Final Exam - Quizzes Flashcards
(120 cards)
1
Q
Which of the following changes occurring in today’s economy has NOT been caused by the growth of the Internet?
a - Rising Prices for Most Products b - Audience and Media Fragmentation c - Privacy and Security Concerns d - Shifting demand Patterns e - Increase in Product Selection
A
a - Rising Prices for Most Products
2
Q
Changing value propositions in today’s economy—such as changes caused by the growth in e-commerce—have forced marketers to learn a tough lesson about customers. What is that lesson?
a - Customers will always turn to the most recognized brand.
b - Customers will always seek the best quality regardless of price.
c - Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities.
d - Customers would rather perform service for themselves to save money.
e - Customers will always seek the best value regardless of quality.
A
c - Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities.
3
Q
In 2005, the American Marketing Association changed the definition of marketing that had stood for 20 years. The major changes in the definition included a shift from delivering the 4 Ps (product, price, place, promotion) to delivering __________ and a shift from creating exchanges to creating __________.
a - quality; transactions b - quality; value c - satisfaction; customer relationships d - value; customer relationships e - value; satisfaction
A
d - value; customer relationships
4
Q
Which of the following IS NOT one of the five conditions of exchange in marketing?
a - There must be at least two parties to the exchange.
b - Each party must be capable of immediate delivery.
c - Each party must be free to accept or reject the exchange.
d - Each party has something of value to offer the other party.
e - Each party believes that it is desirable to exchange with the other party.
A
b - Each party must be capable of immediate delivery.
5
Q
Many firms attempt to distinguish or differentiate their product offerings through the use of __________ strategies. This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers.
a - image marketing b - perceptual marketing c - branding d - comparative e - product positioning
A
e - product positioning
6
Q
Which of the following statements about pricing decisions in the marketing program is TRUE?
a - Pricing is the most difficult element of the marketing mix to change.
b - Price is one of two elements of the marketing mix that leads to revenue.
c - Customers will always equate higher prices with higher quality products.
d - Pricing is the least manipulated element of the marketing mix.
e - Price has a direct connection with customer demand.
A
e - Price has a direct connection with customer demand.
7
Q
Among the fundamental changes to marketing and business practice in today’s economy is the dramatic increase in the availability of information. This increase in information has created a shift in the balance of power in the supply chain. Who now holds most of the power in today’s economy?
a - customers b - Manufacturers c - Retailers d - Market Researchers e - Wholesalers
A
a - customers
8
Q
In the airline industry, companies like American, Delta, and US Air have a difficult time competing because their industry has become commoditized. What does this mean for firms in the airline industry?
a - Airline firms compete in a declining industry.
b - The industry experiences very little change over time.
c - Airline customers have become increasingly demanding.
d - There is very little differentiation among product offerings in the industry.
e - Airlines have been forced to develop partnerships to remain competitive.
A
d - There is very little differentiation among product offerings in the industry.
9
Q
When creating a corporate vision statement, organizations are attempting to answer which of the following questions:
a - Who are we and what do we stand for? b - What do we want to become? c - What business are we in? d - How can we be the best? e - What are our competitive advantages?
A
b - What do we want to become?
10
Q
With respect to developing a marketing plan, what does it mean for a marketing plan outline to be consistent?
a - The outline should be consistent across firms in the same industry.
b - The outline should have some connection to other functional area plans.
c - The outline should be sufficient to ensure that information is not omitted.
d - The outline should have the ability to be modified to fit the situation.
e - The outline should flow in a logical manner
A
b - The outline should have some connection to other functional area plans.
11
Q
While all marketing plans face a number of obstacles in development and implementation, __________ is by far the most commonly occurring obstacle across most firms.
a - resistance to change b - inadequate information c - inadequate communication d - failure to see the whole picture e - lack of time for planning
A
c - inadequate communication
12
Q
Focusing on customers has not always been the hallmark of strategic planning. In fact, in the early 20th century, firms tended to focus strictly on __________ rather than on developing relationships with customers.
a - growth and corporate profits b - efficiency and quality c - marketing research d - new product development e - selling products to customers
A
b - efficiency and quality
13
Q
The Balanced Performance Scorecard cautions business leaders to look at strategy and performance through four interrelated perspectives. Which of the following IS NOT one of these perspectives?
a - financial perspective b - learning and growth perspective c - customer perspective d - internal process perspective e - vision and strategy perspective
A
e - vision and strategy perspective
14
Q
In today’s business environment, firms that truly focus on customers instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. When this occurs, the firm shifts its focus from transactions to __________, and from __________ to collaboration.
a - market share; competition b - information; rivalry c - long-range planning; contracts d - value; cooperation e - relationships; competition
A
e - relationships; competition
15
Q
In a truly market-oriented organization, what is the role of the CEO?
a - To protect the organization from competitive actions.
b - To create a strong reputation among the organization’s stakeholders.
c - To increase the market value of the organization.
d - To hire customer-oriented executives.
e - To ensure that his or her employees have everything they need to perform their jobs well.
