Marketing EXAM 2

1. What is the main purpose of market segmentation?

   • A) Increase product prices

   • B) Identify and satisfy different customer needs ✅

   • C) Reduce marketing costs

   • D) Eliminate competition

2. Which of the following is NOT a common basis for market segmentation?

   • A) Geographic

   • B) Demographic

   • C) Technological ✅

   • D) Psychographic

3. What is an example of geographic segmentation?

   • A) Targeting teenagers with energy drinks

   • B) Selling winter coats in colder climates ✅

   • C) Marketing luxury goods to wealthy individuals

   • D) Promoting gaming consoles to young adults

4. Baby Boomers are individuals born between:

   • A) 1946 - 1964 ✅

   • B) 1965 - 1980

   • C) 1981 - 1996

   • D) 1997 - 2012

5. Which ethnic group has the highest household income level in the U.S.?

   • A) African-Americans

   • B) Hispanics

   • C) Asian-Americans ✅

   • D) Native Americans

6. Engel’s Law states that as income increases, the percentage spent on ______ decreases.

   • A) Clothing

   • B) Food ✅

   • C) Entertainment

   • D) Housing

7. What is the 80/20 principle in market segmentation?

   • A) 80% of customers generate 20% of revenue

   • B) 80% of a company’s sales come from 20% of its customers ✅

   • C) 80% of businesses use segmentation

   • D) 20% of consumers influence 80% of purchases

8. A company that creates different versions of a product to target specific groups is practicing:

   • A) Undifferentiated marketing

   • B) Differentiated marketing ✅

   • C) Concentrated marketing

   • D) Niche marketing

9. Which of the following is an example of positioning based on application?

   • A) Selling baking soda as a cleaning agent ✅

   • B) Marketing a car as fuel-efficient

   • C) Branding a watch as luxurious

   • D) Advertising toothpaste for sensitive teeth

10. Transaction-based marketing focuses on:

    • A) Building long-term customer relationships

    • B) One-time exchanges of goods and services ✅

    • C) Emotional connections with buyers

    • D) Customer service enhancements

11. A loyalty program that rewards customers with discounts is an example of:

    • A) Structural bonding

    • B) Social bonding

    • C) Financial bonding ✅

    • D) Customer dissatisfaction

12. Frequency marketing is designed to:

    • A) Encourage repeat purchases ✅

    • B) Target first-time buyers

    • C) Offer products for a limited time

    • D) Reduce advertising costs

13. Affinity marketing is used to:

    • A) Offer discounts based on purchase frequency

    • B) Create a sense of belonging among customers ✅

    • C) Eliminate market competition

    • D) Reduce business expenses

14. A “Flaunter” in money attitude is likely to:

    • A) Spend money to show off ✅

    • B) Be frugal

    • C) Save for the future

    • D) Be cautious with spending

15. Why do impoverished people tend to have a present-focused mindset?

    • A) Limited financial resources ✅

    • B) High credit scores

    • C) Lack of cultural exposure

    • D) Abundance of investment opportunities

16. A major reason for obesity in impoverished communities is:

    • A) High consumption of organic foods

    • B) Limited access to fresh fruits and vegetables ✅

    • C) Excessive exercise

    • D) High healthcare costs

17. What happens during economic inflation?

    • A) Prices rise ✅

    • B) Consumer purchasing power increases

    • C) Demand for luxury goods declines

    • D) The stock market crashes

Chapter 5: Consumer Markets and Consumer Behavior (31 Questions)

18. Consumer behavior is influenced by:

    • A) Social and psychological factors ✅

    • B) Only advertising

    • C) Government policies

    • D) Product packaging

19. A subculture is best described as:

    • A) A smaller group within a larger culture with distinct values ✅

    • B) A type of underground music movement

    • C) A religious organization

    • D) A social media trend

20. The Asch phenomenon demonstrates:

    • A) How people conform to group norms ✅

    • B) The importance of brand image

    • C) Why people shop online

    • D) The role of discounts in consumer behavior

21. Maslow’s hierarchy of needs includes all EXCEPT:

    • A) Self-actualization

    • B) Safety

    • C) Financial independence ✅

    • D) Esteem

22. Cognitive dissonance occurs when:

    • A) A consumer regrets a purchase ✅

    • B) A product is heavily discounted

    • C) A brand dominates a market

    • D) A purchase is effortless

23. The evoked set refers to:

    • A) The brands a consumer considers during decision-making ✅

    • B) A random list of products

    • C) A company’s marketing team

    • D) The final purchase decision

24. An example of variety-seeking buying behavior is:

    • A) Trying different cereal brands ✅

    • B) Always buying the same brand of coffee

    • C) Purchasing a car

    • D) Buying medicine

25. Which adopter category is most likely to take risks with new products?

    • A) Early majority

    • B) Innovators ✅

    • C) Laggards

    • D) Late majority

Chapter 6: Business Markets and Business Buyer Markets (10 Questions)

26. Business-to-business marketing involves selling to:

    • A) Government agencies ✅

    • B) Individual consumers

    • C) Local grocery stores

    • D) Nonprofit organizations

27. Derived demand means that demand for a business product depends on:

    • A) The demand for consumer products ✅

    • B) Government regulations

    • C) Production costs

    • D) Economic inflation

28. Joint demand occurs when:

    • A) Two products are used together ✅

    • B) A company buys in bulk

    • C) Consumers purchase multiple brands

    • D) Demand decreases for all products

29. Outsourcing is a business strategy that involves:

    • A) Hiring external companies to provide goods or services ✅

    • B) Producing everything in-house

    • C) Eliminating foreign suppliers

    • D) Increasing product prices

30. A new-task buying situation occurs when:

    • A) A company purchases a product for the first time ✅

    • B) A firm reorders a product

    • C) A business switches suppliers

    • D) Prices of raw materials drop