Practice test 1

Question 1

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.

Answer 1

C) Selling and advertising are synonymous with marketing.

Question 2

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

Answer 2

C) make selling unnecessary

Question 3

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

Answer 3

C) the first four only

Question 4

\_\_\_\_\_\_\_\_ are human needs as shaped by individual personality and culture.
A) Needs
B) Wants
C) Demands
D) Values
E) Exchanges

Answer 4

B) Wants

Question 5

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

Answer 5

A) market offering

Question 6

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

Answer 6

C) failing to attract enough customers

Question 7

\_\_\_\_\_\_\_\_ 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

Answer 7

B) Exchange

Question 8

A(n) \_\_\_\_\_\_\_\_ is the set of actual and potential buyers of a product.
A) market
B) audience
C) group
D) segment
E) exchange

Answer 8

A) market

Question 9

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

Answer 9

B) assessing the attractiveness of the SBUs

Question 10

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

Answer 10

C) market or industry attractiveness; strength of the SBU’s position

Question 11

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

Answer 11

A) relative market share

Question 12

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

Answer 12

D) stars; cash cows

Question 13

\_\_\_\_\_\_\_\_ 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

Answer 13

B) Cash cows

Question 14

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

Answer 14

B) Cash cows

Question 15

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

Answer 15

A) It focuses on planning for the future.

Question 16

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

Answer 16

B) Strategies for growth

Question 17

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

Answer 17

A) women staying at home with their children

Question 18

"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

Answer 18

A) financial services

Question 19

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

Answer 19

B) the falling percentage of married couples with children

Question 20

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

Answer 20

D) the Northeast

Question 21

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

Answer 21

B) manufacturing workers

Question 22

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.

Answer 22

B) More than 12 percent of people living in the United states were born in another country

Question 23

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

Answer 23

D) a focus group interview

Question 24

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.

Answer 24

B) The internet format can restrict respondents’ expressiveness

Question 25

Del Monte has created an \_\_\_\_\_\_\_\_ called "I Love My Dog"; this online community allows company-selected dog enthusiasts to complete product-related polls, chat with product developers, and provide feedback about specific products.
A) online experiment
B) online social network
C) Internet survey
D) immersion group
E) expert panel

Answer 25

B) online social network

Question 26

You generally need to ask three questions when developing a sampling plan. Which of the questions below is one of these three?
A) Who should be left out of the sample (sampling exclusion)?
B) How should we contact the sample (sampling approach)?
C) Why should respondents by selected (sampling justification)?
D) How should participants be chosen (sampling procedure)?
E) none of the above

Answer 26

D) How should participants be chosen (sampling procedure)

Question 27

You generally need to ask three questions when developing a sampling plan. Which of the questions below is one of these three?
A) Who should be left out of the sample (sampling exclusion)?
B) How should we contact the sample (sampling approach)?
C) Why should respondents by selected (sampling justification)?
D) How should participants be chosen (sampling procedure)?
E) none of the above

Answer 27

B) questionnaires and mechanical data

Question 28

In marketing research, the \_\_\_\_\_\_\_\_ phase is generally the most expensive and most subject to error.
A) exploratory research
B) planning
C) interpreting the findings
D) reporting the findings
E) data collection

Answer 28

E) data collection

Question 29

Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try?
A) customer satisfaction management
B) more sophisticated hardware
C) customer relationship management
D) decreased marketing intelligence
E) a marketing information system

Answer 29

C) customer relationship management

Question 30

What is the purpose of a data warehouse?
A) to organize internal and external data by relevance
B) to gather and integrate information a company already has
C) to interpret data
D) to analyze data
E) to identify and discard outdated data

Answer 30

B) to gather and integrate information a company already has

Question 31

What source of marketing information provides those within the company ready access to research information, stored reports, shared work documents, contact information for employees and other stakeholders, and more? 
A) an intranet
B) an extranet
C) the Internet
D) marketing research
E) marketing intelligence

Answer 31

A) an intranet

Question 32

When managers use small convenience samples such as asking customers what they think or inviting a small group out to lunch to get reactions, they are using \_\_\_\_\_\_\_\_.
A) experiments
B) informal surveys
C) observation
D) marketing intelligence
E) direct marketing

Answer 32

B) informal surveys

Question 33

You have been asked to locate secondary data for your small organization's research needs. Which of the following is NOT a common source for this type of research?
A) the local chamber of commerce
B) the U.S. Census Bureau
C) competitors' Web sites
D) online surveys
E) the Bureau of Economic Analysis

Answer 33

D) online surveys

Question 34

The availability of which of the following is most problematic in international marketing research?
A) primary data
B) research specialists
C) secondary data
D) intelligence limitations
E) consumers willing to answer survey questions

Answer 34

C) secondary data

Question 35

) Behavioral targeting, the practice of ________, is being used by more and more companies.
A) tracking customers’ activities and rewarding customer loyalty
B) managing customer relationships
C) mining and analyzing data from data warehouses
D) tracking consumers’ online movements and using this information to target ads to them
E) observing and interacting with consumers in their natural environments

Answer 35

D) tracking consumers’ online movement and using this information to target ads to them

Question 36

Google and Yahoo! routinely post ads related to a user's keyword searches alongside the searches. This practice is called \_\_\_\_\_\_\_\_.
A) using "cookies"
B) consumer tracking
C) contextual targeting
D) cobranding
E) data mining

Answer 36

C) contextual targeting

Question 37

Your marketing department is attempting to improve strategic decision making, track competitors' actions, and provide early warning of opportunities and threats. To achieve this goal, which of the following would be the best for your department to use?
A) internal databases
B) external databases only
C) company reports only
D) marketing intelligence
E) the Internet

Answer 37

D) marketing intelligence