MKT501 – MARKETING MANAGEMENT 1. Products that are usually purchased due to adversity and high promotional back up rather than desire are called: Sought goods Unique goods Unsought goods Preferred goods 2. Identify the concept that is most aggressively practiced for unsought products. Marketing concept Production concept Product concept Selling concept 3. Which of the following is NOT a technique of measuring customer satisfaction and monitoring customer’s complaint? Customer complaints database Web and telephone information hotlines Exit interviews Business analysis 4. Which of the following is a characteristic of market oriented firms? Product driven Competitor focus Customer focus Product focus 5. Willingness and ability to buy the product leads towards which of the following? Demand Need Want Market 6. Customer cost will be considered as which of the following Ps of marketing mix? Product Price Place Promotion 7. Which of the following strategies requires premium pricing? Target market strategy Market segmentation strategy Differentiation strategy Cost leadership strategy 8. Which of the following is NOT a part of a broad environment? Economy Corporate culture Technology Demographics 9. A company wants to maximize market share, assuming that market is price sensitive. What pricing strategy you would suggest for the company to achieve this objective? Cost- oriented pricing Skimming pricing Premium pricing Penetration pricing 10. Mr. Ahmed wants to introduce a new product with the goal of quickly gaining mass-market share. As a consultant, you would recommend which of the following strategy? Cost-orientated pricing Psychological pricing Market-penetration Market-skimming 11. Market-penetration pricing will likely to be used most in selling which of the following? Specialty Convenience Unsought Pharmaceuticals 12. Which of the following is NOT an objective of penetration pricing? Long term profit maximization Short term profit maximization Increasing sales volume Increasing market share 13. A seller wants payment from buyer within 10 days of sales (whereas customer can made payment within 30 days) and offers 4% discount if payment is made within 10 days. What type of cash discount will be suitable? 4/10 net 30 10/4 net 30 10/30 net 4 4/30 net 10 14. A book shop has arranged a book fair and offered 20% discount on all types of books. What will be the purpose of offering the discount? Reward the customers Move- out- of- date stock Encourage the salespeople To increase short term sales 15. BATA offered 10% discount on the sale of shoes at the end of winter season. What can be the purpose of giving such discount? Reward the customers Move- out- of- date stock Encourage the salespeople To increase short term sales 16. Sometimes companies reduce price for bulk purchases. To which of the following would this statement hold TRUE? Seasonal discounts Trade discounts Quantity discounts Cash discounts 17. Which of the following is NOT an objective of discounts? Reward valuable customers Reward competitors Move out-of-date stock Increase short-term sales 18. A pricing method which is designed to encourage purchases that are based on the emotional rather than rational reasons? Cost-oriented pricing Psychological pricing Skimming pricing Penetration pricing 19. Which of the following marketing mix element generates revenue? Promotion Price Place Product 20. Which of the following price is very close to the maximum that customers are happily and readily willing to pay? Premium Cooperative Effective Efficient 21. Which of following is an example of corporate brand? Rafhan foods Knorr National foods Mercedes 22. When a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes it is called as: Line extension Brand extension Multibrands Co-branding 23. Which of the following is a group of products that are closely related because they function in a similar manner? Convenience product Private brand Line extension Product line 24. Which of the following is NOT a use of secondary packaging? It is recyclable and environmentally safe It facilitates transportation, storage, and handling for middlemen It cannot be reused for purposes other than its initial use It can be used as a promotional tool 25. Which of the following brands is created specifically to counter a competitive threat? Premium brand Economy brand Fighting brand Corporate brand 26. Which of the following is NOT one of the stages that customers go through in the process of adopting a new product? Desire Awareness Evaluation Interest 27. Which of the following commercialization decision decisions regarding launch of product in single or multiple locality? How to launch the product? Where to launch the product? When to launch the product? Why to launch the product? 28. Which come(s) under the category of new product? New product lines Product improvements Cost reductions All of the given options 29. During which stage of new product development the firm considers profitability? Idea generation Beta-testing Business analysis Product development 30. An elaborated version of the idea expressed in the meaningful consumer terms, describes which of the following? Product screening Product test Product concept Product idea 31. Identify the stage of product life cycle in which sales are at peak. Introduction Growth Maturity Decline 32. Luxury products, such as Rolex watches, are also known as: Shopping product Convenience product Emergency product Specialty product 33. Life insurance is an example of which of the following goods? Convenience Expected Shopping Unsought 34. Which of the following goods are purchased by customer after comparisons of competing goods in competing stores on basis of price, quality, style and colors? Specialty goods Shopping goods Impulse goods Convenience goods 35. Which of the following attacks the vulnerable part of a competitor? Market leader Market challenger Market nicher Market follower 36. Which of the following is NOT a type of innovation strategy? Pioneers Challengers Close followers Late followers 37. Critical path analysis is a part of which of the following? Implementation stage Marketing strategies Executive summary Financial summary 38. Results from the research that have already been conducted are displayed in which of the following part of marketing plan? Marketing strategies Executive summary Appendix Financial summary 39. The marketing plan is one of the most important outputs of: Business plan Marketing process Production process Selling plan 40. Which of the following is an actor of task environment? Economy Media Promotion Technology 41. Critical path analysis is useful at which stage of the product development Process? Commercialization Concept development