A
e - To ensure that his or her employees have everything they need to perform their jobs well.
16
Q
Many firms have shifted to balanced strategic planning because traditional planning and measurement approaches are not able to capture:
a - the value created by an organization’s intangible assets.
b - real-time financial performance metrics.
c - real-time customer satisfaction metrics.
d - key competitive information to drive marketing planning.
e - either internal or external innovation.
A
a - the value created by an organization’s intangible assets.
17
Q
Which of the following IS NOT a purpose of a marketing plan?
a - It identifies resources needed to carry out the plan.
b - It explains the present and future situations of the organization.
c - It specifies the expected outcomes of the plan.
d - It describes specific actions that are to take place.
e - It explains how marketing activities mesh with other functional areas.
A
e - It explains how marketing activities mesh with other functional areas.
18
Q
In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the __________ section of the marketing plan.
a - evaluation and control b - SWOT analysis c - executive summary d - marketing implementation e - situation analysis
A
a - evaluation and control
19
Q
Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth:
a - strategy for achieving growth.
b - statement of the organization’s competitive advantages.
c - assessment of the organization’s resources.
d - a situation analysis.
e - a statement of goals and objectives.
A
d - a situation analysis.
20
Q
Sears at one time lost sight of its mission and jumped into markets such as real estate and financial services that did not fit its strengths or core operations. This most likely occurred because Sears lacked a mission statement with the appropriate:
a - focus b - profitability c - strategic fit d - stability e - width
A
e - width
21
Q
With respect to conducting a situation analysis, which of the following IS NOT one of the four important issues to keep in mind?
a - Conducting a situation analysis is a challenging exercise.
b - The benefits of analysis must outweigh the costs.
c - Data are not the same as information.
d - All bits of data are relevant no matter how minor they may seem.
e - Analysis alone is not a solution.
A
d - All bits of data are relevant no matter how minor they may seem.
22
Q
Issues such as marketing’s position and authority in a firm’s hierarchy, the overall market orientation of the firm, and the emphasis on short- or long-term planning are examples of which component of the internal environment?
a - marketing infrastructure b - organizational structure c - marketing objectives d - marketing strategy e - resource availability
A
b - organizational structure
23
Q
In the 5W model of customer analysis, what is the primary emphasis of the “What” question?
a - Identifying the situational influences that affect the customer buying process.
b - Identifying the basic need-satisfying benefits provided by the firm’s products.
c - Determining the relevant characteristics that define markets.
d - Assessing how purchases vary across different distribution outlets.
e - Assessing how customers consume and dispose of products.
A
e - Assessing how customers consume and dispose of products.
24
Q
In the competitive sports drink market, Gatorade pays very close attention to the activities of Powerade, a major __________ competitor that markets drinks that are similar in features and benefits.
a - product b - brand c - total budget d - generic e - direct
A
b - brand
25
What is perhaps the most important economic reality in the United States over the last 50 years?
a - Our economy is still suffering from the very high inflation rates of the 1970s.
b - Our economy has shifted to become dominated by intangibles such as services and information.
c - Real GDP has declined dramatically since the end of World War II.
d - Virtually all U.S. citizens have become wealthier.
e - The middle class has been shrinking.
b - Our economy has shifted to become dominated by intangibles such as services and information.
26
Between now and 2050, __________ will account for a full 90 percent of the growth in the total U.S. population.
```
a - growth in minority populations
b - increasing birth rates
c - declining death rates
d - immigration from Canada
e - increasing life spans
```
a - growth in minority populations
27
Which of the following cultural values is not typically associated with American consumers?
```
a - less tolerance of smoking in public
b - concern for the natural environment
c - low tolerance for waiting
d - greater focus on long-term goals
e - growing disconnect with government
```
d - greater focus on long-term goals
28
Microsoft is interested in customers’ perceptions of Windows 8, its new PC operating system. Since the research goal is rather specific, Microsoft should conduct its own __________ research by asking customers to complete an online questionnaire.
```
a - observation
b - primary
c - secondary
d - experimental
e - qualitative
```
b - primary
29
Compared to primary data, secondary data have the main advantage of:
a - being readily accessible in electronic format.
b - being both internally and externally focused.
c - being dramatically lower in cost.
d - having greater relevance to a specific issue.
e - being up-to-date.
c - being dramatically lower in cost.
30
The growth of the Internet has changed the way that situation analysis is conducted in today’s business environment. In terms on situation analysis, which of the following is the most drastic change caused by the Internet?
a - Specific data and information take longer to find.
b - The analyst is more likely to suffer from severe information overload.
c - All competitors now have access to the same data and information.
d - There is now no such thing as secrecy in strategic planning.
e - Data and information are now more relevant to the question at hand.
b - The analyst is more likely to suffer from severe information overload.
