Download Marketing IQ Review - Angelo State University

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MULTIPLE CHOICE
1. The two basic functions performed by all organizations, from the large multinational firms such as
Mercedes to an exclusive Chinese restaurant, are
a. marketing and planning.
b. management and accounting.
c. financing and planning.
d. buying and selling for profit.
e. production and-marketing.
2. The process by which two or more people give something of value to each other to satisfy perceived
needs is called the
a. marketing process
b. valuation process
c. exchange process
d. didactic process
e. facilitating process
3. A quality product is not successful until it
a. is mass produced in large quantities.
b. has an effective warranty or guarantee.
c. has been advertised across the nation.
d. comes in several sizes.
e. has been effectively marketed.
4. To avoid marketing myopia, Walt Disney Company should describe itself as
a.
b.
c.
d.
e.
"We
"We
"We
"We
"We
are
are
are
are
are
in
in
in
in
in
the
the
the
the
the
movie business."
animated and family movie business."
family fun business."
business of selling dreams and experiences."
entertainment business."
S. As the president of the SADD (Students Against Drunk Driving) chapter at your college, you would
apply the concept of
a.
b.
c.
d.
e.
organization marketing.
person marketing.
cause marketing.
place marketing.
event marketing.
6. The marketing mix is best described as
a.
b.
c.
d.
e.
a composite of all environmental factors inside and outside the firm.
a blend of business decisions that aid in the selling of a product.
the functional relationship between marketing strengths and business weaknesses.
the blending of the four strategy elements to satisfy specific target markets.
the resources and skills behind the company's opportunities.
7. Total Quality Management must focus first and foremost on the
a.
b.
c.
d.
e.
product.
suppliers.
organization.
customer.
employees.
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8. The first step in measuring customer satisfaction is
a.
b.
c.
d.
e.
monitoring competitors' quality initiatives.
determining purchase behavior patterns.
identifying potential customers.
gathering information about customer wants and expectations.
formulating a customer-focus mission statement.
9. Giving employees the authority to make better decisions about their work without
supervisory approval is called
a.
b.
c.
d.
e.
delegating authority.
empowerment.
promotional responsibility.
authorization.
entitlement.
10. A thorough evaluation of an organization's marketing philosophy, goals, policies,
practices, and results is known as
a.
b.
c.
d.
e.
marketing
marketing
marketing
marketing
marketing
benchmark.
strategy.
assessment.
evaluation.
audit.
11. Identifying how business leaders achieve superior performance and using this information is called
a.
b.
c.
d.
e.
quality matching.
benchmarking.
performance analysis.
performance matching.
none of the above.
12. An advantage of going global would be
a.
b.
c.
d.
e.
revenue tariffs.
dumping opportunities.
language barriers.
new marketing insights.
embargoes.
13. Foreign licensing is an agreement in which
a. a firm permits a foreign company to produce and distribute its merchandise.
b. an American firm and a foreign firm share the risks, costs, and management of the
foreign operation.
c. a firm maintains a separate marketing and selling operation that is formally licensed
under the firm's name in the foreign country.
d. a firm acquires an existing firm in the country in which it wishes to do business.
e. an American firm signs agreements with foreign firms to join foreign cartels.
14. Owning manufacturing or marketing facilities in another country is called
a.
b.
c.
d.
e.
foreign ventures.
direct investment.
straight investment.
joint investment.
global investment.
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15. The time span usually covered by strategic planning is
a. one to six months.
b. six months to one year.
c . five years or more.
d. ten to twenty ears.
e. any period of time that needs planning.
16. An organization's attempt to develop a long term, cost effective link with individual customers
for mutual benefit is referred to as
a. target marketing.
b. mutuality marketing.
c. beneficial marketing.
d. relative marketing.
e. relationship marketing.
17. The basic objectives, or goals, of the organization are derived from the
a. strategic planning.
b. tactical plan.
c. corporate strategy.
d. mission statment.
e. customer research.
I
18. SWOT is an acronym for
a. strategy, working, openness, toughness.
b. strategy, weakness, opinion, tactical.
c. scanning, weakness, organization, tactical. d
. strategy, working, opinion, tactical.
e. strengths, weaknesses, opportunities, threats.
19. To evaluate the organization's SBUs, the Boston Consulting Group developed a four-quadrant matrix
that includes
a. question marks.
b. quick winners.
c. charging bulls.
d. cash outs.
e. achievers.
20. Special computer software used in answering "what-if" questions is referred to as
a.
b.
c.
d.
e
control sheets.
electronic integers.
spreadsheets.
interactive worksheets.
computer calcu1alators.
