Download Midterm Exam - C. T. Bauer College of Business

Midterm Exam, Mark 6361, Spring 2007
Name: __________________________________
UH ID:__________________________________
Please write your UH ID# on the scantron as well and blacken the matching circles.
Multiple Choice: Each questions worth 2 points. Choose the one alternative that
best completes the statement or answers the question.
1. PRIZM sells data that helps in placing stores in profitable locations, based on the
idea that:
a. generational cohorts determine buying patterns
b. tastes are specific to particular metropolitan areas
c. regardless of city, a marketer can find areas with residents whose
buying patterns parallel those in similar areas around the U.S.
d. knowing the value of a home in Atlanta and the value of a home in
Houston enables a retailer to target similar groups
e. every city has different buying patterns, and marketers need help in
determining how cities differ in that regard
2. The textbook says that for well-known companies, brand value is typically over
_________ of the total market capitalization.
a. one-half
b. one-tenth
c. three-quarters
d. one-fourth
e. There is no numerical average available to answer this question
3. Brand can play a number of specific roles within a company’s brand portfolio. For
example, a __________ is positioned to fight it out with one or more competitors’
brands so that a company’s more important and profitable brands retain their
desired positioning.
a. cash flow
b. mid-market brand
c. low end, entry level brand
d. high end, prestige brand
e. flanker
4. A ___________ occurs when the parent brand is used on a new product targeting
a new market segment within a category currently served by the parent.
a. joint venture co-brand
b. line extension.
c. category extension
d. multiple sponsor co-brand
e. same company co-brand
5. Which of the following statements best describes the difference between age and
life cycle segmentation and generation segmentation?
a. Age and life cycle segmentation assumes that the effect of time and
generational segmentation is based on the effects of economic and social
status.
b. Age and life cycle segmentation is rigid and unchanging over time while
generational segmentation changes with each decade.
c. Age and life cycle segmentation assumes people are influenced by
where they are in life, and generational segmentation assumes they
are influenced by what they grew up with.
d. Age and life cycle segmentation is a relatively straightforward
segmentation strategy while generational segmentation is much harder to
implement.
e. There are no differences between age and life cycle segmentation and
generational segmentation.
6. _________ is the ability to prepare, on a mass basis, individually designed
products to meet each customer’s requirements.
a. Concentrated marketing
b. Clustered marketing
c. Specialized
d. Niching
e. Mass customization.
7. __________ has been defined as a deeply held commitment to re-buy or repatronize a preferred product or service in the future despite situational influences
and marketing efforts having the potential to cause switching behavior.
a. Delight
b. “Deep” satisfaction
c. Satisfaction
d. Loyalty
e. Value delivery
8. Frequency programs acknowledge that ________ of a company’s customers
might account for _____ of its business.
a. less than 5 percent; nearly all
b. 75 percent; a slight majority
c. most; most
d. 30 percent; 50 percent
e. 20 percent; 80 percent
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9. To enhance its marketing efforts, the best thing a company can do is make it
_____ to complain.
a. easy
b. very difficult
c. moderately difficult
d. a two-step process
e. None of the above. Since complaints are not positive, companies should
discourage them altogether.
10. Fidelity Investments puts through certain customers’ calls more quickly than
others as a strategy for improving the value of the company’s customer base.
While on the phone, the longer-waiting customers hear messages encouraging
them to complete their transaction via the company web site. This is an example
of which kind of strategy?
a. Enhancing the potential growth potential of each customer.
b. Making low-profit customers more profitable.
c. Increasing the longevity of the customer relationship
d. Managing phone queues via illegal and discriminatory practices
e. Reducing customer defection rate.
11. _________ is the process of managing detailed information about individual
customers and carefully managing all customer “touch points” to maximize
customers’ loyalty.
a. Customer relationship management
b. Prospect identification
c. Add on selling
d. Mass customization
e. Growing value equity
12. Which is true of competitive advantage?
a. Benjamin Franklin first talked about by it.
b. It is the ability to copy the best practices of other companies
c. Being the fastest to the market guarantees competitive advantage,
according to Porter’s Five Forces
d. Companies that hope to endure must continually invent new
advantages.
e. A characteristic that is of no importance to customers can be customer
advantage.