31
With respect to the text’s advice in conducting a SWOT analysis, which of the following best describes “Look for Causes, Not Characteristics”?
a - Gauge the actual perceptions of customers that give rise to the firm’s strengths and weaknesses.
b - Clearly differentiate internal issues from external issues.
c - Refrain from conducting a single generic analysis for the entire organization.
d - Focus on the resources possessed by the firm and/or its competitors that are the true causes for the firm’s strengths, weaknesses, opportunities, and threats.
e - Break down clichés into meaningful customer-oriented issues.
d - Focus on the resources possessed by the firm and/or its competitors that are the true causes for the firm’s strengths, weaknesses, opportunities, and threats.
32
In terms of SWOT analysis, when does a strength become a capability of the firm?
a - when the strength can be supported by sufficient resources
b - when the strength stands alone without any corresponding weaknesses
c - when the strength can be tied to satisfying a customer need
d - when the strength cannot be copied by competitors
e - when the strength can be connected to a second strength
c - when the strength can be tied to satisfying a customer need
33
__________ typically occur within the competitive, customer, economic, political/legal, technological, and/or sociocultural environments of the firm.
```
a - Strengths and weaknesses
b - Opportunities and threats
c - Weaknesses and threats
d - Opportunities and weaknesses
e - Strengths and opportunities
```
b - Opportunities and threats
34
By focusing on efficiency of operations and processes, lower costs, and delivering good value, Southwest Airlines attempts to build a competitive advantage based on:
```
a - customer intimacy
b - strategic efficiency
c - production orientation
d - process improvement
e - operational excellence.
```
e - operational excellence.
35
Firms possessing certain core competencies are more likely to create competitive advantages based on these competencies. However, before a competitive advantage can be translated into specific customer benefits, the firm’s __________ must recognize that its competencies give it an advantage over the competition.
```
a - employees
b - strategic partners
c - management
d - shareholders
e - target markets
```
e - target markets
36
With regard to Blue Ocean Strategy, the Four-Actions Framework is designed to challenge traditional assumptions about marketing strategy by asking four key questions. Which of the following IS NOT one of these questions?
a - Which factors should be raised well above the industry’s standard?
b - Which factors that the industry takes for granted should be eliminated?
c - Which factors should be reduced well below the industry’s standard?
d - Which factors should be created that the industry has never offered?
e - Which factors used throughout the industry should be copied?
e - Which factors used throughout the industry should be copied?
37
Your supervisor repeatedly informs you that “Goals without objectives are essentially meaningless.” What is the rationale for such a philosophy?
a - Objectives provide a theoretical benchmark rather than a practical benchmark.
b - Goals are necessary to provide specific benchmarks that are used to gauge performance.
c - A goal is not a goal unless it contains one or more objectives.
d - Progress is impossible to track without measurable performance targets.
e - Objectives are necessary to provide qualitative benchmarks that are used to gauge performance.
d - Progress is impossible to track without measurable performance targets.
38
Microsoft’s Windows platform dominates the market for personal computer operating systems. By continuously upgrading and stretching the technology underlying its Windows system, Microsoft is pursuing a strategy of:
```
a - total quality management.
b - technological leadership.
c - operational excellence.
d - customer intimacy.
e - product leadership
```
e - product leadership.
39
The overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy is called its:
```
a - strategic focus.
b - marketing thrust.
c - operational focus.
d - strategic posture.
e - marketing strategy.
```
a - strategic focus.
40
All of the following are benefits of SWOT analysis EXCEPT:
a - It is simple to use.
b - It can synthesize and integrate diverse information.
c - Its structured nature ensures that data and information are correctly categorized.
d - It can reduce costs.
e - It promotes managerial collaboration.
c - Its structured nature ensures that data and information are correctly categorized.
41
From the viewpoint of the consumer buying process, what is the difference between a need and a want?
a - Needs and wants are essentially the same, except that consumers will pay more for products they need.
b - Needs are absolute necessities, whereas wants are discretionary.
c - Needs focus on specific elements of a product’s quality, whereas wants are related to the “extras” that add value to the product.
d - Needs are related to specific products, whereas wants occur only when the consumer has the ability to purchase the product.
e - Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need
e - Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need
42
If a researcher were to ask consumers to quickly name the top 3 brands of computers they might consider purchasing, the most common brands in the __________ would most likely be Dell, Apple, and HP.
```
a - shopping list
b - brand set
c - evoked set
d - target group
e - purchase set
```
c - evoked set
43
After enrolling in the MBA program at Minor State University, Sheri began having second thoughts. Although MSU seemed to be a good choice based on location, reputation, and price, Sheri was not convinced she had made the right choice. Sheri is suffering from:
```
a - too many opportunity costs.
b - dissatisfaction.
c - poor product quality.
d - cognitive dissonance.
e - choice insufficiency.
```
d - cognitive dissonance.
