CSUF Bus Mktg 351 Exam 1 Review Questions

If a car company releases an affordable model, but the vehicle is only available in white, would it be successful in today's market?

a. No, because consumers have specific wants

b. Yes, the vehicle will be affordable

c. No, white color is not appealing

d. Yes, there is always a market for any product

a. No, because consumers have specific wants

What is the American Market Association's definition of marketing?

a. The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large

b. The management of supply chain activities to achieve a sustainable competitive advantage

c. Recording business transactions on behalf of an organization, reporting on company performance to management, and issuing financial statements

d. Creating processes to secure and store all transactions with customers

a. The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large

Which philosophy is focused on reducing cost?

a. Product philosophy

b. Sales philosophy

c. Societal philosophy

d. Production philosophy

d. Production philosophy

What is product philosophy?

a. Making sure the final product is received by the customers

b. Emphasizing push and hard selling

c. Focusing on getting the best value to customers

d. Focusing on producing the highest quality goods

d. Focusing on producing the highest quality goods

An electric vehicle that offers a new, longer lasting battery at the existing prices is an example of a company focusing on:

a. Customer satisfaction

b. Relationship marketing

c. Customer value

d. Opportunity cost

c. Customer value

What is relationship marketing?

a. Marketing team building a relationship with its peers in the service department

b. Developing and enhancing long-term relationships between a seller and its customers

c. Long term relationship between suppliers and distributors

d. Long term relationship between corporate officers and local market managers

b. Developing and enhancing long-term relationships between a seller and its customers

Why is diversification a risky proposition?

a. The company gets spread too thin

b. Adding a market leads to standardization

c. The company is not familiar with the market or the product

d. Long term profits are likely to decrease because of added costs

c. The company is not familiar with the market or the product

What is the focus of the BCG matrix?

a. A company should have profitable SBUs

b. A company should have high growth SBUs

c. A company should have a well-balanced portfolio

d. A company should aim to maximize its current profits

c. A company should have a well-balanced portfolio

A software is the market leader in a stable market. What quadrant does the software belong to?

a. Star

b. Question mark

c. Dog

d. Cash cow

d. Cash cow

GE Matrix, how do companies evaluate the overall attractiveness of the portfolio?

a. The SBUs should be spread out

b. Most of the SBUs should be in the higher attractiveness cells

c. Most of the SBUs should be in the middle attractiveness cells

d. It is hard to determine the overall attractiveness

b. Most of the SBUs should be in the higher attractiveness cells

Which of the following is not a step in the marketing plan?

a. Business mission

b. Marketing strategy

c. Implementation and control

d. Research and development

d. Research and development

What is ethics?

a. Rules that need to be followed in our daily lives

b. The moral principles that govern the conduct of an individual or group

c. The manifestations of collective human intellect

d. Laws specified by the government

b. The moral principles that govern the conduct of an individual or group

Which of the following is an element of sustainability?

a. Financial sustainability

b. Marketing sustainability

c. Caring for our environment

d. Legal sustainability

c. Caring for our environment

A company manufactures and markets reusable metal straws. What factor of the pyramid is the company likely following?

a. Legal responsibilities

b. Economic responsibilities

c. Philanthropic responsibilities

d. Marketing responsibilities

c. Philanthropic responsibilities

Which of the following is a factor over which marketers are likely to have less control?

a. Demand

b. Supply

c. Market growth rate

d. Promotional budget

c. Market growth rate

What are social factors?

a. Factors that customers take into account when making their purchases

b. How we function as a society

c. Factors that impact our environment

d. Human beings' desire to socialize

b. How we function as a society

A jewelry company does not have social media or allow customers to share their jewelry online due to concerns of privacy for their designs. Would the company continue to be successful?

a. No, social media is part of our culture and allows interconnection

b. Yes, there will be high demand

c. No, they will have no sales

d. Yes, social media is not an important factor in today's world

a. No, social media is part of our culture and allows interconnection

Which of the following is not a demographic factor?

a. Age

b. Income

c. Gender

d.Beliefs

d. Beliefs

Which of the following is NOT a reason why Baby Boomers are important to marketers?

