Name _______________________________________________
FIRST EXAM, Fall 2014
MKT 3013.001, IBC Principles of Marketing
Chapters 1, 2, 9, 10 & 14
Instructions:
1.
This section of the exam has 50 multiple choice questions. Each question is worth 2 points.
Select the BEST response for each of the following questions or statements. Only one answer
per question will be accepted. On your Scantron answer sheet, fill-in the bubble that
corresponds to your answer. Be sure to put your name on the Scantron answer sheet.
Both Pinkberry and Red Mango allow customers to do-it-yourself. In other words, customers can create
and customize their own unique combinations of flavors and toppings. In marketing, this is known as
______.
A. value co-creation
B. Exchange
C. Value
D. CRM
E. the marketing mix
2.
The discount general merchandise market is considered a(n) __________.
A. Monopolistic Competition
B. Commodities competition
C. Monopoly
D. Oligopoly
E. Pure Competition
3.
In the classic downward-slopping demand curve, as price decreases, the demand for the product or
service:
A. Increases
B. Stays the same
C. Decreases
D. Levels off
E. Doubles
4.
Data provided by the Chamber of Commerce is considered __________ data.
A. Primary
B. Secondary
C. Tertiary
D. Observational
E. irrelevant
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5.
Focus group research would normally be considered __________.
A. Social media
B. Depth interviews
C. Exploratory
D. Quantitative
E. Observation
6.
When referring to exchange, marketers are focusing on
A.
B.
C.
D.
E.
the location where products and services are traded.
the price charged, adjusted for currency exchange rates.
location-based tactics for creating value.
promotional offers designed to stimulate barter.
the trading of things of value.
7.
Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing
mix, or four Ps, including all of the following EXCEPT
A. product
B. place
C. performance
D. promotion
E. price
8.
The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to
respond to the wants and needs of its target markets.
A. unpredictable
B. external
C. internal
D. controllable
E. global
9.
Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an ebook or a paperback. Brian is addressing which core marketing aspect?
A. developing a promotional plan
B. managing the exch
C. making product decisions
D. deciding where and how to sell the product
E. pricing the product
10.
Some discount stores put products in large bins and let consumers hunt and find bargains. The price
these consumers pay includes
A. only the actual price they pay at the register.
B. the value of their time and energy.
C. the excitement they experience in finding an item they desire.
D. the savings to the store of not having to display the products neatly on shelves.
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E. the time the product was full price and didn't sell.
11.
UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals.
A. supply chain management
B. value communication
C. value capture
D. retail management
E. promotion
12.
By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to
A. influence social norms regarding sexuality.
B. encourage consumers to participate in product redesign.
C. stimulate supply chain management cooperation.
D. increase the perceived value of its products.
E. demonstrate social responsibility.
13.
Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller
amounts. Retailers function as
A. market intermediaries.
B. monopolists.
C. regulators of consumer demand.
D. wholesale specialists.
E. intermediate promoters.
14.
Auction sites like eBay have increased opportunities for __________ marketing.
A. B2B
B. C2C
C. D2C
D. C2D
E. B2G
15.
The evolution of marketing progressed along the following continuum:
A. sales, marketing, value-based marketing, production.
B. marketing, value-based marketing, production, sales.
C. value-based marketing, production, sales, marketing.
D. production, sales, marketing, value-based marketing.
E. sales, value-based marketing, marketing, production.
16.
The prevailing marketing strategy of the __________ era was to find customers for inventories that went
unsold.
A. production-oriented
B. sales-oriented
C. market-oriented
D. value-based marketing
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E. retailing-oriented
17.
Which of the following is NOT one of the four overarching strategies to create and deliver value and to
develop sustainable competitive advantages?
A. locational excellence
B. customer excellence
C. operational excellence
D. product excellence
E. planning excellence
18.
Taking steps to encourage customer loyalty is one way to
A. test new products.
B. promote efficiency.
C. sustain an advantage over competitors.
D. develop new pricing strategies.
E. improve supply chain effectiveness.
19.
Some banks have begun offering special accounts designed to attract junior high school students. These
kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But
bankers know that consumers are creatures of habit and hope that the young people they serve now will
become adult customers. These banks recognize
A. that operational excellence is an important macro strategy.
B. the lifetime value of customers.
C. that product excellence leads to loyal customers.
D. the importance of making decisions based on short-term results.
E. that as long as customers bring in some revenue, costs do not matter.
20.
