Principles of Marketing
Exam 2
Name: ______________________________________
1. Asian Americans who are conversant in English, highly educated, hold professional and
managerial positions, and exhibit buying patterns very much like typical American consumers
are referred to as __________.
a. socialized
b. upper class
c. nonassimilated
d. subcultured
e. assimilated
2. Among the three racial/ethnic subcultures in the United States, African Americans rank as
__________ in terms of spending power.
a. largest
b. second largest
c. third largest
d. equal with Hispanics
e. equal with Asian Americans
3. Which of the following is the largest racial/ethnic subculture in the United States?
a. Asian Americans
b. Hispanics
c. Caucasians
d. African Americans
e. Native Americans
4. If a fraternity or sorority wanted to attract new members, it should focus on people who view
its current members as a(n) __________ group.
a. membership
b. aspiration
c. dissociative
d. reference
e. involvement
5. What percentage of U.S. product sales are directly tied to word of mouth activity among
friends, family, and colleagues?
a. 10 percent
b. 25 percent
c. 33 percent
d. 50 percent
e. 67 percent
6. The Federal Trade Commission (FTC) considers a product “new” only
a. for a period of one year after it enters regular distribution.
b. if it is functionally different from a competitor’s product.
c. until a new and improved version of the same product is produced.
d. for a period of six months after it enters regular distribution.
e. for a period of seventeen years at which time patent rights are returned to the public
domain.
7. Your company is introducing a new line of activewear for teenagers and invites the members
of the high school track team to a private display of the line. This group consists of __________
for activewear clothing.
a. lifestyle makers
b. aspirational people
c. autonomous leaders
d. opinion leaders
e. joint decision makers
8. Lifestyle refers to
a. the set of behaviors that is a result of spending one’s time and money as one pleases.
b. a mode of living that is defined by one’s personal moral philosophy.
c. the similar values, interests, and behaviors that members of society share.
d. a self-defined identification of belonging to a lower, lower-middle, middle, upper-middle, or
upper class in terms of values, attitudes, and beliefs.
e. a mode of living that is identified by how people spend their time and resources, what they
consider important in their environment, and what they think of themselves and the world
around them.
9. Beliefs refer to
a. a person’s consistent behaviors or responses to recurring situations.
b. a learned predisposition to respond to an object or class of objects in a consistently
favorable or unfavorable way.
c. the process by which an individual selects, organizes, and interprets information to create a
meaningful picture of the world.
d. a consumer’s subjective perception of how a product or brand performs on different
attributes.
e. the moral and ethical precepts that guide a person’s behavior.
10. An attitude refers to
a. a person’s consistent behaviors or responses to recurring situations.
b. the process by which an individual selects, organizes, and interprets information to create a
meaningful picture of the world.
c. a consumer’s subjective perception of how a product or brand performs on different
attributes based on personal experience, advertising, and discussions with other people.
d. the feelings one has about the preferable modes of conduct that tend to persist over time.
e. a learned predisposition to respond to an object or class of objects in a consistently
favorable or unfavorable way.
11. A favorable attitude toward and consistent purchase of a single brand over time is referred
to as
a. stimulus generalization.
b. attitudinal discrimination.
c. brand loyalty.
d. behavioral loyalty.
e. consumer allegiance.
12. Subliminal perception refers to
a. the process of seeing or hearing messages without being aware of them.
b. a person’s innate ability to read non-verbal cues such as body language and facial
expressions.
c. the ability of a person to understand the allegorical meanings behind words, sentences, or
paragraphs communicated in writing or speech.
d. the process of being brainwashed to the point of acting in a way that is contrary to or
inconsistent with ones normal behavior.
e. the inability of a person to fully understand what is being said through a lack of background
knowledge or experience.
13. Perception refers to
a. a person’s consistent behaviors or responses to recurring situations.
b. a learned predisposition to respond to an object or class of objects in a consistently
favorable or unfavorable way.
c. the process by which an individual selects, organizes, and interprets information to create a
meaningful picture of the world.
d. seeing or hearing messages without being aware of them.
e. those qualities that either attract or repel other members of a person’s personal, social, or
professional environment.