Beta testing Business Analysis 42. Which of the following BEST describes the consumer’s preference for products that are widely available to them? Production concept Marketing concept Selling concept Product concept 43. Buying and selling of mass consumer goods and services comes under which of the following markets? Business markets Global markets Consumer markets Government markets 44. Which of the following is an advantage that enables business to survive against its competition over a long period of time. Marketing advantage Sustainable competitive advantage Core competency Competitive advantage 45. A company designs the product with little or no input from customers, the company is practicing which of the following concept? Product concept Marketing concept Selling concept Production concept 46. A firm is producing standardized products and enjoying the economies of scale by producing more. The firm is following which of the following strategy? Differentiation strategy Cost leadership strategy Market dominance strategy Market segmentation strategy 47. Which of the following firms emphasis on product’s benefits to the customers rather than on product attributes. Product oriented Market oriented Sales oriented Production oriented 48. Which of the following is NOT a technique of measuring customer satisfaction and monitoring customer’s complaint? Customer complaints database Exit interviews Web and telephone information hotlines Business Analysis 49. The consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort are called: Industrial products Specialty products Unsought products Shopping products 50. Which of the following is also called an Export market? Consumer market Business market Global market Government market 51. Insurance service would BEST be described as which kind of a product? Convenience Unsought Specialty Durable 52. Sales decline in the decline stage of the PLC because of technological advances, increased competition, and _____. Shifts in unemployment Shifts in the economy Shifts in consumer tastes and preferences Foreign imports 53. Buying and selling of mass consumer goods and services comes under which of the following markets? Business markets Global markets Consumer markets Government markets 54. Which of the following is NOT a part of broad environment? Economy Demographics Technology Corporate culture 55. Which of the following firms emphasis on product’s benefits to the customers rather than on product attributes. Product oriented Market oriented Sales oriented Production oriented 56. Which of the following is NOT a type of vertical integration? Unbalanced vertical integration Balanced vertical integration Forward vertical integration Backward vertical integration 57. Identify the commercialization decision which involves decisions regarding launch of product in single or multiple localities? Why to launch the product? How to launch the product? Where to launch the product? When to launch the product? 58. Which of the following is NOT included in product decisions? Styling Brand name Warehousing Packaging 59. Additional cost is associated with which of the following strategy? Market segmentation strategy Market dominance strategy Differentiation strategy Cost leadership strategy 60. In the _____, the firm faces a trade-off between high market share and high current profit. Introduction stage Growth stage Maturity stage Decline stage 61. Which of the following is an advantage that enables business to survive against its competition over a long period of time. Marketing advantage Sustainable competitive advantage Core competency Competitive advantage 62. Which of the following 4Ps of marketing mix involves decisions regarding brand images, sizes, warranties, returns, designs and features? Product Price Promotion Place 63. Which of the following is a controllable factor for marketers? Competition Technology Corporate culture Economy 64. Which of the following markets involve buying and selling of goods for their utility and enabling them to make or re-sell a product to others? Consumer markets Business markets Global markets Government markets 65. Which of the following is a strategic planning method that some organizations use to make flexible long- term plans? Monitoring Forecasting Scenario planning Guerrilla marketing 66. Which of the following is the task of selecting an overall company strategy for long-run survival and growth? Mid-term planning 67. If you are looking for enlightenment in all the wrong places, _____ companies are eager to help. Feeling good is the new religion. These companies are the newest of the new prophets, turning the old notion of hope in a jar on its head. o auto o cosmetics o toy o food (b; Moderate; p. 275) 68. Tony and Tiny have a _____ company with a mission statement: “To aid in the evolution of human consciousness.” We think color therapy is going to be the new medicine,” said Tony. o auto o cosmetic o toy o food (b; Moderate; p. 276) 69. At the 5S store in SoHo, you buy things that are “energizing,” “nurturing,” or “adoring.” Here are products that are not intended to make you look better, but to make you act better, feel better, and be a better person. What kind of a store is this? o food o toy o electronics o cosmetics (d; Easy; p. 276) 70. _____, the General Motors of the cosmetics world, has a passionately held belief that the appeal is first the spirituality, and then the products. o Avon Company o Heaven Sent Company o Estee Lauder Companies o Proctor and Gamble (c; Challenging; p. 276) 71. The cosmetic’s image, its promises and positioning, its ingredients, its name and package, the company that makes it, the stores that sell it—all become a part of the total cosmetic product. What is one thing they do not try to sell? o lifestyle o self-expression o service-profit chain o achievement (c; Easy; p.276) 72. We define a _____ as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. o private brand o service variability o service o product (d; Easy; p. 276) 73. _____ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. o Line extensions o Services o Brands o Consumer products (b; Easy; p. 276) 74. Product is a key element in _____. At one extreme, it may consist of pure tangible goods or at the other extreme pure services. o market offering o brand equity o brand extension o co-branding (a; Easy; p. 277) 75. Many companies are moving to a new level in creating value for their customers. They are developing and delivering total customer experiences. Whereas products are tangible and services are intangible, experiences are _____. o product quality o memorable o unsought product o internal marketing (b; Moderate; p. 277) 76. Product planners need to think about products