1101/156.200
MAN
Distance Only
SC
ASR
MASSEY UNIVERSITY
MANAWATU CAMPUS
EXAMINATION FOR
156.200 MARKETING FOR NON-MARKETERS
Semester One 2011
Time allowed: TWO (2) hours
ALL questions are COMPULSORY
SECTION A
60 Multichoice Questions
60 Marks
Answer on Scantron card supplied
SECTION B
4 Short-answer questions each worth 10 marks
40 Marks
Total:
100 Marks
THIS IS A CLOSED BOOK EXAMINATION
INSTRUCTION SECTION
Scantron Cards
Ensure that your name and identification number are entered on your Scantron Card
in the first eight spaces. Record your answer on your Scantron Card by putting a
solid horizontal pencil line through the character representing the ‘best’ answer to
the question with a blunt 2B or 3B pencil, please. The Scantron Card will not read
properly if you do not follow these instructions. At the conclusion of the examination,
please hand the Scantron card to the supervisor.
Page 1 of 17
1101/156.200
MAN
Distance Only
SC
ASR
SECTION A
Each question is worth 1 mark. Answer using Scantron Card provided.
1
A company that produces family-sized frozen meals designed to feed six
people notices from recent census figures that an increasing number of people
are living alone, the average family size has reduced, marriage rates have
declined and per capita incomes are increasing. These changes in the
____________ within the ____________ environment present the company
with a marketplace opportunity
a.
b.
c.
d.
e.
2
A local movie theatre which has a discounted price for students and seniors
decides to offer all females a discounted price. Such a pricing strategy would
be:
a.
b.
c.
d.
e.
3
illegal
unethical
illegal and unethical
discriminatory
acceptable
As traditional stores such as K-Mart increase sales at their Internet stores,
they are rightfully concerned about _____.
a.
b.
c.
d.
e.
4
lifestyles; sociotechnological
demographics; sociolegal
demographics; economic
demographics; sociocultural
lifestyles; socioeconomic
increased price competition
consumers’ perception that they are using scrambled merchandising
changing consumers’ values
earning too much money
breaking laws that regulate the use of dual distribution channels
In the sports footwear market, the major players Nike, Adidas, Reebok and
New Balance all offer slightly different products but none of them has a
dominant share of the market. The sports footwear market is an example of:
a.
b.
c.
d.
e.
monopolistic competition
strategic competition
oligopolistic competition
perceptual competition
perfect competition
Page 2 of 17
1101/156.200
MAN
Distance Only
5
A company produces specialised wetsuits used primarily by professional
athletes. It wants to create consumer awareness about its brand to encourage
non-professional athletes to try out their products. They decide to provide free
wetsuits to a range of prominent local athletes and to contribute financially to
local sporting competitions. The company is engaging in ______________:
a.
b.
c.
d.
e.
6
straight extension strategy
localisation strategy
product adaptation strategy
product invention strategy
new product launch strategy
The Paradise Surf Shop is the only surf-gear store catering to women in a
major beach town. It carries everything the serious female surfer needed to
ride the waves. In terms of its merchandise assortment, it has a _____.
a.
b.
c.
d.
e.
8
image advertising
sponsorship
disintermediation
sales promotion
publicity
Subway, the sandwich chain, operates in 87 countries. The basic concept is
the same – healthy sandwiches made fresh – but Subway varies the sandwich
ingredients on offer and the sauces for local tastes. This is an example of a:
a.
b.
c.
d.
e.
7
SC
ASR
shallow and deep assortment
narrow and deep assortment
shallow and broad assortment
broad and deep assortment
deep only assortment
Political candidates often hire image consultants who tell them what clothes to
wear, how to wear their hair, and how to act in front of a crowd of people.
Political candidates who use image consultants to help them market
themselves to the voters are using which of the following strategies?
a.
b.
c.
d.
e.
brand extension
market development
diversification
product improvement
pure selling
Page 3 of 17
1101/156.200
MAN
Distance Only
9
An outdoor sign company uses full-size vinyl sheets for their signs so that they
can be easily changed. If a change in the price of petroleum (a necessary
ingredient for the production of plastic) forced manufacturers of vinyl sheets to
increase their price by 20 percent, the company would still need to buy the
same amount to meet its customers’ needs. Therefore, demand for vinyl
sheets by companies that use this product to create billboard ads is _____.
a.
b.
c.
d.
e.
