MKT Vocab 10 – Flashcards
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An example of a psychographic characteristic as applied to businesses is (A) industry classification (B) whether a company sponsors cultural or sporting events (C) company size (D) whether a company is publicly or privately held (E) number of employees
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Company sponsorship of cultural or sports events is one aspect of the lifestyle subcategory of psychographic characteristics that are used in profiling businesses, so choice B is correct.
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Position bias is a problem in (A) product placement in a retail store (B) selecting where to target a new product for the marketplace (C) choosing a market segment (D) conducting surveys (E) determining the outlets for new products
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Position bias is the tendency of survey respondents to select the first answer in a multiple-choice question, so choice D is correct.
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A SWOT analysis might look at all of the following external conditions EXCEPT the (A) bargaining power of suppliers (B) amount of competition (C) cost to enter a market (D) loyalty of customers to the market leader (E) company's ability to move quickly into a market
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SWOT stands for strengths, weaknesses, opportunities, and threats. The company's ability to move quickly into a market is an internal issue, either a strength or a weakness, depending on the company. Choice E is the correct answer to this EXCEPT question.
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In which of the following forms of pricing does a manufacturer pay no shipping costs on goods being sent to distributors? (A) FOB (B) Freight absorption pricing (C) Allowance (D) UDP (E) Zone pricing
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FOB stands for free on board; the manufacturer pays no shipping costs to transport product to distributors who pay the shipping charges, so choice A is correct.
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An actor is cooking dinner and talking about how easy it is to put together the ingredients in the package and whip up dinner in 15 minutes. This style of ad is known as (A) dramatization (B) cheerleading (C) testimonial (D) demonstration (E) scientific
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In a demonstration ad, an actor(s) shows how a product works and speaks directly to the viewer, so choice D is correct.
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All of the following are metrics for measuring online ad effectiveness EXCEPT (A) click-through rate (B) cost per click (C) page view (D) pay per click (E) pop-under
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The correct answer is E. A pop-under is an online ad that opens behind the Web browser window that is open, but doesn't show up until after all other windows have been closed. A pop-under ad is not a measurement tool, so it is the correct answer to the question.
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A nonprofit that wants to find sponsors for its golf event should do all of the following EXCEPT (A) communicate its target market to potential sponsors (B) analyze who potential sponsors might be based on the target audience (C) explain to potential sponsors how much the sponsorship will add to the sponsor's revenue (D) decide on sponsorship levels and the benefits attached to each level (E) explain how being affiliated with the nonprofit will benefit the potential sponsor's brand
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It is very difficult to make a correlation between a sponsorship and an increase in revenue, so choice C is not something a nonprofit should do, so it is the correct answer to the question.
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To get a consumer to go from ignorance about a product to motivated, the marketer must move the consumer through which of the following stages? (A) Intentionality (B) Action (C) Interest and action (D) Awareness and interest (E) Awareness
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This question is based on the hierarchy of advertising effects; advertising should take the consumer from ignorance to awareness to interest to motivated, so choice D is the correct answer.
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A family in the Full Nest stage of the family life cycle would most likely be shopping for (A) a smaller home (B) a sports car (C) a kitchen appliances (D) living room set (E) a used car for a teenage driver
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A family in the full nest stage of the family life cycle would be shopping for a used car for a teenage driver, choice E.
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A manufacturer of which of the following products would adopt an undifferentiated marketing strategy for its launch? (A) DVR (B) Low-end children's clothing (C) E-reader (D) Cookies made with organic products (E) Bread
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A manufacturer of bread, choice E, is most likely to adopt an undifferentiated marketing strategy to launch its new product.
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Which of the following is NOT an example of why people switch brands? (A) A mail coupon offers a discount on a competitor's product. (B) The store is out of the brand the consumer normally buys. (C) Consumers prefer domestic product over foreign product once a domestic version becomes available. (D) A consumer is having her in-laws for dinner and buys real butter instead of margarine. (E) A consumer is used to buying one brand of sandals, but decides to buy another brand for a change.
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There is no evidence to support the idea that people will buy a domestic over a foreign brand once a domestic version becomes available. In fact, some people for whom status and prestige are important will buy a foreign brand over a domestic brand. Choice C is the not true, and is therefore the correct answer to the question.
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Internal records that provide information for marketing intelligence systems (MIS) include (A) cash flow, competitors' data, and inventories (B) cash flow, inventories, and suppliers' data (C) competitors' data, customers' needs, and cash flow (D) cash flow, suppliers' data, and sales orders (E) sales orders, inventories, and cash flow
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Internal records are sales orders, inventories, and cash flow, so choice E is correct.