21. Quantitative forecasting methods include
a.
b.
c.
d.
e.
sales force composite.
survey of buyer intentions.
Delphi technique.
trend analysis.
jury of executive opinion.
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22. Sales analysis is a
a. record of all previous sales in the history of the company.
b. breakdown of advertising expenses versus sales of competing firms.
c. simplified income statement with a breakdown of growth, profit, and loss.
d. computerized simulation of sales territories and maximization of salesperson
activities.
e. thorough breakdown and in-depth evaluation of the firm's sales.
23. Primary data refer to data that are
a. being collected for the first time during a research study.
b. less time-consuming and less costly than secondary data.
c. newly published results from government investigations.
d. part of a master planning strategic activity to ensure proper resource allocation.
e. often in an unusable format or are chronologically useless.
24. A General Electric engineer who identifies various U.S. warehouses that inventory light bulbs,
and then randomly selects cartons of light bulbs from within these warehouses is using the
probability sampling method known as
a. random sampling.
b. quota sampling.
c. stratified sampling.
d. product sampling.
e. cluster sampling.
25. A newscaster's "on-the-street" interviews are good examples of a
a. media sample.
b. convenience sample.
c. cluster sample
d. stratified sample.
e. quota sample.
26. The cardinal rule is to understand that marketing research is intended to
a. increase the need for more periodic research projects.
b. provide ways that sophisticated computer systems can be used cost effectively.
c. solve marketing problems.
d. assist in decision making.
e. provide more thorough data bases for future comparisons and cross-studies.
27. A planned, computer-based system to provide managers with a continual flow of information relevant
to their specific decision areas is known as a
a.
b.
c.
d.
e.
marketing information system (MIS).
marketing support system (MSS).
marketing research system (MRS).
data retrieval system (DRS).
data base information system (DBIS).
28. A group of consumers most likely to purchase a particular product are called
a.
b.
c.
d.
e.
a
a
a
a
a
consumer market.
pre-purchase market.
seller's market.
buyer's market.
target market.
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29. Your decision to determine whether a product should be classified as a business good or a consumer
good would be based on
a.
b.
c.
d.
e.
whether the product is going to be stored for future use.
the location where the product is purchased and type of payment.
who is buying the product and why it is being purchased.
the quantity of product purchased and in what size unit boxes.
how the product was made and the materials used in the product.
30. To be effective, market segmentation must meet which of the following criteria?
a. Avoid focusing on non-variables such as profitability and volume.
b. The market segment must be measurable in terms of both purchasing power and size.
c. The company must expand beyond its marketing capabilities in order to capture growing
markets.
d. The market segment must reflect changing attitudes and lifestyles.
e. Marketers must be ready to sell the market as it discovers the company.
31. The most common approach to market segmentation is
a.
b.
c.
d.
e.
benefit segmentation.
economic segmentation.
psychographic segmentation.
product sampling.
demographic segmentation.
32. The 80/20 principle holds
a. that market segmentation works 80 percent of time and not so well 20 percent of the
time.
b. that roughly 80 percent of sales come from 20 percent of total customers.
c. that 80 percent of segmentation strategies are done by 20 percent of the corporations.
d. that 80 percent of the market is segmentable, 20 percent can be categorized.
e. that 80 percent of the market has brand loyalty, and 20 percent is open to being
influenced.
33. When marketers reposition a product they
a.
b.
c.
d.
e.
spend significant amounts of advertising dollars.
must repackage and change the factors which create recognition.
must take the opposite positioning strategy from the original strategy.
change the position it holds in the minds of prospective buyers.
should provide the consumer with reasons why they are repositioning.
34. Buyer behavior is a term that refers to
a.
b.
c.
d.
e.
cultural buying patterns.
commercial and government buying behavior.
organizational and institutional buying behavior.
individual and family buying patterns.
organizational and consumer buying behavior.
35. Consumer buying behavior is influenced by
a.
b.
c.
d.
e.
personal and organizational variables.
interpersonal and personal variables.
industrial purchase behaviors.
vendor analysis.
none of the above.
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36. The following are all interpersonal determinants of consumer buying behavior except
a.
b.
c.
d.
e.
cultural influences.
aspirational groups.
membership groups.
family influences.
attitudes.
37. The relative position of any individual member in a group is called
a.
b.
c.
d.
e.
a role.
a position.
status.
respect.
ego.
38. The lack of something useful is called
a. a perception.
b. an attitude.
c. a self-concept.
d. a motive. e. a
need.
