Johnston MKT120 final exam

Question 1

1. Family brands may cut promotion costs because the goodwill attached to one or two products may help the others.

   Answer

   True

   False

2 points

Question 2

1. Use this information for questions that refer to the Sunny Day Foods (SDF) Case.
   For six months Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing manufacturer of organic foods. After graduating college, she worked for four years as a sales rep for a nationally known food company. But, she jumped at the chance when SDF contacted her about becoming marketing manager for its breakfast foods division, which sells dry cereals and a pancake mix.
   Kim spent the first few months on the job trying to better understand SDF, its product line, and marketing strategy. She reviewed the company's past marketing research, commissioned new research, and talked to both consumers and retailers. Now, the CEO of the company wants her thoughts on what the company's marketing strategy should be for the next few years.
   Her research indicates that among cereal customers there are at least five segments of customers who use SDF products.
   a) One segment,the loyalists, has a strong preference for one or two of the SDF cereals. These customers often go out of their way to visit a store with their favorite SDF cereal and buy only that product at the store.
   b) Another segment,the regulars, buys SDF cereals without much thought. For them it is just part of their routine and, if you ask them why they pick the cereal, they'd say it's just a habit.
   c) A third segment,the deal prone, sees SDF cereals as just another organic cereal. They view all organic cereals as pretty much the same and buy whichever brand seems to offer the best deal that week.
   d) A fourth segment, thepoliticos, consists of former buyers of SDF cereals. A few years ago the company took a strong stand in a presidential race - and these customers resented it. Now, they boycott all SDF foods because of that incident.
   e) A fifth segment,SDF who?, is made up of consumers who buy organic cereals but who don't have much awareness of particular organic brand names.
   In reviewing how SDF currently brands its products, Kim sees that it is using several different approaches. The Sunny Day Foods brand is used on most products the company sells. But a few years ago the company brought out an instant organic oatmeal with the Hot ‘n Healthy name. SDF also makes cereal sold by a health food chain; the package for that chain uses the store's own name, Nature's Foods, as the brand name for the cereal.
   
   For which market segment would widespread distribution NOT be as important?

   Answer

   		Politicos
   		SDF who?
   		Loyalists
   		Deal prone
   		Regulars

2 points

Question 3

1. Which of the following orderings suggests the amount of effort (from little to much) that consumers are willing to spend in searching for the "right" product?

   Answer

   		Heterogeneous shopping products, specialty products, unsought products
   		Convenience products, homogeneous shopping products, specialty products
   		Unsought products, homogeneous shopping products, convenience products
   		Staples, heterogeneous shopping products, unsought products
   		Homogeneous shopping products, heterogeneous shopping products, staples

2 points

Question 4

1. While shopping in a local supermarket, Jolene Partin came upon an aisle display of cookies and had to have some--immediately. By the time she got to the checkout counter with the rest of her selections, all the cookies were gone. In this case, the cookies were:

   Answer

   		an impulse product.
   		a staple product.
   		an unsought product.
   		very nutritious.
   		a consumption product.

2 points

Question 5

1. Regarding marketing control:

   Answer

   		Today's marketing managers have access to more information about the effectiveness of their strategies than in previous years.
   		Fast feedback from the marketplace can be a source of competitive advantage.
   		The marketing manager needs information that is captured as soon as it comes in.
   		Fast feedback is not possible unless the necessary data can be quickly sorted and analyzed.
   		All of the above.

2 points

Question 6

1. A marketing audit should help determine if:

   Answer

   		current marketing strategies are good ones.
   		the company's marketing objectives are reasonable.
   		implementation of a marketing program was effective.
   		All of the above.
   		None of the above.

2 points

Question 7

1. A "marketing audit" should:

   Answer

   		be done by someone inside the finance department.
   		be conducted whenever a crisis arises.
   		be conducted by the person most familiar with each of the firm's marketing plans.
   		evaluate a company's whole marketing program on a regular basis.
   		All of the above.

2 points

Question 8

1. Whistler's Camping Supplies wants to identify its most frequent customers and offer them quantity discounts to increase their purchases and loyalty. Which of the following implementation approaches might address that problem?

   Answer

   		Put a toll-free telephone number and Web site address on the product label.
   		Use bar code scanners, RFID tags, EDI, and inventory reorder software.
   		Create a "favored customer" club with an ID card.
   		Set different prices in similar markets and track sales, including sales of competing products.
   		Set up a televideo conference.

