Deck 12: Understanding Marketing Principles and Developing Products

Question 1

What kind of business activity is a grocery store engaged in when it sells meat to a homemaker?
Consumer marketing
Disaggregate marketing
Product differentiation
Industrial marketing
Market planning

Answer 1

Consumer marketing

Question 2

Who has the responsibility for developing the plan to introduce a new product, service, or idea?
Quality assurance manager
Marketing manager
Production manager
Planning manager
Warehouse manager

Answer 2

Marketing manager

Question 3

Starbucks's Card Rewards attracts return customers with free coffee refills and other extras. This is an example of
industrial marketing.
relationship marketing.
consumer marketing.
marketing research.
international marketing.

Answer 3

relationship marketing.

Question 4

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

Question 5

The marketing concept
focuses on building products that provide value to customers.
excludes input from the human resources department.
means building a competitive advantage through product differentiation.
means that the whole firm is coordinated to achieve one goal: to serve customers at a profit.
does not include the finance department.

Question 6

Marketing of insurance, airlines, investment counsellors, and health clinics are examples of
relationship marketing.
industrial marketing.
service marketing.
idea marketing.
consumer marketing.

Question 7

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.
industrial; consumer
capital; accessory
consumer; industrial
high utility; low utility
none of these

Question 8

Sales of janitorial services, mainframe computers, and office supplies to other manufacturers are examples of
industrial marketing.
service marketing.
relationship marketing.
consumer marketing.
idea marketing.

Question 9

Which phrase best captures the essence of relationship marketing?
Emphasis on quality
Emphasis on intensive distribution
Emphasis on long-term relationships with customers
Emphasis on exclusive distribution
Emphasis on profitable operations

Question 10

Hydraulics Inc. makes filters for manufacturing companies. What kind of marketing is it engaged in?
Consumer marketing
Disaggregate marketing
Market planning
Industrial marketing
Product differentiation

Question 11

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
publicity.
marketing.
relationship marketing.
idea promotion.
advertising.

Question 12

The five major environmental factors in the marketing environment are
political/legal, socio-cultural, technological, infrastructure, and competitive.
political/legal, economic, intellectual, socio-cultural, and competitive.
political/legal, socio-cultural, technological, economic, and competitive.
infrastructure, socio-cultural, technological, climatic, and competitive.
political/legal, intellectual, technological, economic, and competitive.

Question 13

Value is determined by comparing a product's ________________; the formula requires dividing ____________.
costs and benefits; benefits by costs
price and quality; price by quality
price and durability; durability by price
quality and durability; quality by durability
availability and price; price by availability

Question 14

________ 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.
Promotion
Relationship marketing
Marketing
Market strategy
Market segmentation

Question 15

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
consumer relationship management.
product differentiation.
data warehousing.
aggregate marketing.
industrial marketing.

Question 16

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

Question 17

Advertising to make people more aware of the hazards of drinking and driving is an example of
industrial marketing.
relationship marketing.
service marketing.
idea marketing.
consumer marketing.

Question 18

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
industrial marketing.
relationship marketing.
consumer marketing.
marketing research.
international marketing.

Question 19

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.
public relations
legal
produce
economic
socio-cultural

Question 20

Cholesterol levels may be controlled with either a physical-fitness program or a drug regimen. The fitness program and the drugs are examples of
dissimilar products.
contrary products.
international products.
brand-name competitive products.
substitute products.

Question 21

What results are expected from a successful product differentiation program?
The manner in which the product functions must be changed.
Differentiation requires that prices be mid-level in order to generate a high volume of sales.
Customer response to the product will change.
Differentiation requires that prices be high in order to generate a high volume of sales.
Promotional plans will not change.

Question 22

Which term is used to identify the division of a market into categories of customer types?
Industrial marketing
Marketing mix
Customer marketing
Market segmentation
Market de-categorization

Question 23

The four elements in the marketing mix are
advertising, sales promotion, publicity, and public relations.
marketing managers, a marketing plan, relationship marketing, and profit.
price, place, promotion, and product.
profit, price, place, and promotion.
demographics, psychographics, geographics, and product-use.

