Deck 12: Understanding Marketing Principles and Developing Products

Question 1

Which phrase best captures the essence of relationship marketing?

A)Emphasis on quality
B)Emphasis on intensive distribution
C)Emphasis on long-term relationships with customers
D)Emphasis on exclusive distribution
E)Emphasis on profitable operations

Answer 1

C

Question 2

When Toronto-based Fairmont Resort Hotels used data mining to find out what kinds of vacations their customers preferred,and then placed ads where they were more likely to reach those customers,this was an example of

A)consumer relationship management.
B)product differentiation.
C)data warehousing.
D)aggregate marketing.
E)industrial marketing.

Answer 2

A

Question 3

Advertising to make people more aware of the hazards of drinking and driving is an example of

A)industrial marketing.
B)relationship marketing.
C)service marketing.
D)idea marketing.
E)consumer marketing.

Answer 3

D

Question 4

The process of planning and executing the conception,pricing,promotion,and distribution of ideas,goods,and services to create exchanges that satisfy individual and organizational objectives is called

A)publicity.
B)marketing.
C)relationship marketing.
D)idea promotion.
E)advertising.

Question 5

Harley-Davidson offers social incentives through the Harley Owners Group (H.O.G. ),the largest motorcycle club in the world.This is an example of

A)industrial marketing.
B)relationship marketing.
C)consumer marketing.
D)marketing research.
E)international marketing.

Question 6

The five major environmental factors in the marketing environment are

A)political-legal,socio-cultural,technological,infrastructure,and competitive.
B)political-legal,economic,intellectual,socio-cultural,and competitive.
C)political-legal,socio-cultural,technological,economic,and competitive.
D)infrastructure,socio-cultural,technological,climatic,and competitive.
E)political-legal,intellectual,technological,economic,and competitive.

Question 7

Starbucks's Card Rewards attracts return customers with free coffee refills and other extras.This is an example of

A)industrial marketing.
B)relationship marketing.
C)consumer marketing.
D)marketing research.
E)international marketing.

Question 8

What type of goods includes raw materials and integrated circuits?

A)Substitute products
B)Industrial goods
C)Consumer goods
D)Marketing goods
E)Disposable goods

Question 9

According to the marketing concept,

A)the firm must coordinate its marketing and non-marketing activities.
B)customer satisfaction is the firm's only objective.
C)maximum short-run profit is the firm's only objective.
D)the marketing department should function independently of the rest of the firm.
E)the finance area becomes critically important because ways must be found to pay for all the marketing research activity that is necessary.

Question 10

What kind of business activity is a grocery store engaged in when it sells meat to a homemaker?

A)Consumer marketing
B)Disaggregate marketing
C)Product differentiation
D)Industrial marketing
E)Market planning

Question 11

Products which are purchased by end users for their personal use are ________ goods,while products which are purchased by companies for production purposes are ________ goods.

A)industrial;consumer
B)capital;accessory
C)consumer;industrial
D)high utility;low utility
E)none of these

Question 12

Quinn Clothes is a successful business selling fashionable and athletic swimwear.The marketing staff has said that the company's plan to develop and market waterproof perfumes might be hindered by a lack of experience in the perfume field.Which of the following is the best response to that weakness?

A)Hire a chemist to develop the fragrances
B)Seek product ideas from existing staff
C)Employ new graphic designers to develop a new logo
D)Ensure that the perfume can be sold in the same retail stores as the swimwear
E)Rethink the company's promotional approach to selling products

Question 13

A product's benefits include all of the following except which?

A)The emotional satisfaction associated with owning the product
B)The satisfaction associated with experiencing the product
C)The time required to purchase the product
D)The functions of the product
E)The acceptance by a peer group

Question 14

Single parent families,food preferences,and the number of women entering the workforce are all external environmental factors marketing managers must consider when analyzing the ________ environment.

A)public relations
B)legal
C)produce
D)economic
E)socio-cultural

Question 15

Hydraulics Inc.makes filters for manufacturing companies.What kind of marketing is it engaged in?

A)Consumer marketing
B)Disaggregate marketing
C)Market planning
D)Industrial marketing
E)Product differentiation

Question 16

________ is the process of planning and executing the development,pricing,promotion,and distribution of ideas,goods,and services to create exchanges that satisfy individual and organizational objectives.

A)Promotion
B)Relationship marketing
C)Marketing
D)Market strategy
E)Market segmentation

Question 17

If Brighten Your World Inc.sells its light bulbs to the Jacobs Motor Company to be used in all their cars as headlights,Brighten Your World is engaging in what type of marketing activity?

A)Marketing research
B)Consumer marketing
C)Relationship marketing
D)Aggregate marketing
E)Industrial marketing

Question 18

Which of the following terms describes the kind of products marketed by insurance companies,airlines,investment counsellors,health clinics,and public accountants?