and services on three levels. Each level adds more customer value. The most basic level is the _____, which addresses the question, “What is the buyer really buying?” o actual product o augmented product o core benefit o co-branding (c; Challenging; p. 279) 77. Product planners need to think about products and services on three levels. The third level is that the product planners must build on a(n) _____ around the core benefit and actual product by offering additional consumer services and benefits. o augmented product o brand equity o brand extension o industrial product (a; Challenging; p. 279) 78. Product planners must design the actual product and find ways to _____ it in order to create the bundle of benefits that will provide the most satisfying customer experience. o core benefit o package o brand o augment (d; Challenging; p. 279) 79. Products and services fall into two broad classes based on the types of consumers that use them. Which is one of these broad classes? o industrial products o brand equity o co-branding o brand extension (a; Moderate; p. 281) 80. _____ are products and services bought by final consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products. o Services o Consumer products o Line extensions o Industrial products (b; Easy; p. 280) 81. _____ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons. o Shopping products o Brands o Services o Industrial Products (a; Moderately; p. 280) 82. _____ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. o Shopping products o Unsought products o Specialty products o Industrial Products (c; Moderate; p. 280) 83. _____ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts. o Specialty products o Line extensions o Unsought products o Shopping products (c; Easy; p. 281) 84. _____ are those products purchased for further processing or for use in conducting a business. o Unsought products o Specialty products o Shopping products o Industrial products (d; Easy; p. 281) 85. The three groups of industrial products and services include all of the following except _____. o materials and parts o capital items o maintenance and operations o supplies and services (c; Moderate; p. 281) 86. One of the three groups of industrial products includes materials and parts. Which is not one of the material parts? o farm products such as wheat o natural products such as iron ore o nonraw materials o petroleum (c; Easy; p. 281) 87. Manufactured materials and parts are sold directly to _____. Price and service are the major marketing factors; branding and advertising tend to be less important. o consumers o industrial users o brand extensions o co-branders (b; Challenging; p. 281) 88. _____ are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment. o Materials o Parts o Capital items o Specialty products (c; Moderate; p. 281) 89. Which of the following capital items is not considered an accessory part of equipment? The billing department needs to know so they can be classified correctly. o buildings o hand tools o lift trucks o desks (a; Moderate; p. 281) 90. The final group of business products is _____ and _____. These include paper, pencils, lubricants, paint, nails, and brooms. o supplies; services o capitals; installations o raw materials; farm products o specialty products; unsought products (a; Easy; p. 282) 91. _____ consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization. o Person marketing o Organization marketing o Internal marketing o Service variability (b; Challenging; p. 282) 92. What is a major tool companies use to market themselves to various publics — such as General Electric states, “We bring good things to life”? o person marketing o corporate image advertising o product quality o product line (b; Challenging; p. 282) 93. _____ consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people. o Corporate image advertising o Organization marketing o Person marketing o Social marketing (a; Moderate; p. 282) 94. _____ involves activities undertaken to create, maintain, or change attitudes towards particular cities, states, and regions. Texas advertises “it’s like a whole other country.” o Idea marketing o Place marketing o Social marketing o Interactive marketing (b; Easy; p. 282) 95. _____ can also be marketed. In one sense, all marketing is the marketing of this. It can be specific such as Crest toothpastes “create smiles every day.” o Co-branding o Internal marketing o Ideas o Unsought products (c; Moderate; p. 283) 96. _____ is defined as the use of commercial marketing concepts and tools in programs designed to influence individual’s behavior to improve their well-being and that of society. o Unsought product o Internal marketing o Social marketing o Product line (c; Easy; p. 283) 97. Marketing efforts, which include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are called _____. o specialty product o social marketing o shopping product o consumer product (b; Moderate; p. 283) 98. The Ad Council of America has developed dozens of _____ advertising campaigns, including classics such as “Smoky Bear,” “Keep America Beautiful,” and “Only You Can Prevent Forest Fires.” o social o brand equity o service o product line (a; Moderate; p. 282) 99. Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by _____ such as quality, features, and style and design. o private brand o product attributes o consumer product o product mix (b; Challenging; p. 283) 100. _____ is one of the marketer’s major positioning tools. It has a direct impact on product or service performance; thus, it is closely linked to customer value and satisfaction. o Packaging o Product quality o Social marketing o Specialty product (b; Easy; p. 283) 101. _____ is an approach in which all the company’s people are involved in constantly improving the products, services, and business processes. o Product quality o Brand equity o Total quality management o Specialty product (c; Easy; p. 284) 102. You have just read an article on the latest research about product quality. You want to tell your supervisor that product quality has two dimensions. What is one of these dimensions? o consistency o brand o convenience product o specialty product (a; Easy; p. 284) 103. Beyond quality level, high quality also can mean high levels of quality consistency. Here, product quality means _____ — freedom from defects and consistency in delivering a targeted level of performance. o private brand o product quality o total quality management o conformance quality (d; Challenging; p. 284) 104. A product can be offered with varying _____. A stripped-down model, one without any extras, is the starting point. o co-branding o features o product quality o service variability (b; Easy; p. 284) 105. The company periodically