Question 24

It is the middle of August, and Bob has been driving for the last three hours without air conditioning. He is hot and thirsty and would like to find something cold to drink. Bob would consider ________ the most important element in the marketing mix for a soft drink marketer.
promotion
profit
place
price
product

Question 25

If you were the manager for Track & Wheels, a local backhoe dealer, which promotion would likely be the best method to sell high-priced backhoes?
Product placement
Price placement
Product differentiation
Personal selling
New product development

Question 26

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.
product differentiation
promotion
every-day-low-prices
new product development
market segmentation

Question 27

Which of the following is correct with regard to price?
It refers only to the actual amount of money that consumers pay for a product.
It is generally the second-most important element in the marketing mix.
In some cases, high prices will actually attract customers by implying that the product is unusually good.
It is more important for industrial goods than it is for consumer goods.
All of these

Question 28

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.
ownership
form
time
product
place

Question 29

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

Question 30

Which element of the marketing mix is illustrated by the use of premiums, trading stamps, and coupons meant to encourage consumers to buy more of a product?
Price
Promotion
Production
Place
Productivity improvements

Question 31

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.
language
geography
demographics
history
psychology

Question 32

________ is the most highly visible component of the marketing mix.
Promotion
Place
Profit
Product
Price

Question 33

A TD Canada Trust advertisement that emphasizes non-traditional extended banking hours is an example of
product differentiation.
market research.
industrial marketing
relationship marketing
market segmentation

Question 34

Groups of people with similar wants and needs that can be expected to show interest in the same products are called
customers.
prospects.
homogeneous segments.
potential customers.
target markets.

Question 35

A detailed and focused strategy for gearing marketing activities to meet consumer needs and wants is called a
promotion plan.
product positioning.
sales plan.
marketing plan.
marketing mix.

Question 36

The ________ is a good, service, or idea that is marketed to fill consumer needs and wants.
product
place
profit
promotion
price

Question 37

Which of the following is correct with regard to the elements in the marketing mix?
Of the four elements, "product" is generally least important.
The elements are all equally important, regardless of the product being sold.
Price plays a small role in fresh meat, but a relatively larger role in selling newspapers.
Distribution is not very important in marketing gasoline, but it is important for lumber.
Promotion is vital in selling toys, but much less important in selling nails.

Question 38

What is the fundamental goal of product differentiation?
To increase profit margins
To set the company's products apart from competitive products in the market
To maximize market share
To more effectively market to industrial consumers
To more effectively market to certain demographic segments of the market

Question 39

Mass customization is an important production method to marketers because
it promotes loyal customers.
it allows marketers to provide products that satisfy specific needs of consumers.
it speeds the production cycle, providing time utility to customers.
its focus on delivering quality products leads to customer satisfaction.
it ensures profitability.

Question 40

The 4 P's of marketing include all of the following except
product.
place.
price.
promotion.
profit.

Question 41

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

Question 42

The best segmentation for small drug stores or dry cleaners would be
geographic.
demographic.
geo-demographic.
product-use.
psychographic.

Question 43

The information that Statistics Canada provides on the Canadian economy is an example of
secondary data.
statistical variance analysis.
primary data.
a demographic variable.
product research.

Question 44

Companies in Poland have succeeded in overcoming consumer resistance to credit by promoting the safety and desirability of using credit rather than depending solely on cash. This is an example of the use of a __________ variable in market segmentation.
level of income
demographic
geographic
behavioural segmentation
psychographic

Question 45

When is market research used most frequently?
When a new or altered product is being considered
When a product is out of stock
When the promotional campaign is first under way
When the product is fully stocked in each of the distribution centres
When determining the reason for a product's failure

Question 46

________ is segmentation by such traits as age, income, gender, ethnicity, and marital status.
Random selection
Demographics
Psychographics
Product-use
Geographics

Question 47

The best way to segment the market for umbrellas is probably by
geographic variables.
behavioural segmentation.
psychographic variables.
geo-demographic variables.
demographic variables.

Question 48

Multicultural marketing is part of market segmentation by
psychographics.
demographics.
geography.
product-use.
attitudes.

Question 49

A group of people in Canada buy all Express Yourself fashion products because they feel the clothes relate to their rebel lifestyle. What kind of segmentation would best help you define this group of individuals?
Intrinsic segmentation
Psychographic segmentation
Demographic segmentation
Geographic segmentation
Product-use variables segmentation

Question 50

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

Question 51

The study of what buyers need and how best to meet those needs is known as
marketing.
market research.
psychographics.
market segmentation.
market stimulation.

Question 52

People with similar wants and needs constitute ___________, which clearly requires ___________.
a demographic market segment; market segmentation
a target market; market segmentation
a target market; relationship marketing
a geographic market segment; relationship marketing
a psychographic market segment; relationship marketing

Question 53

The blue jean market is quite varied, and people wear them for different reasons and for different purposes. There are fashion jeans, work jeans, truck-driving jeans, cowboy jeans, etc. To serve this market better, many firms practice
mass marketing strategy.
regional marketing.
market segmentation.
diversified marketing.
multi-marketing.

Question 54

Which of the following should be considered in the demographic variables for market segmentation?
How the product will be used (e.g., athletic footwear vs. dress shoes)
Interests, attitudes, and opinions of consumers
Income levels, marital status
Trends in population shifts
Where people live

Question 55

Purple Moon markets adventure software to pre-teen girls. This is an example of
relationship marketing.
mass customization.
product differentiation.
customer identification.
market segmentation.

