Marketing 304 Study Guide

Question 1

All of the following countries listed more than 75 percent of their populations as Internet users in 2009 EXCEPT:
A)Sweden
B)Australia
C)United States
D)South Korea
E)Norway

Answer 1

C

Question 2

The state with the largest population is:
A)Texas.
B)Nevada.
C)New York.
D)Florida.
E)California.

Answer 2

E

Question 3

The move of the “Baby Boomers” into the 45-64 age group:
A)increased the average age of the population.
B)left many colleges and universities with excess capacity.
C)contributed to increased interest in health and fitness products.
D)All of the above are true.
E)None of the above is true.

Answer 3

D

Question 4

For which of the following population groups were women more highly educated than men for the first time in U.S. history?
A)Seniors
B)Gen X
C)Boomers
D)Busters
E)Gen Y

Answer 4

B

Question 5

A Metropolitan Statistical Area (MSA):
A)must contain one city of 10,000 or more people.
B)is an urbanized area with a population of at least 2,000,000 people.
C)is an integrated economic and social unit with a large population nucleus.
D)usually includes several cities.
E)Both B and D are true.

Answer 5

C

Question 6

People who move to a new home (that is, “mobile” consumers):
A)are not good targets for most products since buying a new house usually consumes most of their discretionary income.
B)are split about 70 percent for “local” (same county) and 30 percent for long-distance moves.
C)represent only about 5 percent of all Americans in any given year.
D)create opportunities for marketers only when a long distance move is involved.
E)All of the above are true.

Answer 6

B

Question 7

The median family income in the U.S. in 2008 was about:
A)$31,500
B)$41,500
C)$51,500
D)$61,500
E)$81,500

Answer 7

D

Question 8

Discretionary income:”
A)is a family’s income AFTER taxes.
B)is a measure of a family’s total purchasing power.
C)is the amount of income spent on durable goods.
D)is a family’s income AFTER paying taxes and paying for necessities.
E)both B and C are true.

Answer 8

D

Question 9

Regarding the family life cycle, singles and younger couples without children:
A)are more willing to try new products and brands.
B)tend to be carefree shoppers who are not very price-conscious.
C)often wait to buy basic durable goods until they have children.
D)feel more financially squeezed than couples with young children.
E)All of the above are true.

Answer 9

A

Question 10

Which of the following would be most helpful for predicting why a final consumer selects one of several similar brands?
A)population data
B)consumer spending patterns
C)behavioral science theories
D)consumer income
E)all would be equally helpful

Answer 10

C

Question 11

A magazine ad for GEICO car insurance shows the GEICO gecko lying down while the copy reads, "Don't take high car insurance rates lying down." What primary economic need is being satisfied in this magazine ad?
A)Convenience
B)Improvement of earnings
C)Dependability in use
D)Economy of purchase

Answer 11

D

Question 12

Regarding consumer motivation, the text states that:
A)needs are the basic forces which motivate people to do something.
B)all needs and wants are caused by drives.
C)wants are learned needs.
D)the terms “needs” and “wants” mean the same thing.
E)both A and C.

Answer 12

E

Question 13

Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has been noticing more Adidas advertising in magazines. This is an example of:
A)a physiological need.
B)dissonance.
C)need satisfaction.
D)selective exposure.
E)a consumer expectation.

Answer 13

D

Question 14

When Taco Bell shows a large close-up of a chicken taco in a television ad, it is:
A)encouraging selective retention.
B)hoping to encourage extensive problem solving by the audience.
C)appealing to the social needs of the audience.
D)appealing to the economic needs of the audience.
E)using a cue to encourage a particular response to the hunger drive.

