Principles of Marketing - Petersons Test 2

A public service campaign to use recyclable shopping bags is an example of what marketing

philosophy?

a. Societal marketing

b. Marketing

c. Sustainable

d. Relationship marketing

e. Nonprofit marketing

a

To break down resistance to an unsought product, a company might do all of the following EXCEPT

a. offer an extended warranty

b. limit promotion to one or two media for saturation

c. place the product in many sales outlets

d. highlight the benefits of the product

e. keep the price competitive

b

The three levels of a product are core, augmented, and

a. benefit

b. actual

c. feature

d. real-world

e. tangible

b

The U.S. company Ajax enters into a joint venture with Tokyo Electronics Company to produce and sell e-readers in Japan. The joint venture establishes a new company TA Unlimited to manufacture and sell thee-readers. The joint venture is a

a. franchise

b. licensing agreement

c. strategic alliance

d. joint ownership

e. full ownership

d

The acronym SEO stands for

a. Systems Engineering Operations

b. Sales, Engineering, and Operations

c. Search, Engineering, and Operations

d. Search Engine Optimization

e. Systems Engineering Optimization

d

Chris wants to buy a new tr uck for his business. He decides to buy truck Y for its good gas mileage and storage capacity, but he has to sacrifice cabin roominess. Chris has made what kind of decision?

a. Variable

b. Compensatory

c. Characteristic

d. Nonimpulse

e. Educated

b

Which of the following is an important economic factor that a company wishing to expand abroad should consider?

a. Operations of competitors

b. Consumer attitudes

c. Import quotas

d. Nominal and real interest rates

e. Distribution channels

d

All of the following are categories in the promotional mix EXCEPT

a. sales promotion

b. advertising

c. market research

d. personal selling

e. publicity/public relations

c

Making a sales visit to a potential customer is known as

a. the call to action

b. prospecting

c. the approach

d. the opener

e. targeting

c

Sullivan Works is launching a new product and has decided that it wants to build market share quickly. Which kind of pricing strategy should it adopt?

a. Value-in-use pricing

b. Penetration pricing

c. Skimming

d. Perceived-value pricing

e. Captive pricing

b

An ad that describes the harm that bacteria can cause in a person's mouth and then extols the bacteria-fighting powers of a company's mouthwash is using what kind of appeal?

a. Humor

b. Fear

c. Comparative advertising

d. Wish fulfillment

e. Empathy

b

A company's macroenvironment includes all of the following EXCEPT

a. technology

b. competitors

c. government fiscal policies

d. sales forecasts

e. economic conditions

d

The measure of a for-profit's success is profitability. What is the measure of a nonprofit's success?

a. The amount of private funding it raises

b. The number of funders it has

c. The amount of government funding it receives as well as the amount of private funding

d. The satisfaction level of its users

e. The quality of its services

d

Which of the following is a strategy that might appear in a marketing plan for a home furnishings store launching seasonal merchandise?

a. Buying ad space in the major metropolitan newspapers every Sunday in May and June.

b. Providing trade salespeople with store displays.

c. Including flyers in customers' bills from May through July.

d. Having checkout clerks stuff flyers in customers' bags from May through June.

e. Blanketing media in the Northeast and Southeast with direct marketing information from May through July.

e

Which of the following is an example of a product that must appeal typically to both the purchaser and to the final user?

a. Face cream

b. Work shoes

c. Cereal

d. Wrench

e. Sandwich

c

In identifying a market for a $4 cup of coffee, a company would probably select which socioeconomic classes to consider?

a. Upper middle class and middle class

b. Middle class and lower middle class

c. Middle class and skilled working class

d. Skilled working class and working class

e. Middle class and working class

a

NAICS stands for

a. National Agency for Internet Commerce Standards

b. National Agency for Information and Commerce Standards

c. National Administration for Information Classification System

d. North American Industry Classification System

e. North American Industry and Commerce System

d

Where people buy goods, the frequency with which they buy, and what they buy are examples of

a. customer belief systems

b. customer behavior

c. lifestyle choices

d. social status

e. personality types

b

An effective advertising appeal must be

a. interesting, believable, and expensive

b. thematic, expensive, and interesting

c. complete, thematic, and systematic

d. interesting, systematic, and believable

e. interesting, thematic, and complete

e

The Fox Company sells brake parts to an automaker. If sales of the automaker's cars decrease, Fox will be able to sell fewer brake parts to the automaker. This is an example of