2 points

Question 9

1. Reverse auctions foster competition among buyers.

   Answer

   True

   False

2 points

Question 10

1. This act, passed by the U.S. Congress in 1977, prohibits U.S. firms from paying bribes to foreign officials.

   Answer

   		Corporate Responsibility for the New Millenium Act
   		Racketeer Influenced and Corrupt Organization Act
   		Ethics in Business Act
   		Anti-Bribery Act
   		Foreign Corrupt Practices Act

2 points

Question 11

1. Which of the following buying situations gives a seller the most chance for promotion impact?

   Answer

   		Selective task buying
   		Modified rebuy buying
   		New-task buying
   		Straight rebuy buying
   		All of the above are equal.

2 points

Question 12

1. Organizational buying based on a written (or electronic) description of a product is called buying by ______________.

   Answer

   		purchasing specifications
   		inspection
   		negotiated contract

2 points

Question 13

1. Statistical packages are easy-to-use computer programs that analyze data.

   Answer

   True

   False

2 points

Question 14

1. The first thing a marketing manager should do if one of his firm's products drops in sales volume is:

   Answer

   		conduct a survey to see what is wrong.
   		define the problem.
   		set research priorities.
   		do a situation analysis.
   		interview representative customers.

2 points

Question 15

1. Use of the scientific method in marketing research forces researchers to use an inflexible process.

   Answer

   True

   False

2 points

Question 16

1. An intranet is useful for numeric data but not for text documents.

   Answer

   True

   False

2 points

Question 17

1. The market maturity stage of the product life cycle rarely lasts more than one or two months.

   Answer

   True

   False

2 points

Question 18

1. If the prospects in some product-market are poor, a firm may need a "phase out" strategy.

   Answer

   True

   False

2 points

Question 19

1. Which of the following is LESS LIKELY to happen as a product moves through the later stages of the product life cycle?

   Answer

   		Place - move toward selective distribution.
   		Promotion - build selective demand.
   		Price - meet competition.
   		Competitive situation - Heading toward pure competition.
   		Product - Some drop out.

2 points

Question 20

1. Variations on an existing product idea can make a product new.

   Answer

   True

   False

2 points

Question 21

1. Segmenting international markets (as contrasted with domestic markets):

   Answer

   		is more complicated because qualifying dimensions are not helpful.
   		may be more difficult because critical data may not be available or dependable.
   		usually involves less risk because more potential target markets are available.
   		usually involves fewer segmenting dimensions.
   		All of the above are true.

2 points

Question 22

1. Segmenting in international markets can be more challenging than segmenting in domestic markets because:

   Answer

   		There is less diversity in the key segmenting dimensions.
   		There is often more data available about key segmenting dimensions.
   		Critical data is often less available and less dependable.
   		All of the above.
   		None of the above.

2 points

Question 23

1. "Qualifying dimensions," in contrast to "determining dimensions,"

   Answer

   		are the only kind of dimensions useful for marketing strategy planning.
   		indicate whether a person might be a potential customer but do not show which product or brand that person might buy.
   		are the customer-related dimensions in a product-market.
   		affect the product or brand a person is likely to purchase.
   		None of the above is true.

2 points

Question 24

1. A generic market definition includes

   Answer

   		customer (user) needs, customer types, geographic area, and product type.
   		customer (user) needs, customer types, and geographic area.
   		customer (user) needs, customer types, product design, and product type.
   		customer types, product design, and product type.
   		customer types, product design, product type, and customer needs.

2 points

Question 25

1. ___________ stores are usually strong in customer services, including credit, merchandise return, delivery, and sales help.

   Answer

   		General
   		Limited-line
   		Department
   		Specialty
   		Luxury

2 points

Question 26

1. A _____ is a type of conventional limited-line store that is usually small and has a distinct "personality."

   Answer

   		general store
   		mass-merchandising shop
   		specialty shop
   		department store
   		hypermarket

2 points

Question 27

1. Which of the following is NOT relevant regarding why some consumers prefer one retailer over another?

   Answer

   		Convenience.
   		Shopping atmosphere.
   		Assortment carried.
   		Service.
   		All of the above can be relevant.

2 points

Question 28

1. Less than 8 percent of all retail sales are made by smaller stores--those with sales of less than $1 million a year.

   Answer

   True

   False

2 points

Question 29

1. A grocery store sprays an aerosol scent that smells like fresh baked bread near its packaged bakery items. This is

   Answer

   		a case of a manager developing a need.
   		likely to have no effect because selective retention will eliminate any effect of the smell.
   		a case of linking a response with a drive.
   		an example of trying to link a cue with a marketing mix.
   		a violation of the selective processes.

2 points

Question 30

1. Psychographics or life-style analysis analyzes an individual's:

   Answer

   		opinions.
   		demographics.
   		activities.
   		interests.
   		All of the above.

2 points

Question 31

1. In the Jockey underwear ads using young people on the beach and the slogan, "Let 'em know you're Jockey", the company is hoping to use __________ groups to influence consumer behavior.

