Final Examination Reviewer
BU270 Principles of Marketing
NAME:___________________________________SCORE:____________________
MULTIPLE CHOICE: Identify the letter of the choice that best completes the statement or
answers the question.
Scenarios
Rapala VMC Corp.
Finland-based Rapala VMC Corp. is the world’s largest fishing lure manufacturer. It developed its
first fishing lure—a cigar-shaped minnow—in 1962. The annual market for fishing lures in terms
of retail sales is approximately $600 million. Rapala VMC garnered one-third of that amount in
2003. New lures must be introduced each year in order to stay competitive in this industry. Like
other lure manufacturers, Rapala focuses on two questions in developing and making new lures:
Does it work, and does it look good? Developing a new lure takes two or three years and
involves extensive field testing by tournament professionals and fishing guides. At the annual
fishing industry trade show in 2003, Rapala unveiled the “dream lure for the 21 st century.”
1. Refer to Rapala. The “dream lure for the 21st century will more than likely be an example of
a(n):
a. new product line
b. addition to existing product line
c. discontinuous innovation
d. improvement to existing product
e. repositioned product
REF:
p. 288
OBJ: 1
2. Refer to Rapala. Fishing lures are most likely in the _____ stage of their product life cycle.
a. saturation
b. maturity
c. growth
d. innovation
e. decline
REF:
p. 302-303
OBJ: 4
3. Refer to Rapala. After the trade show, the newest lure made by Rapala will enter which stage of
the new-product development process?
a. commercialization
b. idea generation
c. idea screening
d. concept testing
e. product development
REF:
p. 296
OBJ: 3
4. Refer to Rapala. Because buyers of fishing lures want to have the newest, most technologicallyimproved lure, most of Rapala’s customers would more than likely fall into the _____ category of
adopters.
a. laggards
b. prompt diffusers
c. early adopters
d. innovators
e. early majority
REF:
p. 298
OBJ: 3
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Final Examination Reviewer
BU270 Principles of Marketing
5. Refer to Rapala. The degree to which the newest lures are perceived as superior to earlier
models refers to their _____, a characteristic used to predict the rate of adoption.
a. trialability
b. observability
c. relative advantage
d. differentiation capability
e. complexity
REF:
p. 299
OBJ: 3
6. Refer to Rapala. The testing of new lures by tournament professionals and fishing guides would
take place in which stage of new-product development?
a. commercialization
b. idea generation
c. idea screening
d. concept testing
e. product development
REF:
p. 293
OBJ: 3
R. H. Kurt & Son
R. H. Kurt & Son, Inc., distributes rifles for both hunting and target shooting, rifle barrels,
triggers, cleaning equipment, and reloading equipment to sporting equipment retailers and many
large discount stores. It carries products from 41 different manufacturers. The manufacturers it
carries are known for producing superior products and are leaders in their industries. In addition,
Kurt is able to repair damaged rifles through its gunsmith service, which is available to all of its
retailers.
1. Refer to R.H. Kurt & Son. Its marketing channel is composed of:
a. the distribution, objectives, strategies, and tactics used to move products from
the manufacturer to the retailer
b. any organization that had a part in moving the product from the distributor to
the retailer
c. the functions of transportation, storage, inventory control, materials handling,
and order processing
d. the 41 different manufacturers, R.H. Kurt, the retailers it serves, and their
customers
e. all organizations in the industry that make it possible for a consumer to buy
his or her desired product
REF:
p. 312
OBJ: 1
2. Refer to R.H. Kurt & Son. Customers at retail stores only want one rifle or one scope. They do not
want to buy in the quantities the manufacturers need to sell. This _____ is overcome by the
marketing channels.
a. discrepancy of quantity
b. spatial discrepancy
c. discrepancy of assortment
d. discrepancy of facilitation
e. discrepancy of possession
REF:
p. 313
OBJ: 1
3. Refer to R.H. Kurt & Son. When a consumer goes to a sporting goods store to buy a rifle scope
and cleaning equipment and discovers that the store does not carry rifle scopes, _____ is
created, and the consumer is dissatisfied.
a. discrepancy of quantity
b. discrepancy of assortment
c. spatial discrepancy
d. discrepancy of integration
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Final Examination Reviewer
e. discrepancy of possession
REF:
p. 313
BU270 Principles of Marketing
OBJ: 1
4. Refer to R.H. Kurt & Son. When Kurt solicits an order from a sporting goods store, it engages in a
_____ function.
a. logistical
b. functional
c. facilitating
d. customerized
e. transactional
REF:
p. 316
OBJ: 1
See Exhibit 10.3.
