UNIVERSITY / INSTITUTE: Purdue University
CLASS / COURSE: MGMT 324 Marketing Management
This tutorial has Exam 1 of course MGMT 324 Marketing Managment of Purdue University.
1. __________ is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large.
A. Creative planning
2. Cole works for a company that requested its entire staff to purchase new toys and bring them into the office during the month of December for holiday distribution to families in need. Cole was excited about choosing some toys for this event, purchased several, and brought them to work. After Cole dropped the toys off, he felt very happy and satisfied that he had helped others with his donation. Was this a marketing exchange?
A. No, because Cole spent money for toys but then gave them away.
B. Yes, because Cole's donation of the toys was accompanied by his satisfaction and happiness.
C. No, because this request was tax-deductible.
D. Yes, because the toys were going to families in need.
E. No, because Cole bought the toys.
3. The four outside groups that exert important direct influences on an organization consist of
A. competitors, industry trade associations, non-profit organizations, and governmental agencies, such as the EPA and FTC.
B. owners, employees, regulatory groups, and competitors.
C. senior management, the legal department, the marketing department, and other employees of the organization.
D. politicians, regulators, minority groups, and consumer monitoring groups.
E. other organizations, suppliers, shareholders (owners), and customers.
4. The first objective in marketing is to
A. discover the needs of competitors.
B. discover the needs of prospective customers.
C. discover the needs of sellers.
D. satisfy the needs of regulators.
E. satisfy the desires of various segments.
5. Which of the following statements best defines needs and wants?
A. Needs affect marketing, but wants do not.
B. By definition, wants are more socially responsible than needs.
C. Wants occur when a person feels physiologically deprived of something while needs are determined by a person's knowledge, culture, or personality.
D. Wants are a subset of needs.
E. Needs occur when a person feels physiologically deprived of something while wants are determined by a person's knowledge, culture, or personality.
6. The four Ps of the marketing mix are
A. personnel, priorities, placement, and profits.
B. profitability, productivity, personnel, and packaging.
C. promotion, product, personnel, and place.
D. product, promotion, price, and place.
E. product, place, production, and promotion.
7. Which of the following statements about customer value is most true?
A. Research suggests that all firms can provide value to everyone.
B. One of the three major value strategies is best delivery.
C. Loyal customers are less profitable.
D. Firms gain loyal customers by providing unique value.
E. It is impossible to place a dollar value on a loyal, satisfied customer.
8. A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade his points in for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. This is an example of
A. customer valuation.
B. the 80/20 principle.
C. relationship marketing.
D. a marketing chain.
E. marketing entropy.
9. The __________ is the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals.
A. consumer-organizational concept
B. principle of consumerism
C. marketing concept 100%
D. societal marketing concept
E. concept of synergy
10. By understanding its core values, an organization can take steps to define its __________, a statement of the organization's functions in society, often identifying its customers, markets, products, and technologies.
A. functional philosophy
C. business portfolio
D. benefit statement
E. corporate code
11. The marketing department provides leadership activities in
A. creating the corporate culture.
B. talent management.
C. sustaining the means-end chain.
D. fiscal restraint.
E. look outward, keeping the organization focused on creating value both for it and for customers.
12. Designing a car is expensive and time-consuming even with the use of computers. This is because until recently there was no way for all the varied departments that are involved in new car development to work together. DaimlerChrysler has created a unique central Internet-based system that cuts the design and production process by at least two years, thus providing value to the customer. This is an example of a(n)
A. benchmarking project.
C. organizational culture.
D. innovation-oriented mission.
E. operational goal implementation.
13. __________ have dominant shares of slow-growth markets and provide cash to cover the organization's overhead and to invest in other SBUs.
B. Problem children
C. Question marks
E. Cash cows
14. Solarcom is a 30-year-old information technology company that owns several subsidiaries. One of its subsidiaries is Atlantix Global Systems, which is one of the leading wholesalers for refurbished computer equipment, an industry that is growing worldwide. According to the BCG portfolio matrix, Atlantix Global would most likely be classified as a
B. cash cow.
C. question mark.
E. problem child.
15. Which market-product strategy requires no change in the product line but an increase in sales to existing customers through better advertising, more retail outlets, lower prices, or more effective distribution?
A. product development
C. product divestment
D. market development
E. market penetration
16. Recently, American Express, Visa, and MasterCard have been pushing hard into the small-ticket end of the credit card market. The purchase of items such as fast food meals, movie popcorn, and candy have been targeted as growth areas for credit card usage. This is an example of a __________ strategy on the part of the credit card companies.