   Answer

   		cultural
   		family
   		opinion
   		reference
   		social

2 points

Question 32

1. ______ needs are concerned with things that involve a person's interaction with others.

   Answer

   		Physiological
   		Safety
   		Biological
   		Personal
   		Social

2 points

Question 33

1. A marketing strategy specifies a target market and a related marketing mix.

   Answer

   True

   False

2 points

Question 34

1. Marketing opportunities that involve moving into totally different lines of business are "diversification" opportunities.

   Answer

   True

   False

2 points

Question 35

1. A mail-order marketer of flower bulbs to gardening hobbyists decides to sell the bulbs in grocery stores--to reach nonhobbyists who might be interested in pretty flowers. This is an example of:

   Answer

   		market development.
   		diversification.
   		market penetration.
   		product development.
   		None of the above.

2 points

Question 36

1. One way to increase customer equity is to find cost-effective ways to serve current customers so they buy more.

   Answer

   True

   False

2 points

Question 37

1. A marketing program should lower customer equity.

   Answer

   True

   False

2 points

Question 38

1. A major limitation of the customer value idea is that:

   Answer

   		It can't be applied in competitive situations.
   		It considers price but not other elements of the marketing mix.
   		It applies to goods but not services.
   		Its emphasis on what the customer sees as the positive things about a marketing mix means that the negatives are likely to be ignored.
   		None of the above is a limitation.

2 points

Question 39

1. Marketing functions are performed by producers, consumers, and a variety of marketing specialists.

   Answer

   True

   False

2 points

Question 40

1. Which of the following is LEAST LIKELY to be found in a production-oriented firm?

   Answer

   		Disagreements among departments about how to improve the company's product.
   		Making products that are easy to produce.
   		Producing goods that exactly meet the customer's needs.
   		A mass marketing approach.
   		None of the above.

2 points

Question 41

1. Which of the following statements about nonprofits is false?

   Answer

   		Marketing is being more widely accepted by nonprofit organizations.
   		The marketing concept is as important for nonprofit organizations as it is for business firms.
   		In nonprofit organizations as in business firms, support comes from satisfied customers.
   		A nonprofit organization does not measure profit in the same way as a firm.
   		The marketing concept provides focus in both business firms and nonprofit organizations.

2 points

Question 42

1. The "marketing concept" says that a business firm should aim all of its efforts at:

   Answer

   		doing more advertising and selling than competitors.
   		selling what the company produces.
   		satisfying customers--regardless of profitability.
   		satisfying its customers--at a profit.
   		producing those products which it can make at lowest cost.

2 points

Question 43

1. Strong sentiments of nationalism facilitate growth in importing and exporting.

   Answer

   True

   False

2 points

Question 44

1. If you go into a restaurant in Vienna, Austria, and ask for a Diet Coke, the waiter may have no idea what you are ordering. This is an example of which part of the external market environment?

   Answer

   		Political
   		Cultural and social
   		Legal
   		Economic
   		Competitive

2 points

Question 45

1. Which of the following statements about the competitive environment is FALSE?

   Answer

   		Competition-free environments are rare.
   		Marketing managers should choose strategies that avoid head-on competition.
   		A firm that has a marketing mix that its target market sees as better than its competitors' has a competitive advantage.
   		Over the long run, most product-markets tend toward monopolistic competition.
   		In a competitor analysis, the firm's first step should be to identify all potential competitors.

2 points

Question 46

1. Maria Lopez runs an errand service from her home. For a fee, she will pick up dry cleaning, buy groceries, plan small parties, and do errands for her customers. The demand for this type of service has increased because of changes in the

   Answer

   		cultural/social environment.
   		legal environment.
   		technological environment.
   		political environment.
   		none of the above.

2 points

Question 47

1. When considering a potential product-market, a marketer should decide:

   Answer

   		where it is.
   		what its relevant segmenting dimensions are.
   		how big it is.
   		All of the above.

2 points

Question 48

1. Which of the following statements about U.S. consumer households is true?

   Answer

   		More than 80 percent of all households in the U.S. are made up of married couples with no children under 18 years of age.
   		The divorce rate is about 50 percent, and the majority of divorced people stay single.
   		Americans are marrying younger, but delaying child bearing.
   		Single-adult households account for over one-fourth of all households.
   		All of the above are true.

2 points

Question 49

1. The amount of income a family has left after paying taxes and paying for necessities is called its _____________ income.

   Answer

   		personal
   		discretionary
   		marginal
   		family
   		adjusted

2 points

Question 50

1. Information on demographic dimensions

   Answer

   		even if "partly true," is good enough to make marketing strategy decisions.
   		of consumer markets around the world is not available.
   		is chargeable—if available—because it is collected by private organizations.
   		makes valid data available to managers.
   		helps managers make decisions based on guesses.