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13. Which of following is true?
a. If marketers raise expectations too high, the buyer is likely to be
disappointed.
b. If the company sets expectations too low, the buyer is likely to be
disappointed.
c. If marketers raise expectations too high, they will soon have many copycat
offerings competing in the marketplace.
d. If marketers raise expectations too high, they won’t attract enough
customers.
e. If the company sets expectations too low, exceeding buyers’ expectation
becomes difficult.
14. ________ are trademarkable devices that serve to identify and differentiate the
brand.
a. Brand equities
b. Intellectual properties
c. Brand promises
d. Brand elements
e. Consumer knowledge bases
15. Marketers are advised to define a strategic business unit (SBU) in terms of :
a. production process employed, key material(s) employed, price level
b. customer groups served, customer needs met, technology employed
c. relative market share, length of time the company has been in this
business, uniqueness of its offering compared to competitors
d. management strength, autonomy within the parent company, relation of
this SBU’s products to the company’s other products
e. price, product, promotion, and distribution
16. According to the work of Frederick Herzberg ________.
a. Marketers can use laddering to determine the appropriate appeal to be
used in their ads
b. A person moves from stated instrumental motivation to terminal ones.
c. A bottle of Estee Lauder perfume arouses a different set of motives in
consumers than an Avon perfume .
d. Polite store clerks will not necessarily be a satisfier for a consumer,
but impolite ones would be a dissatisfier.
e. People are driven by particular needs at particular times.
17. The first step in the buying process is the _________.
a. purchase decision
b. evaluation of alternatives
c. information search
d. recognition of a need or problem
e. location of alternatives
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18. Which of the following is an example of a behavioral segmentation variable?
a. Education level
b. Family life cycle
c. Stage of readiness to buy
d. Lifestyle
e. Occupation
19. Aaron’s hunting and fishing activities, his interest in military history, and his
opinions about an all-volunteer army reflect his _________.
a. demographics
b. personality
c. social class
d. lifestyle
e. self-concept
20. A new supplier is least likely to make a sale to a prospect involved in which of the
following buying situations?
a. Direct purchase
b. Functional rebuy
c. Modified rebuy
d. Straight rebuy
e. New task
21. Advertising usually has its greatest impact at the ___________ stage of new task
buying.
a. trial
b. adoption
c. interest
d. awareness
e. evaluation
22. A(n) _______ establishes a long-term relationship in which the supplier promises
to re-supply the buyer as needed at agreed upon prices over a specified period.
a. over-run contract
b. purchase order contract
c. superior order contract
d. specialized contract
e. blanket contract
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23. The point of showing in class that a bank might target those newly divorced or a
school of nursing might target men was to emphasize the potential payoff from:
a. casting as wide a net as possible
b. selecting related segments to target – two or more with obvious
similarities
c. focusing on one segment
d. directing marketing efforts to the largest possible segment
e. directing marketing efforts to the segment closest to the organization’s
current customer base
24. Which of the following has the most influence in straight rebuy and modified
rebuy situations in a multinational corporation?
a. Purchasing agent
b. Finance department
c. Administrative personnel
d. Production managers
e. Engineering department
25. Core values are important in marketing because:
a. marketing efforts are unlikely to change them
b. changing core values is the key to creating differential advantage
c. associating a competitor’s brand with a core value makes it less desirable
to discriminating buyers
d. they cannot be reinforced by schools, churches, business, and government
the way secondary values can
e. they are generation-specific
26. The institutional market is best describes as having ______.
a. demand that is elastic, derived, and fluctuating
b. contract negotiations and fluctuating demand
c. derived demand, geographically concentrated suppliers, and budgetary
constraints.
d. low budgets and a captive clientele
e. demand elasticity and geographically concentrated suppliers.
27. We said that in class that a company purchasing tops for storage tanks used the
title of “vice president” as a cue that the work was of high quality. The point is:
a. Status in a company hierarchy leads to better technical outcomes
b. Customers judge quality by cues that go beyond technical outcomes
c. Business cards are a form of advertising
d. Customers have no clue about what leads to quality outcomes.
e. Companies that lack marketing departments need to get them.