14. Which of the following statements about personality is most accurate?
a. Personality is dynamic and changes several times as a person matures.
b. Most personality traits are inherited or formed at an early age through socialization.
c. Personality is the energizing force that makes consumer behavior purposeful.
d. Most personality traits are formed during adulthood and can change during one’s lifetime.
e. People with compliant personalities prefer lesser known brand names.
15. Which list below presents the hierarchy of needs in its correct order, beginning with the
lowest level need and continuing to the highest level need?
a. personal, social, physiological, psychological, and safety
b. physiological, safety, social, personal, and self-actualization
c. safety, physiological, safety, self-actualization, and personal
d. self-actualization, social, safety, physiological, and personal
e. safety, personal, self-actualization, physiological, and social
16. The energizing force that stimulates behavior to satisfy a need is referred to as a(n)
a. personality.
b. antecedent state.
c. motivation.
d. cognitive dissonance.
e. perception.
17. High-involvement purchases typically have which of the following sets of characteristics?
a. The item is inexpensive, widely available, or simple to use.
b. The item is inexpensive, very safe to use, or purchased with great frequency.
c. The item is expensive, new to the market, or recommended by influential personal sources.
d. The item is expensive, can have serious personal consequences, or could reflect on one’s
social image.
e. The item is inexpensive, new to the market, or is used for over five years.
18. The feeling of postpurchase psychological tension or anxiety consumers may experience
when faced with two or more highly attractive alternatives is referred to as
a. angst.
b. the temporal state.
c. the dissociative state.
d. selective perception.
e. cognitive dissonance.
19. There are five stages in the consumer purchase decision process. The fourth stage is
__________.
a. information search
b. purchase decision
c. alternative evaluation
d. option testing
e. problem recognition
20. What percentage of U.S. product sales are directly tied to word of mouth activity among
friends, family, and colleagues?
a. 10 percent
b. 25 percent
c. 33 percent
d. 50 percent
e. 67 percent
21. Which of the following statements about world trade is most accurate?
a. Manufactured products and commodities account for only 40 percent of world trade.
b. Services such as telecommunications, transportation, and banking make up less than 10
percent of world trade.
c. Dollar value of world trade has more than doubled in the past decade.
d. All nations participate equally in world trade.
e. Free trade among nations is declining in favor of a protectionist atmosphere.
22. Tariffs refer to
a. government payments to companies or industries that primarily serve to create competitive
advantage for domestic products.
b. government taxes on goods or services entering a country that primarily serve to raise
prices on imports.
c. a restriction placed on the amount of a product allowed to enter or leave a country.
d. a minimum requirement for the purchase between two or more nations of products or
services.
e. a refusal to purchase or exchange goods or services with another nation unless certain
financial or ideological requirements have been satisfied.
23. A restriction placed on the amount of a product allowed to enter or leave a country is
referred to as a
a. quota.
b. tariff.
c. GATT tax.
d. subsidy.
e. excise tax.
24. The European Union (EU) in mid 2012 consisted of 27 countries with more than 500 million
consumers. The EU has eliminated most barriers to the free flow of goods, services, capital, and
labor across its borders. Which of the following countries is NOT a member of the EU?
a. Latvia
b. Greece
c. Ireland
d. Switzerland
e. England
25. The study of similarities and differences among consumers in two or more nations or
societies is referred to as __________.
a. market synthesis
b. cross-cultural analysis
c. international sociographics
d. transnational anthropology
e. multicultural ethnocentrism
26. Personally or socially preferable modes of conduct or states of existence that tend to persist
over time are referred to as __________.
a. customs
b. ethics
c. values
d. culture
e. beliefs
27. A _________ is defined as an item consumed in one or a few uses.
a. durable good
b. convenience good
c. specialty good
d. shopping good
e. nondurable good
28. The Foreign Corrupt Practices Act
a. has different levels of punishment based upon the wealth of the host nation.
b. regulates only the behavior of U.S. businesses conducting business within the United States.
c. makes the theft of trade secrets by foreign entities a federal crime in the United States.
d. is a unilateral agreement the United States made with several developing nations.
e. makes it a crime for U.S. corporations to bribe an official of a foreign government or political
party to obtain or retain business in a foreign country.