5. Refer to R.H. Kurt & Son. Given the nature of the products carried by Kurt, its 41 manufacturers
most likely want Kurt to use _____ distribution.
a. extensive
b. intensive
c. reflexive
d. unitary
e. selective
REF: pp. 326-327 OBJ: 5 TYPE: App
6. Refer to R.H. Kurt & Son. If Kurt wished to make sure its gunsmith service was profitable, it must
consider:
a. how it can minimize the time a customer must wait for his or her rifle to be
repaired
b. how the opening of hunting season will affect demand for its services
c. how to maintain an adequate staff
d. whether to ship the repaired rifle to the customer or the retailer
e. must consider all of these options
REF:
pp. 338-339
OBJ: 9 TYPE: App
Golden Video
When Golden Video opened ten years ago in Long Island's Suffolk County, it competed with only
one or two other video stores within a five-mile radius. Today, there are eight stores in that
radius, including two Blockbusters, each a half-mile away in different directions.
There is little doubt that independently-owned video stores are having a tough time competing
with chains like Blockbuster, but many are finding their own special ways of surviving. Part of the
solution has been in supplementary merchandise and services such as sports cards and
camcorder rentals, or renting and selling the X-rated titles shunned by many chains. Lower rental
fees also are prevalent among independents, but the key to success in the mom-and-pop
businesses appears to be personalized service. Golden Video provides services like holding videos
for their customers upon request, recommending titles, and helping parents to choose G-rated
movies that they can watch with their children. To add value, Golden Video also sells comic
books, sports cards, candy, video accessories, and provides VCR repairs at the store. With
friendly and value-added services, Golden Video has boosted business in spite of the stiff
competition.
1. Refer to Golden Video. Golden Video can best be described as a:
a. franchise
b. wholesaler
c. distributor
d. retailer
e. department
REF:
p. 350
OBJ: 1
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Final Examination Reviewer
BU270 Principles of Marketing
Golden Video sells directly to the consumer and is therefore a retailer
2. Refer to Golden Video. Stores in the video industry, such as Golden Video and Blockbuster, can
be classified on each of the following bases EXCEPT:
a. ownership
b. location
c. price levels
d. level of service
e. product assortment
REF:
p. 351
OBJ: 2
3. Refer to Golden Video. Golden Video and Blockbuster represent which type of retailers?
a. membership club
b. convenience store
c. factory outlet
d. specialty store
e. mass merchandiser
REF:
p. 353
OBJ: 3
4. Refer to Golden Video. Blockbuster Video grants individuals the right to open a Blockbuster store
through the use of a contractual arrangement. This suggests that Blockbuster is a:
a. free standing store
b. franchise
c. cooperative
d. licensed outlet
e. chain with one ownership
REF:
p. 365
OBJ: 5
5. Refer to Golden Video. The type of site location you would expect Golden Video to utilize is a:
a. shopping center
b. strip center
c. factory outlet
d. regional mall
e. free standing store
REF:
p. 371
OBJ: 6
SEMA
According to marketing research by the Specialty Equipment Market Association (SEMA), there is
a growing number of people who want to buy compact-performance cars and customize them.
They want to turn Honda Civics, Acura Integras, and Mitsubishi Eclipses into personalized
statements of automotive expression. Eighty-four percent of these people are under 30, and 42
percent are Asian-American. More than 80 percent of them are men. SEMA research shows that a
high percentage of this population is interested in finding a domestic car that can be customized.
At a recent automotive aftermarket show, Ford showed three Focus-based concepts to
demonstrate its seriousness about reaching this market.
1. Refer to SEMA. If the result of the SEMA research was an imperfect representation of the overall
population, then a _____ error would have occurred.
a. random
b. framed
c. sampling
d. measurement
e. quantitative
REF: p. 238 OBJ: 3
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Final Examination Reviewer
BU270 Principles of Marketing
2. Refer to SEMA. Since the SEMA research was not done specifically for Ford, it would be classified
as _____ data.
a. predictive
b. primary
c. need-satisfaction
d. secondary
e. descriptive
REF:
p. 227
OBJ: 3
3. Refer to SEMA. The SEMA research was done by asking questions like, "What features have you
added to your car that best reflect your personality?" This type of question is an example of a(n)
_____ question.
a. scaled-response
b. open-ended
c. dichotomous
d. close-ended
e. multiple-answer
REF:
p. 234
OBJ: 3
4. Refer to SEMA. What type of research would have been done if SEMA researchers went to parking
lots and counted the number of customized vehicles and noted the different ways they were
customized?
a. experimental
b. probability sample
c. observation
d. nonprobability survey
e. focus research
REF:
p. 236
OBJ: 3
5. Refer to SEMA. The type of research gathered by SEMA would have the role of being:
a. descriptive
b. persuasive
c. predictive
d. subjective
e. fictional
REF:
p. 223
OBJ: 2
Choice Homes, Inc.