Which of the following is LEAST likely to provide a sustainable competitive advantage?
A. lowering prices
B. having a well-known brand name
C. achieving high levels of customer satisfaction
D. using patented technology
E. creating an efficient supply chain
21.
Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is
to:
A. develop a business mission statement.
B. choose the best target markets.
C. reposition existing segments.
D. divide the marketplace into subgroups.
E. conduct a SWOT analysis.
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22.
__________ involves the process of defining the marketing mix variables so that target customers have a
clear, distinctive understanding of what a product does or represents in comparison with competing
products.
A. Targeting
B. Market segmentation
C. A sustainable competitive advantage
D. Positioning
E. A customer excellence strategy
23.
Many small businesses whose competitors are national franchises advertise "we are locally owned" or
"we have been here since 1951." This is part of these firms'
A. business mission.
B. market segmentation strategy.
C. positioning strategy.
D. customer excellence strategy.
E. target market.
24.
Many small businesses whose competitors are national franchises advertise "we are locally owned" or
"we have been here since 1951." This is part of these firms'
A. business mission.
B. market segmentation strategy.
C. positioning strategy.
D. customer excellence strategy.
E. target market.
25.
Adrienne decides to add new sales representatives and increase advertising in her existing market for
her current line of security systems. Adrienne is pursuing a __________ growth strategy.
A. segment development
B. market development
C. market penetration
D. diversification
E. product development
26.
Quitman Enterprises sells its business language dictionary to college students throughout the United
States. Joseph Quitman, the owner, wants to start selling the book to international students abroad.
Quitman wants to pursue a __________________ growth strategy.
A. product proliferation
B. market development
C. market penetration
D. diversification
E. product development
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27.
Customer retention programs are based on what concept?
A. Customer excellence is the easiest macro strategy to follow.
B. Customer relationships should be viewed from a lifetime value perspective.
C. It is important to maximize profits in the first few months of a customer relationship.
D. Segmentation, targeting, and positioning analysis should not be rushed.
E. Firms must spend large amounts of money to retain customers.
28.
Which of the following is the best way to build a sustainable competitive advantage using product
excellence?
A. being the first to offer customers desired features, even if competitors can copy them easily
B. positioning the product using a clear, distinctive brand image
C. having the most features on each model
D. focusing on being cutting edge and continually eliminating older features that are still in use by
customers
E. copying the market leader's features, but at a lower cost
29.
Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to
appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke
Zero, Coca-Cola also designed a masculine looking can for Coke Zero, with bold red lettering on a black
background. This specially designed can is an example of
A. positioning.
B. targeting.
C. segmentation.
D. a market segment.
E. market penetration.
30.
Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage. Earl perceived
price as ________________, while most consumers recognize price as the ______________ made to
acquire a good or service.
A. money paid; overall sacrifice
B. variable cost; fixed cost
C. fixed cost; variable payment
D. overall sacrifice; monetary payment
E. break-even amount; price elasticity
31.
The full price of a product or service includes all of the following EXCEPT :
A. taxes.
B. shipping.
C. travel costs.
D. the price of alternative products and services.
E. value of the consumer's time.
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32.
Which of the following is NOT one of the five Cs of pricing?
A. customers
B. channel members
C. cost
D. collaboration
E. company objectives
33.
Julia wants her firm's gourmet snacks to be the leading brand in the U.S. market. When adopting a
pricing strategy designed to gain market share, she should remember that
A. rarely is the lowest-price offering the dominant brand in a market.
B. prestige products need to be competitively priced.
C. companies can gain market share by offering low-quality products at a high price.
D. total value equals total cost minus variable costs leading to price escalation.
E. price wars are the way to become the dominant brand.
34.
In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. Each firm
weighs the comparative advantages and disadvantages of its offerings to determine whether to price
above, equal to, or below the other hotel. In these markets, the hotels are using a _______________
pricing strategy.
A. maximizing profits
B. target profit
C. target return
D. competitive parity
E. sales oriented
35.
For which of the following is demand likely to be least sensitive to price increases?
A. spring break vacations
B. a specific brand of cereal
C. prescription drugs
D. theater tickets
E. restaurant meals
36.