surveys buyers who have used a product and ask questions such as, “Which specific features of the product do you like the most?” The company can then assess each feature’s _____ to customers versus its _____ to the company. o cost; line extension o cost; service o value; cost o service; line extension (c; Challenging; p. 284) 106. A sensational _____ may grab attention and produce pleasing aesthetics, but it does not necessarily make the product perform better. o design o style o variable o service-profit chain (b; Moderate; p. 284) 107. _____ is more than skin deep—it goes to the very heart of the product. It contributes to a product’s usefulness as well as to its looks. o Style o Design o Packing o Brand (b; Easy; p. 284) 108. Good style and design can do many things. What is one thing it cannot do? o attract attention o improve product performance o cut production costs o cause unsought product reputation (d; Easy; p. 284) 109. A(n) _____ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service. o service o brand o co-branding o internal marketing (b; Easy; p. 285) 110. _____ involves designing and producing the container or wrapper for a product. o Packaging o Product line o Service o Branding (a; Easy; p. 286) 111. Like New Products wants to improve its packaging after reading customer responses to its customer opinion poll. Which is not a function of packaging? o Its purpose is to contain and protect the product. o It contains the brand mark. o It protects children. o It determines product quality. (d; Moderate; p. 286) 112. At the very least, the _____ identifies the product or brand. It might also describe several things about the product. o line extension o social marketing o label o specialty product (c; Easy; p.288) 113. Labels may mislead customers, fail to describe important ingredients, or fail to include needed safety warnings. As a result, several federal and state laws regulate labeling. The most prominent is the _____. o Co-branding Act of 1972 o Labeling Act of 1970 o Packaging Act of 1968 o Fair Packaging and Labeling Act (d; Easy; p. 288) 114. _____ requires sellers to provide detailed nutritional information on food products, and recent sweeping acts by the Food and Drug Administration regulate the use of health-related terms such as low- fat, light, and high fiber. o Fair Packaging and Labeling Act of 1966 o The Nutritional Labeling and Educational Act of 1990 o Labeling Act of 1970 o Packaging Act of 1970 (b; Moderate; p. 288) 115. Customer service is another element of product strategy. The first step is to survey customers periodically to asses the value of current services and to obtain ideas for new ones. From this careful monitoring, Cadillac has learned that buyers are very upset by repairs that are not done correctly the first time. What is the name of these types of services? o brand equity services o product support services o social marketing services o unsought product services (b; Challenging; p. 288) 116. A _____ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. o product line o line extension o private brand o convenience product (a; Moderate; p. 289) 117. Which of the following is an example of business-to-business marketing? o New Bedford College buys a professional Snapper lawn mower for its eastern campus o A retail florist orders six dozen assorted brass-colored vases to be used in flower arrangements o A new casino in Mississippi orders its name in four-foot titanium-clad steel letters from US Sign o All of the above are examples of business-to-business marketing Feedback: See page 52 in your textbook 118. _______________ consist of businesses that buy goods and services in order to produce other goods and services for sale. o Reference groups o Government buyers o Organizational buyers o Strategic partners Feedback: See page 52 in your textbook 119. Marketing to _______________ can be complex since they often have strict purchasing policies and regulations. o Government agencies o Consumers o Retailers o Wholesalers Feedback: See page 53 in your textbook 120. Why is a buying process needed? o To ensure that the old stock is sold in low cost with high number of purchasers o To ensure that products and services are purchased and received in a timely and efficient manner o To ensure their customers that they are branded. o To ensure that the products are purchased before the new stock coming in Feedback: See page 53 in your textbook 121. Just-in-time inventory is associated with the ____________ purchasing method. o Straight rebuy o Modified rebuy o Just-in-time o Straight task buy Feedback: See page 54 in your textbook 122. How do marketers retain customers who use straight rebuy? o By maintaining low costs and giving holiday packages o By introducing new schemes and following up with the feed back o By maintaining high-quality products and reliable service so that customers will continue to be satisfied with their purchases o By selling them a good brand at a retail price and maintain the same relation on their second visit Feedback: See page 54 in your textbook 123. When does an organization use modified rebuy? o When some aspects of the buying behavior are unfamiliar o When aspects of the buying behavior are familiar o When market prices are low o When purchasing policies and procedures remain the same Feedback: See page 54 in your textbook 124. When is new task purchases most often used? o For big-ticket items o For small-ticket items o For the purchase of a product o For the selling of the product Feedback: See page 54 in your textbook 125. Which of the following statements correctly describes the difference between how organizational buyers make purchases and how final consumers make their purchases? o Organizational buyers commonly purchase installations just like final consumers do o Final consumers are more likely to engage in negotiation than organizational buyers o Organizational buyers make less use of the Internet when buying than do final consumers o None of the above statements describes the difference between how organizational buyers look at purchases and how final consumers look at their purchases Feedback: See page 55 in your textbook 126. Which of the following statements about organization-specific factors that affect purchasing is true? o For manufacturing companies, the production department always controls purchasing decisions o Privately owned organizations that are highly centralized are more likely to use joint decision making for all purchases other than straight rebuys o The size of an organization typically does not affect its purchase decisions o A small (fewer than 15 employees) privately owned corporation that makes electronic equipment will be more