44
__________ is/are the primary reason why the consumer buying process varies across customers, products, and situations.
```
a - The cost of the product
b - The complexity of the purchase
c - Individual influences
d - Social influences
e - Situational influences
```
b - The complexity of the purchase
45
Each of the following statements describes a unique characteristic of the business buying process EXCEPT:
a - Business buyers have an easier time identifying their needs as compared to consumers.
b - Business buying is sometimes based on reciprocity where each firm buys products from the other.
c - Groups of people, rather than individuals, often make purchase decisions.
d - Business buyers are less likely to be dependent upon each other.
e - Business buyers must be keenly aware of both hard and soft costs.
d - Business buyers are less likely to be dependent upon each other.
46
Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation?
```
a - one-to-one marketing
b - pinpointed marketing
c - individualized marketing
d - focused marketing
e - niche marketing
```
a - one-to-one marketing
47
Advances in supply chain management now allow companies to customize products to meet the needs of individual customers on a mass scale. This individualized approach to market segmentation is called:
```
a - mass customization.
b - permission marketing.
c - individualization.
d - customized marketing.
e - one-to-one marketing.
```
a - mass customization.
48
Which of the following IS NOT an example of mass customization?
a - Dell offers fully customized computers based on your needed configuration.
b - A bank employee logs into the e-procurement system to browse a fully customized catalog of office supplies.
c - A customer orders a custom teddy bear from Build-A-BearWorkshop.com.
d - A college creates a custom degree program to match your unique needs.
e - You order a customized vase of flowers from 1-800-Flowers.com.
d - A college creates a custom degree program to match your unique needs.
49
Although a market segment can meet all criteria for viability, a firm may choose to not pursue the segment. Which of the following is a reason why this might occur?
a - The segment is difficult to reach via communication and/or distribution.
b - The segment’s members are not easily identifiable.
c- Targeting the segment could lead to antitrust concerns.
d - The segment has no synergy with the firm’s mission.
e - A competitor has already targeted the segment.
d - The segment has no synergy with the firm’s mission.
50
Firms engage in __________ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products but also provide needed solutions to customers’ problems.
```
a - market specialization
b - selective targeting
c - mass market targeting
d - product specialization
e - single segment targeting
```
a - market specialization
51
Most firms today compete in mature markets characterized by commoditization. In these cases, the __________ typically becomes incapable of differentiating the product offering from those of the competition.
```
a - experiential product
b - supplemental products
c - tangible product
d - core product
e - extended product
```
d - core product
52
Although the product is at the heart of the marketing program, it is important to remember that product offerings in and of themselves have little value to customers. An offering’s real value comes from:
a - its ease of use and convenience.
b - its ability to deliver benefits that solve a customer’s problems.
c - its ability to further the image of the organization.
d - its value (good quality at a low price).
e - its superiority to competing products.
b - its ability to deliver benefits that solve a customer’s problems.
53
For laptop computers, processor chips, memory chips, and hard drives are examples of __________ because they are finished items that become a part of the computer after assembly.
```
a - component parts
b - process materials
c - raw materials
d - installations
e - specialty products
```
a - component parts
54
Why is the demand for most services—such as popular restaurants—extremely time-and-place dependent?
a - Because services cannot be stored for future use.
b - Because popular services typically lack sufficient capacity.
c - Because customers must be present for service to be delivered.
d - Because service customers are typically unsure of their needs.
e - Because competing services force customers to make tradeoffs between quality and time.
c - Because customers must be present for service to be delivered.
55
Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality. Why is this so?
a - Because service marketers cut corners to reduce expenses.
d - Because services cannot be managed due to their intangibility.
c - Because services depend on people for their delivery.
d - Because service marketers make unrealistic promises to customers.
e - Because services are extremely time-and-place dependent.
c - Because services depend on people for their delivery.
56
The phrase “Unused service capacity is lost forever” refers to which major challenge associated with the marketing of services?
```
a - heterogeneity
b - limited standardization
c - simultaneous production and consumption
d - perishability
e - client-based relationships
```
d - perishability
57
Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process?
```
a - test marketing
b - screening and evaluation
c - idea generation
d - commercialization
e - development
```
b - screening and evaluation
58
__________ is defined as a customer’s subjective evaluation of benefits relative to costs to determine the worth of a firm’s product offering relative to other product offerings.
```
a - Value
b - Opportunity cost
c - Breakeven cost
d - Quality
e - Price
```
a - Value
59
Which of the following statements is TRUE with respect to the relationship between price and revenue?
a - In highly differentiated markets, price cuts will capture greater market share.
b - When business is good, a price increase will increase revenue.
c - In highly commoditized markets, price cuts will increase revenue.
d - When business is bad, a price increase will increase revenue.
e - Price cuts must be offset by an increase in sales volume to keep the same level of revenue.
e - Price cuts must be offset by an increase in sales volume to keep the same level of revenue.