10
elastic
economic
immovable
inelastic
fixed
Home Depot is a chain of stores catering for professional and amateur
plumbers, electricians, and carpenters. It progressively introduced garden
centres then home design centres that provide help with all kinds of interior
decorating problems. Now it is enlarging its garden centres and hiring
knowledgeable gardeners to staff these centres. The addition of more
amenities and greater assortment can be explained by the _____.
a.
b.
c.
d.
e.
11
SC
ASR
interconnectedness of the retail life cycle
trend toward customerisation
trend toward disintermediation
wheel-of-retailing hypothesis
80/20 rule of retailing
Unilever, the manufacturer of many recognisable brands of consumer
products, has announced that it plans to cut its number of product lines from a
high of 1,600 different products to 400 products so that it can concentrate on
increasing its efficiency. This is an example of a(n) _____.
a.
b.
c.
d.
e.
downward line stretch
value stretch
upward line stretch
product line contraction
filling-out strategy
Page 4 of 17
1101/156.200
MAN
Distance Only
12
SC
ASR
An organic farmer has identified three distinct groups for his products—
vegetarians, people who are concerned about chemicals in their foods, and
people who consider themselves innovators and trendsetters. His next step in
the target marketing process is to _____.
a. determine how he wants his products perceived in relation to the
competitions’ products
b. establish controls to make sure actual results meet planned results
c. determine whether he will use a seeking or a production orientation when
dealing with his customers
d. design one marketing mix to reach all three segments
e. buy television time for seasonal ads
13
Prior to the development of the cardiac stent, surgeons used balloons to clear
obstructed heart vessels, but there was no way to ensure the vessels would
stay open. The stent is a tiny metal scaffold that props open the formerly
obstructed blood vessel and keeps it from becoming obstructed again. There
was nothing like the stent on the market when it first appeared. The cardiac
stent was an example of a _____.
a.
b.
c.
d.
e.
14
New millennium companies place a greater emphasis on _________
measuring how much value is created by marketing activities.
a.
b.
c.
d.
e.
15
dynamically continuous innovation
nonradical innovation
competitive innovation
continuous innovation
discontinuous innovation
value accounting
accessibility
responsibility
accountability
management accounting
The basic rule of good public relations is _____.
a.
b.
c.
d.
e.
‘Don’t put all your eggs in one basket’
‘A rolling stone gathers no moss’
‘Do something good, then talk about it’
‘Let a smile be your umbrella’
‘The early bird gets the worm’
Page 5 of 17
1101/156.200
MAN
Distance Only
16
The key to ensuring that a customer who has experienced failures in service
quality continues to patronise the business is:
a.
b.
c.
d.
e.
17
it falsely promotes attributes products don’t have
it can prevent competitors from entering the market
it can force a competitor out of the market
it can undermine economic efficiency and force up prices
all of the above
Cookies measure which websites a consumer visits and are an example of
_________.
a.
b.
c.
d.
e.
19
the number of employees who apologise
the dollar amount of the service in question must be low
the level of the individual who resolves the complaint
the speed with which the complaint is resolved
whether an actual individual can be blamed for the failure
There is a need to regulate advertising containing false information
because_________.
a.
b.
c.
d.
e.
18
SC
ASR
personal observation
mechanical observation
obtrusive observation
covert observation
overt observation
Which of the following would be a question a firm or individual engaging in
marketing planning would ask?
a. What product benefits will our customers be looking for in three to five
years?
b. What capabilities does our firm have that set it apart from the competition?
c. What additional customer groups might provide important market segments
for us in the future?
d. How will changes in technology affect our production process, our
communication strategy, and our distribution strategy?
e. all of the above
Page 6 of 17
1101/156.200
MAN
Distance Only
20
SC
ASR
The main difference between legally offering spotter’s fees and the prohibited
practice of referral selling is:
a. spotter’s fees are paid before a sale is made
b. no representations as to commissions are made before the contract is
signed
c. no offer of commission is made until after the contract is signed
d. commissions are paid only to selected individuals
e. none of the above
21
Which of the following is NOT identified as one of the five characteristics of
innovations that affect the rate of adoption?
a.
b.
c.
d.
e.
22
In terms of the promotion mix, telemarketing is most closely related to _____.
a.
b.
c.
d.
e.
23
trade promotions
public relations
mass advertising
personal selling
consumer promotions
The measurable quality of a country’s distribution,
communication systems are referred to as its _____.
a.
b.
c.
d.
e.
