Marketing Exam 2

Ch 7,8,9,10,12 McGraw Hill Chapter Practice Quiz

Which statement about marketing information systems is true?

Marketing information systems can handle big data, or data sets too large and complex to work with typical database management tools.

Databases are stored in data ________ so that they are available when needed.

warehouses

What displays up-to-the-minute marketing data in an easy-to-read format that managers can use to monitor business activity and respond quickly to problems?

marketing dashboards

Marketing research helps managers make better marketing decisions because it

offers objective information gathered using the scientific method.

The scientific method is important in marketing research because it

uses observations to develop hypotheses and then test them.

The most challenging step in marketing research is often ________, because an error at this point can result in wasted effort.

defining the problem

What is a common mistake marketing managers tend to make during the first step of the marketing research process?

They confuse problems with symptoms.

A small manufacturing firm has just experienced a rapid drop in sales. The marketing manager thinks they know what the problem is and carefully analyzes secondary data to verify their assumption. The next step should be to

conduct informal discussions with outsiders to check the assumption.

Secondary data refers to

information that has been collected or published already.

Focus groups, personal interviews, and telephone surveys are all examples of how firms

collect primary data.

A research proposal

may include information about costs, what data will be collected, and how long the process will take.

Mateo is using open-ended questions to interview people from his company's target market to find out, in-depth, their feelings about a new product. Mateo is conducting ________ research.

qualitative

A computer reseller wanted to find out more about the customer experience during the computer buying process. The company’s researcher conducted an in-depth interview with a customer and created a graphic diagram that depicted what the customer was doing, thinking, and feeling during each stage of the buying process. The researcher was

creating a customer journey map.

Which statement is true of a focus group?

In a focus group, an interviewer seeks group interaction to stimulate thinking and get immediate reactions.

Which statement is accurate regarding quantitative research?

Quantitative research seeks structured responses that can be summarized in numbers.

What is a major problem with phone and mail surveys?

They often have a low response rate.

Arabella, a marketing researcher, wants to do in-depth research on business customers’ experiences with the company’s products. She is most likely to get what she wants if she uses

personal interviews.

Which statement is true of ethnographic research?

Ethnography involves studying customers in their own environment.

For the experimental method to work, researchers must use two or more groups that are

similar in most ways, except the characteristic being tested.

Hector is researching members of Generation X on their preference for flavored water. He stations himself outside the store entrance where they tend to congregate and asks anyone who will agree to complete a quick survey. The people who complete the survey are the

sample.

When conducting surveys, researchers

study only a sample of the population they are interested in.

When using randomly selected samples, researchers can assess the accuracy of the sample by using ________, or the range on either side of an estimate that is likely to hold the true value for the population.

confidence intervals

When interpreting data, a marketing manager should

realize that statistical summaries from a sample may not be precise for the whole population.

Nairobi is conducting market research to gauge consumers' interest levels in different types of wine. However, because this is a somewhat specialized topic, she is worried that respondents may not know enough to tell the types apart, meaning they may indicate that they like Malbec best when they really prefer port. In other words, Nairobi is concerned about the ________ of her results, or the extent to which her data measures what it is intended to measure.

validity

Which term is best defined as a product’s ability to satisfy a customer’s needs or requirements?

quality

A set of individual products that are closely related, and usually differentiated by brand, level of service offered, price, or other characteristics is known as a product

line.

Which term describes a seller’s promises about its product?

warranty

Which product has a 100 percent emphasis on service?

hair styling

Which statement is true of the characteristics of services?

Services are perishable.

A difference between goods and services is that

customers can own goods, but they cannot keep services.

A steel siding retailer has an app that allows customers to snap a picture of their building and see how different colors and styles of siding would look on their exterior. This is an example of

augmented reality.

Ursula is designing a symbol to represent Glistening Wheels, a company that manufactures automotive detailing supplies. Once it is completed, the symbol will be legally registered as the exclusive property of Glistening Wheels, and the company will place the symbol on its products and will use it in its advertising. This symbol is an example of a(n)

trademark.

During the pandemic, Latasha’s favorite shoe stores were closed, so she started ordering her shoes from Zappos. Once she discovered they had a wide variety and free shipping for returns, she was hooked. Now she tells her friends they should all buy from Zappos. Latasha’s behaviors reflect brand

evangelism.

