mktg exam 1 practice

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Without new products, a firm can:

only market to current customers or similar customers.

Bob and George both live in the U.S. Bob recently asked for George's cell phone number, but George said he didn't have one. George would probably be considered a(n) _________________ in the diffusion of innovation process.

laggard

Many of today's college graduates will make their livings providing goods and services to "baby boomers," the large group of Americans born in the period after World War II. Baby boomers are a _________________ market segment.

demographic

When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of:

distributive fairness.

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of:

satisfying the changing needs of current and new customers.

After hurricanes like Katrina, many small building contractors will flock to the damaged area charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a ___________ marketing orientation.

transactional

___________________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.

Reverse engineering

A firm's product mix breadth is its:

number of product lines.

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities:

that build on their strengths relative to those of their competitors.

The four Ps comprise the marketing mix, which is the ______________ set of activities that the firm uses to respond to the wants of its target markets.

controllable

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in:

increased long term profits

Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process.

control

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are pursuing which macro strategy?

Locational excellence

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu?

a line extension

When marketers state that services are _____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.

variable

Ryan wants to sell personal Web site services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being:

reachable

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through _____.

promotion

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct:

product/service lines.

Delivering the value proposition is also known as:

supply chain management.

When Toyota owners began to report problems with sticking accelerator pedals and non-functioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue. Which of the four steps of the Ethical Decision-Making Framework was Toyota performing when it recalled several of its 2007-2010

Choose a course of action

Which of the following is the correct sequence of new product adopters in the Diffusion of Innovation Curve?

Innovators, Early adopters, Early majority, Late majority, Laggards

NASCAR redirected its marketing efforts when a survey indicated that almost fifty percent of race fans were female. This is an example of

demographic

For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company _______________ when certain product lines failed to meet this expectation.

decreasing product mix breadth

The knowledge gap is where "the rubber meets the road," where the customer directly interacts with the service provider T/F

false

Zappos, an online shoe company, knows shoes are typically a ______________ good, with consumers often spending time comparing alternatives. They overcome that aspect of consumers' search process by offering a free, no questions asked return policy.

shopping

What type of event exposes retailers to large numbers of new products in a concentrated location?

trade shows

In training service providers, service quality goals should be general to allow for the various needs of consumers. T/F

false

When discussing the marketing planning process, STP stands for:

Segmentation, targeting, and positioning.

Sean had moved to take a new job, and when he was feeling really sick, he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as _________________.

inseparability

When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous forty years. Uncle Burton is a(n) ______________ in the diffusion of innovation process for telephones.

laggard

For products like pencils and paperclips, which provide the same benefit for all consumers, marketers should probably use a(n):

undifferentiated targeting strategy.

In the "West Virginia Tee Shirts" scenario, the company is asked by the governor of West Virginia to stop selling tee shirts with the slogan, "It's All Relative in West Virginia," stating that the slogan is offensive and perpetuates a negative stereotype. The communications director for the tee shirt company, a resident of New Hampshire, points out that they also sell a shirt reading, "New Hampshire: 40 Million Squirrels Can't Be Wrong." The communications director's response uses the ________________ test of ethical action.

golden rule

If a U.S. clothing brand buys from overseas suppliers who manufacture clothing using child labor, this is the supplier's problem, and the U.S. company has no reason to be concerned. T/F

false

The building block of service quality called ________ refers to the ability of the firm's employees to convey trust and confidence.

assurance

The diffusion of innovation theory focuses on:

the rate at which consumers are likely to adopt a new product or service.

Corporate social responsibility refers to the coordinated actions of the federal and many state governments to address the ethical, social and environmental impacts of business operations. T/F

false

Which of the following is the best way to build a sustainable competitive advantage using product excellence?

Positioning the product using a clear, distinctive brand image.

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision making situation, all parties relevant to the decision should engage in

brainstorming and evaluation of alternatives.

Small start-up companies are unable to control their marketing mixes. T/F

false

One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked:

procedural fairness

A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing?

Marketing isn't essential now, but it will be in a year or two when the product takes off

People who initiate, organize, operate and assume the risk of a business venture are called:

entrepreneurs

Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as:

market intermediaries.

Coca-Cola introduced Coke Zero to increase sales without taking away from its existing product sales. Which of the following is NOT true about this effort?

Segmentation and targeting were of little use compared to developing special advertising.

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular check ups increase the ________________ of dental care by reducing the cost to the consumer.

perceived value

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable:

awareness.