24
relative advantage
tangibility
observability
trialability
compatibility
financial,
and
foreign trade benefits
standard of living
ethnocentrism
economic infrastructure
norms and customs
Marketers are striving to generate customer _____ when a teaser
advertisement is created that will give prospective customers just enough
information about the new product to make them curious.
a.
b.
c.
d.
e.
awareness
interest
evaluation
adoption
impulse purchasing
Page 7 of 17
1101/156.200
MAN
Distance Only
25
An attribute that may be difficult to evaluate even after it has been
experienced is a (n) _____.
a.
b.
c.
d.
e.
26
The research design should be determined before the problem is defined.
The last step is to analyse and interpret the data.
The sample must be designed after the data is collected.
The first step is to define the research problem.
The data collection method is selected before the researcher has
determined the research design.
Database marketing is _____.
a.
b.
c.
d.
e.
29
awareness
knowledge
demand
purchase
loyalty
Which one of the following statements about the steps in the marketing
research process is TRUE?
a.
b.
c.
d.
e.
28
search quality
experience quality
credence quality
gap analysis
service encounter
Hierarchy of effects steps within the communication objectives of an IMC plan
include all of the following EXCEPT _____.
a.
b.
c.
d.
e.
27
SC
ASR
exchange-oriented
only used in business-to-business marketing
the creation of lists of customers for cold calling
interactive
all of the above
In many communities, you can find a range of different fast-food restaurant
franchises within a couple of miles of each other. The nearness of these
restaurants to each other illustrates the importance of the _____ factor.
a.
b.
c.
d.
e.
operational
cross-docking
locational
functional
educational
Page 8 of 17
1101/156.200
MAN
Distance Only
30
_____ occurs when people learn that their actions result in rewards or
punishment.
a.
b.
c.
d.
e.
31
SC
ASR
Classical conditioning
Operant conditioning
Cognitive conditioning
Information searching
Self-concept
Which one of the following statements about marginal analysis is TRUE?
a. Marginal analysis is not always a straightforward procedure.
b. An important factor in marginal analysis is predicting demand, and this is
not an exact science.
c. Marginal analysis is a less-than-perfect way to determine the best price for
a product.
d. Marginal analysis identifies the output and the price that will generate the
maximum profit.
e. all of the above
32
All of the following describe institutional advertising EXCEPT _____.
a. institutional advertising promotes the activities or point of view of an
organisation or company
b. institutional ads are likely to offer one cohesive message
c. institutional messages do not try to sway public opinions
d. institutional ads do not focus on a specific product
e. all of the above
33
The primary regulator of economic activity in countries such as New Zealand
and Australia is:
a.
b.
c.
d.
e.
anti-competition laws
marketing ethics
competition
codes of conduct
governments
Page 9 of 17
1101/156.200
MAN
Distance Only
34
SC
ASR
Behavioural learning theorists _____.
a. believe learning occurs when people watch the actions of others and note
what happens to them as a result
b. assume learning takes place as the result of connections that form
between events that we perceive
c. believe the most important component of learning is behaviour that is
directed by affect and cognition
d. view people as problem solvers who do more than passively react to
associations between stimuli
e. stress the role of creativity and intuition during the learning process
35
A (n) _____ is an extreme form of quota that prevents the importing of
specified foreign goods completely.
a.
b.
c.
d.
e.
36
A/n __________ site is one that holds people’s attention so they are motivated
to ___________ on the site and are more likely to __________ advertising
information.
a.
b.
c.
d.
e.
37
grey tax
embargo
barrier to trade
supply-based infrastructure
export prohibition
effective; click through; overlook
sticky; click through; overlook
creative; click all links; overlook
sticky; stay longer; absorb
creative; stay longer; ignore
The changes in prices of other products can affect the demand for an item.
This is a phenomenon called _____.
a.
b.
c.
d.
e.
cross-elasticity of demand
complementary elasticity
parallel elasticity
asymmetrical demand
complementary demand
Page 10 of 17
1101/156.200
MAN
Distance Only
38
A company decides to start a ‘members only’ club offering special promotions
and regular price discounts. When consumers sign up, they will be asked to
provide information including age, address and family size. This company will
use the data for:
a.
b.
c.
d.
e.