A. product dissemination.
B. market development.
C. product development.
E. market penetration.
17. What are the three steps involved in the planning phase of the strategic marketing process?
A. planning; implementation; and control
B. set market and product goals; select target markets; find points of difference; and position the product
C. situation (SWOT) analysis; market-product focus and goal setting; and marketing program development
D. identify where we have been; where we are headed; and where we are now
E. identify industry trends; analyze competitors; assess own company; and research customer
18. The consumer products industry is one with several large competitors, soaring raw materials prices, and strong demands from powerful retailers for lower prices. As a result, Colgate-Palmolive Co. and Unilever Group, the makers of products such as Colgate toothpaste and Ben & Jerry's ice cream, both reduced their earnings forecasts. Yet Proctor & Gamble, another consumer products company, did not. At P&G, innovation is a key attribute, allowing the company to update all 200 of their brands and to invent products such as Crest Whitestrips that consumers crave. P&G has also used its marketing know-how to develop unique product placements on television shows that highlight its brands. A SWOT analysis for P&G of this information would indicate that the overall industry situation is a __________ while the innovation taking place at P&G is a __________.
A. opportunity; strength
B. opportunity; threat
C. weakness; threat
D. strength; weakness
E. threat; strength
19. The social forces of the environment include the demographic characteristics of the population and its __________. Changes in these forces can have a dramatic impact on marketing strategy.
C. social class
E. living standards
20. Which of the following statements about Generation Y is most true?
A. Generation Y is known as a demanding group of consumers.
B. Generation Y feels personally responsible for making a difference in the world.
C. Many members of Generation Y are becoming entrepreneurs.
D. Members of Generation Y are optimistic about their potential for fame and fortune.
E. All of the above statements are true.
21. Which of the following statements about baby boomers is true?
A. Generally, baby boomers are receptive to anything that makes them feel older.
B. Baby boomers will account for a small percentage of all consumer expenditures.
C. Baby boomers' interests will reflect concerns about their children and grand children, their health, and their retirement.
D. Baby boomers are concerned wireless communication.
E. All of the above statements about baby boomers are true.
22. In an inflationary economy, the cost to produce and buy products and services __________ as prices __________.
A. decreases; increases
B. does not change; increase
C. decreases; decreases
D. escalates; decrease
E. escalates; increase
23. One reason some people don't like to buy clothing from Internet retailers is the inability to know if the clothes will fit once they have arrived. ImageTwin has developed a scanning system with which it has gathered the measurements of individuals of all different sizes. All of the information has been fed into a database. Now, when you buy something at LandsEnd.com, you can see a 3D image of what the item should look like on your body. This is an example of __________ forces in the marketing environment.
24. Paul Avery is a salesperson at the only Ford automobile dealership in Wausau, Wisconsin. However, there are several other auto dealerships in town, offering both domestic and foreign cars and trucks. Paul works hard to keep his customers satisfied because he knows that if his customers are unhappy, they can simply buy a car from one of the many other comparable dealers in Wausau. This is an example of
A. monopolistic competition.
B. an oligopoly.
C. a monopoly.
D. incremental competition.
E. pure competition.
25. Coupons and sales are frequently used marketing tactics in which form of competition?
A. pure competition
B. cross-market competition
E. monopolistic competition
26. Because there are few sellers, price competition among firms is not desirable in which form of competition?
A. Pure competition
D. Monopolistic competition
E. Cross-market competition
27. The __________ can require a company to spend money on corrective advertising to correct previous misleading ads.
A. U.S. Department of Justice
B. Food and Drug Administration
C. U.S. Department of Agriculture
D. Federal Trade Commission
E. Environmental Protection Agency
28. Before displaying the BBB Online on their website, participating companies must
A. be members of their local Better Business Bureau.
B. have been in business for at least one year.
C. have agreed to abide by BBB standards of truth in advertising.
D. have committed to work with the BBB to resolve consumer disputes that arise over goods or services promoted or advertised on their site.