Answer 14

E

Question 15

The statement, "I like Southwest Air," is an example of a(n):
A)belief
B)intention
C)attitude
D)drive
E)none of the above

Answer 15

C

Question 16

Reference-group influence would be WEAKEST for determining which particular \_\_\_\_\_\_\_\_\_\_\_\_\_\_ a person buys.
A)watch
B)cosmetics
C)clothing
D)laundry soap
E)car

Answer 16

D

Question 17

With respect to culture and consumer behavior:
A)culture is the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people.
B)culture may exert many subtle influences on other aspects of consumer behavior.
C)different cultural subgroups are likely to require different marketing mixes.
D)all of the above are correct.
E)none of the above is correct.

Answer 17

D

Question 18

More than 600,000 loyal customers signed up in advance to purchase the iPhone4 in an Apple store the first day it was available for sale in the U.S. What type of response behavior were these Apple followers demonstrating?
A)Low-involvement buying
B)Limited problem solving
C)Extensive problem solving
D)Routinized response
E)Dissonance response

Answer 18

D

Question 19

Consumers go through six steps when deciding to accept or reject a new idea. In this adoption process:
A)the confirmation step follows the decision step.
B)the evaluation step follows the trial step.
C)the awareness step follows the interest step.
D)all of the above are correct.
E)none of the above is correct.

Answer 19

A

Question 20

Which of the following is NOT true regarding organizational buyers?
A)Buyers for all kinds of organizations (governments, nonprofit groups, intermediaries) tend to buy in much the same way as do manufacturers.
B)The basic aspects of business customer buying behavior tend to be quite similar in the U.S. and in international markets.
C)Marketing strategies aimed at them are often tailored to each individual customer.
D)Their purchases are made to help their organizations meet the demands for their products.
E)Their needs are usually harder to define than for final consumers.

Answer 20

E

Question 21

When a company is trying to decide which type of smart phone to purchase for its sales staff and has never had to make that specific type of purchase before, this buying situation is called a(n):
A)Straight rebuy.
B)New-task buy.
C)JIT buy.
D)Modified rebuy.
E)ISO 9000 buy.

Answer 21

B

Question 22

A modified rebuy would be most likely when:
A)A railroad plans to change from steel to aluminum rail cars to cut weight.
B)A car producer is developing a sportier car which will require wider tires.
C)A bread producer is placing its weekly order for flour.
D)A computer producer is buying new assembly line equipment.
E)A shoe factory needs more glue to attach heels to its shoes.

Answer 22

B

Question 23

A report on a seller's Web site that describes how one of its customers solved a specific problem by using the seller's products is called a(n):
A)white paper.
B)outsource.
C)executive summary.
D)case study.
E)mission statement.

Answer 23

D

Question 24

Regarding the manufacturers’ market, large firms (with more than 250 employees):
A)account for the majority of the total “value added” by all manufacturers.
B)are very few compared to the many small firms.
C)employ about half of all people employed in manufacturing.
D)All of the above are true.
E)None of the above is true.

Answer 24

D

Question 25

If a firm targets business and organizational markets:
A)NAICS codes may be helpful for segmenting potential customers in Europe but not those in the U.S.
B)each customer may need to be treated as a different segment.
C)competing manufacturers are often clustered in geographic locations.
D)All of the above are true.
E)Both B and C are true.

Answer 25

E

Question 26

The U.S. government would NOT publish NAICS data that gives:
A)the total sales volume of the four steel manufacturers in a Metropolitan Statistical Area.
B)the number of employees for similar two digit industry groups.
C)the total sales volume of the only textile equipment manufacturer in a state.
D)the sales volumes of similar two digit industry groups.
E)the number of establishments for various industry groups.

Answer 26

C

Question 27

Large wholesale and retail buyers typically:
A)pay close attention to each of the products they buy.
B)don’t trust automatic inventory control methods.
C)see themselves as selling agents for manufacturers.
D)buy most of their products as straight rebuys.
E)None of the above.

Answer 27

D

Question 28

The Foreign Corrupt Practices Act:
A)allows small grease money payments if they are customary in the foreign country in which a firm is operating.
B)applies to foreign firms or individuals who accept payments while in the U.S.
C)allows U.S. firms to pay bribes to foreign officials if the payment is made outside the U.S.
D)all of the above.
E)only A and B above.