likely to use autonomous decision making than a large multinational manufacturer of consumer products Feedback: See page 56 in your textbook 127. A large organization that is highly centralized is more likely to ____________ for other than straight rebuys. o Use joint decision making o Employ longer distribution channels o Rely on less personal selling o Use autonomous decision making Feedback: See page 56 in your textbook 128. It is common in organizational buying for purchase to be made cross functionally with representatives with different functional departments playing various roles in the process, taken collectively these are called the ___________. o Buying centers o Intermediaries o Forbes o Tangible products Feedback: See page 55 in your textbook 129. A privately owned, small company with technology or production orientation will tend towards ______________. o Autonomous decision making o Categories of organizational buyers o Branding and packaging o Nature of product mix Feedback: See page 56 in your textbook 130. A ______________ is an opportunity for the marketer to learn about the needs of the organization in its target market and to discuss ways to meet organizational needs. o Purchase decision o Modified rebuy o Straight rebuy o New task purchase Feedback: See page 57 in your textbook 131. International purchasing should be conducted in accordance with the laws, customs, and practices of foreign countries, consistent with U.S. laws, organization's policies, and these _______________. o Rules and regulations o Ethical Standards and Guidelines o Purchase norms o Acceptable purchasing processes Feedback: See page 59 in your textbook 132. _____________ is the process by which buyers rate each potential supplier on various performance measures such as product quality, on-time delivery, price, payment terms, and use of modern technology. o Quantity research o New task purchases o Priori segmentation o Vendor analysis Feedback: See page 60 in your textbook 133. The organizational buying process can be analyzed as a series of four stages. What are they? o Research, analysis, report, and implement o Organizational, need, vendor analysis, purchase activities, and post purchase evaluation o Finance, production, sales, and management o Production, vendor analysis, sales forecast, and marketing Feedback: See page 60 in your textbook 134. An organizational buyer in a (n) ___________ organization would have a strong commitment to traditionally accepted behavior and act accordingly. o Innovative o Autonomous o Adaptive o Lethargic Feedback: See page 59 in your textbook 135. Organizational buyers are engaging in sole sourcing because they are more concerned with _____________ than buying only on the factor of price. o Customer service o Branded product o Quality and timely deliveries o Market segmentation Feedback: See page 56 in your textbook 136. How does employee commitment to traditionally accepted organizational norms of behavior affect buying decisions? o Change customers' viewpoint o Innovative, adaptive, and lethargic o Increase scarcity in the market o creative, innovative and lethargic Feedback: See page 57 in your textbook 137. While considering the place for a product which of the following is important for customer. o Communication o Convenience o Cost o Solution 138. Which of the following is NOT included in product decisions? o Styling o Brand name o Warehousing o Packaging 139. Which of the following is NOT a purpose of a marketing plan? o It specifies how resources are to be allocated o It co-ordinates marketing and production activities o It assigns responsibilities, tasks and timing o It assists in management control 140. The marketing plan should open with a brief summary of the main goals and recommendations. This is called: o Business analysis o Situation analysis o Executive summary o Mission statement 141. Product planners need to think about products and services on three levels. Each level adds more customer value. The most basic level is the _____, which addresses the question, “What is the buyer really buying?” o Augmented product o Actual product o Core benefit o Specialty product 142. Which of the following is Not a component of a marketing plan? o Marketing advantages o Environmental analysis o Executive summary o Marketing implementation 143. Which of the following stage in the PLC is characterized by rapid market acceptance, increasing sales, and increasing profits? o Introduction o Growth o Maturity o Decline 144. The consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort are called: o Industrial products o Specialty products o Unsought products o Shopping products 145. Which of the following is NOT a technique of measuring customer satisfaction and monitoring customer’s complaint? o Customer complaints database o Exit interviews o Web and telephone information hotlines o Business Analysis 146. All of the following are the examples of controllable factors EXCEPT: o Line of business o Corporate culture o Overall objectives of organizations o Competition in the market 147. A company designs the product with little or no input from customers, the company is practicing which of the following concept? o Product concept o Marketing concept o Selling concept o Production concept 148. Which one of the following BEST describes the human need? o Food o French-fries o Burger o Pizza 149. In which of the following marketing strategy companies develop the brand name, brand image and product portfolio analysis? o Product o Pricing o Promotion o Distribution 150. Which of the following explains the description of the product? o Brand o Container o Labeling o Packaging 151. All of the following are the examples of unsought goods EXCEPT: o Course books o Encyclopedia o Funeral plots o Insurance policy 152. Which of the following 4Ps of marketing mix involves decisions regarding brand images, sizes, warranties, returns, designs and features? o Product o Price o Promotion o Place 153. Which of the following involves designing and manufacturing the container or wrapper for a product? o Labeling o Branding o Product line o Packaging 154. Identify the strategy that deals with the rate of new product development. o Vertical integration o Horizontal integration o Innovation strategy o Aggressiveness strategy 155. In terms of consumer behavior; culture, ________, and reference group influences have been related to purchase and consumption decisions. o Taxes o Political influences o Social class o Price Feedback: See page 39 in your textbook 156. Many __________ barriers are decreasing because of mass communication, mass transit, and a decline in the influence of religious values. o Religious o Subcultural o Market o Social