60
Price elasticity is defined as:
a - customers’ responsiveness or sensitivity to changes in price.
b - the relative ease with which prices can be changed.
c - the impact on a product’s demand when customers are in unique buying situations.
d - a situation where prices routinely move up and down in a short period of time.
e - price flexibility—a pricing strategy used by startup firms.
a - customers’ responsiveness or sensitivity to changes in price.
61
Which of the following is the best example of a brand mark?
```
a - 7-Eleven
b - WD-40
c - Honda
d - BMW
e - Nike’s swoosh
```
e - Nike’s swoosh
62
Branding strategy involves much more than developing a clever brand name or brand mark. To be truly effective, a brand should succinctly capture the total offering in a way that:
a - clearly ties the brand name together with the brand mark.
b - utilizes at least 5 brand attributes.
c - clearly distinguishes it from competing offerings.
d - answers a question in the customer’s mind.
e - clearly ties the brand name together with the brand mark.
d - answers a question in the customer’s mind.
63
What is the overall goal of effective corporate branding?
a - To clearly tie the brand name and brand mark with the organization.
b - To clearly tie the brand name and brand mark with the organization.
c - To sell more product to members of the supply chain.
d - To position the product relative to competing products.
e - To build and enhance the organization’s reputation.
e - To build and enhance the organization’s
64
Walmart offers many different private-label brands including Sam’s Choice, Equate, and Ol’ Roy. Overall, what is the primary reason that Walmart would offer these and other private-label brands?
```
a - lowers the risk of a product failure
b - reduced marketing costs
c - increased profit margin
d - lower inventory costs
e - enhances Walmart’s image
```
c - increased profit margin
65
Best Buy offers many different manufacturer (name) brands including HP, Panasonic, Sony, and Canon. Which of the following is a primary reason that Best Buy would offer these and other manufacturer brands?
```
a - increased profit margin
b - increased loyalty to Best Buy
c - less competition
d - reduced marketing costs
e - total control over marketing
```
d - reduced marketing costs
66
Procter & Gamble is well known for its use of __________ branding because every product in P&G’s portfolio has a different brand name.
```
a - family
b - differentiated
c - corporate
d - individual
e - segmented
```
d - individual
67
If you purchase a notebook computer from Dell, you will note several brand insignias on the outside, such as Dell, Intel, and Microsoft Windows. What type of branding strategy does this example represent?
```
a - brand affinity
b - co-marketing
c - brand collaboration
d - co-branding
e - brand licensing
```
d - co-branding
68
When Marvin went to buy groceries, he found everything on his list except Pampers diapers. While the store had other competing brands in stock, Marvin left and drove five miles to the next store where he found the Pampers. It appears that Marvin exhibits a high degree of __________ for Pampers diapers.
```
a - brand recognition
b - brand insanity
c - brand insistence
d - brand preference
e - brand equity
```
c - brand insistence
69
While Madison was shopping for coffee makers at Target, she recognized many of the brands that were available. Although she was looking for a machine made by Mr. Coffee, she bought a coffee maker by Hamilton Beach because Target was out of all Mr. Coffee machines. What type of brand loyalty is Madison exhibiting?
```
a - brand equity
b - brand recognition
c - brand preference
d - brand insistence
e - brand insanity
```
c - brand preference
70
One way of looking at __________ is to consider the marketing and financial value associated with a brand’s position in the marketplace.
```
a - brand equity
b - brand equality
c - brand capitalization
d - brand identity
e - brand value
```
a - brand equity
71
Which of the following IS NOT a function or potential function of packaging?
```
a - Protection
b - integration
c - Convenience
d - co-Branding
e - Storage
```
b - integration
72
Overall, what is the difference between differentiation and positioning?
a - Differentiation is used in tangible goods, while positioning is used in services.
b - Differentiation is based on real differences between products, while positioning is completely perceptual.
c - Differentiation is about creating differences among competing products, while positioning is about creating a mental image in consumers’ minds.
d - There is no difference between differentiation and positioning.
e - Differentiation is about the product whereas positioning is about the brand.
c - Differentiation is about creating differences among competing products, while positioning is about creating a mental image in consumers’ minds.
73
As a tool of positioning strategy, perceptual maps illustrate two basic issues. First, they indicate products/brands that are similar in terms of relative mental position. Second, they illustrate:
a - voids in the current mindscape for a product category.
b - how competing brands imitate one another.
c - which brands occupy the same relative space.
d - how much longer a brand is likely to hold its relative mental image.
e - how long a brand has held its relative mental image.
a - voids in the current mindscape for a product category.
74
With respect to product descriptors, the product’s __________ communicate(s) how the product behaves, hopefully in a fashion that is distinctive and appealing to customers.
```
a - image
b - position
c - features
d - benefits
e - advantages
```
e - advantages
75
One of the most common marketing goals during the introduction stage of the product life cycle is to:
a - maintain market share.
b - spread misleading information about competing products.
c - find new uses for the product.
d - conduct test marketing studies.
e - engage in customer education activities.
e - engage in customer education activities.