a. differentiated demand

b. derived demand

c. inelastic demand

d. concentrated demand

e. reciprocal demand

b

A pricing "war" between two retai lers that keep lowering the price of e-books by a few cents under one another is an example of

a. product line pricing

b. bundle pricing

c. competition pricing

d. psychological pricing

e. comparison pricing

c

By accurately identifying market segments, a company is able to more accurately do all of the following EXCEPT

a. identify market share

b. measure the company's growth

c. target its customers

d. identify competitors

e. manage its personnel

e

Sally works for a catalog call center helping customers place orders. She is a(n)

a. service tech

b. sales specialist

c. missionary sales repr esentative

d. order taker

e. order getter

d

If Sally suggests that the customer add a particular shirt to her pants' purchase, Sally is

a. cross selling

b. bounce back selling

c. direct response selling

d. complementary selling

e. downselling

a

Because of the risk involved in entering a foreign market, the smart way to enter is to

a. advertise heavily and see how many orders come in before making the product

b. lease manufacturing space

c. introduce products with long life cycles

d. introduce a product that the company already makes

e. introduce a completely new product to see how it sells before making and selling it at home

d

Profit margins in the maturity stage of the product life cycle are typically

a. low

b. stable

c. increasing

d. decreasing

e. lagging

d

Which of the following is an example of VALS?

a. Health and fitness

b. Gender

c. ZIP code

d. Educational level

e. Job title

a

Joanna buys a particular type of top because several of her friends have it. In marketing terms, Joanna is being influenced by

a. her peers

b. her reference group

c. her social group

d. outside influencers

e. a brand

b

Place is the most important factor in the marketing mix for which type of product?

a. Shopping

b. Unsought

c. Components

d. Convenience

e. Supplies

d

Which of the following is NOT a mobile channel used for marketing?

a. Cable

b. Multimedia messaging

c. Text messaging

d. Internet

e. E-mail

a

A brand personality is made up of what kinds of appeal?

a. Rational, humorous, and sensual

b. Emotional, humorous, and rational

c. Sensual, performance, and humorous

d. Rational, emotional, and sensual

e. Emotional, sensual, and performance

d

The best way to determine the effectiveness of pop-up ads is to measure

a. cost-per-click

b. the number of compl aints that a company gets for its pop-up ads

c. the click-through rate

d. the conversion rate

e. site stickiness

d

A major problem in gathering market intelligence by survey format is the

a. lack of people's interest in participating

b. cost of phone surveys

c. lack of trained people to administer phone surveys

d. difficulty in writing unbi ased and unambiguous questions

e. difficulty in generalizing from the data

d

Companies typically have four objectives in marketing products: minimizing costs and maximizing profits, return on investment, and

a. revenue

b. product quality

c. standardization of production

d. customer satisfaction

e. brand acceptance

a

New products fail in the first stage of the product life cycle for all of the following reasons EXCEPT

a. poor timing into the market

b. lack of differentiation from competitor's products

c. lack of product quality

d. too small a target market segment

e. lack of inventory

e

A marketing message for oatmeal that promotes it as no longer just a hearty breakfast for a cold day, but also as a way to lower cholesterol is an example of

a. product line extension

b. product positioning

c. product repositioning

d. product differentiation

e. value-added

c

Reverse logistics is

a. recovering penalties for late deliveries of goods

b. analyzing the distribution channel to improve the flow of goods

c. buying salvaged construction materials for use in new construction

d. returning goods

e. using postconsumer waste in manufacturing new clothing

d

John has decided to set up his own direct-mail agency to work with pharmaceutica l companies.

John's business is what kind of an intermediary?

a. Financial services

b. Physical distribution

c. Marketing services

d. Selling

e. Production

c

A small regional family-owned supermarket chain decides to move out of the region and open stores in another region. This is an example of

a. demographic development

b. market development

c. institutional development

d. geographic development

e. promotional development

b

The price per unit of specialty items is typically

a. low

b. moderate

c. high

d. varies from low to moderate

e. varies from medium to high

c

Price discrimination occurs when

a. a person refuses to buy a product because of the price

b. a product is discounted in order to clear out inventory

c. products are priced differently based on features

d. different customers pay different prices for the same product

e. customers perceive price to be an indicator of prestige

d

A TV/cable ad uses a voiceover and shows workers laying a carpet and a delighted homeowner after it's finished. The ad uses what kind of execution style?

