BMCC
Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
MAR 100 midterm review - Fall 2012
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____
1. _____ is a set of activities used to implement a management orientation that stresses customer satisfaction.
a. Planning strategy
b. Customer management
c. Marketing
d. A control system
e. Reciprocity
____
2. Which of the following occurs when people give up something in order to receive something they would
rather have?
a. Exchange
b. Synergy
c. Transformation
d. Leveraging
e. Reciprocity
____
3. The concept of exchange is important to marketing because:
a. if all the conditions for an exchange are in place, then the exchange will be completed
b. exchange provides money to marketers
c. marketing activities help to create exchange
d. marketing activities are a requirement for exchange to take place
e. money is the only medium of exchange for business marketers
____
4. A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces
most efficiently also meets the needs of the marketplace.
a. customer
b. exchange
c. product
d. market
e. production
____
5. Market-oriented firms primarily focus their efforts upon:
a. improving the technological skills and competitive advantages of the firm
b. satisfying the organization’s needs for low overhead
c. achieving the company’s societal responsibilities inexpensively
d. distributing goods and services
e. satisfying the wants and needs of their customers
____
6. Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing
patronage. After flying a certain number of miles or flying a specified number of times, the frequent-flyer
program participant earns a free flight or some other award such as free lodging. Airlines that use frequentflyer programs are practicing:
a. commitment selling
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BMCC
Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
b.
c.
d.
e.
transaction marketing
transformational marketing
marketing engineering
relationship marketing
____
7. A market-oriented firm defines its business in terms of:
a. goods and services
b. the benefits its customers seek
c. employee empowerment
d. competitive position
e. customer satisfaction
____
8. Heinz has announced that they plan to grow the company through an accelerated push into emerging markets
such as China, Indonesia, and India in the next ten years. This is an example of:
a. tactical objectifying
b. contingency plan
c. strategic planning
d. marketing implementation
e. horizon planning
____
9. The focus of an organization’s mission statement should be on:
a. the products it wishes to sell
b. the market it wishes to serve
c. its social responsibilities
d. the desires of government regulators
e. technologies it understands well
____ 10. Smucker’s purchased Folgers Coffee in 2008. The option to buy Folgers represented a(n) _____ to
Smucker’s.
a. opportunity
b. strength
c. weakness
d. threat
e. burden
____ 11. Each labor and delivery room at the new Dekalb County Medical Center has hardwood floors, soft lighting,
and mission-style furniture. The facility also features a stone fireplace in the lobby, a bistro-style restaurant,
and VIP suites for discerning mothers-to-be. This unique design and furnishings give the medical center a:
a. profit-enhanced advantage
b. competitive advantage
c. quality objectivity
d. strategic strength
e. tactical opportunity
____ 12. iTunes has a(n) _____, as they have exclusive agreements with some of the most sought after music
corporations that other digital music stores do not have.
a. targeted market position
b. sustainable competitive advantage
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BMCC
Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
c. strategic focus
d. situational strength
e. opportunistic privilege
____ 13. LVMH, a maker of luxury goods, has expanded its products offerings into China, Russia, India, and the
Middle East. This exemplifies a _____ strategy.
a. market development
b. product development
c. market penetration
d. diversification
e. product expansion
____ 14. Russell Athletic, which is part of Berkshire Hathaway, Inc., is a market leader in sports apparel, an industry
that is growing rapidly. Russell Athletic is an example of a(n) _____ according to the portfolio matrix.
a. star
b. question mark
c. problem child
d. exclamation point
e. widow
____ 15. All of the following are basic strategies resulting from a portfolio analysis EXCEPT:
a. harvest
b. build
c. hold
d. divest
e. milk
____ 16. Golden Valley Microwave Foods, Inc. is the manufacturer of ACT II popcorn. In its early years, the company
had trouble financing the development and marketing of products for the microwave, so it chose to participate
in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery
stores. Which element of the marketing mix was most influenced by this arrangement?
a. Product
b. Place
c. Price
d. Public relations
e. Promotion
____ 17. _____ refers to the moral principles or values that generally govern the conduct of an individual or a group.
a. Righteousness
b. Social consensus
c. Sustainability
d. Virtue
e. Ethics
____ 18. NSTAR Gas & Electric Company in Boston provides continuing financial support for an injury prevention
program run by the Children’s Hospital Boston. This funding is an example of:
a. corporate social responsibility
b. ethical conveyance
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Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
c. a duty to engage in cause marketing
d. a right to engage in social marketing
e. multiculturalism
____ 19. The movement to develop and market products designed to minimize negative effects on the physical
environment or to improve the environment is known as:
a. enviromarketing
b. green marketing
c. cause marketing
d. social marketing
e. minimalist marketing
____ 20. A(n) _____ is a defined group that managers feel is most likely to buy a firm’s product.
a. target market
b. buying center
c. aggregated unit
d. consumer cluster
e. demographic sample
____ 21. Marketing managers cannot control _____, but they can sometimes influence it.
a. where advertising is placed
b. the external environment
c. the sales force
d. the distribution strategy
e. product pricing
____ 22. The growth of dual-income families has resulted in:
a. burnout
b. a sense of entitlement
c. decreased discretionary income
d. decreased GNP
e. increased purchasing power
____ 23. The study of people’s vital statistics, such as age, race and ethnicity, and location, is called:
a. cultural sociology
b. psychometrics
c. ecology
d. ethnography
e. demography
____ 24. _____ is a measure of the decrease in the value of money, expressed as the percentage reduction in value
since the previous year.
a. Inflation
b. Recession
c. Depression
d. Consumer break-even
e. Price escalation
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Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
____ 25. Laws and regulations of various governments and their ongoing development and change are an example of
_____ factors that are part the external environment of all organizations.
a. economic investment
b. political and legal
c. research and development
d. competitive
e. demographic
____ 26. Refer to E-cigarettes. E-cigarette manufacturers claim they are not trying to sell this product to children.
Rather, they are offering an alternative to combustible tobacco for committed smokers. These smokers
comprise the manufacturers’:
a. target market
b. buying center
c. consumer cluster
d. demographic sample
e. mass market
____ 27. Individuals and organizations utilizing a global vision to effectively market goods and services across the
world are engaged in:
a. international selling schemes
b. borderless commerce
c. global marketing standardization
d. global logistics
e. global marketing
____ 28. Many people fear world trade because it:
a. will inevitably lead to inflation
b. will cause living standards to increase at a slower rate
c. causes some people to lose their jobs as production shifts abroad
d. has brought entire nations out of poverty
e. has increased per capita income for some countries
____ 29. Claiborne, Inc. produces leather accessories for motorcycle riders and is in the first stage of creating its global
business. This means that Claiborne:
a. operates in one country and sells to others
b. has set up a foreign subsidiary
c. operates an entire line of business in another country
d. has top executives and core corporate functions in different countries
e. operates in every country in the world
____ 30. A company that is capital intensive:
a. has an altered fiscal strategy for overseas operations
b. spends more on equipment than on labor
c. makes better use of benchmarking than other types of business
d. creates employment monopolies
e. must engage in countertrading due to restrictive foreign legislature
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BMCC
Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
____ 31. A business thinking of expanding into global markets needs to examine all of the following external
environments EXCEPT:
a. culture
b. political structure and actions
c. its marketing mix
d. natural resources
e. demographic makeup
____ 32. A soft drink manufacturer thinking of investing in a bottling plant in the Czech Republic should know the
nation is proud of the fact it is among the world’s biggest beer drinkers. Czechs consume an average of onehalf liter of beer a day for every man, woman, and child in the country. The _____ environment of this
country could very easily prevent the soft drink bottling company from succeeding.
a. demographic
b. economic
c. cultural
d. political
e. technological
____ 33. Who offers low-interest loans to developing nations?
a. World Bank
b. International Monetary Fund
c. Federal Reserve
d. International Reserve
e. United Nations
____ 34. A multinational company that makes a labor-intensive product would be interested in the _____ makeup of
countries. Factors such as median age, gender, and literacy rates would determine the success of its global
expansion.
a. demographic
b. lifestyle
c. natural
d. cultural
e. economic
____ 35. _____ is a legal process whereby a firm agrees to let another firm use its manufacturing process, trademarks,
patents, trade secrets, or other proprietary knowledge in return for a fee or royalty.
a. A joint venture
b. Divestment
c. Licensing
d. A principal-agent agreement
e. A contract manufacturing arrangement
____ 36. Franchising is a form of:
a. contract marketing
b. international exporting
c. licensing
d. direct exporting
e. countertrading
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Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
____ 37. According to the text, which of the following is an example of a product strategy that would be appropriate
for a global marketing company to implement?
a. Product adaptation
b. Product divestment
c. Product penetration
d. Market substitution
e. Product licensing
____ 38. _____ is generally defined as the sale of an exported product at a price lower than that charged for the same or
a like product in the home market of the exporter.
a. Export reengineering
b. Crossdocking
c. Boycotting
d. Dumping
e. Countertrading
____ 39. The processes individuals use when making a purchase decision are called:
a. consumer behavior
b. marketing
c. consumerism
d. perceptual mapping
e. database mining
____ 40. Sam was driving when someone ran a stop sign and totaled his car. His car cannot be repaired, so he realized
he’s going to have to get another one. What stage of the consumer decision-making process does this
represent?