76
During the maturity stage of the product life cycle, a firm has four general goals that can be pursued. Which of the following IS NOT one of these options?
```
a - divest the product
b - increase share of customer
c - hold market share
d - generate cash flow
e - steal market share
```
a - divest the product
77
Firms using the __________ approach during the decline stage of the product life cycle will gradually reduce marketing expenditures and use a less resource-intensive marketing
```
a - divesting
b - life extending
c - harvesting
d - balanced
e - repositioning
```
c - harvesting
78
Rovio launched a new version of its popular Angry Birds game called “Angry Birds: Star Wars.” What type of brand alliance does this represent?
```
a - brand collaboration
b - family branding
c - brand affinity
d - co-marketing
e - brand licensing
```
e - brand licensing
79
Without a doubt, the most important tool of differentiation is:
```
a - the product’s image.
b - perceptual mapping.
c - the product’s price.
d - the product’s features.
e - the brand.
```
e - the brand.
80
Which stage of the product life cycle has (1) establishing a strong, defensible market position, and (2) achieving financial objectives that repay investment as its main priorities?
```
a - Development
b - Growth
c - Introduction
d - Decline
e - Maturity
```
b - Growth
81
__________ is a broad concept that relates to an organization’s obligation to maximize its positive impact on society while minimizing its negative impact.
```
a - Social Engineering
b - Corporate Philanthropy
c - Strategic Philanthropy
d - Marketing Ethics
e - Social Responsibility
```
e - Social Responsibility
82
Being economically responsible is the most basic social responsibility of any business. This responsibility has the most immediate effect on:
```
a - all of the above
b - customers
c - the government
d - the media.
e - shareholders
```
e - shareholders
83
The principles and standards that define acceptable marketing conduct as determined by the public, government regulators, private-interest groups, competitors, and the firm itself are termed:
```
a - marketing standards
b - social responsibility
c - societal standards
d - codes of conduct
e - marketing ethics
```
e - marketing ethics
84
Ben & Jerry’s is well known for its use of __________ in that it ties its products and marketing strategy to social causes such as environmental stewardship.
```
a - ethical branding
b - cause-related marketing
c - sustainability
d - welfare-related marketing
e - environmentalism
```
b - cause-related marketing
85
Some companies choose to engage in a deceptive marketing practice called __________, which involves misleading consumers into thinking that a product is more environmentally friendly than it actually is.
```
a - eco-lableling
b - LEED
c - greenwashing
d - green marketing
e - environmentalism
```
c - greenwashing
86
The role of ethics in marketing strategy can be distilled into one word. Without __________, marketers run the risk of alienating stakeholders and inviting financial ruin.
```
a - trust
b - verification
c - reputation
d - sustainability
e - responsibility
```
a - trust
87
Which of the following IS NOT a challenge associated with being ethical and socially responsible?
a - When personal values are inconsistent with the configuration of values held by the work group, ethical misconduct may increase.
b - Individuals who have limited business experience often find themselves required to make sudden decisions concerning marketing’s gray areas.
c - Most employees perceive that the values of honesty, respect, and trust are infrequently applied in the workplace.
d - A person's experiences and decisions at home, in school, and in the community may be quite different from the experiences and the decisions he or she has to make at work.
e - Business decisions involve complex and detailed discussions in which correctness may not be so apparent.
c - Most employees perceive that the values of honesty, respect, and trust are infrequently applied in the workplace.
88
Each of the following is a potential product-related ethical issue EXCEPT:
```
a - Quality/Design issues
b - Invasion of privacy
c - Counterfeit goods
d - Misleading warranties
e - Failure to disclose potential hazards or defects
```
b - Invasion of privacy
89
__________, which occurs when a firm charges different prices to different customers, occurs in both consumer and business markets. However, it is very common among different members of the supply chain.
```
a - Predatory pricing
b - Price discrimination
c - Differential pricing
d - Superficial discounting
e - Price fixing
```
b - Price discrimination
90
Many large firms, such as Walmart, Home Depot, Lowe’s, and Barnes & Noble, have been accused of predatory pricing because their business practices have put many local, mom-and-pop firms out of business. In reality, these large firms are not necessarily guilty of predatory pricing. Why?
a - Because the courts have found little evidence that predatory pricing has occurred.
b - Because the large firms have efficient cost structures and lower variable costs.
c - Because the weak marketing activities of the local firms are to blame.
d - Because the large firms are more guilty of superficial discounting than predatory pricing.
e - Because the large firms simply have stronger brand equity than local firms.
b - Because the large firms have efficient cost structures and lower variable costs.
91
Colgate promotes its toothpaste using a claim that states “helps fight plaque and gingivitis.” What potential ethical issue does Colgate have with respect to its promotional strategy?