29. Even though there are hundreds of different languages and dialects, the three major
languages used in global diplomacy and commerce are
a. English, Japanese, and Chinese.
b. English, French, and Spanish.
c. Japanese, Spanish, and French.
d. Japanese, Spanish, and English.
e. Spanish, English, and Chinese.
30. The practice where a translated word or phrase is retranslated into the original language by
a different interpreter to catch errors is referred to as
a. locution.
b. heuristics.
c. transliteration.
d. back translation.
e. cross-cultural paraphrasing.
31. Indirect exporting refers to
a. offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual
property in return for a royalty or fee.
b. contracting with a foreign firm to manufacture products according to stated specifications.
c. avoiding the use of additional parties when a firm sells its domestically produced goods in
another country.
d. selling a firm’s domestically produced goods in a foreign country through an intermediary.
e. selling a firm’s domestically produced goods in a foreign country without interference by the
local government.
32. Licensing refers to
a. offering the right to a trademark, patent, trade secret, or similarly valued items of
intellectual property in return for a royalty or fee.
b. contracting with a foreign firm to manufacture products according to certain specifications.
c. when a foreign country and a local firm invest together to create a local business.
d. having a company handle its own exports directly without intermediaries.
e. exporting through an intermediary, which often has the knowledge and means to succeed in
selling a firm’s product abroad.
33. A joint venture refers to
a. offering the right to a trademark, patent, trade secret, or similarly valued items of
intellectual property in return for a royalty or fee.
b. contracting with a foreign firm to manufacture products according to certain specifications.
c. when a foreign company and a local firm invest together to create a local business.
d. having a company handle its own exports directly, but using intermediaries for importing.
e. exporting through an intermediary, which often has the knowledge and means to succeed in
selling a firm’s product abroad.
34. The second step of the marketing research approach is to __________.
a. develop findings
b. define the problem
c. take marketing actions
d. develop the research plan
e. collect relevant information
35. Research objectives are __________.
a. goals conjectures regarding outcomes
b. general research guidelines
c. solutions to be evaluated
d. specific and measurable
e. research dashboards
36. The approaches that can be used to collect data to solve all or part of a marketing research
problem are referred to as
a. proposals.
b. strategies.
c. tactics.
d. analyses.
e. methods.
37. In marketing research, the term sampling refers to
a. testing the effectiveness of a marketing alternative in a supervised setting.
b. the collection of various secondary data through electronic or mechanical means.
c. allowing a subject to experience first-hand a new or updated product or service.
d. selecting representative elements from a population and treating their answers as typical of
all those in whom they are interested.
e. testing members from all ages, both genders, and different levels of income and education
to guarantee reliable information.
38. All of the following are sources of primary data EXCEPT:
a. government publications.
b. observational data.
c. experiments.
d. social media.
e. panels.
39. Several market research companies pay households and businesses to record all their
purchases using a paper or electronic diary, which allows for an economical way to collect
consistent data over time. These data are referred to as __________.
a. sponsored data
b. data reciprocity
c. syndicated sampling
d. syndicated panel data
e. data journaling
40. Mechanical, personal, or neuromarketing methods are ways that __________ data can be
collected.
a. virtual
b. primary source
c. hypothetical
d. observational
e. statistical
41. People posing as customers, who are paid to check on the quality of a company’s products
and services and write a detailed report on the experience, are referred to as __________.
a. mystery shoppers
b. customer ombudsmen
c. secret customers
d. Facebook “likers”
e. repeat customers
42. Brand guru Martin Lindstrom believes that traditional marketing research is wasted because
a. consumers usually lie to researchers out of embarrassment.
b. often competitors provide information that will purposefully throw off results.
c. marketers almost always fail to follow proper statistics procedures.
d. different researchers report different conclusions when analyzing the same data.
e. much of a consumer’s feelings toward products and brands resides in the subconscious part
of the brain.
