Download Examination #2

Principles of Marketing
Examination #2
October 12, 2010
Name: ____________________________
Answer the following multiple-choice questions by selecting the response that best addresses the question and
placing the corresponding letter in the space provided to the left. Make sure that your responses are legible and
that you answer all questions. Each question is worth one point.
1. B
1. ________ are groups to which an individual wishes to belong, as when a teenage basketball
player hopes to play someday for the Los Angeles Lakers.
A) Membership groups
B) Aspirational groups
C) Leading adopter groups
D) Social class groups
2. A
2. ________ are people within a reference group who, because of special skills, knowledge,
personality, or other characteristics, exert influence on others.
A) Opinion leaders
B) Social networkers
C) Stealth marketers
D) Buzz marketers
3. A
3. ________ are society's relatively permanent and ordered divisions whose members share similar
values, interests, and behaviors.
A) Social classes
B) Cultures
C) Reference groups
D) Lifestyles
4. B
4. ________ describes changes in an individual's behavior arising from experience.
A) Lifestyle
B) Learning
C) Perception
D) Cognitive dissonance
5. C
5. ________ is a person's pattern of living as expressed in his or her psychographics, including his
or her activities, interests, and opinions.
A) Personality
B) Culture
C) Lifestyle
D) Social class
6. C
6. ________ is never simple, yet understanding it is the essential task of marketing management.
A) Brand personality
B) Early adoption
C) Consumer buying behavior
D) Understanding the difference between primary and secondary data
7. A
7. ________ is the most important consumer buying organization in society; the roles and
influences of different members have been researched extensively.
A) Family
B) Social class
C) Subculture
D) Reference group
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8. B
8. ________ is the systematic collection and analysis of publicly available information about
consumers, competitors, and developments in the marketing environment.
A) Marketing data
B) Marketing intelligence
C) Customer intelligence
D) Competitive intelligence
9. A
9. ________ is the systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
A) Marketing research
B) Exploratory research
C) Observational research
D) Causal research
10. D
10. ________ refers to the unique psychological characteristics that lead to relatively consistent and
lasting responses to one's own environment. It is usually described in traits such as selfconfidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness.
A) Alternative evaluations
B) Belief
C) Culture
D) Personality
11. B
11. A ________ consists of the activities people are expected to perform according to the persons
around them.
A) motive
B) role
C) lifestyle
D) tradition
12. A
12. A company or store gains what benefit by differentiating its products and delivering more
value?
A) competitive advantage
B) positioning advantage
C) cost advantage
D) synergy
13. A
13. Almost all major purchases result in ________, or discomfort caused by postpurchase conflict.
A) cognitive dissonance
B) purchase decisions
C) legitimization
D) dissatisfaction
14. C
14. As compared to consumer markets, business markets are ________.
A) approximately the same
B) smaller
C) huge
D) less complex
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15. A
15. Causal research is used to ________.
A) test hypotheses about cause-and-effect relationships
B) gather preliminary information that will help define problems
C) find information at the outset of the research process in an unstructured way
D) quantify observations that produce insights unobtainable through other forms of
research
16. B
16. Consumers learn about new products for the first time and make the decision to buy them during
the ________.
A) new product recognition
B) adoption process
C) evaluation process
D) information search
17. D
17. Demographic variables are so frequently used in market segmentation because they ________.
A) create smaller segments
B) create more easily reached segments
C) do not involve stereotypes
D) are easy to measure
18. B
18. Each culture contains smaller ________, or groups of people with shared value systems based
on common life experiences and situations.
A) alternative evaluations
B) subcultures
C) social classes
D) occupations
19. B
19. Ethnographic research ________.
A) comes from traditional focus groups
B) is gathered where people live and work
C) provides secondary data
D) provides data to marketers when observation is impossible
20. B
20. Experimental research is best suited for gathering ________ information.
A) exploratory
B) causal
C) attitudinal
D) descriptive
21. B
21. Facebook.com and YouTube are examples of ________.
A) buzz marketing
B) opinion leaders
C) social networks
D) early adopters
22. A
22. Faced with determined competitive marketing intelligence efforts by competitors, most
companies are now doing which of the following?