Answer 28

E

Question 29

Marketing research:
A)should be planned by research specialists who understand research techniques better than marketing managers.
B)is needed to keep marketing managers in touch with their markets.
C)consists mainly of survey design and statistical techniques.
D)is only needed by producers who have long channels of distribution.
E)All of the above.

Answer 29

B

Question 30

When getting information for marketing decisions, the marketing manager:
A)can benefit from new developments in computer networks and software.
B)should have access to ongoing information about business performance.
C)may need to make some decisions based on incomplete information.
D)All of the above are true.
E)None of the above is true.

Answer 30

D

Question 31

A complete marketing information system:
A)provides a good overall view on many types of problems, but usually cannot provide answers to specific questions.
B)eliminates the need for “one-shot” marketing research projects.
C)is organized to continually gather data from internal and external sources, including market research studies.
D)is usually too complicated for the marketing manager to use without help from data processing specialists.
E)All of the above are true.

Answer 31

C

Question 32

An outside sales force can provide customers with up-to-date inventory levels, product prices, delivery dates, and so forth by accessing information on the firm's own:
A)marketing model.
B)marketing dashboard.
C)intranet.
D)JIT system.
E)EDI system.

Answer 32

C

Question 33

Marketing research:
A)usually requires complex statistical techniques, so marketing managers should leave planning of the research to the research specialists.
B)is likely to be more effective when guided by the strategy planning framework.
C)should gather as much information as possible.
D)begins by analyzing the situation.
E)All of the above are true.

Answer 33

B

Question 34

Which of the following is most consistent with the scientific method approach to marketing research discussed in the text?
A)”We continually survey our customers because the results give us good ideas for hypotheses.”
B)”Once we interpret the data, we can define our problem.”
C)”Our research is as precise as possible–because we want to be 100 percent accurate.”
D)”Sometimes the answers from the early stages of the research process are good enough so we stop the research and make our decisions.”
E)None of the above is true.

Answer 34

D

Question 35

The first thing a marketing manager should do if one of his firm's products drops in sales volume is:
A)conduct a survey to see what is wrong.
B)define the problem.
C)set research priorities.
D)do a situation analysis.
E)interview representative customers.

Answer 35

B

Question 36

Data which have already been collected in a previous study are called \_\_\_\_\_\_\_\_\_\_ data, while data that are generated by a phone survey this month of key customers are called \_\_\_\_\_\_\_ data.
A)primary; secondary
B)primary; intranet
C)secondary; primary
D)secondary; experimental
E)intranet; sample

Answer 36

C

Question 37

Which of the following is NOT a good example of the observation method of marketing research?
A)The manager of a supermarket occasionally walks through the store to see what customers are doing.
B)A drugstore installs optical scanners at its checkout counters.
C)The owner of a shopping center puts a counting device at the entrance to count how many cars come in.
D)A store manager studies videotapes of consumers shopping in the store.
E)All of the above are good examples of observation research.

Answer 37

A

Question 38

The response rate to a survey affects:
A)who is in the population for a marketing research study.
B)whether a statistical package can be used to analyze the data.
C)how representative the sample is.
D)All of the above are good answers.
E)None of the above is a good answer.

Answer 38

C

Question 39

With respect to marketing control:
A)all cost records should be kept in the marketing department.
B)faster feedback can often be the basis for a competitive advantage.
C)many advances have been made, but there is still no effective way for a manager to be sure that a product is actually selling to the intended target market rather than to some other group.
D)All of the above are true.
E)None of the above is true.

Answer 39

B

Question 40

Which of the following statements illustrates the 80/20 rule?
A)”80 percent of our target market doesn’t respond to our marketing mix, and we only have a 20 percent market share.”
B)”Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business.”
C)”20 percent of our marketing effort is wasted, but we don’t know which 20 percent.”
D)”We don’t know whether our profits are 20 percent higher than we deserve, or only 80 percent of what might be easily obtained.”
E)None of the above.

