Final Exam - Quizzes Flashcards
Which of the following changes occurring in today’s economy has NOT been caused by the growth of the Internet?
a - Rising Prices for Most Products b - Audience and Media Fragmentation c - Privacy and Security Concerns d - Shifting demand Patterns e - Increase in Product Selection
a - Rising Prices for Most Products
Changing value propositions in today’s economy—such as changes caused by the growth in e-commerce—have forced marketers to learn a tough lesson about customers. What is that lesson?
a - Customers will always turn to the most recognized brand.
b - Customers will always seek the best quality regardless of price.
c - Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities.
d - Customers would rather perform service for themselves to save money.
e - Customers will always seek the best value regardless of quality.
c - Customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities.
In 2005, the American Marketing Association changed the definition of marketing that had stood for 20 years. The major changes in the definition included a shift from delivering the 4 Ps (product, price, place, promotion) to delivering __________ and a shift from creating exchanges to creating __________.
a - quality; transactions b - quality; value c - satisfaction; customer relationships d - value; customer relationships e - value; satisfaction
d - value; customer relationships
Which of the following IS NOT one of the five conditions of exchange in marketing?
a - There must be at least two parties to the exchange.
b - Each party must be capable of immediate delivery.
c - Each party must be free to accept or reject the exchange.
d - Each party has something of value to offer the other party.
e - Each party believes that it is desirable to exchange with the other party.
b - Each party must be capable of immediate delivery.
Many firms attempt to distinguish or differentiate their product offerings through the use of __________ strategies. This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers.
a - image marketing b - perceptual marketing c - branding d - comparative e - product positioning
e - product positioning
Which of the following statements about pricing decisions in the marketing program is TRUE?
a - Pricing is the most difficult element of the marketing mix to change.
b - Price is one of two elements of the marketing mix that leads to revenue.
c - Customers will always equate higher prices with higher quality products.
d - Pricing is the least manipulated element of the marketing mix.
e - Price has a direct connection with customer demand.
e - Price has a direct connection with customer demand.
Among the fundamental changes to marketing and business practice in today’s economy is the dramatic increase in the availability of information. This increase in information has created a shift in the balance of power in the supply chain. Who now holds most of the power in today’s economy?
a - customers b - Manufacturers c - Retailers d - Market Researchers e - Wholesalers
a - customers
In the airline industry, companies like American, Delta, and US Air have a difficult time competing because their industry has become commoditized. What does this mean for firms in the airline industry?
a - Airline firms compete in a declining industry.
b - The industry experiences very little change over time.
c - Airline customers have become increasingly demanding.
d - There is very little differentiation among product offerings in the industry.
e - Airlines have been forced to develop partnerships to remain competitive.
d - There is very little differentiation among product offerings in the industry.
When creating a corporate vision statement, organizations are attempting to answer which of the following questions:
a - Who are we and what do we stand for? b - What do we want to become? c - What business are we in? d - How can we be the best? e - What are our competitive advantages?
b - What do we want to become?
With respect to developing a marketing plan, what does it mean for a marketing plan outline to be consistent?
a - The outline should be consistent across firms in the same industry.
b - The outline should have some connection to other functional area plans.
c - The outline should be sufficient to ensure that information is not omitted.
d - The outline should have the ability to be modified to fit the situation.
e - The outline should flow in a logical manner
b - The outline should have some connection to other functional area plans.
While all marketing plans face a number of obstacles in development and implementation, __________ is by far the most commonly occurring obstacle across most firms.
a - resistance to change b - inadequate information c - inadequate communication d - failure to see the whole picture e - lack of time for planning
c - inadequate communication
Focusing on customers has not always been the hallmark of strategic planning. In fact, in the early 20th century, firms tended to focus strictly on __________ rather than on developing relationships with customers.
a - growth and corporate profits b - efficiency and quality c - marketing research d - new product development e - selling products to customers
b - efficiency and quality
The Balanced Performance Scorecard cautions business leaders to look at strategy and performance through four interrelated perspectives. Which of the following IS NOT one of these perspectives?
a - financial perspective b - learning and growth perspective c - customer perspective d - internal process perspective e - vision and strategy perspective
e - vision and strategy perspective
In today’s business environment, firms that truly focus on customers instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. When this occurs, the firm shifts its focus from transactions to __________, and from __________ to collaboration.
a - market share; competition b - information; rivalry c - long-range planning; contracts d - value; cooperation e - relationships; competition
e - relationships; competition
In a truly market-oriented organization, what is the role of the CEO?
a - To protect the organization from competitive actions.
b - To create a strong reputation among the organization’s stakeholders.
c - To increase the market value of the organization.
d - To hire customer-oriented executives.
e - To ensure that his or her employees have everything they need to perform their jobs well.
e - To ensure that his or her employees have everything they need to perform their jobs well.
Many firms have shifted to balanced strategic planning because traditional planning and measurement approaches are not able to capture:
a - the value created by an organization’s intangible assets.
b - real-time financial performance metrics.
c - real-time customer satisfaction metrics.
d - key competitive information to drive marketing planning.
e - either internal or external innovation.
a - the value created by an organization’s intangible assets.