Choice Homes, Inc., based in Texas, built its reputation by building high-quality new homes,
often at prices less than "used" ones. Choice Homes used mass purchasing power, innovative
high-tech communications among employees to coordinate the building process, and other
entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time
homeowners-to-be in an effort to get people out of apartments so they can experience the
"American Dream" of home ownership for the same price as rent. Choice Homes later developed
the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-working
couples. The Choice Classic name was designed to capitalize on the reputation of Choice Homes,
especially for current Choice home owners who are ready to "move up" to a larger home.
Recently, Choice Homes started a third line of homes called "Reflections," which are expensive,
custom-designed homes located in exclusive, prestigious neighborhoods.
1. Refer to Choice Homes, Inc. Kurt McKinney has just received a large inheritance and wants to
have his "dream" home built. He knows exactly the architectural design he wants. He wants a
particular Reflections home. The type of consumer product he wishes to buy is best classified as
a:
a. shopping product
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Final Examination Reviewer
b. convenience product
c. nondurable good
d. specialty product
e. unsought product
REF:
p. 264
BU270 Principles of Marketing
OBJ: 2
2. Refer to Choice Homes, Inc. The three different brands of homes (Choice, Choice Classic, and
Reflections) represent the firm's:
a. line portfolio
b. mix depth
c. line breadth
d. product line
e. product itemization
REF:
p. 267
OBJ: 5
3. Refer to Choice Homes, Inc. Choice Homes is considering acquiring a mortgage and title company
to add to its marketing power in selling homes. This acquisition would expand the firm's:
a. product mix width
b. line breadth
c. product item width
d. product line length
e. product breadth
REF:
p. 268
OBJ: 5
4. Refer to Choice Homes, Inc. Choice Homes is considering the development of a new category of
small homes designed to replace low-income housing in the inner city. This strategy represents
a:
a. quality modification
b. product line extension
c. style modification
d. product line contraction
e. functional modification
REF:
p. 269
OBJ: 5
5. Refer to Choice Homes, Inc. In a recent survey, Choice Homes's customers indicated they
thought their homes were high quality, made lots of referrals to friends, and planned to buy a
Choice Classic or Reflection home in the future. This customers' reactions indicate that Choice
Homes has achieved:
a. achieved generic status
b. become a private brand
c. brand equity
d. superficial skills
e. brand superiority
REF:
p. 271
OBJ: 6
I – TRUE/FALSE. Indicate whether the statement or sentence is true or false.
1. A print ad depicts a picture of a frozen dessert accompanied by information about the dessert:
"two servings, only 300 calories per serving, no cholesterol, and 100 percent of the USRDA of
vitamins and minerals." This is an example of an advertisement selling the product's benefits.
REF:
p. 411
OBJ: 7 TYPE: App
MSC: In Grademaker
Workbook
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Final Examination Reviewer
BU270 Principles of Marketing
2. Nabisco developed a "Stuck in the Middle" ad campaign for its Oreo cookies, which showed
animated Oreos singing on a crowded bus. This is an example of a fun and pleasure appeal.
REF:
p. 413
OBJ: 7 TYPE: App
3. AIDA stands for Action-Investment-Desire-Awareness.
REF:
p. 399
OBJ: 3 TYPE: Def
MSC: In Grademaker Workbook
4. A person buying a Valentine's Day gift for his significant other is more likely to go through all of
the steps in the AIDA process than a person buying a gift certificate for her mail carrier.
REF:
p. 398
OBJ: 3 TYPE: App
5. In terms of the AIDA process, public relations has its greatest impact in gaining attention for a
company, good, or service.
REF:
p. 400
OBJ: 3 TYPE: Comp
See Exhibit 12.5
6. Allyson Brown is trying to develop a promotional mix for her firm's new product, a sophisticated
modular sunporch designed for use all year. She reasons that because her product is complex
and carries high financial risks for consumers, the mix should concentrate on personal selling.
REF:
p. 402
OBJ: 4 TYPE: App
7. Lansky sells 60 different knife and garden tool sharpeners. It uses aggressive personal selling
and sales promotions to encourage intermediaries to carry and sell its sharpener. Lansky is using
a push strategy.
REF:
p. 404
OBJ: 4 TYPE: App
8. Marketers typically use either a push or a pull strategy exclusively.
REF:
p. 404
OBJ: 4 TYPE: Comp
Companies rarely use one or the other exclusively. The strategy that best supports their
promotional objectives (usually in combination) is what is selected.
9. One of the reasons for the growing popularity of integrated marketing communications is the
proliferation of thousands of new media choices.