39. A personal influence on consumer behavior that could be described as relatively enduring positive
or negative evaluations of products or information are known as
a.
b.
c.
d.
e.
biases.
assessments.
attitudes.
prejudices.
perceptions.
40. Trade industries consist of
a. manufacturers.
b. wholesalers and retailers.
c. farmers.
d. transportation. e. insurance
and real estate.
41. The relationship between the demand for silk and the consumer demand for silk blouses and neckties
is known as
a.
b.
c.
d.
e.
joint demand.
demand variability.
consumer demand.
business demand.
derived demand.
42. Examples of business market items that would be purchased as a straight rebuy are
a.
b.
c.
d.
e.
raw materials.
heavy-duty machinery.
paper clips and pencils.
computers.
typewriters.
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43. When purchasers shift from a straight rebuy to a modified rebuy situation, it is often due to
a. a change in the accelerator principle.
b. the routine buying format being outdated.
c. corporate expansion.
d. a deterioration in service or delivery.
e. an improvement in straight rebuy service.
44. A product passes through a series of stages from the time it is introduced to the time it is no
longer marketed; these stages are referred to as the
a. product life cycle.
b. buyers stage.
c. sellers stage.
d. product stage.
e. service cycle.
45. Business products can be subdivided into each of the following categories except
a. installation.
b. accessory equipment.
c. manufactured equipment.
d. component parts and materials.
e. supplies and raw materials.
46. Capital items that are typically less expensive and shorter lived than installations are referred
to as
a.
b.
c.
d.
e.
accessory equipment.
supplies.
raw materials.
component parts and materials.
high technology equipment such as Vax computer systems.
47. During the introductory stage of the product life cycle
a.
b.
c.
d.
e.
the leader reaps very high profits.
the followers enter the market.
losses are common.
the product has great notoriety.
market intermediaries receive their orders.
48. The assortment of product lines and individual offerings available from a marketer is called
a.
b.
c.
d.
e.
mixture
product
product
product
product
of products.
mix.
ingredients.
formula.
strategy.
49. Sears' Die Hard automobile battery is an example of a
a.
b.
c.
d.
e.
national brand.
manufacturer's brand.
generic brand.
family brand.
private brand.
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50. Bayer can successfully market its aspirin at a higher price than competitive products due to its
a. trademark.
b. brand mark.
c. high brand equity.
d. trade name.
e. packaging.
51. Generic names include all the following except
a. Nylon
b. Coca-Cola
c. Aspirin
d. Escalator
e. Kerosene
52. A name, term, sign, symbol, design, or some combination of these used to identify the products
of one firm and differentiate them from competitive offerings is called (a)
a. brand.
b. trade name.
c. generic name.
d. "no frills."
53. Product positioning is important because
a. its results are shown by strong brand recognition but not by brand insistence.
b. it is never used with family brands.
c. it is the consumer's perception of advantages and disadvantages.
d. the product is at eye level on the shelf.
e. all of the above.
54. A pure service would be
a.
b.
c.
d.
e.
building a backyard deck.
putting in a sod lawn.
eating a luau dinner under palm trees.
installing a TV antenna.
tuning a piano.
55. A goods-services continuum is a(n)
a. marketing program designed to show the differences in approach for developing programs
for goods and services.
b. marketing mix demonstrating how alike goods marketing and services marketing actually
are.
c. method of visualizing the differences and similarities between goods and services.
d. activity describing all the services available to consumer and industrial purchasers.
e. definition stating that most products have either goods or services components, but no
both.
56. Vacant seats on an airplane and unsold symphony tickets are illustrations of
a.
b.
c.
d.
e.
intangibility.
inseparability.
perishability.
difficulty of standardization.
buyer involvement.
PACE
57. The use of two or more distribution channels to reach the same target market is referred to as
a.
b.
c.
d.
e.
dual
dual
dual
dual
dual
channeling.
target marketing.
marketing.
strategizing.
distribution.
58. Direct selling carries goods directly from a producer to
a.
b.
c.
d.
e.
an ultimate consumer.
the final retailer.
the final channel member that takes possession.
the final storage location.
a person who takes both title and ownership in the channel.
59. The importance of wholesaling intermediaries can be explained in terms of
a.
b.
c.
d.
e.
the form utility they create.
their ability to lower costs.
the service they require from producers.
their ability to create dual distribution channels for raw materials.
the fact that they can replace reverse channels.
60. A manufacturer's agent
a.
b.
c.
d.
e.
is the independent marketing department of small firm.
can sell for several manufacturers of noncompeting products.
aids the manufacturer by taking title to the products.
represents only one manufacturer in the marketplace.
carries a very large inventory for the manufacturer.