When Maurice could not find his favorite cheese, French Fantasy, at his neighborhood supermarket, he drove across town to find it at another store. Maurice was demonstrating what level of brand familiarity?

insistence

Aleksi’s clothing company wants to diversify by acquiring a brand of accessories. Aleksi has found a brand that is well-known and performs well year after year, and his company is willing to pay a premium price because of this. The value of the brand to Aleksi’s company is its

brand equity.

What is true of the Lanham Act?

It specifies which types of marks can be protected.

Whenever iHome developed a clock radio or music player that connected with the Apple iPhone, iHome used the iPhone brand name in its promotion with Apple’s permission. In this case, for iHome, iPhone is an example of a ________ brand.

licensed

Which type of brand is created by producers?

manufacturer brand

Which statement about the strategic importance of packaging is least accurate?

Better packaging always raises total distribution costs.

Which product demonstrates the promotional use of packaging?

The famous Energizer Bunny appears on the Energizer battery package.

What are products that a customer feels are worth the time and effort to compare with competing products?

shopping products

Consumer products that are bought often, routinely, and without much thought are staples.

True

Consumer product classes are based on ________, while business product classes are based on ________.

how consumers shop for the product; how the product is to be used

Regarding consumer product classes, a convenience product is to an emergency product as

a shopping product is to a heterogeneous shopping product.

Which statement is true about the market introduction stage of the product life cycle?

Sales are low, and firms experience initial losses.

Which statement regarding the market growth stage of the product life cycle is true?

The innovator begins to make big profits.

An industry with tough competition faces falling profits, and its sales growth is slow. Demand for individual brands has become quite elastic, because consumers see competing products as almost homogeneous. Several firms have dropped out. Which stage of the product life cycle does this indicate?

market maturity

Which statement is true of a fast-follower?

A fast-follower is one that quickly follows a pioneer.

Which statement about fashion-related products is true?

Fashion-related products tend to have short life cycles.

The greater the ________ of a new product over those already on the market, the more rapidly its sales will grow.

comparative advantage

A company that offers a subscription service for dog toys and treats is struggling because people would rather pick out the toys and treats for their animals themselves. Although it has some very loyal subscribers, the company decided to gradually cut back on its services and offer its subscribers a lower subscription rate. Eventually, the company plans to stop offering the service if sales continue to drop. This is known as a ________ strategy.

phase-out

Which statement about innovations is true?

Customers adopting discontinuous innovations must significantly change their behavior.

Maytag introduced a new high-gloss white finish for its refrigerators. This innovation would be classified as a ________ innovation.

continuous

Which statement is true of patents?

They give firms a short-term monopoly on their new technology.

Hannah’s company makes washing machines. The SmartLoad, a programmable front-load machine, is its best-selling model, and the company plans to release a new version in a month. However, next year Hannah’s company is introducing a washing machine with new technology that dramatically reduces load cycle time, improving energy efficiency and using less water. This is an example of

planned obsolescence.

Jackson wants to buy an electric truck, but the one he wants is on backorder because the demand is great. He will have to wait a year to get it. This product is on the ________ stage of the product life cycle.

market growth

What government organization is tasked with encouraging safety in product design and better quality control by setting safety standards for products and ordering repairs or return of unsafe products?

Consumer Product Safety Commission

During the screening stage of new-product development, ________ is used to make rough estimates of profit and development cost to determine if a product is viable.

return on investment

Concept testing occurs during the ________ stage of new-product development.

idea evaluation

An appliance manufacturer has created a new clothes dryer that uses light to dry clothes. The company has created a prototype and is testing a marketing mix. Considering these activities, the product is most likely in the ________Blank stage of the new-product development process.

development

Amira works for a company that makes fans, space heaters, and air purifiers. When the competition comes out with a new air purifier that is supposed to clean air twice as fast with half the energy usage, Amira buys one of the new purifiers so that her research and design team can disassemble it and attempt to build their own highly efficient version. This is an example of

reverse engineering.

Which term refers to the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products?

product liability

Tuozhi works as a market researcher for a company that makes frozen foods. The company is considering releasing a new line of frozen dinners featuring flavors from around the world. The dinners have not been created yet, so Tuozhi creates an online survey to ask potential consumers questions and gauge how well the new products will meet the needs and tastes of customers. Tuozhi is engaging in

concept testing.