Question 56

When Reader's Digest identified and classified its readers into young adults, computer owners, and professionals/managers, it was using
prospect identification.
potential customer categorizing.
customer identification.
product differentiation.
market segmentation.

Question 57

The Ford Focus is promoted to consumers on the basis of economy, while the Porsche is promoted on the basis of high performance. This is an example of
relationship marketing.
product positioning.
product differentiation.
mass customization.
psychographic segmentation.

Question 58

________ are particularly important to marketers because marketers can, through marketing efforts, sway consumers' likes and dislikes.
Demographics
Geographics
Marital status and age
Psychographics
Product-use

Question 59

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

Question 60

Which segment of a market will consider consumer characteristics such as their motives, opinions, interests, and attitudes?
Consumographic variables
Geographic variables
Psychographic variables
Behavioural segmentation
Demographic variables

Question 61

Sherrie wants to complete a research project; unfortunately, she has no idea where to begin. You advise her to begin by
designing a questionnaire.
collecting data.
selecting a research method.
studying the current situation.
analyzing data.

Question 62

Bob, due to a strong work ethic, has worked his way up the ladder and would be considered middle class, which is reflected in his recent purchases. This is an example of
psychological influences.
social influences.
personal influences.
cultural influences.
past experience influences.

Question 63

Marketing research is
the study of consumer needs and wants, and the ways in which sellers can best meet them.
the process of collecting, storing, and retrieving data in electronic files.
the process of fixing, adapting, and communicating the nature of the product itself.
the process of dividing a market into categories of customer types.
a marketing strategy that emphasizes long-lasting relationships with customers.

Question 64

Sally spent the day in the local grocery store passing out free samples of a new potato chip. 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?
Observation
Primary and secondary data collection
Experimentation
Survey
Focus groups

Question 65

Needing some new clothes, you ask one of your co-workers where he shops. That evening you check the newspapers for sales. You are in the ________ stage of the consumer buying process.
information seeking
post-purchase evaluation
problem recognition
purchase decision
evaluation of alternatives

Question 66

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?
Collect data
Select a research method
Analyze the data
Conduct a focus group
Prepare a report

Question 67

Scott is an intelligent, conservative programmer. His clothes purchases are typically darker in colour and not the current fad. This is an example of
past experience influences.
cultural influences.
social influences.
personal influences.
psychological influences.

Question 68

Sherrie wants to save money and time on her research project. You recommend she use
observation.
focus groups.
primary data she collects herself.
secondary data.
experiments.

Question 69

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

Question 70

Based on a product review in a magazine, Rob decided which product to buy. He is demonstrating the impact of
psychological influences.
cultural influences.
past experience influences.
social influences.
personal influences.

Question 71

________ is the study of the decision process by which customers come to purchase and consume products.
Customer buying logic
Purchase decision model
End-user purchase behaviour
Consumer behaviour
Buyer behaviour

Question 72

Which of the following is correct with respect to surveys?
Questionnaires are not generally necessary in surveys.
The accuracy of surveys is routinely very high.
When using surveys, a random sample is usually better than a representative sample of consumers.
Online surveys are growing in popularity because the company gets immediate results.
All of these

Question 73

After asking people about their "desired scent experience," Procter & Gamble developed Febreze Scentstories, a product that gives off 5 different scents every 30-minutes. They did this after using what approach to data gathering?
Video mining
Observation
Experimentation
Focus groups
Surveys

Question 74

Michael decides that he cannot afford the cost of a new set of tires for his car until after payday. Which state of the consumer buying process is he in?
Problem recognition
Evaluation of alternatives
Purchase decision
Information seeking
Post-purchase evaluation

Question 75

To help you decide which new suit to purchase for your job interview, you ask a trusted friend to give you her opinion on each of the suits you're looking at. You are in the ________ stage of the consumer buying process.
post-purchase evaluation
purchase decision
evaluation of alternatives
information seeking
problem recognition

Question 76

When UPS asked customers how the company could improve its service, UPS was using
video mining.
observation.
experimentation.
focus groups.
surveys.

Question 77

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.
problem recognition
purchase decision
post-purchase evaluation
information seeking
evaluation of alternatives

Question 78

The influence category which includes "lifestyle" is __________, while the category that includes an individual's "motivations" is _________.
personal; psychological
psychological; social
cultural; social
social; cultural
social; psychological

Question 79

Which category of influences on consumer behaviour includes ethnic groups, social class, occupation, and income?
Past experience
Psychological
Social
Cultural
Personal

Question 80

While Sylvia has not asked teenage consumers any questions, she has noted that they purchase green nail polish, as opposed to purple. Which research method has Sylvia used?
Nominal scaling
Focus groups
Observation
Survey
Experimentation