A)Personal goods
B)Services
C)Industrial goods
D)Psychographics
E)Reseller goods

Question 19

What is data warehousing?

A)A marketing strategy that creates sales agreements that stipulate product delivery
B)The process of dividing a market into categories of customer types
C)The study of consumer needs and wants and the way in which sellers can best meet them
D)The process of collecting,storing,and retrieving data in electronic files
E)A customer identification strategy that targets potential buyers

Question 20

Value is determined by comparing a product's ________;the formula requires dividing ________.

A)costs and benefits;benefits by costs
B)price and quality;price by quality
C)price and durability;durability by price
D)quality and durability;quality by durability
E)availability and price;price by availability

Question 21

Cholesterol levels may be controlled with either a physical-fitness program or a drug regimen.The fitness program and the drugs are examples of

A)dissimilar products.
B)contrary products.
C)international products.
D)brand-name competitive products.
E)substitute products.

Question 22

If you were the manager for a local bulldozer dealer,which promotion tool would likely be the best method to sell high-priced bulldozer?

A)Product placement
B)Price placement
C)Product differentiation
D)Personal selling
E)New product development

Question 23

The 4 P's of marketing include all the following except

A)product.
B)place.
C)price.
D)promotion.
E)profit.

Question 24

Hansen Trucking Company transports detergent from a loading dock in Toronto to a supermarket shelf in Sherbrooke.This is a(n)________ element of the marketing mix.

A)ownership
B)form
C)time
D)product
E)place

Question 25

Which of the following is correct with regard to the elements in the marketing mix?

A)Of the four elements,"product" is generally least important.
B)The elements are all equally important,regardless of the product being sold.
C)Price plays a small role in fresh meat,but a relatively larger role in selling newspapers.
D)Distribution is not very important in marketing gasoline,but it is important for lumber.
E)Promotion is vital in selling toys,but much less important in selling nails.

Question 26

________ is the most highly visible component of the marketing mix.

A)Promotion
B)Place
C)Profit
D)Product
E)Price

Question 27

The ________ is a good,service,or idea that is marketed to fill consumer needs and wants.

A)product
B)place
C)profit
D)promotion
E)price

Question 28

Smartphones are an example of what kind of factor in the business environment?

A)Economic
B)Technological
C)Global
D)Competitive
E)Socio-cultural

Question 29

________ must support the firm's operating costs,administrative costs,research costs,and marketing costs such as advertising and sales salaries.

A)Product differentiation
B)Price
C)Product
D)Place
E)Promotion

Question 30

What is the fundamental goal of product differentiation?

A)To increase profit margins
B)To set the company's products apart from competitive products in the market
C)To maximize market share
D)To more effectively market to industrial consumers
E)To more effectively market to certain demographic segments of the market

Question 31

A company decides to introduce a line of crackers made with organically grown grains and vegetables.What environmental trend is the company responding to?

A)Competitive
B)Socio-cultural
C)Political-legal
D)Economic
E)Technological

Question 32

Which element of the marketing mix is illustrated by using premiums and coupons to encourage consumers to buy more of a product?

A)Price
B)Promotion
C)Production
D)Place
E)Productivity improvements

Question 33

Which term is used to identify the division of a market into categories of customer types?

A)Industrial marketing
B)Marketing mix
C)Customer marketing
D)Market segmentation
E)Market de-categorization

Question 34

A TD Canada Trust advertisement that emphasizes non-traditional extended banking hours is an example of

A)product differentiation.
B)market research.
C)industrial marketing.
D)relationship marketing.
E)market segmentation.

Question 35

What results are expected from a successful product differentiation program?

A)The manner in which the product functions must be changed.
B)Differentiation requires that prices be mid-level in order to generate a high volume of sales.
C)Customer response to the product will change.
D)Differentiation requires that prices be high in order to generate a high volume of sales.
E)Promotional plans will not change.

Question 36

Who has the responsibility for developing the plan to introduce a new product,service,or idea?

A)Quality assurance manager
B)Marketing manager
C)Production manager
D)Planning manager
E)Warehouse manager

Question 37

Which of the following is correct with regard to price?

A)It refers only to the actual amount of money that consumers pay for a product.
B)It is generally the second-most important element in the marketing mix.
C)In some cases,high prices will actually attract customers by implying that the product is unusually good.
D)It is more important for industrial goods than it is for consumer goods.
E)All of these

Question 38

The four elements in the marketing mix are

A)advertising,sales promotion,publicity,and public relations.
B)marketing managers,a marketing plan,relationship marketing,and profit.
C)price,place,promotion,and product.
D)profit,price,place,and promotion.
E)demographics,psychographics,geographics,and product use.

Question 39

When Maytag created the perception that its products were more reliable (by showing a lonely repair person with nothing to do)it was using a(n)________ strategy.