a. Straight sell

b. Testimonial

c. Demonstration

d. Slice of life

e. Humor

d

Which of the following describes social influence marketing?

a. It focuses on personal selling to important customers in a community.

b. It focuses on developing long-term relationships with customers so they buy product.

c. I t emphasizes product features and benefits.

d. It focuses on using customers to market product in online communities.

e. It focuses on the content of products and the processes to produce them that do not harm the environment.

d

The four elements of a direct response marketing piece include all of the following EXCEPT

a. an offer

b. a call to action

c. information about the product

d. a vehicle for reply

e. an incentive

e

Tony and Bill want to get the message about their new app out quickly, so they decide to

a. set up a Web site for the app

b. buy banner advertising on relevant Web sites

c. use viral marketing

d. buy pop-under ads on relevant Web sites

e. make it available for as many platforms as possible

c

The Saturday Electronics Company is deciding whether to enter the e-reader business. To determine the market attractiveness of this business, the company is analyzing

a. its capital resources

b. the strength of its research and development teams

c. the power of suppliers in negotiating contracts

d. the functi onality and power of its Web site

e. the strengths of its in-house marketing department

c

Which is a unique factor that an exporter must consider in setting prices for foreign markets?

a. Tariffs

b. Fixed costs

c. Demand patterns

d. Competitive conditions

e. Legal regulations

a

Jocelyn is recommending that her company, which makes cleaning products, sponsor the national spring clean-up campaign of a nonprofit. Her major business objective is to

a. provide monetary support for the campaign

b. increase sales of the company's product

c. increase product awareness

d. increase brand awareness

e. get company employees to work in the campaign

d

A trade-in allowance on copy machines is an example of

a. a service guarantee

b. sales promotion

c. indirect selling

d. delayed invoicing

e. premium offer

b

Deciding whether a business is a prospect is called

a. determining feasibility

b. analyzing a customer

c. quantifying a customer

d. qualifying a customer

e. establishing credibility

d

The Wood Company is analyzing its product lines and finds that it has three products that are in high growth areas, generating a large amount of cash, but also draining a lot of cash. These three products are known as

a. cash cows

b. dogs

c. stars

d. question marks

e. a combination: cash cows and dogs

c

A department store chain markets itself as offering great service to its customers. This is an example of

a. targeting a market segment

b. branding

c. product evolution

d. effective advertising

e. trademark

b

Which of the following is a legal factor that companies must deal with in entering foreign markets?

a. Lack of transportation infrastructure

b. Social classstructure

c. Standard of living

d. Cultural values

e. Import quotas

e

The market leader in MP3 players grosses five times more than its closest rival. This indicates that the market leader has

a. a competitive advantage

b. lower production costs

c. a higher quality product

d. more attractive stores

e. a more effective marketing mix

a

Which of the following is NOT a benefit that a U.S. company may gain by entering a foreign market?

a. Certain tax advantages at home

b. Extension of the life of products and product lines

c. Increase in the company's profitabil ity

d. Reduction in expenses

e. Increase in sales

d

The Dayton Appliance Company is switching from making white appl iances to making stainless steel ones. This may be an indication of a shift in

a. technology

b. consumer tastes

c. foreign com petition

d. poor national economic conditions

e. advertising

b

A bottler of apple juice combines the original fruit juice with a variety of other fruit juices in order to

a. extend the product line

b. differentiate the product line

c. harvest the product line

d. target a new market

e. test a new product concept

a

Marketing information systems (MIS) are built from data from

a. internal records, market research, and suppliers

b. market intelligence, market research, and customers

c. cash flow, market research, and customers

d. inventory, internal records, and market research

e. market research, internal records, and market intelligence

e

In designing a questionnaire, a market researcher who wanted to find out how passionately consumers feel about a need would use

a. open-ended questions

b. scaled-response questions

c. close-ended questions

d. check-off questions

e. yes/ no questions

b

A nonprofit can market itself in all of the following ways EXCEPT

a. developing a Web site

b. submitting grant proposals

c. having a staff member available to the press for comments on appropriate news stories

d. developing a brand

e. using social media

b

Which of the following products would be best sold through selective distribution?