```
a - fraud
b - superficial claims
c - ambiguous statements
d - bribery
e - false advertising
```
c - ambiguous statements
92
With respect to regulating marketing ethics, a key advantage of self-regulatory programs like the Better Business Bureau is the fact that they are:
a - easier to enforce.
b - less costly and more practical to implement.
c - tied to state and local regulatory agencies.
d - all of the above
e - typically stricter than government regulations.
b - less costly and more practical to implement.
93
Most firms that experience ethical or legal problems actually have a code of conduct or an ethical compliance program in place. Why is it that these firms can still have ethical problems despite having a code of ethics or compliance program?
a - Their codes typically don’t cover high risk issues.Their codes are typically written by consultants outside the firm.
b - Their codes are typically not integrated into daily decision making.
c - Their codes are mandated by regulation rather than originating from within the firm.
d - Their codes are written with no input from employees or customers.
e - Their codes are typically written by consultants outside the firm.
b - Their codes are typically not integrated into daily decision making.
94
Research has found that corporate codes of ethics should contain six highly desirable core values or principles. Which of the following IS NOT one of these core values?
```
a - trustworthiness
d - citizenship
c - respect
d - fairness
e - legality
```
e - legality
95
Why is the connection between marketing ethics and leadership so important in nurturing a strong ethical culture?
a - Employees look to the leader to enforce the ethical code of conduct.
b - Employees look to the leader to ensure that the firm is in legal compliance.
c - Employees expect the leader to punish unethical behaviors.
d - Employees look to the leader as a model of acceptable behavior.
e - Employees expect the leader to clearly specify in writing the high-risk activities in the firm’s daily operations.
d - Employees look to the leader as a model of acceptable behavior.
96
The link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time. This link is most evident in firms that have a strong
```
a - employee satisfaction program
b - sense of customer loyalty
c - market orientation
d - stakeholder orientation
e - ethical climate
```
e - ethical climate
97
Research indicates that being ethical and socially responsible has a number of benefits for the organization. Which of the following IS NOT one of these benefits?
a - increased competitive orientation
b - increased employee commitment and satisfaction
c - increased stakeholder orientation of the organization
d - increased marketing performance
e - increased customer goodwill
a - increased competitive orientation
98
Essentially, having a climate of ethics and social responsibility is all about creating trust among a firm’s stakeholders. To gain trust, the firm and its employees must continuously uphold:
a - their legal responsibilities.
b - their standards of fair competition in the marketplace.
c - the firm’s right and responsibility to be profitable.
d - their standards of integrity.
e - their promises with respect to advertising and promotion.
d - their standards of integrity.
99
Socially responsible firms tend to enjoy higher __________ because customers perceive that the firm is dedicated to doing the right thing and treating customers fairly.
```
a - corporate reputations
b - customer loyalty
c - corporate integrity
d - sales volume
e - profit margins
```
b - customer loyalty
100
To ensure that ethics and social responsibility are thoroughly incorporated into the firm’s strategic planning process, the firm’s __________ should never be silent about ethical requirements and social responsibility
```
a - code of conduct
b - marketing plan
c - code of conduct
d - leadership team
e - culture
```
b - marketing plan
101
Marketing implementation is critical to the success of any firm. Simply put, implementation refers to:
a - the process by which employees learn about the marketing strategy.
b - the process by which the marketing strategy will be developed.
c - how the marketing plan will be approved by top management.
d - how the marketing plan will be put into action.
e - deciding who will actually write the marketing plan.
d - how the marketing plan will be put into action.
102
Typically, the difference between the planned marketing strategy and the strategy that actually takes place is:
a - caused by the way the planned marketing strategy is implemented.
b - independent of marketing implementation.
c - caused solely by changes in customer behaviors.
d - caused by managerial mistakes, not by changes in the firm’s internal or external environments.
e - typically caused by unexpected competitive activity.
a - caused by the way the planned marketing strategy is implemented.
103
One of the links between strategic planning and marketing implementation is interdependency, which refers to the fact that:
a - strategy and implementation both result from trial and error.
b - both strategy and implementation must adapt to environmental changes.
c - top executives often don’t understand how a strategy is to be implemented.
d - the marketing plan affects how it will be implemented, and implementation affects the marketing plan.
e - both strategy and implementation must constantly evolve.
d - the marketing plan affects how it will be implemented, and implementation affects the marketing plan.
104
__________ is/are considered to be the “glue” of successful implementation that binds the entire organization together as a single, functioning unit.
```
a - Marketing strategy
b - Leadership
c - Systems and processes
d - Shared goals and values
e - organizational structure
```
d - Shared goals and values
105
Which of the following firms is most likely to adopt a decentralized marketing structure in order to promote creativity and flexibility?
```
a - Ritz-Carlton
b - Dell
c - Southwest Airlines
d - Walmart
e - Microsoft
```
a - Ritz-Carlton
106
What type of control mechanisms are used during implementation to influence employee behaviors so that they will support the marketing strategy and its objectives?