A) training employees on protecting company information
B) promising to not participate in marketing intelligence efforts against competitors
C) providing employees with less key company information
D) decreasing the number of employees involved in decision-making processes
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23. B
23. Family is one of the ________ factors that influence consumer behavior.
A) cultural
B) social
C) personal
D) psychological
24. A
24. firm has decided to localize its products and services to meet local market demands. A good
approach to use would be ________ segmentation.
A) geographic
B) benefit
C) customer
D) image
25. B
25. Focus group interviewing has become one of the major marketing research tools for getting
insight into consumer thoughts and feelings. However, if the sample size is small, a researcher
would be most concerned about which of the following?
A) finding a representative sample
B) generalizing from the results
C) orchestrating cooperation among participants
D) finding enough secondary data to support the findings
26. A
26. Generally, the consumer's purchase decision will be to buy the most preferred brand, but two
factors can come between the purchase intention and the purchase decision. Which of the
following is one of these factors?
A) attitude of others
B) cognitive dissonance
C) alternative evaluation
D) new product adoption
27. C
27. In the model of buyer behavior, which of the following is NOT a major type of force or event in
the buyer's environment?
A) economic
B) technological
C) channels
D) cultural
28. B
28. It is considered socially irresponsible when the marketing of adult products spills over into the
________ segment.
A) elderly
B) child
C) minority
D) senior
29. B
29. Marketers must weigh carefully the costs of additional information against the ________
resulting from it.
A) organization
B) benefits
C) creativity
D) ethical issues
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30. B
30. Marketers of automobiles, financial services, and travel are most likely to use which of the
following types of segmentation?
A) gender
B) income
C) occasion
D) benefits sought
31. C
31. Marketing information from which type of database usually can be accessed more quickly and
cheaply than other information sources?
A) external
B) LexisNexis
C) internal
D) ProQuest
32. D
32. Marketing information is only valuable when it is used to ________.
A) identify a target market
B) please shareholders
C) increase efficiencies in the supply chain
D) make better marketing decisions
33. B
33. Marketing researchers usually draw conclusions about large groups of consumers by studying a
small ________ of the total consumer population.
A) group
B) sample
C) population
D) target group
34. B
34. Marketing stimuli consist of the four Ps. Which is NOT one of these Ps?
A) product
B) politics
C) price
D) place
35. A
35. Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users,
and regular users of a product. This method of segmentation is called ________.
A) user status
B) usage rate
C) behavior
D) loyalty status
36. D
36. Maslow's theory is that ________ can be arranged in a hierarchy.
A) stimuli
B) beliefs and attitudes
C) perceptions
D) human needs
37. A
37. Mass marketers, such as Target and Venture Stores, often ignore market segment differences
and target the whole market with one offer. What is their approach to segmenting?
A) undifferentiated marketing
B) target marketing
C) concentrated marketing
D) micromarketing
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38. C
38. People change the goods and services they buy over time because of the two changing factors of
________.
A) belief and attitude
B) perception and personality
C) age and life-cycle stage
D) family and tradition
39. A
39. People forget much that they learn. They tend to retain information that supports their attitudes
and beliefs. This is called ________.
A) selective retention
B) selective distortion
C) selective attitude
D) selective attention
40. B
40. People tend to interpret new information in a way that will support what they already believe.
This is called ________.
A) selective retention
B) selective distortion
C) selective attitude
D) selective learning
E) selective perception
41. C
41. Secondary data consists of information ________.
A) that already exists somewhere but is outdated
B) that does not currently exist in an organized form
C) that already exists somewhere but was collected for another purpose
D) that is used by competitors
E) that the researcher can only obtain through surveys and observation
42. B
42. Small organizations can obtain, with minimal effort and cost, most of which type of data
available to large businesses?
A) observational
B) secondary
C) primary
D) ethnographic
43. B
43. Some consumers worry that they will be affected by marketing messages without even knowing
it. They are concerned about ________ advertising.
A) comparative
B) subliminal
C) perceptual
D) innovative
44. C
44. Survey research is least likely to be conducted through which of the following?
A) the mail
B) the telephone
C) observation
D) person-to-person interactions
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45. C
45. Survey research, though used to obtain many kinds of information in a variety of situations, is
the approach best suited for gathering ________ information.
