I. True / False Questions (1 point for each question)
1. It is probably best for those firms with limited financial and personnel resources to avoid
concentrated or niche marketing until resources can be built up.
2. Social class is determined only by an individual’s income.
3. Target costing involves designing a new product, determining its cost, and then asking, “Can
we sell it for that?”
4. A company should target segments in which it can profitably generate the greatest customer
value and sustain it over time.
5. The costs of obtaining, processing, storing and delivering information is relatively
inexpensive.
6. For simplicity’s sake, and to keep their costs under control most marketers generally limit
their segmentation analysis to one variable.
7. Only tangible goods are considered products.
8. The core product is 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.
Examples are banking, hotels, airlines, retail, tax preparation, and home repair.
.
9. The purpose of idea screening is to reduce the number of new ideas.
10. Value-based pricing uses the buyer’s perception of value to set prices.
11. Reference prices are prices that buyers carry around in their minds and refer to when looking
at a product.
12. The term disintermediation refers to the displacement of traditional resellers from a
marketing channel by radical new types of intermediaries.
13. Department stores carry narrow product lines with deep assortments within those lines.
14. A company’s total marketing communications mix is also called its marketing mix.
15. Unlike mass production, which eliminates the need for human interaction, one-to-one
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marketing has made relationships with customers more important than ever.
16. Because customers differ, communications programs need not be developed for specific
segments, niches, and even individuals.
17. Awareness, knowledge, and preparation are buyer-readiness stages.
18. The difference between human needs and wants is that needs are states of felt deprivation.
19. This strategy calls for offering modified or new products to current markets. We term it
product development.
20. When faced with price competition cutting prices is often not the best answer.
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II. Multiple Choice Questions (2 points for each question)
1.
2.
21. The four P’s in marketing refer to_____, _____, _____ and _____.
A. product; place; price; promotion
B. product; property; price; promotion
C. production; property; people; promotion
D. product; place; promotion; people
22.
A.
B.
C.
D.
Press releases, public affairs, and lobbying are all forms of _____.
advertising
public relations
direct marketing
sales promotion
23. What are the four steps (in order) of the marketing research process?
A. Define the problem, develop the research plan, implement the research plan, survey the
participants.
B. Define the problem, develop the research plan, implement the research plan, report the
findings.
C. Define the problem, develop the research plan, survey the participants, report the findings.
D. Develop the research plan, implement the research plan, survey the participants, report the
findings.
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24.
A.
B.
C.
D.
The three types of research approaches a marketer may use are _____, _____ and _____.
surveys; observations; historic reviews
observations; surveys; databases
observations; experiments; surveys
experiments; databases; surveys
25. Which type of research is best suited for gathering causal information?
A. survey research
B. ethnographic research
C. observational research
D. experimental research
26. The VALS classification system measures a person’s _____.
A. income
B. occupation
C. lifestyle
D. personality
27. A consumer purchasing fine furniture (which is expensive and for which a brand’s name
matters) would probably result in _____ buying behavior.
A. dissonance-reducing
B. variety-seeking
C. complex
D. habitual
28. Which of the following is not one of the major types of buying situations faced by business
buyers?
A. straight rebuy
B. new task buy
C. online rebuy
D. modified rebuy
29. Which of the following is a powerful value proposition because it offers consumers a “good
deal”?
A. more for more
B. more for the same
C. the same for less
D. less for much less
30. Which of the following steps of target marketing takes into account competitors’ offerings to
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A.
B.
C.
D.
the market?
market positioning
market segmentation
market targeting
all of the above
31. Which of the following structural factors is not related to a segment’s attractiveness?
A. the presence of strong competitors in the segment
B. the existence of potential substitute products
C. the lack of raw materials
D. a number of powerful suppliers
32. A company can lengthen its product line by _____ it or by _____ it.
A. modifying; stretching
B. stretching; switching
C. filling; stretching
D. brushing; combing
33. Consumer products include convenience products, shopping products, specialty products,
and _____ products.