By setting appropriate service standards and measuring service performance, firms can attempt to close a _______________ gap.

standards

The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred new compounds before they come up with one _______________, an extremely successful product that pays for the costs associated with the other attempts to develop new products.

blockbuster

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using ________________ segmentation.

benefit

Braddock University allows recent graduates to come back and take additional courses for free. By offering additional educational services, the university is enhancing its _____________ in an attempt to create value for its customers.

product strategy

After observing a customer verbally abuse a waiter, the first thing a manager can do to ensure quality service is to:

provide emotional support to the waiter.

When selecting a target market, firms should attempt to:

match the firm's competencies with a market segment's attractiveness.

A _______________ gap exists when a firm knows what they need to do to meet customers' service expectations but sometimes fails to do it.

delivery

A survey of marketing officers reported that the most frequently observed type of unethical behavior was false or misleading advertising. T/F

false

Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their:

relative advantage.

When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to:

evaluate performance and make adjustments.

Which of the following describes a situation in which a company conducts research to understand what potential employees are seeking, as well as what they think of the company?

employment marketing

Sally is in the new marketing department of a mid-sized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to:

identify and evaluate opportunities by conducting segmentation, targeting and positioning analysis.

For a major university, undergraduate studies, graduate studies, and professional programs would be ____________________ within the university's product mix.

product lines

When a car manufacturer sells trucks, cars, and car parts to the government or military, this is an example of B2C marketing. T/F

false

Carlos has identified four potential market segments for his Rent-A-Chef home meal catering service. He will now compare the segments to see if they are different enough from each other. Carlos is evaluating whether or not each segment is:

identifiable

Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders, which was being promoted as a glamorous health-oriented product. She had always thought of Head and Shoulders as an anti-dandruff shampoo. The new ads suggest that Head & Shoulders has been:

rebranded

An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is:

customer complaints.

In the "Who is On the Line?" scenario, Star38's new software hides or provides a phony phone number on caller ID systems. The company intends to sell its service to collection agencies, private detectives, and law enforcement agencies. If a collection agency is considering using the system, the first ethical question it should ask itself is:

Will using this service conflict with the ethical guidelines in our mission statement?

A product label is just a required sticker on a package. T/F

false

The latest introduction from Apple™, the iPad, has been successful because it provides value to customers. T/F

True

The marketing planning process always proceeds sequentially through the five steps. T/F

false

Sometimes brand names become synonymous with a product itself. If that happens, the firm:

could lose its trademark.

Being socially responsible is generally considered:

beyond the norms of corporate ethical behavior.

When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation. T/F

false

Which of the following best describes when Johnson & Johnson introduces a travel sized package for its existing baby oil product?

Line extension

Retail store chains often use _____________________ data to identify other locations with similar demographics and purchasing behavior where it might make sense to open additional stores.

geodemographic

The building blocks of service quality are reliability, responsiveness, assurance, empathy and tangibles. T/F

trure

The diffusion of innovation theory is useful to marketers in helping them:

predict which types of customers will buy their product immediately and later.

Private-label brands like Gap and Victoria's Secret have increased in importance along with the increased power of _____________ in the supply chain.

retailers

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a ______ growth strategy.

Product development

Jackson manages an upscale French restaurant in the Washington, D. C. area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to reduce the _______________ gap in services marketing.

knowledge

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified ____________ that respond similarly to his marketing efforts.

market segments

A marketing professor in Ithaca, New York maintains a museum of failed consumer products. Most new products in this museum failed during the _______________ stage of new product development, when they are introduced to a limited geographic area.

test marketing

During the ____________ era manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products.

marketing

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the _____________ stage of the product life cycle.

growth

Empowerment of employees helps to address the delivery gap because:

employees directly involved with the customer can respond effectively at the moment the problem occurs.

Although a differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market, this strategy:

is often expensive.

Carla has been directed by her regional marketing manager to cut prices on seasonal items, submit an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in?

implement marketing mix and resources.

Which of the following is not one of the key inputs a firm needs to understand and appreciate in terms of corporate social responsibility (CSR)?

Community

Each individual's ethical standards are a product of culture and upbringing. T?f

true

Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era.

sales

The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase. T/F

false

By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) ________________ goal.

measurable

During the _____________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.

maturity

The complete set of all products offered by a firm is called its:

product mix

Marketers involved in supply chain management are constantly balancing the:

goal of minimizing costs against satisfying the service levels customers expect.

When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia store in April, it was engaged in:

misguided geographic segmentation.

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