```
a - social controls
b - informal controls
c - input controls
d - process controls
e - output controls
```
d - process controls
107
Identifying specific marketing activities, determining the time required to complete each activity, and organizing marketing activities into the proper sequence are examples of the steps involved in creating a(n):
```
a - strategic activities list.
b - marketing plan.
c - strategic calendar.
d - implementation timetable.
e - control framework.
```
d - implementation timetable.
108
What type of marketing controls consists of unwritten, employee-based mechanisms that subtly affect the behaviors of employees, both as individuals and in groups?
```
a - process controls
b - formal controls
c - output controls
d - informal controls
e - input controls
```
d - informal controls
109
In times past, developing and implementing the “right” marketing strategy was all about __________. In today’s economy, however, that emphasis has shifted to developing strategies that attract and retain customers over the long term.
a - making products of moderate quality that could be sold at the lowest possible price
b - conducting extensive research to discover customer needs
c - creating a large number of transactions in order to maximize the firm’s market share
d - aggressive selling in order to maximize sales volume
e - making the highest quality product
c - creating a large number of transactions in order to maximize the firm’s market share
110
With respect to competitive advantages, many see __________ as the most important asset that an organization can possess, as it stems from the value generated by the trust, commitment, cooperation, and interdependence among relationship partners.
```
a - integrity
b - professionalism
c - relational collaboration
d - relationship capital
e - partnership capital
```
d - relationship capital
111
The PTL Corporation provides long-distance telephone services to consumer and business markets. The company recently initiated a marketing strategy designed to promote customer knowledge and educate customers about the company and its products. The strategy is also designed to prospect for new customers. At what stage of the customer relationship development process does PTL find itself?
```
a - repeat purchase
b - advocacy
c - community
d - awareness
e - client
```
d - awareness
112
Larger financial institutions now offer a wide range of services under one roof, from banking to stock trading. These institutions have moved away from increasing their market share to instead focus on increasing their:
```
a - share of market
b - share of customer.
c - share of relationships
d - lifetime customer value.
e - share of customer.
```
b - share of customer.
113
Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?
a - The firm’s top customers are the most obvious candidates for retention strategies.
b - Advances in technology and data collection techniques allow firms to profile customers in real time.
c - The 80 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
d - Twenty percent of customers provide 80 percent of business profits.
e - Some customers are too expensive to keep given the low level of profits that they generate.
c - The 80 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
114
Which of the following relationship strategies is most likely to be used by a health club as it tries to create social bonds with its clientele?
```
a - membership programs
b - customer reminder notifications
c - family discount programs
d - personalized training
e - coupons
```
a - membership programs
115
In service offerings, the core product is typically composed of three interrelated dimensions. What are these dimensions?
```
a - customers, employees, and processes
b - people, technology, and facilities
c - people, processes, and physical evidence
d - reputation, operations, and quality
e - processes, employees, and facilities
```
c - people, processes, and physical evidence
116
Which of the following statements about value is FALSE?
a - Value is critical to maintaining long-term customer relationships.
b - Value, unlike quality, means the same thing to all customers.
c - Value includes the concept of quality, but it is broader in scope.
d - Value takes into account every marketing program element.
e - Value allows for the necessary balance among the five types of utility.
b - Value, unlike quality, means the same thing to all customers.
117
Assume a customer planning to purchase a Wii U gaming console made this statement: “Given the expense and all the hype about the new Wii U, it ought to be the best gaming console ever made.” What type of expectation does this customer have about the Wii U?
```
a - an experience-based expectation
b - a highly involved expectation
c - a normative expectation
d - a minimum tolerable expectation
e - an ideal expectation
```
c - a normative expectation
118
In which of the following situations would a customer become more tolerable of weak or poor product performance?
a - When the customer has fewer product alternatives.
b - When the customer’s personal needs are high.
c - When the purchase situation is highly involving.
d - When the purchase is for a special occasion.
e - When the customer is in a hurry.
a - When the customer has fewer product alternatives.
119
With respect to customer expectations, which of the following best describes the zone of tolerance?
a - It explains why customers tolerate weak performance when performance is beyond the control of the firm.
b - It explains situations where customers will hold lower than normal expectations.
c - It explains situations where customer expectations will be higher than normal.
d - It represents the degree to which customers recognize and are willing to accept variability in performance.
e - It explains situations where customer satisfaction will be exceptionally low.
d - It represents the degree to which customers recognize and are willing to accept variability in performance.
120
Meghan recently took her parents to a gourmet restaurant for their 25th wedding anniversary. The evening was exceptional, with everyone receiving the utmost in terms of quality and value. However, when reflecting on the experience the next day, Meghan decided that she was not fully satisfied. Why might this happen?
a - Because satisfaction has nothing to do with quality or value.
b - It cannot happen. By definition, customers who receive the best quality and value will be satisfied.
c - Because dissatisfaction is based on an entirely different set of factors than satisfaction.
d - Because satisfaction can be based on factors that have nothing to do with quality or value.
d - Because satisfaction can be based on factors that have nothing to do with quality or value.