61. Retailing
a.
b.
c.
d.
also involves non-store activities.
is the beginning of the consumer channel.
does not provide consumer information to manufacturers.
consists of all operations at a fixed location that involve the sale of products to
ultimate consumers.
e. provides minimum services to non-industrial customers.
62. The wheel of retailing
a. describes a retailer offering different products for different economic levels of
customers.
b. describes the evolution of retailing systems during the pre-World War II era.
c. exists when a retailer increases hours of operation and forms of product ownership.
d. describes the evolution of a retailer's price and service strategies over time.
e. is only related to large multi-store, multi-area retailers.
63. The physical characteristics and amenities that attract customers and that project the store's
personality are called
a. psychographics.
b. buyer-graphics.
c. ergonomics. d
. demographics.
e. atmospherics.
64. So
a.
b.
c.
d.
e.
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much attention-has been given to physical distribution activities in recent years because
these activities represent a major portion of the total marketing costs.
advertising and promotional activities are a significant part of physical distribution.
it is the easiest place to reduce costs.
with the inclusion of computers, costs can now be tracked.
it is so closely tied to retailing.
65. A "maquiladoras" is a (n)
a. way to by pass transportation costs through shipment outside the U.S.
b. physical distribution strategy to get large quantities of goods shipped at a lower
rate.
c. process of exchange which utilizes suboptimization.
d. Mexican assembly plant built long the border.
e. uncontrolled inventory and shipping system.
66. The most efficient mode for the movement of bulky commodities over long distances is
a. the railroad.
b. contract carriers.
c. the pipeline.
d. air cargo.
e. logistics coordinators.
67. Any paid-for, nonpersonal communication through various media by identifiable sponsors to a
particular audience is referred to as
a. advertising.
b. public relations.
c. publicity.
d. sales promotion.
e. personal selling.
68. Advertising that deals with the nonpersonal selling of a particular good or service is referred
to as
a.
b.
c.
d.
e.
product advertising.
institutional advertising.
corporate advertising.
advocacy advertising.
cause advertising.
69. The first step involved in selling is
a.
b.
c.
d.
e.
approaching the customer.
presenting the product or service.
demonstrating the product.
detailing.
prospecting.
70. The salesperson's initial contact with the prospective customer is called the
a.
b.
c.
d.
e.
precall.
prospecting step.
approach.
client-qualifying stage.
presentation.
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71. The method of price setting which is most widely used is
a. breakeven.
b. customary.
c. PIMS.
d. cost plus.
e. competitive.
72.
A major factor influencing the elasticity of demand is the
a. decrease in price of the product.
b. drop in demand for its substitutes or complements.
c. availability of substitutes.
d. increase of supply of the product.
e. constant demand for the product.
73.
Using low prices as a major marketing weapon is the strategy of
a. competitive pricing.
b. skimming pricing.
c. "market-plus" pricing.
d. functional prici.ng.
e. penetration pricing.
74.
The amount the consumer pays, which may or may not be the same as the list price, is called the
a. unit price.
b. cash price.
c. trade price.
d. credit card prince.
e. market price.
75.
When General Motors introduced the Saturn, it priced the SL sports sedan at $2,000 less than the Toyota Corolla DLX and $1,500 less than the
Toyota and Honda automobiles. This an example of the pricing strategy called
a. skimming.
b. penetration.
c. competitive.
d. loss leader.
e. functional.
76.
The rate normally quoted to potential buyers, which is the basis on which most price structures are built, is called the
I
a. unit price.
b. list price.
c. cash price.
d. trade price.
e. suggested price.
77. The statement that would qualify as a definition of a cash discount is:
a. a 3 percent dis count for buying by the truckload.
b. a discount for performing some promotional activities.
c. a 40 percent discount for taking ownership immediately.
d. receiving a rebate for cash payment.
e. a discount for prompt return of invoice with payment.
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78. An example of odd pricing would be
a. buy-two-get-one-free promotions. b. selling a radar detector
for $129.95 instead of for $130. c. subtracting trade-ins from
list price. d. rebates that lower total price. e. penetration
pricing.
79. Promotional pricing
a.
b.
c.
d.
is the same as skimming pricing.
uses a lower-than-normal price.
is advertised prices.
is when a firm uses extensive promotional allowances to get channel members to promote
the product.
e. is marketing products at a limited number of prices.
80. Payments to channel members for performing marketing functions are known as
a. trade discounts. b.
cash discounts. c.
quantity discounts. d.
allowances. e. cumulative
discounts.
(c) 1998 by Harcourt Brace & Company. All rights reserved.