Which of the following IS NOT a purpose of a marketing plan?
a - It identifies resources needed to carry out the plan.
b - It explains the present and future situations of the organization.
c - It specifies the expected outcomes of the plan.
d - It describes specific actions that are to take place.
e - It explains how marketing activities mesh with other functional areas.
e - It explains how marketing activities mesh with other functional areas.
In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the __________ section of the marketing plan.
a - evaluation and control b - SWOT analysis c - executive summary d - marketing implementation e - situation analysis
a - evaluation and control
Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth:
a - strategy for achieving growth.
b - statement of the organization’s competitive advantages.
c - assessment of the organization’s resources.
d - a situation analysis.
e - a statement of goals and objectives.
d - a situation analysis.
Sears at one time lost sight of its mission and jumped into markets such as real estate and financial services that did not fit its strengths or core operations. This most likely occurred because Sears lacked a mission statement with the appropriate:
a - focus b - profitability c - strategic fit d - stability e - width
e - width
With respect to conducting a situation analysis, which of the following IS NOT one of the four important issues to keep in mind?
a - Conducting a situation analysis is a challenging exercise.
b - The benefits of analysis must outweigh the costs.
c - Data are not the same as information.
d - All bits of data are relevant no matter how minor they may seem.
e - Analysis alone is not a solution.
d - All bits of data are relevant no matter how minor they may seem.
Issues such as marketing’s position and authority in a firm’s hierarchy, the overall market orientation of the firm, and the emphasis on short- or long-term planning are examples of which component of the internal environment?
a - marketing infrastructure b - organizational structure c - marketing objectives d - marketing strategy e - resource availability
b - organizational structure
In the 5W model of customer analysis, what is the primary emphasis of the “What” question?
a - Identifying the situational influences that affect the customer buying process.
b - Identifying the basic need-satisfying benefits provided by the firm’s products.
c - Determining the relevant characteristics that define markets.
d - Assessing how purchases vary across different distribution outlets.
e - Assessing how customers consume and dispose of products.
e - Assessing how customers consume and dispose of products.
In the competitive sports drink market, Gatorade pays very close attention to the activities of Powerade, a major __________ competitor that markets drinks that are similar in features and benefits.
a - product b - brand c - total budget d - generic e - direct
b - brand
What is perhaps the most important economic reality in the United States over the last 50 years?
a - Our economy is still suffering from the very high inflation rates of the 1970s.
b - Our economy has shifted to become dominated by intangibles such as services and information.
c - Real GDP has declined dramatically since the end of World War II.
d - Virtually all U.S. citizens have become wealthier.
e - The middle class has been shrinking.
b - Our economy has shifted to become dominated by intangibles such as services and information.
Between now and 2050, __________ will account for a full 90 percent of the growth in the total U.S. population.
a - growth in minority populations b - increasing birth rates c - declining death rates d - immigration from Canada e - increasing life spans
a - growth in minority populations
Which of the following cultural values is not typically associated with American consumers?
a - less tolerance of smoking in public b - concern for the natural environment c - low tolerance for waiting d - greater focus on long-term goals e - growing disconnect with government
d - greater focus on long-term goals
Microsoft is interested in customers’ perceptions of Windows 8, its new PC operating system. Since the research goal is rather specific, Microsoft should conduct its own __________ research by asking customers to complete an online questionnaire.
a - observation b - primary c - secondary d - experimental e - qualitative
b - primary
Compared to primary data, secondary data have the main advantage of:
a - being readily accessible in electronic format.
b - being both internally and externally focused.
c - being dramatically lower in cost.
d - having greater relevance to a specific issue.
e - being up-to-date.
c - being dramatically lower in cost.
The growth of the Internet has changed the way that situation analysis is conducted in today’s business environment. In terms on situation analysis, which of the following is the most drastic change caused by the Internet?
a - Specific data and information take longer to find.
b - The analyst is more likely to suffer from severe information overload.
c - All competitors now have access to the same data and information.
d - There is now no such thing as secrecy in strategic planning.
e - Data and information are now more relevant to the question at hand.
b - The analyst is more likely to suffer from severe information overload.
With respect to the text’s advice in conducting a SWOT analysis, which of the following best describes “Look for Causes, Not Characteristics”?
a - Gauge the actual perceptions of customers that give rise to the firm’s strengths and weaknesses.
b - Clearly differentiate internal issues from external issues.
c - Refrain from conducting a single generic analysis for the entire organization.
d - Focus on the resources possessed by the firm and/or its competitors that are the true causes for the firm’s strengths, weaknesses, opportunities, and threats.
e - Break down clichés into meaningful customer-oriented issues.
d - Focus on the resources possessed by the firm and/or its competitors that are the true causes for the firm’s strengths, weaknesses, opportunities, and threats.