REF:
p. 405
OBJ: 4 TYPE: Comp
10. Spending on advertising varies by industry.
REF:
p. 407
OBJ: 5 TYPE: Comp
11. As long as advertising expenditures increase for a brand, its sales will continue to rise.
REF:
p. 407
OBJ: 5 TYPE: Def
MSC: In Grademaker
Workbook
12. The goal of advertising is to change people's values.
REF:
p. 408
OBJ: 5 TYPE: Comp
13. Periodically, DuPont Industry runs ads describing the merits of LYCRA elastic fibers (a product
DuPont produces) in clothing. Its ads are an example of institutional advertising.
REF:
p. 408
OBJ: 6 TYPE: App
14. A small high-tech company has just launched a new writing pen that has a memory, much like a
small computer. The advertising campaign focuses on the innovativeness of the new product.
This is an example of pioneering advertising.
REF:
p. 409
OBJ: 6 TYPE: App
15. The advertisements for Torengo chips show how the leading brand of tortilla chips (Tostitos by
Frito-Lay) contains broken chips, and all Torengo chips are uniform in size and shape. These ads
are examples of contrasting advertising because they are showing how Torengo chips are
superior to Tostitos.
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Final Examination Reviewer
REF: p. 410
OBJ: 6 TYPE: App
BU270 Principles of Marketing
16. The DAGMAR approach is one of the best methods for determining the most effective media
schedules.
REF:
p. 411
OBJ: 7 TYPE: Def
17. All promotions are designed to either inform, persuade, or remind the target audience.
REF:
p. 397
OBJ: 3 TYPE: Def
18. An insurance company's advertisement poses the question, "Will your family survive if you die
uninsured?" This is an example of a health appeal.
REF:
p. 412
OBJ: 7 TYPE: App
19. There are many types of microwave meals, but only Hormel makes one specifically for children.
Its target market is the product's unique selling proposition.
REF:
p. 412
OBJ: 7 TYPE: App
20. Frigo Design has developed easy-to-install panel sets to update any refrigerator, dishwasher, or
compactor made since 1942. The company has found that its new product cannot be patented.
Frigo Design panels are in the introductory stage of the product life cycle, and as yet have no
direct competition. Its promotional objectives should be persuasion.
REF:
p. 397
OBJ: 3 TYPE: App
21. R&B Industries has developed an inexpensive yet safe car seat for cats. The company doesn't
have much money for advertising and has decided to run one ad in one medium. Its best choice
is an ad in a specialty magazine because this will reach its highly specialized target market
REF:
p. 417
OBJ: 8 TYPE: App
22. The media mix determines how much of the advertising budget will be spent in each advertising
media.
REF:
p. 420
OBJ: 8 TYPE: Comp
23. NutriHealth makes vitamins and mineral supplements. It is determining whether to put its
advertisements in newspapers or on television. Its primary concern is with how many people in
its target market will be exposed to its ads. In other words, the company is concerned about
frequency.
REF:
p. 420
OBJ: 8 TYPE: App
24. A local greeting card store only runs newspaper advertisements the week before major cardsending holidays, such as Valentine's Day, Mother's Day, Halloween, and New Year's. This is an
example of a pulsing schedule.
REF: p. 422 OBJ: 8 TYPE: App
MSC: In Grademaker Workbook
25. Raz and Nasim are arguing about newspaper publicity. Raz says favorable publicity is free--hence
the phrase "free publicity." Nasim says that publicity is not free because costs were incurred in
developing the public relations materials used by the newspapers. Raz has a more accurate grasp
of the definition of publicity.
REF:
p. 392
OBJ: 1 TYPE: Comp
26. In-n-Out Burger, a California-based hamburger chain, makes fresh, cheap hamburgers and fries
cut and fried on location. As a result, lines at the chain are long. In-n-Out Burger has competitive
advantage over other burger joints.
REF:
p. 390
OBJ: 1 TYPE: App
MSC: In Grademaker Workbook
27. Advertising is any form of impersonal, one-way mass communication in which the sponsor is
identified.
REF:
p. 390
OBJ: 1 TYPE: Def
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BU270 Principles of Marketing
28. Promotion is communication by marketers that informs, persuades, and reminds potential buyers
of a product in order to influence their opinion or elicit a response.
REF:
p. 390
OBJ: 1 TYPE: Def
29. Sales promotion is a promotional tool generally used to stimulate consumer buying and dealer
effectiveness.
REF:
p. 392
OBJ: 1 TYPE: Def
30. Missy Li is attempting to exchange information with her roommate by using symbols to assign
meanings to the facts she hopes to convey. This is an example of communication.
REF:
p. 393
OBJ: 2 TYPE: App
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