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28. Vesta Rae-Gaubert, our speaker from the transportation field, emphasized the
importance in the marketing of professional services of :
a. taking into consideration the price category of the project
b. emphasizing technical competence in an oral presentation once a company
is short listed for a project
c. knowing who will be in the audience when preparing the oral
presentation
d. talking without notes
e. using PowerPoint slides to impress the audience
29. We said in class that laddering is a technique to:
a. learn which brands will not suffer by increasing their prices
b. target the social class most likely to prefer a given brand
c. improve advertising by understanding the underlying motives for
purchase
d. select a distribution channel astutely, due to better knowledge of who is
likely to prefer the brand
e. extend a brand to other products
30. Two ads passed around in class offered specific examples of the point that:
a. some ads are more memorable that others, due to differences in creative
execution.
b. some ads are better than others at making clear what audience the
advertiser intends to target.
c. ads differ in complexity of their message, and simpler is better
d. ads differ in their emphasis on creating favorable attitudes vs.
creating beliefs.
e. ads are more effective if they feature the name of the advertiser
prominently.
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Please
BRIEFLY answer each question.
Each answer is worth up to 10 points each.
Complete sentences are not necessary.
31. To form strong customer bonds, the textbook advises adding social benefits and structural
ties to what a marketer offers to customers. Please write any product category here __________,
then describe, for that product category:
 one example of a social benefit here, and
P. 76 wants a marketer to build connections between company personnel and clients, whom
they distinguish from customers by the fact that somebody knows their name. If the
product you picked was a professional service, this was easy to answer. If you picked
laundry soap, you could recognize that if selling that soap to the Kroger chain you would
want to build a relationship that made someone in your organization a trusted advisor (or
some such term) to a Kroger purchasing agent or category manager. Most people answered
the question NOT as indicated above, but providing a benefit to society. They got the full 5
points of credit for this half of the question.
 one example of a structural tie here. P. 77 offered examples: long-term contracts,
lower prices for continuing purchase agreements, or arrangements to meet differing needs
at different times (vehicle leasing options were their example, but a soap marketer could
offer to mail pine-scented soap at Christmas, heart-shaped soap at Valentine’s Day,
pumpkin scented soap at Halloween – please sign here for our “holiday gift” offer…. On this
half, I gave 2 points for anything, but to get 5 you had to say something like the answer above.
32. To be useful, says the textbook, market segments must rate favorably on five key criteria; the
first is that the segments are measurable. Please list any three of the other four effective
segmentation criteria (I stop reading after three) and explain any one of the criteria (just one,
please, and briefly) to a college sophomore. This list is on pp. 127-128 and was on a slide I
posted, but didn’t have time to show. Segments must be measurable, substantial, accessible,
differentiable, and actionable; the textbook defines each. One correct answer, correctly
defined, got you 4 points. Then two more correct answers got you 3 points each. If either was
incorrect, you got 2 points for that one.
33.How does market penetration differ from market development? You can draw a matrix to
answer this question, or use prose, or some of each. The prose here is on p. 28, referring to the
slide I showed in the lecture on Chapter 2. Market penetration: sell more of what you now
sell to people who already buy it. Market development: find new people to buy what you
sell. The matrix as Ansoff drew it up has four cells, but anything conveying this idea was
fine. If you had the idea right but switched the answers you got 8 points. Otherwise you got 5
points for each correct answer and 2 for each incorrect answer. Obviously, I believe in
encouraging you to take a stab at answers, even if you miss.
34. Explain “derived demand” to a college sophomore, briefly, and why it matters in forecasting
sales for any business-to-business marketer. We talked about this issue in class (either one of
you asked about it or I did) and the book says on p 113 that demand in the business market
is derived from demand in the consumer market – so if a business that normally buys from
you isn’t selling to THEIR customers, they are not going to continue buying from you, but if
their business increases, there is a good chance that yours will as well. So forecasting how
your customers’ marketing efforts will progress or regress will help you forecast the
demand for your own offerings if your customers are businesses. Any sensible answer got 8
points. Any answer got 4.
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