Answer 40

B

Question 41

When involved in the control process, the marketing manager should view company profit:
A)as a gross index of performance that should be further broken down into smaller components.
B)as a guide to future operations.
C)as the test of whether or not the marketing mix is successful.
D)All of the above are true.
E)None of the above is true.

Answer 41

A

Question 42

Which of the following statements might result from a performance analysis?
A)Our California salesman sold more aluminum tubing than any of our other reps.
B)Sophia Sanchez calls on two of our three biggest customers.
C)Joshua Voigt sold less tubing to wholesalers than to manufacturers.
D)Walker Brown sold more aluminum tubing than steel tubing.
E)Pele Ruiz’s sales are over his quota.

Answer 42

E

Question 43

Capitol Enterprises uses the cost-sales ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $800,000 in sales, had travel expenses of $23,000, and received a base salary of $40,000 plus $6,000 in commissions, what was this sales rep's cost-sales ratio (to the nearest whole number percent)?
A)3 percent
B)6 percent
C)9 percent
D)12 percent
E)15 percent

Answer 43

C

Question 44

Premier Bank considers population an effective measure of sales potential for its safe deposit boxes. It has broken down the population of the U.S. by region and assigned 30 percent of the total population to the Northeastern region. If Premier has a planned sales goal of $2.5 million nationwide, and actual sales in the Northeastern region last year were $650,000, what was the Northeastern region's performance index (to the nearest whole number percent)?
A)33 percent
B)50 percent
C)66 percent
D)75 percent
E)87 percent

Answer 44

E

Question 45

A sales manager has just discovered that one of his sales reps has sales about 20 percent below his quota. The sales manager should conclude:
A)that the sales rep’s quota was set too high.
B)that the sales rep lacks the desire to succeed.
C)that “all is well” because other salespeople had sales that were at least 20 percent over their quotas.
D)that the salesperson’s performance index is 4 (i.e., 80:20).
E)nothing thus far–because of the “iceberg principle.”

Answer 45

E

Question 46

Which of the following statements by a sales manager best reflects an understanding of the iceberg principle?
A)”Detailed cost analysis gets you focused on small parts of the problem, whereas general summaries make it easier to see the really big problems.”
B)”Most costs that look like they’re fixed are actually changing all of the time.”
C)”Don’t tell me that you’re certain we’re going to increase sales. They were certain that an iceberg couldn’t sink the Titanic!”
D)”Let’s not dwell on sales data summaries–let’s get below the surface and study the details.”
E)”Cost problems always show up first–but controlling expenses doesn’t mean that you won’t run into revenue problems.”

Answer 46

D

Question 47

A company produces three product lines and a different marketing manager is responsible for each line. Most marketing expenses are specific to each line, but a common sales force sells all three lines. Sales reps are paid by commission, with a different commission for each product line. In this case, in a marketing cost analysis:
A)the contribution-margin approach would probably divide personal selling expense based on commission expense for each product line.
B)a full-cost approach would ignore commission expense since it is not a fixed cost.
C)sales commissions are a variable expense and would not be considered in the contribution-margin approach.
D)the full-cost approach would be easier to do if all sales reps were paid a straight salary.
E)None of the above is true.

Answer 47

A

Question 48

A “marketing audit” should:
A)be done by someone inside the finance department.
B)be conducted whenever a crisis arises.
C)be conducted by the person most familiar with each of the firm’s marketing plans.
D)evaluate a company’s whole marketing program on a regular basis.
E)All of the above.

Answer 48

D

Question 49

Regarding e-commerce Web site resources:
A)Purchasing specifications are commonly used online to describe what a firm wants to buy.
B)Online auction sites commonly operate for the benefit of sellers.
C)Competitive bidding systems commonly drive down prices at procurement hubs.
D)Online reverse auctions sites commonly operate for the benefit of buyers.
E)All of the above are true.

Answer 49

E