In terms of SWOT analysis, when does a strength become a capability of the firm?
a - when the strength can be supported by sufficient resources
b - when the strength stands alone without any corresponding weaknesses
c - when the strength can be tied to satisfying a customer need
d - when the strength cannot be copied by competitors
e - when the strength can be connected to a second strength
c - when the strength can be tied to satisfying a customer need
__________ typically occur within the competitive, customer, economic, political/legal, technological, and/or sociocultural environments of the firm.
a - Strengths and weaknesses b - Opportunities and threats c - Weaknesses and threats d - Opportunities and weaknesses e - Strengths and opportunities
b - Opportunities and threats
By focusing on efficiency of operations and processes, lower costs, and delivering good value, Southwest Airlines attempts to build a competitive advantage based on:
a - customer intimacy b - strategic efficiency c - production orientation d - process improvement e - operational excellence.
e - operational excellence.
Firms possessing certain core competencies are more likely to create competitive advantages based on these competencies. However, before a competitive advantage can be translated into specific customer benefits, the firm’s __________ must recognize that its competencies give it an advantage over the competition.
a - employees b - strategic partners c - management d - shareholders e - target markets
e - target markets
With regard to Blue Ocean Strategy, the Four-Actions Framework is designed to challenge traditional assumptions about marketing strategy by asking four key questions. Which of the following IS NOT one of these questions?
a - Which factors should be raised well above the industry’s standard?
b - Which factors that the industry takes for granted should be eliminated?
c - Which factors should be reduced well below the industry’s standard?
d - Which factors should be created that the industry has never offered?
e - Which factors used throughout the industry should be copied?
e - Which factors used throughout the industry should be copied?
Your supervisor repeatedly informs you that “Goals without objectives are essentially meaningless.” What is the rationale for such a philosophy?
a - Objectives provide a theoretical benchmark rather than a practical benchmark.
b - Goals are necessary to provide specific benchmarks that are used to gauge performance.
c - A goal is not a goal unless it contains one or more objectives.
d - Progress is impossible to track without measurable performance targets.
e - Objectives are necessary to provide qualitative benchmarks that are used to gauge performance.
d - Progress is impossible to track without measurable performance targets.
Microsoft’s Windows platform dominates the market for personal computer operating systems. By continuously upgrading and stretching the technology underlying its Windows system, Microsoft is pursuing a strategy of:
a - total quality management. b - technological leadership. c - operational excellence. d - customer intimacy. e - product leadership
e - product leadership.
The overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy is called its:
a - strategic focus. b - marketing thrust. c - operational focus. d - strategic posture. e - marketing strategy.
a - strategic focus.
All of the following are benefits of SWOT analysis EXCEPT:
a - It is simple to use.
b - It can synthesize and integrate diverse information.
c - Its structured nature ensures that data and information are correctly categorized.
d - It can reduce costs.
e - It promotes managerial collaboration.
c - Its structured nature ensures that data and information are correctly categorized.
From the viewpoint of the consumer buying process, what is the difference between a need and a want?
a - Needs and wants are essentially the same, except that consumers will pay more for products they need.
b - Needs are absolute necessities, whereas wants are discretionary.
c - Needs focus on specific elements of a product’s quality, whereas wants are related to the “extras” that add value to the product.
d - Needs are related to specific products, whereas wants occur only when the consumer has the ability to purchase the product.
e - Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need
e - Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need
If a researcher were to ask consumers to quickly name the top 3 brands of computers they might consider purchasing, the most common brands in the __________ would most likely be Dell, Apple, and HP.
a - shopping list b - brand set c - evoked set d - target group e - purchase set
c - evoked set
After enrolling in the MBA program at Minor State University, Sheri began having second thoughts. Although MSU seemed to be a good choice based on location, reputation, and price, Sheri was not convinced she had made the right choice. Sheri is suffering from:
a - too many opportunity costs. b - dissatisfaction. c - poor product quality. d - cognitive dissonance. e - choice insufficiency.
d - cognitive dissonance.
__________ is/are the primary reason why the consumer buying process varies across customers, products, and situations.
a - The cost of the product b - The complexity of the purchase c - Individual influences d - Social influences e - Situational influences
b - The complexity of the purchase
Each of the following statements describes a unique characteristic of the business buying process EXCEPT:
a - Business buyers have an easier time identifying their needs as compared to consumers.
b - Business buying is sometimes based on reciprocity where each firm buys products from the other.
c - Groups of people, rather than individuals, often make purchase decisions.
d - Business buyers are less likely to be dependent upon each other.
e - Business buyers must be keenly aware of both hard and soft costs.
d - Business buyers are less likely to be dependent upon each other.
Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation?
a - one-to-one marketing b - pinpointed marketing c - individualized marketing d - focused marketing e - niche marketing
a - one-to-one marketing
Advances in supply chain management now allow companies to customize products to meet the needs of individual customers on a mass scale. This individualized approach to market segmentation is called:
a - mass customization. b - permission marketing. c - individualization. d - customized marketing. e - one-to-one marketing.
a - mass customization.
Which of the following IS NOT an example of mass customization?
a - Dell offers fully customized computers based on your needed configuration.
b - A bank employee logs into the e-procurement system to browse a fully customized catalog of office supplies.
c - A customer orders a custom teddy bear from Build-A-BearWorkshop.com.
d - A college creates a custom degree program to match your unique needs.
e - You order a customized vase of flowers from 1-800-Flowers.com.
d - A college creates a custom degree program to match your unique needs.