A)product differentiation
B)promotion
C)everyday low prices
D)new product development
E)market segmentation

Question 40

A detailed and focused strategy for gearing marketing activities to meet consumer needs and wants is called a

A)promotion plan.
B)product positioning.
C)sales plan.
D)marketing plan.
E)marketing mix.

Question 41

Assume that you went to a shopping mall to determine people's attitudes toward a new peanut butter and pickle flavoured ice cream.You would be collecting ________ data.

A)census
B)interview
C)primary
D)psychographic
E)secondary

Question 42

A company that sells environmentally-friendly,zero-impact products would likely use ________ segmentation to reach out to people that match their lifestyle approach and attitudes towards nature.

A)intrinsic
B)psychographic
C)demographic
D)geographic
E)product-use variables

Question 43

Multicultural marketing is part of market segmentation by

A)psychographics.
B)demographics.
C)geography.
D)product use.
E)attitudes.

Question 44

What is a target market?

A)Teenagers ages 13 to 18 who enjoy fast food
B)Men who are taller and heavier than average
C)The percent of market share the firm wants to achieve
D)A group of people with similar wants who are expected to show interest in the same products
E)The percentage of total revenue generated by one product

Question 45

Which segmentation approach considers consumer characteristics such as their attitudes,interests,and opinions?

A)Consumographic
B)Geographic
C)Psychographic
D)Behavioural
E)Demographic

Question 46

________ are particularly important to marketers because marketers can,through marketing efforts,sway consumers' likes and dislikes.

A)Demographics
B)Geographics
C)Marital status and age
D)Psychographics
E)Product uses

Question 47

The Chevrolet Spark is promoted to consumers based on fuel-efficiency and economy,while a Porsche is promoted based on high performance.This is an example of

A)relationship marketing.
B)product positioning.
C)product differentiation.
D)mass customization.
E)psychographic segmentation.

Question 48

Which of the following should be considered in the demographic variables for market segmentation?

A)How the product will be used (e.g. ,athletic footwear vs.dress shoes)
B)Interests,attitudes,and opinions of consumers
C)Income levels,marital status
D)Trends in population shifts
E)Where people live

Question 49

When Reader's Digest identified and classified its readers into young adults,computer owners,and professionals/managers,it was using

A)prospect identification.
B)potential customer categorizing.
C)customer identification.
D)product differentiation.
E)market segmentation.

Question 50

When is market research used most frequently?

A)When a new or altered product is being considered
B)When a product is out of stock
C)When the promotional campaign is first under way
D)When the product is fully stocked in each of the distribution centres
E)When determining the reason for a product's failure

Question 51

Groups of people with similar wants and needs that can be expected to show interest in the same products are called

A)customers.
B)prospects.
C)homogeneous segments.
D)potential customers.
E)target markets.

Question 52

________ is segmentation by such traits as age,income,gender,ethnicity,and marital status.

A)Random selection
B)Demographics
C)Psychographics
D)Product use
E)Geographics

Question 53

The study of what buyers need and how best to meet those needs is known as

A)marketing.
B)market research.
C)psychographics.
D)market segmentation.
E)market stimulation.

Question 54

The best way to segment the market for umbrellas is probably by

A)geographic variables.
B)behavioural segmentation.
C)psychographic variables.
D)geo-demographic variables.
E)demographic variables.

Question 55

The best segmentation for small drug stores or dry cleaners would be

A)geographic.
B)demographic.
C)geo-demographic.
D)product use.
E)psychographic.

Question 56

The importance of ________ in marketing can be seen in the example of the introduction of "Crayola IQ" colour pencils because crayons were seen as too "babyish" by 8 to 12-year olds.

A)language
B)geography
C)demographics
D)history
E)psychology

Question 57

Primary data are

A)data gathered for primary areas of the firm,like marketing and production.
B)based on facts gathered from library research.
C)based on data newly collected for a specific research purpose.
D)any of the above,depending upon why the marketer is doing the research.
E)gathered by consulting Statistics Canada publications.

Question 58

Purple Moon markets adventure software to pre-teen girls.This is an example of

A)relationship marketing.
B)mass customization.
C)product differentiation.
D)customer identification.
E)market segmentation.

Question 59

What does the process of "positioning" involve?

A)Hiring only employees who have the strongest credentials
B)Designing a company's products to appeal to target customers
C)Focusing on only one component of the marketing mix
D)Disregarding customers' reactions to a company's products
E)Reorganizing employees according to seniority

Question 60

People with similar wants and needs constitute ________,which clearly requires ________.

A)a demographic market segment;market segmentation
B)a target market;market segmentation
C)a target market;relationship marketing
D)a geographic market segment;relationship marketing
E)a psychographic market segment;relationship marketing

Question 61

In consumer behaviour,what is the name for the influences that include the "way of living" that distinguishes one large group from another and one ethnic group from another?