43. A marketing research approach that uses a discussion leader to interview 6 to 10 past,
present, or prospective customers is referred to as
a. a depth interview.
b. data mining.
c. a research team.
d. a focused interview.
e. a focus group.
44. When strolling through the grocery store, a toddler tells her mother, “I don’t like carrots.”
Her mother puts down the carrots and chooses string beans instead. The role of the little girl in
this purchase was that of __________.
a. information gatherer
b. influencer
c. purchaser
d. decision maker
e. user
45. A(n) __________ scale is a five-point scale in which the opposite ends have one- or twoword adjectives that have opposite meanings.
a. dichotomous
b. open-ended
c. Likert
d. attitudinal
e. semantic differential
46. A __________ is a sample of consumers or stores from which researchers take a series of
measurements.
a. representative group
b. jury of executive opinion
c. panel
d. survey of experts
e. focus group
47. In marketing experiments, the independent variable is the __________ and the dependent
variable is the __________.
a. element that never changes; element that always changes
b. result; factor beyond the experimenter’s control
c. result of an action; cause of an action
d. cause of an action; result of an action
e. element that always changes; element that never changes
48. In the VALS framework, each consumer segment exhibits unique media preferences. Which
segment would be the most likely to read business and news magazines such as Fortune and
Time?
a. Experiencers
b. Thinkers
c. Believers
d. Strivers
e. Makers
49. Offering a product for sale in a small geographic area to help evaluate potential market
actions is called a(n) __________.
a. micro market
b. test market
c. experimental market
d. simulated market
e. trial market
50. The phrase “relatively homogeneous collections of prospective buyers” is most descriptive
of
a. demographic clusters.
b. organizational buyers.
c. ultimate consumers.
d. market segments.
e. qualified prospects.
51. Which strategy involves a firm’s using different marketing mix activities to help consumers
perceive the product as being different and better than competing products?
a. points of difference
b. market differentiation
c. product differentiation
d. market penetration
e. product positioning
52. The Sporting News Baseball Yearbook had exactly the same stories but with 16 different
covers to appeal to baseball fans in 16 different regions of the U.S. What is the basis of its
market segmentation strategy?
a. psychographic segmentation
b. retail outlet segmentation
c. demographic segmentation
d. behavioral segmentation
e. geographic segmentation
53. Which of the following is a disadvantage of employing a multiple products, multiple market
segments strategy if NOT implemented well?
a. higher sales but lower profits
b. reduced quality and higher prices
c. meeting customer needs but at the expense of higher prices
d. lower prices but with higher production costs
e. higher quality but lower prices
54. When a new product or a new retail chain steals customers and sales from older existing
ones of an organization, it is referred to as
a. cannibalization.
b. amortization.
c. product appropriation.
d. product pilfering.
e. marketing Darwinism.
55. The third step in segmenting and targeting markets that link customer needs to marketing
actions is to __________.
a. group potential buyers into segments
b. group products to be sold into categories
c. select target markets
d. develop a market-product grid and estimate size of markets
e. take marketing actions to reach target markets
56. Segmentation based on where prospective customers live or work is referred to as
a. zip code segmentation.
b. geographic segmentation.
c. regional segmentation.
d. MSA segmentation.
e. NAICS code segmentation.
57. Which of the following is a consumer demographic segmentation variable?
a. personality
b. gender
c. usage rate
d. needs
e. region
58. Segmentation based on what product features are important to different customers is
known as
a. demographic segmentation.
b. behavioral segmentation.
c. psychographic segmentation.
d. geographic segmentation.
e. socioeconomic segmentation.
59. The 80/20 rule suggests that
a. 80 percent of a firm’s inventory should be readily available and 20 percent should be
reserved for emergency demand.
b. 80 percent of a firm’s first-time users will become brand loyal and 20 percent will use the
product only once and then abandon it.
c. 80 percent of a firm’s sales are obtained from 20 percent of its customers.
d. 80 percent of a firm’s marketing program expenses are tax deductible and 20 percent are
not.
e. 80 percent of a firm’s products will be sold to ultimate consumers and 20 percent to
organizational buyers.