a. Refrigerators

b. Candy bars

c. A couture line of women's clothing

d. Beer

e. Ught bulbs

a

Manufacturing product so that there is little excess supply in relation to demand is

a. quality control

b. just-in-time manufacturing

c. inventory control

d. profit maximization

e. inventory minimization

b

The best description of marketing is that

a. it involves development, production, and sale of products

b. it affects pricing more than any other element in the marketing mix

c. its major role is in market research

d. it is responsible for sales force development

e. it is the total process of promoting and selling a product.

a

A cell phone maker's market research shows that many people in South Asia like bright-colored cases- reds, greens, golds, and blues-for cell phones. This is an example of what kind of influence?

a. Demographic

b. Cultural

c. Societal

d. Nationality

e. Behavioral

b

Which of the following is an example of advertising based on a product's attributes?

a. A model showing off her shiny hair to advertise shampoo

b. A paper towel being used to mop up a spill

c. A basketball pl ayer wearing a particular brand of sneakers

d. A group of happy children eating a brand of breakfast cereal

e. A sunset behind a sports car with a couple in it on a mountaintop to advertise the car

b

A company originally developed a drug for use with lung patients, but then discovered it was better suited to fighting liver cancer. This is an example of

a. product derivative

b. product discernment

c. product transformation

d. product use

e. product trial

c

According to Maslow's Hierarchy of Needs, a campaign to advertise an over-55 community will be most successful if it adopts as its central message that living there offers

a. companionship

b. self-fulfillment at any age

c. a safe place to live

d. less work

e. prestige

b

Sam's business consultant believes that his small electronics repair business needs to develop its market. He currently advertises only in his small town. Which of the following will help Sam expand his market?

a. Selling refurbished computers

b. Selling new computers

c. Adding a line of products that complement computers

d. Adding a service to pick up and deliver repaired computers

e. Advertising online through a service that targets the county in which Sam operates

e

Which of the following sampling types is the least likely to be representative of the population as a whole?

a. Systematic sample

b. Cluster sample

c. Probabili ty sample

d. Random sample

e. Nonprobability sample

e

Which of the following is the best tool for marketing products online?

a. Celebrity endorsements

b. Customer reviews

c. Comparison charts

d. Shared shopping lists

e. Banner ads

b

All of the following are useful demographics in identifying market segments in the business-to-business market EXCEPT

a. number of employees

b. social responsibility policies, if any

c. management style

d. risk tolerance

e. facility locations

e

The Allied Company's marketing group is analyzing the market leader's strategy in order to determine how Allied might enter the same market with a new product . The marketing department

is engaged in

a. gathering market information

b. gathering competitive intelligence

c. gathering segmentation information

d. forecasting

e. developing a marketing plan

b

A saleswoman from the ECON software company is demonstrating its new inventory control package to a potential business customer. Which of the following levels of management will most likely make the purchasing decision?

a. Vice president of facilities

b. CEO

c. CFO

d. Director of inventory control

e. Human resources manager

d

Purchasing a speedboat requires what kind of problem solving?

a. Economic

b. Routinized

c. Psychological

d. Limited

e. Extensive

e

No matter how many coupons Brie receives in the mail or at check-out or how discounted another brand of frozen dinners is, she always buys the same brand at her supermarket. This is known as brand

a. recognition

b. preference

c. insistence

d. reputation

e. assertion

b

Market intelligence gathered during research for a sports car and then used by a team working on a mid-sized car concept is called

a. experimental data

b. predictive data

c. primary data

d. secondary data

e. tertiary data

d

All of the following are public relations tools EXCEPT

a. press r eleases

b. sales training manuals

c. company publications/Web site

d. events

e. sponsorships and donations

b

The decision whether to enter a foreign market often revolves around

a. the compatibility of the marketing campaign in the home country to the culture of the new marketplace

b. the fees that intermediaries will charge

c. the amount of adaptation to the product that may be required

d. cost

e. customer preferences

d

A two-way stretch is a product line decision to

a. save money and use a single marketing campaign for two markets

b. target the exact same product to two markets

c. add product to a line to appeal to both more- and less-profitable markets

d. to sell the same product domestically and internationally

e. to use two manufactu rers to increase production

c

Which of the following typically offers a high level of customer service?