a. Need recognition
b. Purchase
c. Evaluation of alternatives
d. Postpurchase behavior
e. Information search
____ 41. Extending a well-known and respected brand name from one product category to another product category is
referred to as:
a. brand stretching
b. brand extensions
c. brand bouncing
d. brand transfer
e. brand building
____ 42. Andrea just purchased a trip to Jamaica as a present to her husband for their tenth wedding anniversary.
Andrea is anxious about the trip, afraid Bill will not like her choice of location and worried she spent too
much money. Andrea is experiencing:
a. selective dissatisfaction
b. temporal distortion
c. perceptual disharmony
d. cognitive dissonance
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Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
e. self-actualization involvement
____ 43. _____ is characterized by low involvement, a short time frame, an internal-only information search, and low
costs.
a. Limited decision making
b. Routine response behavior
c. Emotional buying
d. Intensive decision making
e. Temporally-limited behavior
____ 44. A value or attitude deemed acceptable by a group is called a(n):
a. expectation
b. reference
c. aspiration
d. opinion
e. norm
____ 45. Opinion leaders are:
a. wealthy, well-educated individuals
b. experts on all high-involvement consumer goods
c. usually the same individuals for all social classes
d. people who influence others
e. easy to locate and target
____ 46. Because her mother only went to the supermarket once a month, this is how Monique prefers to do her
grocery shopping. One of the reasons Monique is such an efficient shopper is that, like her mother, Monique
believes, “Waste not, want not.” The passing down of norms and values to Monique is an example of:
a. consumerism
b. the socialization process
c. acculturation
d. the roles opinion leaders play in business decision making
e. the role of society in consumer decision making
____ 47. _____ is the marketing of goods and services to individuals and organizations for purposes other than
personal consumption.
a. Secondary marketing
b. Interactive marketing
c. Business marketing
d. High-level marketing
e. Industrial marketing
____ 48. A cooperative agreement between business firms is called a:
a. shared capital contract
b. global partner development strategy
c. strategic alliance
d. joint contract
e. comarketing effort
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BMCC
Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
____ 49. IBM and Cisco work together to provide banks with the products and services they need to manage their
multiple locations. In other words, the two companies have joined in a:
a. retail cooperative
b. direct investment venture
c. transactional relationship
d. strategic alliance
e. synergistic relationship
____ 50. The demand for consumer goods often affects the demand for business products. This characteristic of
business markets is called _____ demand.
a. elastic
b. inelastic
c. fluctuating
d. derived
e. joint
____ 51. When demand for a product is _____, an increase or decrease in the price of the product will not significantly
affect demand for the product.
a. responsive
b. elastic
c. inelastic
d. derived
e. bundled
____ 52. Electric cars will increase the demand for electricity, which will then dramatically increase demand for the
equipment needed to provide consumers with the electricity. This dramatic increase is due to the:
a. demand fluctuator principle
b. joint demand principle or division effect
c. inelastic demand effect
d. circumlocution effect
e. accelerator principle
____ 53. _____ is the primary promotional method for the sale of all business products.
a. Direct mail
b. Advertising
c. Personal selling
d. Public relations
e. Trade promotions
____ 54. The three most important evaluative criteria for business-to-business purchases are quality, price, and:
a. competitive offers
b. service
c. reliability
d. assurance
e. existing relationships
____ 55. In terms of how business buyers evaluate products and suppliers, the most important criterion is:
a. price
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BMCC
Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
b.
c.
d.
e.
behavior
quality
personal relationships
reciprocity
____ 56. _____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.
a. Perceptual mapping
b. Positioning
c. Micromarketing
d. Market sampling
e. Market segmentation
____ 57. The purpose of market segmentation is to:
a. reduce the market down to a size the firm can handle
b. divide the market into equal size and profit regions for sales territories
c. group a large number of markets together, enabling a company to serve them
simultaneously
d. develop a generalized definition of the market as a whole
e. enable the marketer to tailor marketing mixes to meet the needs of one or more specific
groups
____ 58. The marketing researcher for Pooch Party, a manufacturer of toys for dogs, has noticed an increased trend in
pet owners dressing their dogs in clothing. The researcher thinks there is a market for designer clothing for
small- and medium-sized dogs, but he’s not sure if the segment is substantial. In this case, substantiality
means the segment:
a. has enough special stores, magazines, and other outlets that it will be possible to direct
advertisements at this group
b. is large enough to permit a profitable market effort toward its members
c. exhibits a response rate to marketing variables different from the rates of other segments
d. is too large and needs to be reduced to a more easily identifiable and measurable size
e. will be difficult to develop a product to match this group of buyers
____ 59. Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there.
Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of
grocery stores would likely use _____ segmentation when stocking condiment merchandise.