39
SC
ASR
customer retention
customer acquisition
customer abandonment
customer accrual
market basket analysis
Which of the following will present future opportunities for service marketers?
a. increases in the proportion of the population of New Zealand over the age
of 60
b. global deregulation and increased global competition
c. increases in the importance of obtaining, reporting and using information
d. technological advances such as the Internet
e. all of the above
40
The __________ makes it illegal to send most types of commercial electronic
messages to or from New Zealand without the recipient’s consent.
a.
b.
c.
d.
e.
41
Trade Practices Act 1974 (Cth)
Unsolicited Electronic Messages Act 2007
Spam Act 2003 (Cth)
Anti-Spam Act 2007
Broadcast Act 1988
Which of the following is NOT a characteristic of CRM?
a.
b.
c.
d.
e.
marketers focus on measuring share of customer
marketers’ main focus is on measuring market share
marketers calculate the lifetime value of each customer
marketers consider customer equity as a financial asset
marketers prioritise customers and customise communication accordingly
Page 11 of 17
1101/156.200
MAN
Distance Only
42
With a _______ agreement, one company sells another company the right to
use a brand name. Brands that are owned and sold by a certain retailer or
distributor are called ________ brands while ________ brands share the
same brand name.
a.
b.
c.
d.
e.
43
frequency programmes; bonus packs; push money; rebates
case allowances; promotional products; bonus packs; push money
special packs; shelf allowances; frequency programs; case allowances
shelf allowances; push money; frequency programmes; bonus packs
discounts; free products; loyalty programs; push money
___________ are manufactured outside the country and then imported without
the consent of _______. A company that wants to keep prices high in their
home market might _______ into foreign markets, pricing the products at a
lower price.
a.
b.
c.
d.
e.
45
co-branding; national; umbrella
licensing; national; umbrella
co-branding; exclusive; family
licensing; co-branded; umbrella
licensing; private-label; family
A marketer might offer ________ and _________ to retailers to encourage
them to stock the company’s products. A marketer might offer ________ and
__________ to consumers to encourage them to purchase the company’s
products.
a.
b.
c.
d.
e.
44
SC
ASR
black market goods; governments; cross-supply
grey market goods; customs officials; introduce counterfeit
grey market goods; trademark holders; dump
counterfeit goods; corporate headquarters; quantity dump
beige market goods; trademark holders; dump
_________ refers to morals, the treatment of moral questions, and behaving in
a morally correct and honourable way.
a.
b.
c.
d.
e.
Ideology
Spirituality
Ethics
Honesty
Credibility
Page 12 of 17
1101/156.200
MAN
Distance Only
46
____________ involves comparing actual performance to established
marketing objectives and requires strong marketing _______.
a.
b.
c.
d.
e.
47
Syndicated research reports
Custom research reports
Customerisation reports
Perceptual tracking
Perceptual-attitudinal testing
With the ___________ for measuring service quality, companies collect and
analyse specific customer ________ to identify specific ______ between
service providers and customers that cause problems.
a.
b.
c.
d.
e.
49
Functional overview; data
Control; metrics
Corporate oversight; metrics
Control; departments
Operational planning; guidelines
_____ could be used to determine which professional athlete consumers
perceive as the most reliable spokesperson for a new long-acting pain reliever
specifically designed for sports injuries.
a.
b.
c.
d.
e.
48
SC
ASR
critical incident technique; interactions; types of complaints
service measurement technique; interactions; touch points
critical incident technique; complaints; face-to-face contacts
SERVQUAL model; touch points; encounters
SERVQUAL model; data; barriers
Arrange the following steps in the order they are carried out when a company
develops functional or marketing plans.
1. develop marketing strategies
2. monitor and control marketing strategies
3. perform a situation analysis
4. implement marketing strategies
5. set marketing objectives
a.
b.
c.
d.
e.
1; 3; 5; 4; 2
2; 4; 3; 5; 1
3; 1; 5; 2; 4
4; 5; 3; 1; 2
3; 5; 1; 4; 2
Page 13 of 17
1101/156.200
MAN
Distance Only
50
SC
ASR
With a/n _________ targeting strategy, one or more products are offered to a
single segment. With a/n _________ targeting strategy, one or more products
are developed for each of several distinct customer groups. With a/n
_________ targeting strategy, the company’s products are designed to appeal
to a broad spectrum of people.
a. custom; concentrated; undifferentiated
b. undifferentiated; differentiated; custom
c. differentiated; concentrated; undifferentiated
d. concentrated; differentiated; undifferentiated
e. concentrated; undifferentiated; differentiated
51
The demand curve _____.