a. Their higher density of population

b. Their high life expectation

c. Their control of the most of the world's wealth

d. They buy expensive products

d. They buy expensive products

Why are growing ethnic markets treated as an important environmental factor?

a. Because they have higher than average disposable income

b. Because of the rapid growth of minorities

c. Because they tend to unify against the majority

d. Because they are always trying to assimilate

b. Because of the rapid growth of minorities

Which of the following is impacted by the US economy slowing down?

a. Purchasing power

b. Supply

c. Exports

d. Income distribution

a. Purchasing power

Why is there a high importance in technology?

a. It decreases prices

b. There is no need to outsource

c. It can bring new products to the market

d. It provides standardization

c. It can bring new products to the market

What is the role of an agency?

a. Sets regulations for meeting demand

b. Create regulations that companies need to abide by

c. Set goals for companies

d. Sets the standards for services provided

b. Create regulations that companies need to abide by

Why is there an increase in competition?

a. Globalization

b. Supply is increasingly difficult to maintain

c. Recessions have become more common

d. Localization

a. Globalization

If iPhones are an American product, why are they manufactured in other countries?

a. To have access to more customization

b. To increase supply

c. Cheaper labor

d. Production is faster

c. Cheaper labor

Why is it more difficult to meet customers' wants and needs on a global scale?

a. Culture, traditions, and preferences

b. Trends, supply, and productivity

c. Restrictive trade agreements

d. Lack of interest from other markets

a. Culture, traditions, and preferences

What is a way for countries to trade efficiently with other countries?

a. Treaties

b. Tariffs

c. Quotas

d. By providing armed support

a. Treaties

Which of the following carries the highest risk?

a. Exporting

b. Joint venture

c. Licensing

d. Direct investment

d. Direct investment

A company requires the assistance of another company. At the end, they both share the risks and rewards fairly equally. This is an example of what entry mode?

a. Direct investment

b. Exporting

c. Joint venture

d. Licensing

c. Joint venture

What is the next step after figuring out an entry mode?

a. The extent of modification needed in the marketing mix

b. Understand what products to sell

c. Figure out the marketing trends in that country

d. Understand the regulation and policies in the foreign country

a. The extent of modification needed in the marketing mix

A soda company has decided to sell its product in Mexico but has decided not to modify the product and use the same promotional appeal. What form of marketing mix has been used?

a. Promotion adaptation

b. Standardization

c. Product adaptation

d. Diversification

b. Standardization

Gap between the desired state and actual state is called ___________.

a. needs

b. wants

c. desires

d. demands

a. needs

___________ search refers to an internet search on websites such as Yelp. ___________ search refers to knowledge based on personal experience

a. Internal; External

b. External; Internal

c. Public; Personal

d. Personal; Public

b. External; Internal

Which of the following is NOT a characteristic of an extensive decision-making process?

a. High involvement cost

b. High social visibility

c. Very few alternatives are considered

d. Lack of experience

c. Very few alternatives are considered

Which of the following describes culture?

a. Culture is easy to change

b. Culture does not have a direct impact on how we think

c. Culture is a set of values, norms, and attitude

d. Culture is not pervasive

c. Culture is a set of values, norms, and attitude

Based on Maslow's hierarchy of needs, prestige, and feeling of accomplishment can be defined as ___________ needs.

b. esteem

Which of the following is the biggest buyer in the world?

a. State of Texas

b. State of California

c. State of New York

d. U.S. Federal Government

d. U.S. Federal Government

What does OEM stand for?

a. Original equipment manufacturers

b. Organic energy manufacturers

c. Operational equipment marketers

d. Operational equipment manufacturers

a. Original equipment manufacturers

Why is are business markets usually less price sensitive?

a. Because there are no close substitutes in the market

b. Because they demand higher quality products

c. Because the cost only has a small impact on the end price of their products

d. Because most of the products are licensed

c. Because the cost only has a small impact on the end price of their products

Which of the following is the purchasing behavior in the business market?

a. Impulse purchase

b. Limited decision making

c. Systematic purchase process

d. Routine response behavior

c. Systematic purchase process