class Feedback: See page 40 in your textbook 157. ___________ develop on the basis of wealth, skills and power. o Economical classes o Social classes o Competitors o Purchasing communities 158. Marketing managers should adapt the marketing mix to ___________________ and constantly monitor value changes and differences in both domestic and global markets. o Sales strategies o Marketing concept o Brand image o Cultural values 159. Two of the most important psychological factors that impact consumer decision-making process are product knowledge and product ____________. o Marketing o Involvement o Strategy o Price Feedback: See page 44 in your textbook 160. _____________ are transmitted through three basic organizations: the family, religious organizations, and educational institutions; and in today's society, educational institutions are playing an increasingly greater role in this regard. o Consumer feedback o Marketing information systems o Market share estimates o Cultural values Feedback: See page 40 in your textbook 161. ___________ is the single factor that best indicates a person's social class. o Time o Money o Occupation o Fashion Feedback: See page 40 in your textbook 162. Which of the following statements about social classes in the United States is true? o The working class is defined as "family folk" who depend heavily on relatives for economic and emotional support. o The middle class is the largest class. o Less than five percent of the population in the U.S. belongs to the upper class. o The middle class is the group most likely to demand instant gratification. Feedback: See page 40 in your textbook 163. Increased earnings in the middle class have led to spending on more "worthwhile experiences" for children, like ______________. o The latest television sets and other entertainment products o Ski trips, college education, and shopping for better brands of clothes at more expensive store o The best branded school gear, bags and shoes o Having great parties among high society circles Feedback: See page 40 in your textbook 164. Lower Americans are prone to ________________ when the money is available. o Competing with their neighbors o Making purchases based on instant gratification o Saving as much money as possible o Making large investments Feedback: See page 40 in your textbook 165. What are reference groups? o Groups that an individual looks to when forming attitudes and opinions o Groups of people who have been referred to by someone they know o Groups that an individual looks to for guidance in home buying o Chat groups on the internet Feedback: See page 41 in your textbook 166. Higher prices may not deter purchase. Why? o Most of the consumers prefer brand names which have higher prices o 70% of the total population looks for quality services and is willing to pay higher prices o Most of the consumers feel that the price is actually affordable o Consumers believe that the products or services are higher quality or are more prestigious Feedback: See page 42 in your textbook 167. One of the key tasks of marketers is _________________________ and to create consumer perceptions that the product is worth purchasing. o To make products easily visible and available o To promote sales of products o To differentiate their products from those of competitors o To do marketing surveys Feedback: See page 41 in your textbook 168. Situational influences that have considerable effect on product and brand choice are ________________, social features, time, task features and current conditions. o Physical features o Price o Guarantees o Packaging Feedback: See page 43 in your textbook 169. Which of the following is an example of a situational influence on consumer behavior? o Adam refused to buy his daughter an ice cream cone that was selling for $5.5 o Shelly purchased a German shepherd puppy because friends told her the breed makes excellent watchdogs o Barb only buys novels in which the story line illustrates some Christian value o After much looking, the newlywed purchased a gold necklace for his new stepdaughter Feedback: See page 48 in your textbook 170. Which of the following statements about product involvement is true? o Product knowledge is unrelated to product involvement o A consumer is just as likely to develop a level of product involvement with a product requiring routine decision making as with a product requiring extensive decision making o Product involvement does not affect how quickly a consumer moves through the purchase decision- making process o A consumer's level of product involvement will determine how quickly the purchase is made Feedback: See page 49 in your textbook 171. Which of the following is an example of an experiential source of information for making a consumer purchase decision? o Trying on various swimsuit styles o Setting an eye-catching sign in a store display o Reading about a product's quality in Consumer Reports o An ad in the midst of several movie trailers Feedback: See page 46 in your textbook 172. The diconfirmation paradigm is used to study _____________. o Need satisfaction o Decision-making roles within the purchase process o The relationship between product knowledge and product involvement o Postpurchase dissonance Feedback: See page 50 in your textbook 173. The occurrence of post decision anxiety is related to the concept of __________. o Extensive decision making o Cognitive dissonance o Limited decision making o Marketing strategy Feedback: See page 49 in your textbook 174. What kind of risk is concerning a fifty-year-old grandmother who worried about what people will think about her if she purchases a Saga play station for herself? o Over friendly o Psychosocial o Hyper o Over reactive Feedback: See page 50 in your textbook 175. The process by which information about the environment is generated, _________, and interpreted for use in marketing decision-making is called marketing research. o Recovered o Analyzed o Recorded o Stored Feedback: See page 26 in your textbook 176. The first step in the research process is to determine _______________. o Information about the changing elements o The marketing strategy o The business systems o Explicitly why the research is needed and what it is to accomplish Feedback: See page 27 in your textbook 177. A marketing plan spells out the nature of the research to be conducted and includes an explanation of such things as ________, design, and analysis techniques. o Sample o Objectives o Responsible parties o Likely findings Feedback: See page 28 in your textbook 178. Which of the following statements about marketing research is true? o Marketing research proves the old adage, "You get what you pay for" o Good marketing research considers all