a. is used to illustrate the effect of price on the quality of goods
b. is always graphically depicted by a straight line
c. shows the quantity of product customers will buy in a market during a
period of time even if other factors change
d. usually slopes upward and to the right
e. shows the relationship between product demand and product price
52
Company A adopts a ________, spending most of its promotional budget on
personal selling, ____________ and attending trade shows. Company B
adopts a __________, spending most of its promotional budget on
___________ and consumer sales promotion.
a. push strategy; media advertising; pull strategy; trade advertising
b. push strategy; trade advertising; pull strategy; media advertising
c. trade promotion strategy; media advertising; consumer promotion strategy;
trade advertising
d. pushing strategy; trade magazines; pulling strategy; television advertising
e. pull strategy; trade advertising; push strategy; media advertising
53
Apple, unlike many of its competitors, has focused its research, development
and manufacturing processes on making its products as user-friendly and
stylish as possible. While there are a lot of MP3 players on the market, these
two features differentiate iPods from competitive offerings. Apple has taken a
___________ and turned it into a ___________.
a.
b.
c.
d.
e.
marketing philosophy; competitive disadvantage
design philosophy; corporate orientation
competitive advantage; distinctive capability
distinctive competency; differential benefit
differentiating approach; profitable business
Page 14 of 17
1101/156.200
MAN
Distance Only
54
SC
ASR
Which of the following is NOT one of the criteria used to evaluate which
segments to target?
a. whether consumers in the segment are different enough from each other,
yet similar to consumers in other segments
b. whether the segment can be measured
c. whether the segment is large enough to be profitable
d. whether marketing communications can reach the segment
e. whether the company can adequately serve the segment
55
The Warehouse has added a range of women’s clothing designed by model
Rachel Hunter. The clothes are more stylish and slightly higher priced than
the other ranges of women’s clothing sold at the Warehouse. The company
has also added a range of ‘designer’ household items– again, more stylish
and slightly higher priced. Adding these ranges is part of the Warehouse’s
strategy to ___________ itself relative to competitors such as Farmers.
a.
b.
c.
d.
e.
56
A supermarket puts the strawberries next to the chocolate dipping sauce to
see if the display will increase sales of either product. The supermarket has
conducted a/n ___________, a type of _________ research.
a.
b.
c.
d.
e.
57
deposition
customise
reposition
underposition
overposition
experiment; exploratory
case study; causal
experiment; causal
ethnography; descriptive
simulation; longitudinal
Which of the following is a difference between consumer and business
markets?
a.
b.
c.
d.
e.
business markets have multiple buyers
consumer markets have a larger number of buyers
the quantity and price of business purchases is larger
consumer markets are geographically dispersed
all of the above
Page 15 of 17
1101/156.200
MAN
Distance Only
58
Which of the following is NOT an element of the promotion mix?
a.
b.
c.
d.
e.
59
sales promotion
advertising
public relations
personal selling
product
Which of the following is NOT part of a company’s value chain?
a.
b.
c.
d.
e.
60
SC
ASR
inbound logistics
operations
marketing and sales
outbound logistics
research and development
Speights makes use of the Great Southern Man in their advertising, the slogan
‘Pride of the South’ on their labels and provides a list of southern values on its
website. Speights is making use of _______ to express the shared emotions
and ideals of Southerners.
a.
b.
c.
d.
e.
puffery
caricatures
myths
urban legends
exaggeration
Page 16 of 17
1101/156.200
MAN
Distance Only
SC
ASR
SECTION B. ANSWER ALL QUESTIONS
Each question is worth 10 marks. Answer using blue answer book provided.
1. Australia and New Zealand are free-market economies where competitive
conduct is encouraged. Discuss, with examples, why such competitive
conduct might however be unacceptable (10 marks).
2. A fellow member of the marketing team tells you that if the company wants to
increase market share it must reduce its price. Discuss (10 marks).
3. Microsoft launched a massive $500 million marketing campaign when it
introduced the Xbox, promoting the new product through in-store
merchandising, retailer incentives, events and sponsorships, in addition to
traditional advertising. Explain Microsoft’s actions using the stages in the
adoption of a new product (10 marks).
4. Coke is bottled and distributed by local licensees in most countries where the
product is sold. Discuss the advantages and disadvantages of Coke’s market
entry strategy (10 marks).
++++++++
Page 17 of 17