E. do all of the above.
29. Social responsibility is
A. a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the Constitution's Bill of Rights.
B. a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior.
C. a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels.
D. the view that organizations are part of a larger society and are accountable to that society for their actions.
E. a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.
30. The duty of a firm to maximize profits for its owners or stockholders is called
A. transactional marketing.
B. profit responsibility.
C. gray marketing.
D. value consciousness.
E. social responsibility.
31. The groups primarily served by a firm exhibiting stakeholder responsibility include
A. government, owners, and stockholders.
B. general public, owners, and stockholders.
C. consumers, employees, and supplier/distributors.
D. general public, public interest groups, and the environment.
E. owners and stockholders.
32. Most paint is not biodegradable and not friendly to the environment because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly soy-based paint (even though it costs more) would be practicing
A. profit responsibility.
B. cause marketing.
C. societal responsibility.
D. stakeholder responsibility.
E. mass marketing.
33. A key difference between cause marketing and an outright charitable contribution is
A. there is essentially no difference between a straight charitable contribution and cause marketing.
B. there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of cause marketing efforts made in the course of one year.
C. a charitable contribution counts as a lower tax deduction.
D. charitable donations are contributed at the sole discretion of the firm; with cause marketing, the amount is directly affected by the consumers' purchases.
E. cause marketing is generally linked to public causes and concerns and straight charitable contributions are generally given to private institutions.
34. __________ involves conducting business in a way that protects the natural environment while making economic progress.
A. Concentrating on stakeholder responsibility
B. Sustainable development
C. Relationship marketing
D. Natural marketing
E. Brown marketing
35. Consumer behavior includes
A. actions a person takes in purchasing services.
B. actions a person takes in using services.
C. the mental processes that come before and after purchase and use.
D. the social processes that come before and after purchase and use.
E. all of the above.
36. Which of the following statements about the problem recognition stage of the purchase decision process is most true?
A. The consumer scans their memory for previous experiences with certain products or brands.
B. Advertisements can activate a consumer's decision process by showing shortcomings of competing products.
C. Advertisements can only activate a consumer's decision process by showing shortcomings of currently owned products.
D. The consumer pays attention to advertising suggesting criteria to use for the purchase.
E. The decision-maker perceives a difference between their actual and ideal situations, but it's not big enough to trigger a decision.
37. An external search for product information is especially important when
A. the cost of gathering information is low.
B. review of past experience provides adequate information.
C. the risk of making a wrong purchase decision is low.
D. the item is frequently purchased.
E. any of the above conditions exist.
38. At the __________ of the purchase decision process, a consumer compares the product with his or her expectations and is either satisfied or dissatisfied.
A. purchase decision stage
B. information search stage
C. post-purchase stage
D. alternative evaluation stage
E. problem recognition stage
39. High involvement purchase occasions typically have which of the following sets of characteristics?
A. The item is inexpensive, has no serious personal consequences, or would not reflect on one's social image.
B. The item is expensive, has no serious personal consequences, but could reflect on one's social image.
C. The item is inexpensive, can have serious personal consequences, or could reflect on one's social image.
D. The item is inexpensive, has no serious personal consequences, but could reflect on one's social image.
E. The item is expensive, can have serious personal consequences, or could reflect on one's social image.
40. A typical consumer would most likely use __________ when choosing a toaster, a restaurant for lunch, or a pair of sandals.
A. limited problem solving
B. high involvement problem solving
C. integrated problem solving
D. routine problem solving
E. extended problem solving
41. Five situational influences have an impact on a consumer's purchase decision process are the purchase task, social surroundings, physical surroundings, antecedent states, and
A. independent variables.
B. dependent variables.
D. economic effects.
E. temporal effects.
42. Which of the following statements about word of mouth is most true?
A. Word of mouth is the most powerful information source for consumers.
B. Teaser advertising campaigns are run in advance of new-product introduction to stimulate word of mouth.
C. Advertising slogans heighten positive word of mouth.
D. Overcoming negative word of mouth is difficult and costly.
E. All of the above statements about word of mouth are true.
43. When Keith Monroe told his father the family needed a new computer, the father told Keith to determine the features he needed and the costs involved. Mrs. Monroe suggested the new computer needed an ergonomic keyboard because she was having some problems with her wrists. Wenda Monroe asked that the new computer have a high-speed router for her Internet chat room visits. Mr. Monroe said what they bought would depend on what Keith learned. Which sentence BEST describes the roles the individual family members played in making this decision?
A. Mrs. Monroe and Wenda acted as information gatherers, users, and decision makers.
B. Mr. Monroe took on all of the roles.
C. Mrs. Monroe acted as a user, an influencer, and a gatekeeper.
D. Wenda acted as a user and an influencer.
E. Keith took on all the roles except that of purchaser.
44. Organizational buyers can be divided into three different markets. They are
A. industrial, wholesaler, and retailer.
B. retailer, manufacturer, and government agencies.
C. industrial, government, and ultimate consumer.
D. industrial, reseller, and government.
E. industrial, retailer, and government.
45. During late summer and early fall, there is a large demand for containers located in Asia that are used to ship consumer goods from Asia to the United States in time for the holiday selling season. The demand for these containers is __________ demand.