the factors that could influence the success of a marketing strategy o You don't need intuition or experience when you have marketing research o Many marketing managers view marketing research as the final answer to their problems Feedback: See page 28 in your textbook 179. Data that has been previously collected for other purposes but can be used for the problem at hand is known as ___________. o Secondary data o Quantitative research o Research data o Primary data Feedback: See page 28 in your textbook 180. Data collected specifically for the research problem under investigation is called __________. o Research plan o Primary data o Sample design o Quantitative research Feedback: See page 28 in your textbook 181. Observation, surveys, experiments, and mathematical modeling are four common types of __________________ in marketing. o Quantitative research o Qualitative research o Product research o None of the above Feedback: See page 28 in your textbook 182. The Five Ps of the research process are the purpose of the research, the plan of the research, the performance of the research, the processing of the research, and the _____________. o Preparation of the research o Predictability of the research o Promotion of the research results o Propagation of the research Feedback: See page 29 in your textbook 183. By the end of the first stage of the marketing research process, managers and researchers should agree on __________. o Whether the company will do its own research or hire a marketing research specialist o Whether primary or secondary data will be used o The specific question or questions the research is designed to investigate o The type of quantitative research to be conducted Feedback: See page 29 in your textbook 184. ________________ involves manipulating one variable and examining its impact on other variables. o Marketing audit o Mathematical modeling o Statistical study o Experimental research Feedback: See page 30 in your textbook 185. Mathematical modeling is useful because it provides _____________. o A research on secondary data o An efficient way to study problems with extremely large secondary data sets o A simple way to quantify data o The way to convert data into graphs Feedback: See page 30 in your textbook 186. Qualitative research is used in early stages of investigating a topic to get ____________. o More information and insight o Determined and satisfying customer o Adhere to the marketing concept o Attentiveness to all of the above Feedback: See page 30 in your textbook 187. In the research plan, the marketing researcher must define and delimit the problem that will be researched. Which of the following statements describes the type of information that should be included in this section? o A justification of the marketing research is unprofessional in this section or anywhere in the research plan o The scope, that is, the limits of the research effort, should be described in this section o This section should explain in detail the type of marketing information that will be gathered o All of the above statements accurately define this section Feedback: See page 30 in your textbook 188. _______________ often involves secondary data, such as scanner data collected and stored in computer files from retail checkout counters. o Mathematical modeling research o Experimental research o Product research o Sales forecasting Feedback: See page 30 in your textbook 189. Which of the following is NOT a type of quantitative research? o Mathematical modeling o Focus groups o Experiments o Surveys Feedback: See page 32 in your textbook 190. Quantitative research data may be analyzed in a variety of ways depending on the _______________. o Cardinal rule o Research method used o Objectives of the research o Number of respondents Feedback: See page 28 in your textbook 191. Which type of quantitative research should be used if the researcher needs to study a problem involving large secondary data sets? o Extended focus groups o Observational o Mathematical modeling o All of the above Feedback: See page 34 in your textbook 192. Marketing decision support systems (MDSSs) require three types of software. They are ________________. o Word processing, a spreadsheet, and a local area network system o A database management system, search engine software, and a dialog system o A spreadsheet, communications software, and word processing o A database management system, model base management software, and a dialog system Feedback: See page 39 in your textbook 193. Marketing decision support systems (MDSSs) are designed to handle information from both internal and external sources. Which of the following is an example of an internal source of data that could be used with an MDSS? o Company expenditure data on advertising o Industry expenditure data on sales promotions o Economic environmental changes o Global information on competitors Feedback: See page 40 in your textbook 194. __________ is the process whereby a company seeks to make a profit by serving the needs of customer groups. o The marketing concept o Business etiquette o Business rules o Effective marketing Feedback: See page 2 in your textbook 195. Effective marketing requires that ____________ come first in organizational decision-making. o Product knowledge o Selling orientation o Production orientation o Consumer needs Feedback: See page 2 in your textbook 196. In major types of marketing there are six important terms that have to be considered: Product, Place, Cause, Organization, Service, and _______. o Marketing o Person o Consumer o Finance Feedback: See page 3 in your textbook 197. _______________ includes all activities that lead to the development of a clear organizational mission. o Strategic planning o Organization's growth o Financial planning o Investment decision Feedback: See page 5 in your textbook 198. Some of the most successful business organizations are here today because many years ago they offered the right product at ___________ to a rapidly growing market. o A low cost o The right package size o The right time o None of the above Feedback: See page 5 in your textbook 199. During the 1940s, Odorono was a very popular, widely advertised antiperspirant. The product was manufactured by the Odorono Company in New York City. The product came in liquid and solid form and eliminated perspiration on hands, feet, forehead, and under arms. The most likely reason why this company no longer exists is _________. o It's lack of customer orientation o A poorly chosen name o It's failure to modify its strategy to reflect the changing environment o A poor use of the promotional mix Feedback: See page 5 in your textbook 200. The strategies that focus primarily on increasing