60. Each cell of the complete market-product grid shows the __________.
a. relative market share
b. estimated market size
c. investment required to reach the market
d. market growth rate
e. estimated profit
61. A means of displaying or graphing in two dimensions the location of products or brands in
the minds of consumers to enable a manager to see how consumers perceive competing
products or brands, as well as its own product or brand, is referred to as a
a. perception matrix.
b. growth-share matrix.
c. market-product grid.
d. perceptual map.
e. product differentiation chart.
62. A product refers to
a. a tangible good received in exchange for a person’s time and effort.
b. intangible activities or benefits that an organization provides to satisfy consumers’ needs in
exchange for money or something else of value.
c. a good that has in some way been altered, combined, or improved and sold to
organizational buyers consumers.
d. is a thought that leads to an action such as a concept for a new invention.
e. a good, service, or idea consisting of a bundle of tangible and intangible attributes that
satisfies consumers’ needs and is received in exchange for money or something else of
value.
63. Goods can be divided into __________ goods and __________ goods.
a. functional; aesthetic
b. required; desired
c. tactile; conceptual
d. durable; nondurable
e. product; service
64. Services are a significant part of the U.S. economy, exceeding __________ percent of its
gross domestic product.
a. 20
b. 25
c. 30
d. 40
e. 50
65. Consumer products refer to
a. products used in the production of other items.
b. products purchased by the ultimate consumer.
c. products a consumer will make an effort to seek out and buy.
d. items purchased frequently and with a minimum of shopping effort.
e. products that assist directly or indirectly in providing products for resale.
66. Shopping products refer to items that the consumer
a. purchases frequently, conveniently, and with a minimum of effort.
b. compares several alternatives on criteria such as price, quality, or style.
c. makes a special effort to search out and buy.
d. does not know about or knows about but does not initially buy.
e. buys as a result of buying others’ consumer products, such as impulse purchases.
67. The demand for a business product that results from the demand for a consumer product is
referred to as
a. sequential demand.
b. selective demand.
c. primary demand.
d. secondary demand.
e. derived demand.
68. Raw materials, such as grain or lumber as well as assemblies or parts, are referred to as
a. production goods.
b. components.
c. accessories.
d. support products.
e. raw assemblies.
69. The four I’s of services consist of
a. intangibility, inconsistency, inseparability, and innovation.
b. intangibility, inventory, inflexibility, and impression.
c. intangibility, inconsistency, inseparability, and inventory.
d. intangibility, inventory, innovation, and impression.
e. intangibility, inconsistency, innovation, and impression.
70. Singapore Airlines has advertising shows a traveler in the airline’s new seats and emphasizes
food and other amenities to overcome the __________ of its service.
a. incongruity
b. inconsistency
c. inventory costs
d. inseparability
e. intangibility
71. Inseparability in services means consumers
a. see little variation from one service provider in an industry to another.
b. are unable to differentiate price from quality.
c. cannot evaluate a service until it is being or has been used.
d. cannot separate the service itself from the deliverer of the service.
e. cannot separate themselves from the deliverer of the service.
72. Idle production capacity refers to
a. the minimum number of customers that a service provider can serve and still remain
profitable.
b. the maximum number of customers that a service provider must serve in order to remain
profitable.
c. the ability of a service provider to redirect its efforts so even when there is no primary
demand, employees are still able to meet selective demand.
d. a situation that occurs when a service provider is available but there is no demand for the
service.
e. a situation that occurs when the primary demand for a service exceeds that number of
service deliverers available to meet that demand.
73. A(n) __________ question allows respondents to express opinions, ideas, or behaviors in
their own words without being forced to choose among alternatives that have been
predetermined by a marketing researcher.
a. dichotomous
b. open-ended
c. closed-end
d. fixed-alternative
e. semantic differential
74. The type of analysis that compares the differences between consumers’ expectations about
a service and their experience with it based on dimensions of service quality is referred to as
a. customer relationship management.
b. service encounter differential.
c. gap analysis.
d. a customer contact audit.
e. a service audit.
