Customer-Driven Marketing Strategy

Question 1

Behavioral research generally indicates that consumers’ attitudes

(A) do not change very easily or quickly
(B) are very easy to change through promotion
(C) cannot ever be changed
(D) can only be developed through actual experience with products
(E) are very accurate predictors of actual purchasing behavior

Answer 1

(A) do not change very easily or quickly

Question 2

Reference groups are more likely to influence a consumer’s purchase when the product being purchased is

(A) important
(B) inexpensive
(C) familiar
(D) intangible
(E) socially visible

Answer 2

(E) socially visible

Question 3

An advertisement for prospective applicants to a college shows individual students along with the slogan “I am getting ready to seize my destiny.” The ad appeals to which need in Maslow’s hierarchy?

(A) Physiological
(B) Esteem
(C) Social affiliation
(D) Self-actualization
(E) Safety

Answer 3

(D) Self-actualization

Question 4

A customer is satisfied, when a customer’s purchase ________ his or her expectations.

(A) exceeds
(B) redefines
(C) falls short of
(D) lives up to
(E) none of the above

Answer 4

(D) lives up to

Note: “Exceeds” would be correct if “lives up to” was not a choice. Customer satisfaction occurs when the product or services MEETS or EXCEEDS expectations.

Question 5

A consumer is reading a magazine with an HP advertisement, but is distracted from reading the advertisement or its key points. This unplanned static or distortion during the communication process is called ________.

(A) noise
(B) distraction
(C) feedback
(D) response
(E) message response

Answer 5

(A) noise

Question 6

The degree to which a customer’s experience with a product or organization meets or exceeds his or her expectations is often referred to as:

(A) Relationship marketing.
(B) Exchange.
(C) Customer value.
(D) Customer satisfaction.
(E) Customer loyalty.

Answer 6

(D) Customer satisfaction

Question 7

Buyers typically experience some post-purchase anxieties in all but routine purchases. This state of anxiety is known as cognitive dissonance and can be expected to increase if:

(A) the length of the distribution channel increases.
(B) the relative attractiveness of the unselected alternatives decreases.
(C) the relative importance of the purchase increases.
(D) the price elasticity increases.
(E) any of the above occurs.

Answer 7

(C) the relative importance of the purchase increases.

Question 8

Which of the following products is most likely to be a high-involvement purchase?

(A) A package of rubber bands.
(B) A birthday gift for your new mother-in-law.
(C) A subscription renewal to Time magazine.
(D) A mystery novel to read on a long airplane flight.
(E) A box of baking soda.

Answer 8

(B) A birthday gift for your new mother-in-law.

Question 9

Consumers tend to be more satisfied with their purchase of a product when

(A) cognitive dissonance develops after the purchase
(B) the price of the product falls after the purchase
(C) they research the product before the purchase
(D) their opinions are inconsistent with their values
(E) there is no further contact with the seller

Answer 9

(C) they research the product before the purchase

Question 10

Which of the following lists the correct sequence of steps in the consumer decision-making process?

(A) Need recognition, evaluation, purchase decision, invoked set, post-purchase behavior
(B) Felt need, response to stimulus, evaluation of alternatives, post-purchase decision, purchase behavior
(C) Alternative invoked set, need recognition, purchase decision, post-purchase evaluation
(D) Information search, need positioning, evaluation of alternatives, product purchase decision, post-purchase satisfaction
(E) Need recognition, information search, evaluation of alternatives, purchase, post-purchase behavior

Answer 10

(E) Need recognition, information search, evaluation of alternatives, purchase, post-purchase behavior

Question 11

Maxine suddenly realizes that she is out of paper towels. She remembers that she last bought:
Max Dri Towels, so she stops at the store and picks up another roll of Max Dri on her way home from work. In this example, Maxine uses what form of information search in her decision process?

(A) Limited problem solving
(B) Extended problem solving
(C) Internal information search
(D) Compensatory information search
(E) Information search by personal sources

Answer 11

(C) Internal information search

Question 12

Market segmentation that is concerned with people over 65 years of age is called

(A) geographic
(B) socioeconomic
(C) demographic
(D) psychographic
(E) behavioral

Answer 12

(C) demographic

Question 13

The XYZ Corporation has two chains of restaurants. One restaurant specializes in family dining with affordable meals. The second restaurant targets young, single individuals, and offers a full bar and small servings. The XYZ Corporation uses which form of targeted marketing strategy?

(A) Mass marketing
(B) Differentiated marketing
(C) Undifferentiated marketing
(D) Customized marketing
(E) Concentrated marketing

Answer 13

(B) Differentiated marketing

Question 14

The primary purpose of market segmentation is to

(A) combine different groups to meet their needs
(B) create sales territories of similar size and market potential to determine sales quotas
(C) reduce market demand to a manageable size
(D) profile the market as a whole to optimize marketing efforts
(E) allocate marketing resources to meet the needs of specific segments

Answer 14

(E) allocate marketing resources to meet the needs of specific segments

Question 15

Richard Weiss, SA, is a Swiss watch manufacturer. One of its two major brands offers ruggedness, reliability and durability to active sports enthusiasts. The other offers elegance and stylishness to fashion conscious consumers. Which of the following segmentation approaches is this firm using?