the scale of present products to present customers are called _____________. o Market development strategies o Competition analysis o Customer research o Market penetration strategies Feedback: See page 10 in your textbook 201. When an organization has formulated its mission and developed its objectives the next managerial task is to develop a "grand design" to get there. This grand design constitutes ___________. o Organizational history o Organizational strategies o Marketing strategies o Production strategies Feedback: See page 9 in your textbook 202. Imagine a chain of steak restaurants that had as its mission statement to provide its customers with the world's best steaks. Changes in consumer tastes resulted in fewer customers for the steakhouses. In rationale to decreased demand, the restaurant over a period of time added chicken, vegetarian lasagna, seafood, and pizzas to its menu. Now, the chain of restaurants can best be described as a(n) ____________. o Organization that adheres to a production orientation o Organization without any strategy o Drifting organization o Organization that adheres to a selling orientation Feedback: See page 6 in your textbook 203. The strategies that focus primarily on increasing the scale of present products to present customers are called _____________. o Market development strategies o Competition analysis o Customer research o Market penetration strategies Feedback: See page 10 in your textbook 204. What does the mission statement define? o The goals o The market o Business development plan o The direction in which the organization is heading and how it will succeed in reaching its desired goals Feedback: See page 6 in your textbook 205. The ability to outperform competitors in providing something that the market values is called ___________. o Diversification o Product development strategies o Competitive advantage o Market development strategies Feedback: See page 11 in your textbook 206. What has to be identified before the opportunities, constraints and threats, and before a mission statement is developed? o Organization's history o Organizational portfolio plan o The organization's environment o The organization itself Feedback: See page 7 in your textbook 207. Why should the organization be focused on the market more than products? o The key feature of mission statement has been an external rather than internal focus o Organizations define their business in terms of what they make o The market and products are not that important o The marketing for the product is important Feedback: See page 7 in your textbook 208. Strategic business units (SBUs) _____________. o Share the organizational mission statement o Have decentralized management, their own competitors, and little autonomy o Are differentiated according to the organizational strategy each implements o Are identified and classified using portfolio models Feedback: See page 14 in your textbook 209. While the mission statement should stretch the organization towards more effective performance, it should, at the same time be more realistic and __________. o Receivable o Achievable o Reachable o Identifiable Feedback: See page 8 in your textbook 210. Which of the following statements about organizational objectives is true? o "To be the best in the industry" is a well-crafted organizational objective for a boat manufacturer o "To increase market share by 50 percent in the next 12 months" is an inappropriate organizational objective for a cereal manufacturer o "To reduce employee pilferage during the next three years" is a useful and well-crafted organizational objective for a wholesale grocery company o Organizational objectives are only necessary for departments that come in direct contact with the customer 211. Organizational _________ are usually stated as standards of performance. o Objectives o Missions o Marketing plans o Visions Feedback: See page 16 in your textbook 212. If done properly, ________________ helps in clearly defining a blueprint for management action in all functional areas of the organization. o The marketing audit o The strategic plan o The marketing mix o Action programs Feedback: See page 19 in your textbook 213. "When the mission statement of an organization is based on producing high-quality products, the organization will prosper over its competition." What does the following statement describe? o Mission statements need an external rather than an internal focus o Mission statement needs to divert towards the internal problems o Mission statement should justify both internal and external level o Mission statement cannot be applied in the following statement for high-quality products Feedback: See page 8 in your textbook 214. List any five characteristics of a good brand name. ( Marks: 5 ) A good brand name should: Be legally protectable Be easy to Pronounce Be easy to Remember Be easy to Recognize Attract Attention Suggest product Benefits (e.g.: Easy-Off) or suggest usage Suggest the company or product Image Distinguish the product's Positioning relative to the competition. 215. Differentiate the customer and the consumer. ( Marks: 5 ) CONSUMER This is a term, which has many facets. But in business field we use this term to mean that individual who derives direct utility of the product. Consumer has his or her budget, and he or she tends to derive maximum utility within that budget. That is why we are keen to study his or her preferences, choices, sensitivity and interests with a view to maximizing his utility. We need to study Consumer Behavior and to harness and educate consumer to make our product successful. CUSTOMER This term connotes that individual who actually makes a decision in selecting a certain product. He or she may and may not directly consume the product. But he or she takes a buying decision. A housewife for example buys cooking oil for her household- she is a customer. The entire family is a consumer. Two kinds of customers: Internal and External. Internal are those, who work in the organization. External are those who are individuals, business people and groups outside. 216. What is loss leader concept? 217. What is CLV and its importance for companies? 218. Write about vertical strategies? 219. Types of discounts? 220. Differentiate marketing orientation and product orientation approaches. (5) 221. Write idea generation sources (internal or external). (5) 222. What are consumer needs and its types. 223. What is packaging and labeling. How it helps marketers? 224. Why pricing is most important factor of marketing mix. What factors influence pricing 225. Berkowitz Piano Company can lengthen its product line in one of two common ways. Which is one of these ways that might prove productive?