46. Which of the following is NOT a characteristic of the organizational buying process?
A. Multiple parties participate in purchase decisions.
B. Negotiation between buyers and sellers is commonplace.
C. Online buying over the Internet is limited due to e-commerce and privacy restrictions imposed by the federal government.
D. Buying objectives and criteria are typically spelled out.
E. All of the above are characteristics of the organizational buying process.
47. Which of the following is NOT a commonly used organizational buying criterion?
B. technical capability
C. taste of the buyer
D. ability to meet the quality specifications required for the item
E. production facilities and capacity
48. Sun Microelectronics orders customized processors, chips, and circuit boards for Sun's desktop, server, and storage products. Sun doesn't actually make any of its microelectronic gear itself. Sun contracts the work to outside manufacturers, who in turn rely on components from their own subcontracted suppliers. The 150 suppliers involved in making and delivering Sun products have adopted mutually beneficial objectives and strategies that give Sun's customers value for their money. Sun's method of doing business is an example of a
B. quid pro quo situation.
C. restricted access.
D. strategic alliance.
E. supply partnership.
49. In an effort to make better and more efficient purchase decisions, the Ford Motor Company forms loosely organized groups of people who work together on purchase decisions. The people included in these groups change depending on the purchase situation and may include key personnel from various departments, including research and development, finance, marketing, shipping, and sales. Such a loosely organized group of people within an organization who are involved in the purchase decision is correctly called an organizational
A. functional unit.
B. selling committee.
C. buying center.
D. purchasing unit.
E. decision-making unit.
50. If a purchase is a new buy for a manufacturer, the seller should expect a long time for a buying decision to be reached, work with technical personnel and
A. expect specifications to be changed many times before the buy is completed.
B. to act as a consultant to the buyer.
C. expect to have to do some favors for the decision-makers.
D. entertain lavishly.
E. expect a lot of conflict.
51. Four major trends affecting world trade in the past decade are a gradual decline of economic protectionism exercised by individual countries, formal economic integration and free trade among nations, the emergence of networked global marketspace, and
A. redefined national boundaries and a more aggressive attitude towards initiating international tariffs and quota systems.
B. an increase of economic protectionism and a decline in free trade.
C. global competition among global companies for global customers.
D. a decrease in most countries' GDPs and a renewal of nationalism.
E. an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
52. Which of the following statements about global brands is true?
A. A global brand is marketed under the same name in multiple countries.
B. A global brand has a centrally coordinated marketing program.
C. A global brand has the same product formulation or service concept across countries.
D. A global brand delivers the same benefits to customers.
E. All of the above statements are true.
53. KFC in Japan sells tempura crispy strips. In northern England, it stresses gravy and potatoes, while in Thailand it offers fresh rice. In Holland, instead of potatoes, KFC offers customers a potato and onion croquette. In France, KFC sells pastries alongside its chicken. These examples illustrate that KFC exhibits an understanding of and appreciation for the __________ of other societies.
D. selective perception
54. If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use ___________, whereby you have someone translate your literature from American English into French, and then have someone else in France translate the French into American English.
A. cultural communication
B. back translation
C. cultural sensitivity
D. consumer ethnocentrism
55. A form of low risk and low cost entry into international marketing that includes local manufacturing and local assembly is called
B. indirect exporting.
C. direct exporting.
D. joint ventures.
E. direct ownership.
56. KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example of which type of international product strategy?
A. product integration
B. product extension
C. product customization
D. product invention
E. product adaptation
57. Grape-Nuts was one of the first cereals Post Cereal Company ever marketed. While scoring well in brand-awareness studies, its sales recently have been steadily declining but didn't know why. Rather than assume the product was a dog, the Grape-Nuts marketing manager decided Post should first
A. engage in marketing research.
B. hire more salespeople.
C. spend more dollars on advertising.
D. hire a consultant.
E. develop new cereals.
58. Several years ago, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually, the company declared bankruptcy, regrouped, and found itself able to resume business. Its board of directors recently announced that the company would resume flying if it could prove that the airlines could regain at least 75 percent of its lost customers. It decided to allocate $50,000 for a marketing research study to determine the probability that its former customers would fly on the airline again. This description represents which stage in the marketing research approach?