A)Psychological
B)Personal
C)Social
D)Domestic
E)Cultural

Question 62

The heart of any survey is the ________ which must be carefully designed to give the company honest answers about specific research issues.

A)observation
B)questionnaire
C)experimentation
D)secondary data
E)consumer scan

Question 63

When UPS asked customers how the company could improve its service,UPS was using

A)video mining.
B)observation.
C)experimentation.
D)focus groups.
E)surveys.

Question 64

Based on a product review in a magazine,Rob decided which product to buy.He is demonstrating the impact of

A)psychological influences.
B)cultural influences.
C)past experience influences.
D)social influences.
E)personal influences.

Question 65

Sally spent the day in the local grocery store passing out free samples of a new potato chip brand.Sally gave every second customer the new chip with dip and every other customer the new chip without dip.What type of research was Sally conducting?

A)Observation
B)Primary and secondary data collection
C)Experimentation
D)Survey
E)Focus groups

Question 66

Secondary data are

A)statistics and information that are available as a result of previous research.
B)based on data newly collected for a specific research purpose.
C)based on information gathered by someone else,but not yet published.
D)any of the above,depending upon why the marketer is doing the research.
E)data gathered for secondary areas of the firm like marketing research and accounting.

Question 67

The influence category which includes "lifestyle" is ________,while the category that includes an individual's "motivations" is ________.

A)personal;psychological
B)psychological;social
C)cultural;social
D)social;cultural
E)social;psychological

Question 68

Arun is a conservative computer programmer.He prefers coulors like grey,black,blue,and white.He certainly does not like chasing fashion fads or wearing flashy clothes.This is an example of

A)past experience influences.
B)cultural influences.
C)social influences.
D)personal influences.
E)psychological influences.

Question 69

The information that Statistics Canada provides on the Canadian economy is an example of

A)secondary data.
B)statistical variance analysis.
C)primary data.
D)a demographic variable.
E)product research.

Question 70

Rondell Corp.is involved in a market research program.They have already studied the current situation to discover customer needs and what is being done to meet those needs.What should they do next?

A)Collect data
B)Select a research method
C)Analyze the data
D)Conduct a focus group
E)Prepare a report

Question 71

________ is the study of the decision process by which customers come to purchase and consume products.

A)Customer buying logic
B)Purchase decision model
C)End-user purchase behaviour
D)Consumer behaviour
E)Buyer behaviour

Question 72

________ is an example of a rational motive,whereas ________ is an example of an emotional motive when buying a new pair of pants.

A)Quality;aesthetics
B)Cost;quality
C)Aesthetics;Quality
D)Quality;Usefulness
E)Sociability;imitation of others

Question 73

Sherrie wants to save money and time on her research project.You recommend she use

A)observation.
B)focus groups.
C)primary data she collects herself.
D)secondary data.
E)experiments.

Question 74

Sherrie wants to complete a research project;unfortunately,she has no idea where to begin.You advise her to begin by

A)designing a questionnaire.
B)collecting data.
C)selecting a research method.
D)studying the current situation.
E)analyzing data.

Question 75

While Sylvia has not asked teenage consumers any questions,she has noted that they tend to purchase green nail polish,as opposed to purple.Which research method has Sylvia used?

A)Nominal scaling
B)Focus groups
C)Observation
D)Survey
E)Experimentation

Question 76

Which category of influences on consumer behaviour includes ethnic groups,social class,occupation,and income?

A)Past experience
B)Psychological
C)Social
D)Cultural
E)Personal

Question 77

Many firms use ________,in which 6 to 15 people are brought together to talk about a product.A moderator leads a discussion,and employees from the sponsoring company may observe the proceedings from behind a one-way mirror.People's comments are taped,and researchers go through the data looking for common themes.

A)observation
B)secondary data scanning
C)experimentation
D)visual survey
E)focus groups

Question 78

Garrett is in the business of selling baseball bats.He decides to employ focus groups to determine which bats will likely be bestsellers.Which of the following groups will he be least likely to invite as participants?

A)Players from a professional baseball team
B)Local college and high school baseball coaches
C)Administrators of the local Little League baseball program
D)Spectators at a baseball tournament
E)Amateur players

Question 79

Ming has a strong work ethic.He has worked his way up the ladder and would be considered upper middle class,which is reflected in his recent purchases.This is an example of

A)psychological influences.
B)social influences.
C)personal influences.
D)cultural influences.
E)past experience influences.

Question 80

On the first day of your new job,you notice that your wardrobe is not up to company standards.You are at the ________ stage of the consumer buying process.

A)problem recognition
B)purchase decision
C)post-purchase evaluation
D)information seeking
E)evaluation of alternatives