a. A supermarket

b. A convenience store

c. A catalogue sales

d. A big box store

e. A specialty store

e

The first step in marketing communications based on the AIDA model is to

a. create a desire for the product

b. describe the features and benefits of the product

c. create an interest in the product

d. create an awareness of the product

e. generate a buzz about the product

d

In determining how to segment an industrial market, a company would look at all the following variables EXCEPT

a. ways products are purchased

b. niche possibilities

c. loyalty to sellers

d. demographics

e. situational factors

b

Which of the following is NOT used in a creating an ad based on a r ational appeal?

a. Product features

b. Price

c. The pleasure that buyer will get from having the product

d. Comparison with other brands

e. Popularity of the brand

c

Typically, consumers looking for information about a potential purchase most value information gathered from

a. TV/cable advertising

b. salespeople

c. comparison shopping on Web sites

d. examining products

e. friends and family

e

A bathroom cleaner advertised as new and improved is an example of what marketing strategy?

a. Product switch

b. Product assortment

c. Substitute product

d. Innovation

e. Product repositioning

e

The response rate to a TV/ cable ad with a call-in number is

a. not tracked

b. easier to measure than a direct mail piece's response rate

c. more difficult to measure than a direct mail piece's response rate

d. about the same level of difficulty to measure as the response rate to a direct mail piece

e. very difficult to measure as opposed to measuring the response rate to a direct mail piece

d

Which of the following is an example of a product that suffers from brand non-recognition?

a. Margarine

b. Paper clips

c. Toothpaste

d. Pickup trucks

e. Pa per towels

b

A company has decided to outsource its employee benefits program, and the human resources department along with representatives from finance, other departments, and unions working at the company, will review proposals. These decision makers are called a

a. decision support system

b. buying center

c. review committee

d. analytics committee

e. purchasing agents

b

Getting a good haircut one time and a poor haircut the next time from the same stylistis an example of what characteristic of services?

a. Variability

b. Intangibility

c. Inseparability

d. Conceptualization

e. Perishability

a

Goods sold business-to-business include all of the following EXCEPT

a. raw materials

b. maintenance equipment

c. components

d. capital goods

e. durable goods

e

Whenever a commercial comes on, Megan switches channels. This is known as

a. selective perception

b. selective exposure

c. selective retention

d. selective specialization

e. selective demand

b

What type of store do people shop in that requires a membership and sells items only in large quantities and at a discount?

a. Wholesale store

b. Warehouse club

c. Discount r etailer

d. Merchant club

e. Superstore

b

A school gets a better deal and orders its paper goods for the year from the ABC Company instead of the XYZ Company. This is known as

a. new task buying

b. new order

c. new buy

d. modified rebuy

e. straight rebuy

d

Which of the following is NOT a package offer?

a. Burger, fries, and soda for one price

b. Four-pack of printer cartridges

c. All-inclusive hotel price

d. Hotel, car rental, and airline ticket for one price

e. Cell phone and manual

e

Our shoes are handmade with the greatest care in Italy, the home of the finest leather goods" promotes

a. customer service

b. the uniqueness of the product

c. the expertise of the manufacturing process

d. the reliability of the company

e. the uniqueness of the company

c

Surveys conducted over the Internet

a. are no more effective than telephone surveys in getting people to participate

b. take more time than telephone surveys to design, conduct, and tabulate

c. are more expensive than telephone surveys to conduct

d. enable researchers to personalize questions to the respondent

e. do not use sampling methods but are open to anyone

d

Which of the following is NOT an advantage of primary data gathered through market research?

a. The data is specific to the questions that the research project is designed to answer.

b. Secrecy of the project can be maintained so that competitors don't become aware of it.

c. The inform ation is current .

d. The resea rch is short-term.

e. The sources of the data are known to the researchers.

d

Which of the following is a deal er brand?

a. A line of paper sold under a retailer's name

b. Ford

c. A designer clothing line sold only in the designer's boutiques

d. A designer line of bedding sold under the designer's name in retail stores

e. A brand that encompasses a number of similar products like hair care products

a

After new ideas have been generated and screened, what is the next step in the new product development process?

a. Concept development and testing

b. Commercialization

c. Market testing

d. Product and marketing mix development

e. Business analysis

a

Which of the following is NOT a benefit of rel ationship marketing in the business-to-business market for sellers?

a. Long-term customers are more likely to go along with price increases.

b. Long-term customers are more predictable in their purchasing patterns.

c. Long-term customers are less likely to be enticed to move their business to another

company selling a newer, similar product.

d. Long-term customers require less training on new product.

e. Long-term customers are more likely to offer referrals to the seller.

d