A. unique
B. luxury
C. unsought
D. all of the above
34. The two dimensions of product quality are _____ and _____.
A. value; features
B. style; design
C. level; consistency
D. style; value
35. Which of the following is not a special characteristic of service?
A. tangibility
B. inseparability
C. variability
D. perishability
36. Which of the following is not a reason that a new product might fail?
A. The product is priced too high.
B. The product is poorly designed.
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C. The estimated market for the product is too large.
D. All of the above are reasons that a new product might fail.
37. Once the new product ideas have been screened, the next step in the new product
development process is _____.
A. marketing strategy
B. concept development and testing
C. product development
D. none of the above
38. _____ tend to grow slowly, remain popular for a while, and then decline slowly.
A. Fads
B. Styles
C. Fashions
D. Designs
39. What is the break-even volume for a company with fixed costs of $50k, variable costs of $20
and a price of $30/unit?
A. 500
B. 1000
C. 5000
D. 2500
40. Companies have two choices when setting prices for a product during the introductory stage.
These choices are _____ and _____.
A. market-skimming pricing; fixed pricing
B. market-skimming pricing; value pricing
C. value pricing; cost pricing
D. market-penetration pricing; market-skimming pricing
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III. Essay (10 points for each question)
41. How might the BCG matrix represent a life cycle?
Answer
Many SBUs start out as question mark, then move into the star category if they succeed;
stars eventually become cash cows, then perhaps, dogs.
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42. Demonstrate by example the three strategies of intensive, exclusive, and selective
distribution.
Answer
Producers of convenience products and common raw materials typically seek intensive
distribution as a strategy to stock their products in as many outlets as possible. The
goods are available where and when consumers want them, such as chewing gum.
Exclusive distribution is used when the producer wants to stock its products with only
one or a few dealers in an area. Examples are expensive cars and prestige clothing.
Selective distribution is used when selling to more than one, but fewer than all of the
intermediaries who are willing to carry a company’s products in a given market.
Examples are name-brand blue jeans and computers.
IV. Business Case (10 points for each question)
The objective of the not-for-profit organization, disAbled for Access & Justice, is to
advance the cause of disabled individuals in the Lancaster, Pennsylvania community.
These efforts had met with both success and failure in recent years. Through the use of
the threat of a suit under the Americans with Disability Act, Lancaster had recently
been forced to install curb cuts at a cost of close to $3 million. Bringing this suit had
burned some valuable social capital with the city’s officials who were under constant
pressure to control real estate taxes. The organization’s leaders had also met privately
with several new businesses in the downtown business district and convinced them to
install access ramps. The group’s eventual goal, is to make Lancaster’s downtown
business district totally accessible to individuals in wheelchairs. This would require
extensive marketing efforts targeting many different individuals and groups. They now
need to convince their target “customers,” the city and the local businesses to buy their
idea and spend the money needed to make total accessibility a reality rather than a
dream.
43. The non-profit organization, disAbled for Access & Justice must determine an appeal
or theme that will produce the desired response. There are three types of appeals:
rational, emotional, and moral. Which would you suggest they use?
Answer
disAbled for Access & Justice could use any of the three types of appeals. A rational
appeal would include a cost-benefit analysis of access improvements being offset by
gains in new revenues or elimination of lost revenues. Another element of a rational
appeal would be the implied threat of legal action for noncompliance with the law. The
emotional appeal is probably the easiest to visualize. Finally, a moral appeal is justified
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by the appealing to the local business owner’s sense of what is “right” and “proper”.
44. How might the buyer-readiness stages model guide the promotion planning at
disAbled for Access & Justice?
Answer
The first issue with disAbled for Access & Justice is to make local businesses more
aware of the problem. After awareness comes knowledge of what can and must be
done to provide access to those who presently do not have it. It is necessary to
accomplish a sense of buy-in to the concept of accessibility among the retail business
community. Remember, the product here is more an idea than a physical product.
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