Capstone Final

A tax levied on the goods entering a country is called a(n):
a. exchange control
b. tariff
c. quota
d. boycott
e. license

b. tariff

When demand for a product is _____, an increase or decrease in the price of a product will not significantly affect demand for the product.
a. derived
b. responsive
c. elastic
d. inelastic
e. bundled

d. inelastic

Achieving a market orientation involves:
a. doing all of the activities listed
b. doing research on customers, competitors, and markets
c. determining how to deliver superior customer value
d. implementing actions to provide value to customers
e. establishing and maintaining mutually satisfying relationships with customers

a. doing all of the activities listed

Which type of customer do business marketers NOT serve?
a. governments
b. resellers and wholesalers
c. producers
d. private consumers
e. institutions and nonprofits

d. private consumers

The _____ answers the question, What business are we in and where are we going?
a. situation analysis
b. strategic plan
c. market strategy
d. mission statement
e. financial statement

d. mission statement

_____ products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited.
a. heterogenous convenience
b. homogeneous convenience
c. branded shopping
d. specialty
e. exclusive shopping

d. specialty

The _____ is the starting point in creating a marketing mix.
a. product
b. distribution channel
c. price
d. promotional media
e. production line

a. product

The globalization of markets refers to:
a. Multinational corporations that now surpass the size of large national economies.
b. Historically distinct markets merging into one huge global marketplace.
c. Goods that are produced with materials coming from all over the world.
d. The need to no long consider cultural differences when marketing outside one’s home country.
e. The trend towards national economies isolated through trade barriers.

b. Historically distinct markets merging into one huge global marketplace.

A company that has a(n) _____ customizes its product offerings based on data generated through interaction between the customer and the company.
a. ethnocentric perspective
b. customer-centric focus
c. supply-based focus
d. sales orientation
e. demand-based focus

b. customer-centric focus

The US Department of Commerce, IBIS World, EuroMonitor, and the World Bank all represent which sources of data?
a. secondary
b. primary
c. government sponsored
d. collective
e. reflective

a. secondary

A _____ is a business structure of interdependent organizations that reaches from the point of product origin to the consumer.

a. transportation channel or channel of movement
b. marketing mix intermediary
c. marketing channel or channel of distribution
d. facilitating agency or place member
e. selective distribution channel

c. marketing channel or channel of distribution

Which of the following is one of the basic tasks typically performed by promotion?
a. persuading
b. managing
c. rewarding
d. organizing
e. perceiving

a. persuading

Many people in the United States choose to drink light beer because Americans value thin and fit bodies. In Europe, light beers have had little success because flavor is valued more highly. For international beer manufacturers, this difference illustrates how _____ influence marketing.
a. economic conditions
b. social factors
c. demography
d. competition
e. cultural factors

b. social factors

In Panama, folks are comfortable with some people having much more authority than others. They see hierarchies with certain individuals being in charge as a part of the way of things. What Hofstede dimension does this represent? 
a. individualism
b. power distance
c. indulgence
d. uncertainty avoidance
e. masculinity

b. power distance

The strongly held belief that one’s culture is superior to others is:
a. ethnocentrism
b. nationalism
c. selfishness
d. patriotism
e. egocentrism

a. ethnocentrism

Market penetration occurs when:
a. a French company develops a new cement for orthopedic surgery
b. a supermarket chains adds another brand of ice cream to its inventory
c. a Mexican distillery offers rebates to its current customers
d. a hosiery manufacturer begins manufacturing wigs
e. a U.S.-based company begins to sell its products in South America

c. a Mexican distillery offers rebates to its current customers

AIDA stands for:
a. Attitude-Interest-Demand-Activity
b. Avoidance-Interest-Desire-Acceptance
c. Attitudes-In-Developing-Acquisitions
d. Awareness-Intent-Demand-Action
e. Attention-Interest-Desire-Action

e. Attention-Interest-Desire-Action

_____ is the strategy of increasing sales by introducing new products into new markets.
a. Market development
b. product penetration
c. marketing penetration
d. product development
e. diversification