a. geographic
b. economic
c. demographic
d. benefit
e. geodemographic
____ 60. Marketers use _____ to segment markets because this information is widely available, and factors such as age
or gender are often related to consumer purchasing and consumption behavior.
a. benefits
b. psychographics
c. demographics
d. usage rates
e. sociocultural attributes
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Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
____ 61. Redbook magazine targets what it calls “Redbook jugglers,” defined as 25- to 44-year-old women who must
juggle family, husband, and job. According to a Redbook ad, “She’s the product of the ‘me generation,’ the
thirty-something woman who balances home, family, and career—more than any generation before her, she
refuses to put her pleasures aside. She’s old enough to know what she wants. And young enough to get it.”
This is an example of _____ segmentation.
a. demographic and psychographic
b. benefit desired and usage rate
c. geodemographic and benefit desired
d. demographic and usage rate
e. benefit desired and demographic
____ 62. A(n) _____ is a group of people or organizations for which an organization designs, implements, and
maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying
exchanges.
a. heterogeneous segment
b. target market
c. responsive segment
d. aggregated market
e. undifferentiated target
____ 63. When a firm serves two or more well-defined market segments with a distinct marketing mix for each, it is
using a(n) _____ targeting strategy.
a. undifferentiated
b. concentrated
c. niche
d. multisegment
e. pluralistic
____ 64. A potential disadvantage of multisegment targeting is _____, which occurs when sales of a new product cut
into sales of a firm’s existing products.
a. cannibalization
b. synergy
c. positioning
d. demarketing
e. inelastic demand
____ 65. _____ is the development of a specific marketing mix to influence potential customers’ overall perception of
a brand, product line, or organization in general and is related to the place a product occupies in consumers’
minds relative to competing offerings.
a. Market differentiation
b. Diversification
c. Combination marketing
d. Positioning
e. Market aggregation
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BMCC
Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
____ 66. H&R Block launched a $100 million marketing campaign to parlay the company’s intimate knowledge of 20
million customers’ finances into other services like mortgages and investment advice. Block has great brand
recognition, but consumers only care about it four months out of the year. H&R Block is attempting to _____
itself to make people think of it as a company offering services year-round.
a. reposition
b. reengineer
c. demarket
d. undifferentiate
e. niche
____ 67. Which of the following is NOT an example of a product’s tangible feature?
a. Brand equity
b. Packaging
c. Color
d. Options
e. Size
____ 68. There are many HD television sets on the market, and they vary so much on price, quality, and features that
consumers often have trouble comparing them. An HD television would probably be considered a _____
product.
a. convenience
b. specialty
c. heterogeneous shopping good
d. homogeneous shopping good
e. generic
____ 69. _____ are products consumers see as being basically the same, so consumers shop for the lowest price.
a. Low-prestige specialty products
b. Product equivalents
c. Heterogeneous shopping products
d. Generic convenience products
e. Homogeneous shopping products
____ 70. _____ products are products that are not known about or not actively searched for by consumers. These
products require aggressive personal selling and highly persuasive advertising.
a. Hidden
b. Specialty
c. Equity
d. Unsought
e. Shopping
____ 71. Changing one or more of a product’s characteristics is called:
a. product modification
b. product repositioning
c. product adjustment
d. planned obsolescence
e. product extension
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Midterm Review
Professor J Tepfer
Fall 2012
____ 72. Apple recently updated its iPod Touch product, expanding its storage from 8 GB to 16 GB. Enlarging the
iPod Touch’s storage capacity is an example of a:
a. product modification
b. brand mix extension
c. product diversification
d. brand repositioning
e. demographic modification
____ 73. A regional utility company needs to change consumers’ perceptions of its current service as being harmful to
the environment. Which of the following strategies would best allow the company to accomplish this goal?
a. Contraction of the number of services offered by the utility company
b. Adding new services to its product line
c. Repositioning
d. Disintermediation
e. Use of product cannibalization
____ 74. The value of company and brand names is referred to as:
a. brand equity
b. brand loyalty
c. brand power
d. brand equivalency
e. brand strength
____ 75. Wal-Mart sells many health and beauty aid products under the name Equate. This brand can only be
purchased in Wal-Mart stores and is an example of a(n) _____ brand.
a. manufacturers’
b. international
c. family
d. private
e. corporate
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BMCC
Mar 100
Midterm Review
Professor J Tepfer
Fall 2012
MAR 100 midterm review - Fall 2012
Answer Section
MULTIPLE CHOICE
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Midterm Review
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Fall 2012
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