A) causal
B) attitudinal
C) descriptive
D) exploratory
46. C
46. The answer to the question, "Why should I buy your brand?" is found in the ________.
A) quality image
B) customer services
C) value proposition
D) differentiation
47. C
47. The buyer decision process consists of 5 stages. Which is NOT one of the stages?
A) need recognition
B) information search
C) variety-seeking buying behavior
D) postpurchase behavior
48. D
48. The first step of the business buying process is ________.
A) general need description
B) supplier search
C) proposal solicitation
D) problem recognition
49. B
49. The marketer wants to understand how the stimuli are changed into responses inside the
consumer's ________, which has two parts: the buyer's characteristics that influence how he or
she perceives and reacts to the stimuli and the buyer's decision process itself.
A) culture
B) black box
C) belief
D) lifestyle
50. C
50. The most common research instrument used is the ________.
A) mechanical device
B) live interviewer
C) questionnaire
D) telephone interviewer
51. B
51. The objective of ________ research is to gather preliminary information that will help define
the problem and suggest hypotheses.
A) descriptive
B) exploratory
C) causal
D) corrective
52. C
52. What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
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53. A
53. What competitive positioning strategy can attack a more-for-more strategy by introducing a
brand offering with comparable quality at a lower price?
A) more-for-the-same
B) more-for-less
C) same-for-less
D) less-for-much-less
54. D
54. What is one way that social class is NOT measured?
A) occupation
B) education
C) income
D) number of children in the family
55. B
55. What is the first step in the marketing research process?
A) developing a marketing information system
B) defining the problem and research objectives
C) developing the research plan for collecting information
D) interpreting data and deciding on type of research
56. D
56. What is the LEAST pressing in Maslow's Hierarchy of Needs?
A) physiological needs
B) social needs
C) esteem needs
D) self-actualization needs
57. A
57. What source of marketing information provides those within the company ready access to
research information, stored reports, shared work documents, contact information for employees
and other stakeholders, and more?
A) an intranet
B) an extranet
C) marketing research
D) marketing intelligence
58. B
58. When a company identifies the parts of the market it can serve best and most profitably, it is
practicing ________.
A) mass marketing
B) market targeting
C) segmenting
D) differentiation
59. C
59. When a company interacts one-on-one with large numbers of customers to create customerunique value by designing products and services tailor-made to individual needs, it is following
________.
A) concentrated marketing
B) mass marketing
C) mass customization
D) undifferentiated marketing
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60. B
60. When a market segment is large or profitable enough to serve, it is termed ________.
A) measurable
B) substantial
C) actionable
D) differentiable
61. B
61. When Burger King targets children, teens, adults, and seniors with different ads and media, it is
practicing ________ segmentation.
A) geographic
B) age and life cycle
C) psychographic
D) behavioral
62. A
62. When firms use symbols, colors, or characters to convey their personalities, they are using
________ differentiation.
A) image
B) people
C) reputation
D) subliminal
63. B
63. Which difficult to sustain positioning strategy attempts to deliver the "best-of-both"?
A) more-for-the-same
B) more-for-less
C) same-for-less
D) more-for-more
64. D
64. Which group determines a product's position relative to competing products?
A) manufacturers
B) wholesalers
C) retailers
D) consumers
65. A
65. Which method could a marketing researcher use to obtain information that people are unwilling
or unable to provide?
A) observational research
B) focus groups
C) personal interviews
D) Internet surveys
66. C
66. Which of the following contact methods is generally the least flexible?
A) telephone interviewing
B) personal interviewing
C) mail questionnaires
D) online surveys
67. C
67. Which of the following is NOT considered a source of marketing intelligence?
A) suppliers
B) key customers
C) causal research
D) activities of competitors
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68. A
68. Which of the following is the most basic cause of a person's wants and behavior?
A) Culture
B) Brand personality
C) Cognitive dissonance
D) Social factors
69. B
69. Which of the following is the narrowest strategy?
A) segmented strategy
B) local marketing
C) differentiated marketing
D) mass marketing
70. C
70. Which of the following is true about customer relationship management (CRM)?
A) It relies on information produced through primary research.
B) Its aim is to increase the efficiency of each customer touchpoint.
C) Its aim is to maximize customer loyalty.
D) Most companies who first implemented CRM have greatly benefited from the results.
71. D
71. Which of the following statements is NOT true regarding information collected by marketers?
A) Managers lack information of the right kind.