A. develop findings
B. collect relevant information
C. take marketing actions
D. develop the research plan
E. define the problem
59. The method of __________ involves drawing conclusions about a population from a sample taken from that population.
A. nonprobability sampling
C. probability sampling
D. criteria sampling
E. statistical inference
60. Best Western International, Inc., a national hotel chain, paid couples to videotape themselves as they spent three to seven days on a cross-country trip. From this research activity, Best Western found that women usually decide when to pull off the road and where to stay. Because these couples used the hotel rooms in their "natural use environment," they provided __________ research to Best Western.
61. A publishing company sponsors an informal one-time-only session with seven college instructors who use a given text. The instructors meet with a moderator who asks their opinions about the textbook, its study guide, and the product's competition. This is an example of a(n)
A. jury of executive opinion.
B. in-depth interview.
C. consumer panel.
D. focus group.
E. research experiment.
62. The best way to find information that is specific to the problem being studied is to
A. collect primary data.
B. collect internal secondary data.
C. use probability sampling.
D. perform a sensitivity analysis.
E. collect external secondary data.
63. Through the use of __________, a catalog retailer might determine that customers who purchased silver frames would also have a high probability of buying vintage hat pins. As a result, its sales representatives might be instructed to offer a special price on hat pins when a customer places an order for a silver frame.
A. database management
B. information extraction
C. fact disclosure
D. variable analysis
E. data mining
64. Three main sales forecasting techniques are often used: (1) judgment of the decision maker, (2) __________, and (3) statistical methods.
A. top-down method
B. technological method
C. surveys of knowledgeable groups
D. past sales method
E. logistic regression method
65. To be identified as a market segment, its members must
A. have different needs and have potential for future growth.
B. represent a large share of the entire market and have critical buying power.
C. have common needs and respond similarly to market actions.
D. have potential for future growth and have potential for increased profit or ROI.
E. have different needs and respond similarly to market actions.
66. Marketers use market segmentation to
A. link market needs to an organization's marketing program.
B. link market needs to an organization's product or price.
C. link market needs to an organization's advertising.
D. increase overall sales and profitability.
E. do all of the above.
67. When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often results extremely high research, engineering, and manufacturing expenses.
A. amortization costs
B. creating a service gap
C. indirect distribution and logistics problems
D. strategic planning
E. the extra cost of developing and producing additional versions of the product
68. Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one type of cereal but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and
A. conforms to all union regulations.
B. reduces the number of employees required.
C. decreases the cost of the physical plant.
D. stabilizes the sales revenues and profits.
E. adds to the manufacturer's sales revenues and profits.
69. ChoiceShirts is an online company that makes custom T-shirts. Customers can make their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of
A. mass customization.
B. how the 80/20 rule is implemented.
C. market augmentation.
E. market melding.
70. A different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues don't offset extra costs, a marketer should __________ to reduce the number of marketing actions.
A. increase the advertising budget
B. discontinue offering the good or service
C. cancel current activities
D. combine segments
E. try direct mail instead of broadcast advertising
71. Which of the following is NOT a criterion used in forming segments?
A. competitive position
B. potential of marketing action to reach a segment
C. potential for increased profit
D. simplicity and cost of assigning potential buyers to segments
E. similarity of needs of potential buyers within a segment
72. Many companies have cut travel budgets, so very few business people are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways (BA) has grown market share for its transatlantic business class by offering greater comfort. Promotions to frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day's schedule. BA's strategy is an example of
A. psychographic segmentation.
B. lifestyle segmentation.
C. industry sector segmentation.
D. life stage segmentation.
E. behavioral segmentation.
73. A market-product grid is a framework to relate
A. estimated expenses for products sold to various market segments.
B. the market segments of potential buyers to products offered or potential marketing actions by an organization.
C. the market segments of potential buyers to relative market share compared to closest competitor.
D. total anticipated revenue for each product to market segments.
E. total anticipated profit for each product to segments.
74. Which of the following is NOT a criterion used for selecting a target segment?
A. cost of reaching the segment
B. similarities of needs of potential buyers
C. competitive position
D. compatibility with the organization's objectives and resources
E. size of the market
75. FIGURE 9-6
The perceptual map in Figure 9-6 shows how various drinks are seen in the minds of adult consumers. Suppose this map describes accurately how I see the drinks shown. As an adult, I am a heavy consumer of mineral water. Also, I am very concerned about nutrition and don't want to look like a kid. A likely reason I drink mineral water according to this perceptual map is that I see it as
A. more nutritious than tea.
B. more adult than nutritionally-designed diet drinks.
C. more nutritious than a fruit-flavored drink.
D. more nutritious than a milk shake.
E. more adult than a skinny latte.
Completed Solution is attached. Click on Buy button and then download file to get full solution.
SUBJECTS / CATEGORIES: