection. B) Procter & Gamble has little competition. C) Different people want different mixes of benefits from the products they buy. D) Retailers request it. E) It creates healthy competition. Answer: C 233) We define a ________ as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. A) private brand B) service variability C) service D) product E) service encounter Answer: D 234) 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?" A) actual product B) augmented product C) core customer value D) co-branding E) exchange Answer: C 235) Product planners must design the actual product and find ways to ________ it in order to create the bundle of benefits that will provide the most satisfying customer experience. A) promote B) package C) brand D) augment E) present Answer: D 236) Products and services fall into two broad classifications based on the types of consumers that use them. Which is one of these broad classes? A) industrial products B) specialty products C) supplies and services D) materials and parts E) convenience products Answer: A

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237) ________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A) Shopping products B) Unsought products C) Specialty products D) Industrial products E) Line extensions Answer: C 238) 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. A) consumers B) businesses C) brand extensions D) co-branders E) wholesalers Answer: B 239) ________ are business products that aid in the buyer's production or operations, including installations and accessory equipment. A) Materials B) Parts C) Capital items D) Specialty items E) Supplies Answer: C 240) Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________ such as quality, features, and style and design. A) private brands B) product attributes C) consumer products D) product mixes E) marketing tools Answer: B 241) ________ is one of the marketer's major positioning tools because it has a direct impact on product or service performance; it is therefore closely linked to customer value and satisfaction. A) Packaging B) Product quality C) Total quality management D) Specialty product marketing E) Positioning Answer: B 242) ________ is an approach in which all the company's people are involved in constantly improving the products, services, and business processes. A) Product quality B) Brand equity C) Total quality management D) Specialty product marketing E) Positioning Answer: C

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243) What are the two dimensions of product quality? A) consistency and level B) performance and resistance C) design and innovation D) conformance and style E) feature and design Answer: A 244) In assessing which new features to add to a product, a company must weigh each feature's ________ to customers versus its ________ to the company. A) cost; line extension B) cost; service C) value; cost D) service; line extension E) equity; cost Answer: C 245) A(n) ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service. A) service B) brand C) co-branding D) internal marketing E) external marketing Answer: B 246) _______ is the labelling practice of stating the expected shelf life of the product. A) unit pricing B) open dating C) nutritional labelling D) past dating E) freshness labelling Answer: B 247) ________ has been affected by the need to include unit pricing, open dating, and nutritional information. A) Branding B) Packaging C) Labelling D) Product line filling E) Product mixing Answer: C 248) 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. A) product line B) line extension C) private brand D) convenience product E) product bandwidth Answer: A 249) Product mix ________ refers to the number of versions offered of each product in the line. Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking Soda formulations. A) length B) depth C) height D) width E) perimeter Answer: B 38

250) A company can increase its business in four ways. Which is NOT one of these ways? A) It can add new product lines, thus widening its product mix. B) It can lengthen its existing product lines. C) It can add more versions of each product and thus deepen its product mix. D) It can discontinue some of its lines. E) It can increase the consistency of its product mix. Answer: D

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