Product ideas that survive the screening and idea evaluation steps get further investment of time and money, including the creation of a(n) ________, which is an early sample or model built to test a concept.

prototype

McDonald’s has a new pulled pork sandwich, and it is releasing it in selected cities before going to the full market. This rollout strategy occurs in the ________ stage of new-product development.

commercialization

Which statement about organizing for new-product development is true?

For a firm to be successful in its new-product development endeavors, it should encourage a culture that supports innovation.

Product or brand managers are commonly used when a firm

has several different kinds of products or brands.

Using total quality management to improve the implementation of a marketing plan is likely to involve

empowering employees to identify and solve customer problems.

Seyyed works as a server for a restaurant that gives him a certain amount of autonomy. For example, if customers complain about their meal, Seyyed is allowed to provide them with a free dessert or otherwise compensate them as he deems appropriate. He does not need to check with management before he makes his decision. In this case, the restaurant Seyyed works for is promoting better service quality thorough

empowerment.

What is a channel of distribution?

a series of firms or individuals who participate in the flow of products from producer to final user or consumer

A company has a new product that is in the market introduction stage of the product life cycle. What distribution channel decision needs to be made at this point?

Distribution should be limited and selective.

Which statement best explains the concept of “discrepancies” in the marketplace?

The assortment and quantity of products required by a customer may differ from those produced by a manufacturer.

Accumulating, bulk-breaking, sorting, and assorting are ________ activities performed by channel specialists to adjust discrepancies.

regrouping

In the market environment, discrepancies of quantity occur because

individual producers often make larger quantities of products than individual consumers normally want to buy.

Why is the assortment process beneficial to consumers?

Consumers often find it convenient to shop for products created by many different firms all in one place.

When a channel has a shared “product-market commitment,”

channel members focus on the same target market at the end of the channel.

Traditional channel systems are characterized by channel partners who

lack a shared product-market commitment.

A hair care product manufacturer expects its retailers to not sell other brands of hair care products in their stores. However, most retailers disagree with this, arguing that their profitability is reduced when they carry only one brand. These kinds of disagreements are referred to as ________ conflicts.

vertical

A channel captain is best described as a manager who

helps direct the activities of a whole channel.

Which statement about channel systems is true?

Channel members informally agree to cooperate with each other in administered channel systems.

An appliance company is expanding and also looking for ways to have more control over distribution, so it has acquired one of its major distributors. This is referred to as

vertical integration.

For a product, market exposure beyond the ideal level

increases the total cost of marketing.

Hearty Chews produces a variety of different jerkies and snack sticks. Hearty Chews wants its snacks to be available anywhere a consumer might look for them, and uses a wide variety of intermediaries to distribute them, including grocery stores, drugstores, convenience stores, gas stations, and vending machines. This is an example of ________ distribution.

intensive

Firms are likely to prefer selective distribution when intermediaries

offer added support in return for exclusivity.

When a firm chooses only one wholesaler or retailer to sell its products in each geographic area, this is known as ________ distribution.

exclusive

When franchisees demand protected markets, which approach is most appropriate?

exclusive distribution

Although some intermediaries may resent this approach, a manufacturer may have to use "multichannel distribution" because

present channel members are doing a poor job.

Jasmine is an Internet shopper. She likes to order shoes in several sizes and then send back the ones that don’t fit. This demonstrates that marketing managers need to plan for ________ so that companies can retrieve products that customers no longer want.

reverse channels

What is the best definition of "retailing"?

all the activities involved in the sale of products to final consumers

Fontana Furniture is a retail firm that owns and manages eight stores in Arizona. Fontana Furniture sounds like a

corporate chain.

A(n) ________ is a group of independent retailers that pool purchasing and marketing expense to increase efficiency.

retailers' cooperative

What is true about a franchise operation?

A franchise holder needs to strictly follow franchise rules established by the franchisor.

Which location is the best example of a single-line or limited-line store?

a national chain that sells only athletic footwear

Specialty shops

offer a unique product assortment and superior service.

Department stores

are usually strong in customer services.

The idea underlying the mass-merchandising concept is that

low prices should be offered to get faster turnover and greater sales volume.

A supercenter is

concerned with providing all of the customer's routine needs at a low price.

Which measure determines how quickly inventory sells and is an indication of the health of a retailer?

stockturn rate

Automatic vending machines attract customers primarily because of their

convenience.

What is an advantage that shopping at a physical store has over shopping online?

personal help and interaction