e. diversification

The US scores very highly on the desire to benefit one's self rather than benefiting society as a whole. What Hofstede dimension does this represent? 
a. uncertainty avoidance
b. individualism
c. long-term orientation
d. power distance
e. indulgence

b. individualism

The steps of the consumer decision-making process in order are:
a. need positioning, alternative aggregation and divestment, purchase decision, postpurchase evaluation
b. need positioning, stimulus response reactions, evaluation of alternatives, purchase decision, postpurchase behavior
c. need recognition, alternative aggregation, reevaluation, purchase decision, postpurchase behavior
d. need recognition, information search, evaluation of alternatives, purchase, and postpurchase behavior
e. information search, need positioning, evaluation of alternatives, product trial, purchase decision, postpurchase satisfaction

d. need recognition, information search, evaluation of alternatives, purchase, and postpurchase behavior

In Japan, you see a great deal of competitiveness between groups. What Hofstede dimension does this represent? 
a. market development
b. long-term orientation
c. masculinity
d. power distance
e. uncertainty avoidance

c. masculinity

In 2024, Giorgio Armani, the Italian fashion group, announced plans to launch a $1 billion international luxury hotel chain containing ten hotels and four resorts by early 2025. One of the major reasons for opening a hotel chain was an international trend toward luxury lifestyle consumerism. In terms of its SWOT analysis, the trend toward luxury lifestyle consumerism would be an example of a(n):
a. strength because it is part of Armani's external environment
b. opportunity because it is part of Armani's external environment
c. advantage because it gives Armani growth opportunities
d. weakness because Armani cannot control the growth of the trend
e. benefit because Armani's internal resources can be designed to make its external environment

b. opportunity because it is part of Armani's external environment

A cost that changes with the level of output is called a(n) _____ cost.
a. asset
b. elastic
c. variable
d. fixed
e. liquidity

c. variable

Indian society does not put much emphasis on leisure time and people tend to be more restrained by social norms. India is low in this dimension. What Hofstede dimension does this represent?
a. indulgence
b. individualism
c. uncertainty avoidance
d. power distance
e. masculinity

a. indulgence

A consumer who consistently and repeatedly purchases the same brand is said to have:
a. brand loyalty
b. store loyalty
c. product repetition
d. product loyalty
e. product equity

a. brand loyalty

The first step in the marketing research process is to:
a. collect the data
b. plant he research design
c. define the marketing problem to be studied
d. specify the sampling plan
e. analyze the marketplace

c. define the marketing problem to be studied

_____ is the process of finding hidden patterns and relationships in the customer data stored in the data warehouse.
a. data mining
b. information retrieval
c. information extraction
d. customer information management (CIS)
e. data feedback

a. data mining

_____ is defined as the quantity of a product that will be sold at various prices for a specified period.
a. value
b. market share
c. revenue
d. supply
e. demand

e. demand

_____ products are purchased with little shopping effort. These products are purchased regularly, usually with little planning, and require wide distribution.
a. convenience
b. generic
c. unbranded shopping
d. specialty
d. branded shopping

a. convenience

Money that is left over after paying for company activities is called:
a. a current asset
b. return on investment
c. profit
d. net worth
e. a contribution margin

c. profit

The term marketing refers to:
a. new product concepts and improvements
b. selling
c. planning sales campaigns
d. advertising and promotion activities
e. a philosophy that stresses customer satisfaction

e. a philosophy that stresses customer satisfaction

Income, ethnic background, gender, and age are all examples of _____ segmentation bases.
a. socioeconomic
b. psychographic
c. geodemographic
d. organizational
e. demographic

e. demographic

The external environment is a strong influence on a target market and can be a source of _____ for the marketing manager.
a. opportunities and threats
b. opportunities and weaknesses
c. environmental loopholes
c. threats and strengths
e. product myopia

a. opportunities and threats

Clay Market began as a retailer of terra cotta pots and garden figures imported from Turkey and Mexico. It has since added Turkish rugs and fabrics, leather trimmed purses, and a line of women's clothes for its customers. This activities is indicative of a _____ strategy.
a. market development
b. diversification
c. product development
d. market penetration
e. vertical integration