75. A group of product or service items that are closely related because they satisfy a class of
needs, are used together, are sold to the same customer group, are distributed through the
same types of outlets, or fall within a given price range is referred to as a __________.
a. product class
b. product mix
c. product category
d. marketing category
e. product line
76. All of the different product lines offered by an organization are collectively referred to as a
a. product class.
b. product mix.
c. product SKUs.
d. marketing mix.
e. target mix.
77. Feature bloat is
a. an exaggeration of a product’s performance capabilities.
b. the overcharging in price for a minor or cost-free product enhancement.
c. the requirement of having consumers learn new behaviors with a continuous innovation.
d. an excessive number of product attributes that overwhelms consumers with unnecessary
complexity.
e. the increase in package size when adding more content or making it larger (the “mega”
phenomenon).
78. A product that disrupts consumers’ normal routines but does not require totally new
learning is a
a. continuous innovation.
b. discontinuous innovation.
c. dynamically continuous innovation.
d. progressive innovation.
e. disruptive innovation.
79. One of the eight primary MARKETING-RELATED reasons for new-product failure is
__________.
a. not listening to the voice of the consumer
b. incomplete market and product protocol
c. pushing a product too early into the market
d. the “NIH” problem
e. encountering groupthink in meetings
80. Generating insights leading to actions based on massive numbers of peoples’ ideas is called
__________.
a. brainstorming
b. groupthink
c. outsourcing
d. crowdsourcing
e. NIH syndrome
81. Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf
placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets
around the country. This payment is an example of a
a. product placement fee.
b. bribe.
c. product support fee.
d. slotting fee.
e. shelf space allowance.
82. Demographics refer to
a. the description of a population according to its values or cultural beliefs.
b. an objective measurement of a person’s likelihood to purchase a product or service.
c. the psychological profile of prospective consumers.
d. the density of a population in a geographic area.
e. the description of a population according to selected characteristics such as age, gender,
ethnicity, income, and occupation.
83. The most recent estimate indicates that the population of the world today is about
__________.
a. 5.0 billion
b. 5.7 billion
c. 6.9 billion
d. 7.9 billion
e. 9.5 billion
84. According to a recent Federal Communications Commission report, AT&T, Verizon, SprintNextel, and T-Mobile control the vast majority of the subscribers in the U.S. wireless mobile
phone market. Which form of competition characterizes this market?
a. pure competition
b. limited competition
c. a monopoly
d. an oligopoly
e. monopolistic competition
85. A personal moral philosophy that considers individual rights or duties as universal,
regardless of the outcome, is referred to as __________.
a. social responsibility
b. moral idealism
c. utilitarianism
d. hedonism
e. religion
86. The linking of the organization to its individual customers, employees, suppliers, and other
partners for their mutual long-term benefit is referred to as
a. relationship marketing.
b. exclusive dealing.
c. loyalty marketing.
d. customer relationship management.
e. symbiotic marketing.
87. In the movie Tin Men, two rival salesmen engaged in a variety of dishonest and unethical
practices in order to sell aluminum siding to homeowners in 1963. Their job was difficult, in
part, because the supply of aluminum siding surpassed the demand for the product and
competition was intense. This situation is indicative of the __________ era of U.S. business
history.
a. goods
b. sales
c. production
d. market orientation
e. societal marketing
88. What is the “marketing concept?”
89. What combination creates a "Cash Cow" in the Boston Consulting Group approach?
90. According to our discussion in class, what must a firm produce, or anything else produced is irrelevant.
91. According to Ben Stein, what mistakes do winners not make?
92. How do cultures differ in their perception of time?
93. Explain what the perceptual hypothesis is and how it is formed.
94. Currently there is a political campaign being conducted to paint Obama as a socialist, and the Tea
Party people as extremist and racist. Using only what was discussed in class about attitude change,
explain:
a) How this can be done
b) How it is actually being done.
95. How was a “product” defined in class?