B) Most managers do not need more information.
C) Most managers need better information.
D) Managers have the right information and they have enough of it.
72. D
72. Which of the following statements regarding marketing intelligence is true?
A) Marketing intelligence is privately held information.
B) The advantage of using competitive intelligence is negligible.
C) All marketing intelligence is free.
D) Marketing intelligence is publicly available information.
73. D
73. Which type of statement first states the product's membership in a category and then shows its
point-of-difference from other members of the category?
A) mission statement
B) vision statement
C) differentiation statement
D) positioning statement
74. A
74. You have just created the "perfect" ad. It communicates the full mix of benefits upon which the
brand is differentiated and positioned. This full positioning of the brand is called ________.
A) its value proposition
B) target marketing
C) value profiling
D) differentiated marketing
75. C
75. Your assistant wants to use secondary data exclusively for the current marketing research
project. You advise him that the use of secondary data has some potential problems. Which of
the following is NOT one of them?
A) It may not exist.
B) It may not be relevant.
C) It is generally more expensive to obtain than primary data.
D) It may not be current.
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Of the following thirteen short answer questions, select eight (and only eight) to answer. Each
response should be succinct, yet fully address the issues posed. In most cases, a few sentences will
suffice. Please make sure that your writing is legible. Each question answered is worth three
points. Only the first eight questions attempted will be graded.
76. Why must marketers guard against stereotypes when using age and life cycle segmentation?
Answer: Not all consumers in the same age and life cycle categories share the same abilities and
interests; some 40-year-olds may have more in common with typical 20-year-olds, for example, than
with other 40-year-olds.
77. Why do marketers segment the market?
Answer: Marketers divide heterogeneous markets into smaller groups that can be reached more
efficiently with products and services that match their unique tastes; firms focus on buyers they can
serve best and most profitably.
78. When might be the best time for a marketer to use geographic segmentation?
Answer: Geographic segmentation may be especially profitable when consumers in different regions,
states, counties, and so forth share distinct buying behaviors and product or service preferences.
79. What characteristics would interest a marketer who focuses on psychographic segmentation and how
would the marketer use that information to reach customers?
Answer: Such characteristics include social class, lifestyle, and personality.
80. When are business buyers most likely to make decisions heavily influenced by personal factors?
Answer: If suppliers' offers are very similar, there is little basis for a rational, objective choice; in
these situations, buyers are more likely to allow emotions and other personal factors to influence their
decision.
81. What are the differences between innovators and early adopters?
Answer: Innovators are more willing to take on risk; early adopters try new ideas early on but are
much more deliberate.
82. Explain how marketers may be able to reduce postpurchase cognitive dissonance.
Answer: Marketers should make every effort to enhance after-sale communications, providing
evidence and support to help consumers feel good about their purchases.
83. Describe an example of a cultural shift that may impact the marketing of products or services.
Answer: Answers will vary. Currently, the shift toward greater concern about health and fitness has
generated increased marketing of exercise equipment and gear.
84. Why has consumer resentment toward marketing research been growing?
Answer: More individuals are wary of invasion of privacy and want to protect personal information;
many also simply resent the intrusion of marketing research and dislike surveys that are too long or
too personal.
85. A researcher is collecting data in an airport. Why might a sample be most appropriate?
Answer: People in an airport are often in a hurry; not everyone will want to participate in providing
data. Therefore, the researcher may be satisfied with collecting data from whoever is willing to
provide it.
86. How might survey research be a better approach than observation research when attempting to assess
customer satisfaction?
Answer: Survey research is more effective than observation in measuring customer satisfaction
because observations of smiling customers or armloads of merchandise, for example, do not
necessarily indicate customer satisfaction.
87. Explain why exploratory research, descriptive research, or causal research would be most useful for
determining whether shoppers in the Midwest are more sensitive to a price increase for laundry soap than
shoppers on the East Coast are.
Answer: Causal research would be most important because it investigates cause-and-effect
relationships; causal research would allow the researcher to test a hypothesis about price sensitivity
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and compare the differences in the two geographic regions.
88. Briefly explain the following statement: "Too much information can be as harmful as too little."
Answer: Too much information may prohibit marketers from clearly applying the data/information to
their objectives, while excess information may lead marketers to lose sight of their objectives.
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