c. product development

In order for exchange to occur:
a. organized marketing activities must also occur
b. each party must have something of value to the other party
c. a profit-oriented organization must be involved
d. a complex societal system must be involved
e. money or other legal tender is required

b. each party must have something of value to the other party

A(n) _____ is defined as a set of unique features of a company and its products perceived by the target market as significant and superior to the competition.
a. comparative differentiation
b. competitive advantage
c. promotional plan
d. unique selling proposition
e. special benefit

b. competitive advantage

_____ is the ratio of benefits to the sacrifice necessary to obtain those benefits (aka price).
a. marketing utility
b. satisfaction percentage
c. customer value
d. opportunity cost
e. market quality

c. customer value

When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _______ is created.
a. a value line
b. expectation satisfaction
c. planning excellence
d. customer satisfaction
e. a quality rift

d. customer satisfaction

If you were to determine a marketing budget based on what your competitor was spending on marketing activities, you'd be using the _____________ strategy.
a. objective-task
b. competitive parity
c. set amount
d. all you can afford
e. percent of sales

b. competitive parity

_____ segmentation is based on personality, motives, and lifestyle.
a. benefit
b. family life cycle
c. demographic
d. character
e. psychographic

e. psychographic

_____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed.
a. the research design
b. an autonomous director
c. the sampling plan
d. secondary data use plan
e. the research collaborative plan

a. the research design

_____ is the segmenting of markets based on the region of the country or the world, market size, market density (number of people within a certain unit of land), or climate
a. PRIZM segmentation
b. community segmentation
c. geographic segmentation
d. geodemographic segmentation
e. demonstratable regionalization

c. geographic segmentation

There is an overabundance of apartments in Atlanta. Post Properties, the owner of the metropolitan area's largest apartment complexes, has reduced its rent so it can fill vacant apartments. Which of the following types of strategies did Post Properties use to create more demand for its apartments?
a. product strategies
b. production strategies
c. price strategies
d. personnel strategies
e. distribution strategies

c. price strategies

The most typically used channel for industrial products is the _____ channel.
a. direct
b. extended
c. industrial distributor
d. wholesaler
e. retailer

a. direct

Product positioning is the process of:
a. competing with competitors' products in the retailers' stores for the best position on the shelf
b. creating the desired image of the firm's product with respect to its competition
c. finding the right channel of distribution for a product
d. finding the correct location for retail outlets to sell a product category
e. pricing the product to be at a competitive level with other brands on the market

b. creating the desired image of the firm's product with respect to its competition

Antique Reproductions pays a manufacturer $800 for a hand-forged iron fireplace screen, and it sells the fireplace screen to a customer for $1600. The markup on the screen is:
a. $240
b. variable
c. $160
d. cannot be determined
e. $800

e. $800

Tyler is responsible for developing a plan for the optimal use of advertising, personal selling, sales promotion, and public relations. Tyler is developing a:
a. selling plan
b. communication mix
c. set of promotion goals
d. marketing mix
e. promotional strategy

e. promotional strategy

A retail casket outlet that wishes to offer customer value should: (thought you would enjoy this question!)
a. require that all purchases be made with cash or money order
b. charge $300 for a pine casket instead of the inflated price of $1,000 charged by many funeral homes
c. tell customers that funeral homes like having competition
d. provide customers with only a few choices and a minimum of information on what services and caskets are available
e. use aggressive marketing techniques to sell pre-burial plans

b. charge $300 for a pine casket instead of the inflated price of $1,000 charged by many funeral homes

_____ consists of all marketing activities that stimulate consumer purchasing such as coupons, contests, free samples, and trade shows.
a. publicity
b. sales promotion
c. advertising
d. personal selling
e. sponsorship

b. sales promotion

What happens when demand is elastic?
a. As price goes up, demand stays the same.
b. As price goes up, demand goes up.
c. As price goes up, demand goes down.
d. As price goes down, demand goes down.
e. As price goes down, demand stays the same.

c. As price goes up, demand goes down.