A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in
a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n)
________________ price elasticity demand.
A. elastic
B. inelastic
C. cross-price
D. income effect
E. substitution effect
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37.
Assume the demand for electricity, a necessity with few substitutes, is -0.2. If the electric company
raised its rates by 10 percent, we would expect
A. a 10 percent decrease in quantity demanded.
B. a 2 percent increase in quantity demanded.
C. a 10 percent increase in quantity demanded.
D. a 2 percent decrease in quantity demanded.
E. a 5 percent decrease in quantity demanded.
38.
Cross-price elasticity is the
A. percentage change in quantity of a product demanded divided by the percentage change in its price.
B. percentage change in quantity demanded of product A compared to the percentage change in price of
product B.
C. change in price of product A divided by change in quantity demanded for product B.
D. change in quantity of a product demanded divided by the change in its price.
E. change in quantity of a product demanded divided by the change in its elasticity.
39.
Bill is a yacht broker in the southeastern United States. For years he has had difficulty selling large yachts
locally because there were few places to dock these boats. Yachts and spaces to dock them are an
example of
A. substitute products.
B. purely competitive products.
C. status quo pricing products.
D. complementary products.
E. competitive parity products.
40.
If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost
per unit is $20, the break-even point is
A. 100 units.
B. 4,000 units.
C. 20 units.
D. 1,000 units.
E. 250 units.
41.
The contribution per unit is
A. price minus total costs.
B. price minus total variable cost.
C. price minus variable cost per unit.
D. total revenue minus total cost.
E. break-even quantity divided by total fixed costs.
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42.
The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey
research into the question, "What percentage of people in Kansas live in communities of fewer than
10,000 people?" The problem with this research objective is that
A. it is irrelevant to the cellular company.
B. it is already known and available from the U.S. Bureau of the Census.
C. it will lead to a set of unstructured questions.
D. it is a research question that probably cannot be answered with any level of accuracy.
E. it is too expensive to determine the answer.
43.
__________ research is a type of quantitative research that manipulates variables to help determine
cause and effect.
A. Descriptive
B. Syndicated
C. Manipulative
D. Focus group
E. Experimental
44.
A restaurant chain is working to improve the quality of its food and service. It recruits customers who
agree to respond to customer satisfaction surveys once every three months over the next two years, to
track its progress. What kind of data is the restaurant chain collecting?
A. panel data
B. internal secondary data
C. focus group data
D. external secondary data
E. scanner data
45.
Paul is considering psychographics as a way to segment the market for his small travel agency. This
approach to segmentation offers him an advantage because
A. it is based on underlying reasons people make choices.
B. it is easier to use than demographics.
C. the travel business doesn't respond well to other approaches to segmentation.
D. psychographics is the preferred method for service businesses.
E. psychographic segmentation is the least expensive method.
46.
Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also
heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation.
A. geographic
B. self-concept
C. psychographic
D. benefit
E. behavioral
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47.
Although marketers have found that psychographics are often more useful for predicting consumer
behavior than demographics, psychographic segmentation
A. is available only in limited geographic areas.
B. is rarely used and unproven.
C. offers only one-to-one marketing potential.
D. is a more expensive method for identifying potential customers.
E. is still an unproven area.
48.
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.
She will now evaluate whether each segment is attractive relative to all of the following EXCEPT
A. substantial.
B. responsive.
C. profitable.
D. reachable.
E. realistic.
49.
When selecting a target market, firms will be most successful if they
A. decide between demographic and geographic segmentation methods.
B. seek out opportunities to customize products.
C. develop a strong communication plan.
D. match the firm's competencies with a market segment's attractiveness.
E. reposition the brand.
50.
"Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four
reasons. Which of the following is NOT a valid reason?
A. "It's a quick way for senior managers to see not only our product but each of our competitors, all at
once."
B. "It's a way to demonstrate the dimensions that our customers think are important."
C. "It shows where we aren't—and where our competitors aren't—in our customers' and prospects'
minds."
D. "It's a way to show the position of the company throughout the product's life cycle."
E. "We can easily show where we are positioned and how large the market is."
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FIRST EXAM, Fall, 2014
MKT 3013.001, IBC Principles of Marketing
Chapters 1, 2, 9, 10 & 14
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