Practice test 1 Flashcards
All of the following are accurate descriptions of modern marketing, EXCEPT which one?
A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers’ needs.
E) Marketing is used by for-profit and not-for-profit organizations.
C) Selling and advertising are synonymous with marketing.
According to management guru Peter Drucker, "The aim of marketing is to \_\_\_\_\_\_\_\_." A) create customer value B) identify customer demands C) make selling unnecessary D) set realistic customer expectations E) sell products
C) make selling unnecessary
Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships? A) the first two only B) the first three only C) the first four only D) the last three only E) the last four only
C) the first four only
\_\_\_\_\_\_\_\_ are human needs as shaped by individual personality and culture. A) Needs B) Wants C) Demands D) Values E) Exchanges
B) Wants
What do companies call a set of benefits that they promise to consumers to satisfy their needs? A) market offering B) value proposition C) demand satisfaction D) need proposition E) evoked set
A) market offering
When marketers set low expectations for a market offering, the biggest risk they run is ________.
A) disappointing loyal customers
B) decreasing customer satisfaction
C) failing to attract enough customers
D) failing to understand their customers’ needs
E) incorrectly identifying a target market
C) failing to attract enough customers
\_\_\_\_\_\_\_\_ is the act of obtaining a desired object from someone by offering something in return. A) A value proposition B) Exchange C) Bribery D) Value creation E) Donation
B) Exchange
A(n) \_\_\_\_\_\_\_\_ is the set of actual and potential buyers of a product. A) market B) audience C) group D) segment E) exchange
A) market
After management has identified the key businesses making up its company, what is the next step in portfolio analysis?
A) identifying businesses in which to invest
B) assessing the attractiveness of its SBUs
C) deciding whether to harvest any businesses
D) completing short-range planning
E) identifying SBUs
B) assessing the attractiveness of the SBUs
Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.
A) market share; strength of the SBU’s position
B) market diversification; relative market share
C) market or industry attractiveness; strength of the SBU’s position
D) market growth rates; profits
E) market penetration; market development
C) market or industry attractiveness; strength of the SBU’s position
In the Boston Consulting Group approach, \_\_\_\_\_\_\_\_ serves as a measure of company strength in the market. A) relative market share B) market development C) market diversification D) market growth rate E) market segmentation
A) relative market share
In the BCG approach, \_\_\_\_\_\_\_\_ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into \_\_\_\_\_\_\_\_. A) cash cows; stars B) question marks; dogs C) stars; question marks D) stars; cash cows E) dogs; cash cows
D) stars; cash cows
\_\_\_\_\_\_\_\_ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment. A) Stars B) Cash cows C) Question marks D) Dogs E) Cats
B) Cash cows
In the BCG matrix, income from \_\_\_\_\_\_\_\_ can be used to help finance the company's question marks and stars. A) dogs B) cash cows C) SBU revenues D) overseas operations E) low-share businesses
B) Cash cows
Which of the following does NOT accurately reflect a problem with the BCG matrix approach?
A) It focuses on planning for the future.
B) It can be costly to conduct.
C) It can be time consuming to implement.
D) It is difficult to define SBUs and measure market share and growth.
E) It focuses on classifying current businesses
A) It focuses on planning for the future.
To increase its U.S. market share, Starbucks has stepped up efforts in the areas of product availability and promotion. These are examples of broad \_\_\_\_\_\_\_\_. A) brand experiences B) strategies for growth C) diversification D) product development E) value chains
B) Strategies for growth
Which of the following demographic groups has NOT seen a percentage increase in the past 50 years?
A) women staying at home with their children
B) men staying at home with their children
C) nontraditional households
D) nonfamily households
E) women working outside of the home
A) women staying at home with their children
"Dreams don't retire" is the theme of a(n) \_\_\_\_\_\_\_\_ marketing campaign aimed at baby boomers. A) financial services B) anti-aging products C) travel and entertainment D) fitness products E) technological products
A) financial services
Which of the following is a trend that depicts the increasingly nontraditional nature of today’s American family?
A) working women making up a smaller percentage of the workforce
B) the falling percentage of married couples with children
C) dual-income families declining in number
D) stay-at-home dads declining in number
E) the declining reliance on convenience foods and services
B) the falling percentage of married couples with children
Which of the following geographical areas has NOT seen a recent population increase? A) micropolitan areas B) suburbs C) the West D) the Northeast E) the South
D) the Northeast
Which of the following groups of workers is projected to become smaller over the next ten years? A) white collar workers B) manufacturing workers C) managers D) telecommuters E) professional workers
B) manufacturing workers
Which of the following is an accurate statement about the diversity of the American population?
A) African Americans represent the largest non-white segment of the population.
B) More than 12 percent of people living in the United States were born in another country.
C) The Asian American percentage of the population is expected to remain steady in the next 50 years.
D) In terms of ethnic diversity, the United States is about average in comparison to other countries with populations of a comparable size.
E) American ethnic populations are expected to slowly increase in the next few decades.
B) More than 12 percent of people living in the United states were born in another country
A consumer is most likely to be paid a small fee for participating in which of the following? A) a telephone interview B) a mail-in survey C) an Internet survey D) a focus group interview E) an observational interview
D) a focus group interview
Which of the following is a disadvantage of online focus groups?
A) Participants must be in a central location.
B) The Internet format can restrict respondents’ expressiveness.
C) Results take longer to tabulate and analyze.
D) The cost of online focus groups is greater than that of most other qualitative research methods.
E) The format of focus groups can be varied.
B) The internet format can restrict respondents’ expressiveness