(A) Demographic
(B) Geographic
(C) Usage
(D) Benefits sought
(E) Socioeconomic

Answer 15

(D) Benefits sought

Question 16

Which of the following lists the correct order of the steps of the target marketing process?

(A) Segmentation, positioning, and targeting
(B) Targeting, segmentation, and positioning
(C) Positioning, targeting, and segmentation
(D) Segmentation, targeting, and positioning
(E) Positioning, segmentation, and targeting

Answer 16

(D) Segmentation, targeting, and positioning

Question 17

In general, a company should enter only segments in which it can ________ and ________.

(A) offer lower prices; ship faster
(B) offer superior value; gain advantages over competitors
(C) offer superior value; ship faster
(D) gain advantages over competitors; get co-op advertising
(E) identify behaviors; understanding spending power

Answer 17

(B) offer superior value; gain advantages over competitors

Question 18

Which of the following best describes the process of selecting target markets in order to formulate a marketing mix?

(A) Strategic planning
(B) Product differentiation
(C) Market segmentation
(D) Marketing audit
(E) SWOT analysis

Answer 18

(C) Market segmentation

Question 19

The process of identifying people or companies who may have a need for a salesperson’s product is known as

(A) cold calling
(B) presenting
(C) approaching
(D) prospecting
(E) targeting

Answer 19

(D) prospecting

Question 20

Which of the following is NOT a segmentation criterion or consideration used for choosing a target market?

(A) Market accountability
(B) Market identifiability and measurability
(C) Market substantiality
(D) Market accessibility
(E) Market responsiveness

Answer 20

(A) Market accountability

Question 21

A(n) ______________ is a group of customers (people or organizations) at whom the seller specifically intends to aim its marketing efforts.

(A) market
(B) segment
(C) target market
(D) market aggregate
(E) industrial use

Answer 21

(C) target market

Question 22

Suppose a company’s marketing research found that consumers between the ages of 18 and 34 were potentially the most profitable. If the company decided to direct all of its marketing efforts solely to this age group, the age group would represent the company’s:

(A) target market.
(B) industrial users.
(C) market potential.
(D) market exclusion.
(E) demographic mix.

Answer 22

(A) target market.

Question 23

A marketing expert said that he could have advertised a brand of soap as a detergent bar for men with dirty hands, but instead chose to advertise it as a moisturizing bar for women with dry skin. This illustrates the marketing principle known as

(A) product positioning
(B) sales promotion
(C) cannibalization
(D) deceptive advertising
(E) undifferentiated marketing

Answer 23

(A) product positioning

Question 24

Positioning refers to

(A) the perception of a product in customers’ minds
(B) the store location in which a marketing manager suggests a product be displayed
(C) where the product is placed on the shelf
(D) which stores will distribute a company’s product
(E) where the new product is first advertised

Answer 24

(A) the perception of a product in customers’ minds

Question 25

Which one of the following changes would most likely motivate a firm to reposition a brand?

(A) Shifting demographics
(B) Stock market fluctuations
(C) An economic downturn
(D) Changes in available financial resources
(E) Rising sales

Answer 25

(A) Shifting demographics

Question 26

If two brands move closer to each other on a perceptual (positioning) map, it means that they have become

(A) less perceptually alike
(B) closer in price
(C) more objectively alike
(D) less likely to be direct competitors
(E) more similarly perceived by consumers

Answer 26

(E) more similarly perceived by consumers

Question 27

Which customer question is answered by a company’s value proposition?

(A) “Why should I buy your brand rather than a competitor’s?”
(B) “How does your brand benefit me and society?”
(C) “What are the costs and benefits of your brand?”
(D) “What kind of experience will I have with products and services associated with this brand?”
(E) “What are the benefits of being a loyal consumer of your brand?”

Answer 27

(A) “Why should I buy your brand rather than a competitor’s?”

Question 28

This positioning strategy is very competitive. It can attack a more-for-more strategy by introducing a brand offering comparable quality but at a lower price.

(A) more-for-the-same strategy
(B) more-for-less strategy
(C) same-for-less strategy
(D) less-for-much-less strategy
(E) all-or-nothing strategy

Answer 28

(C) same-for-less strategy

Question 29

Which of the following is an example of business-to-business buying?

(A) John buys a new home stereo.
(B) Hannah pays for a new television by monthly installment.
(C) Daniel decides on which college to attend.
(D) Avery purchases a new office desk for his company.
(E) Corey buys a soft drink from a vending machine.

Answer 29

(D) Avery purchases a new office desk for his company.

Question 30

In which of the following situations is the number of buying influences most likely to be greatest?

(A) A university buys large quantities of paper for computer printers on a regular basis.
(B) A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture.
(C) A consumer decides to buy a different brand of potato chips because they are on sale.
(D) A retail chain is searching for a vendor of lower-priced cleaning supplies.
(E) A purchasing manager has been asked to locate a second source of supply for corrugated shipping cartons.

Answer 30

(B) A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture.

Question 31

Refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption.

(A) Cultural influence
(B) Consumer market
(C) Consumer behavior
(D) Social market

Answer 31

(C) Consumer behavior

Question 32

Refers to all the personal consumption of final consumers.

(A) Cultural influence
(B) Consumer market
(C) Consumer behavior
(D) Social market

Answer 32

(B) Consumer market