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The cartridge and paper kit that is sold with a photo printer is called what kind of product? (A) Alternate (B) Ancillary (C) Substitute (D) Reserve (E) Customized
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An ancillary product is one that is sold with the core product, so choice B is correct.
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The microenvironment in which companies operate consists of all of the following EXCEPT (A) customers of the company (B) the company itself (C) suppliers (D) competitors (E) marketing intermediaries
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Competitors are part of the macroenvironment, so choice D is the correct answer.
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Cereal makers advertise heavily on children's TV/cable programs. The result is that many children ask— even nag—their parents to buy a particular cereal. This is an example of (A) demand promotion strategy (B) an indirect strategy (C) push-and-pull promotion strategy (D) pull promotion strategy (E) push promotion strategy
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The pull promotion strategy uses heavy advertising to build demand for a product, so choice D is the correct answer.
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Jack represents a textbook publisher and has known Sal since he was a teacher. Now he is a department chair. If Sal has a problem with an order, he calls Jack directly who handles it with customer service and gets Sal whatever he needs within 48 hours. This is an example of what kind of marketing philosophy? (A) Production (B) Sales (C) Relationship (D) Marketing (E) Direct Selling
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The relationship philosophy of marketing, choice C, stresses long-term relationships with customers and customer satisfaction because, in the long-term, companies have found that it is cheaper to retain customers and increase their business than prospect for new customers.
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A major manufacturer of software launched an e-reader, but withdrew it after 180 days of lackluster sales. Demand for the product can be classified as (A) no demand (B) falling demand (C) negative demand (D) latent demand (E) unwholesome demand
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No demand means that consumers show little or no demand for a product, so choice A is correct.
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Which of the following is the first step in developing a strategic marketing plan? (A) Development of goals (B) Analysis of the environment (C) Development of marketing strategies (D) Development of the business mission (E) Feedback on marketing acceptance
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The first step in developing a strategic marketing plan is to develop the business mission, choice D.
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The Cherry Company decides that it needs to get its customers to buy more of its existing candy products. The company is adopting what kind of growth strategy? (A) Penetration (B) Diversification (C) Market development (D) Product development (E) Flank attack
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One aspect of penetration strategy is to get existing customers to buy more product, so choice A is correct.
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A famous designer agrees to the use of his name on a men's cologne in exchange for a royalty. What kind of business arrangement is this? (A) Licensing (B) Franchise (C) Strategic alliance (D) Joint ownership (E) Patent
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A licensing agreement involves one business entity granting another the right to the use of a patent, trademark, or other right such as the right to use a name in exchange for a royalty, choice A.
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Economic factors that affect buying and purchasing patterns include all of the following EXCEPT (A) social status (B) business cycle (C) unemployment (D) inflation (E) income distribution
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The correct answer is A. Social status is not an economic factor, so it is the correct answer to the question.
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Based on lifestyle research, which group of consumers would be most likely to buy a hybrid automobile? (A) Strugglers (B) Believers (C) Experiencers (D) Strivers (E) Actualizers
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The lifestyle orientations listed in this question are five of the eight orientations that resulted from the Stanford Research Institute's refining of its earlier values and lifestyle research. The eight are actualizers, fullfilleds, believers, achievers, strivers, experiencers, makers, and strugglers. A hybrid auto is typically a social responsible purchase, so choice E is correct because actualizers are socially conscious and have the education and resources to act on their convictions.
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Federal laws that regulate businesses generally fall into four categories. Which of the following is NOT one of those four categories? (A) Regulation of competition (B) Consumer protection (C) Maintenance of the competitive environment (D) Environment protection (E) Deregulation of certain industries
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Environmental protection laws are not one of the four categories of laws that regulate business, so choice D is the correct answer to the question.
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A limit on the amount of a product that can be exported is known as (A) an export quota (B) risk reduction (C) an embargo (D) an export control (E) a tariff
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A limit that is imposed on exports by a government is known as an export quota, choice A.
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When a retailer removes one company's product and replaces it with product from another company, the first company is said to have lost (A) retail space (B) shelf space (C) product visibility (D) shelf life (E) retail visibility
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The amount of space that a company's product receives in a retail situation is shelf space, so choice B is correct.
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Which of the following is NOT an objective when companies set prices for their products? (A) Take market leadership (B) Indicate product quality (C) Recoup research and development costs (D) Discourage potential competitors from entering the market (E) Encourage competitors to cut prices
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A pricing objective is to discourage competitors from cutting their prices on similar product, so choice E is not true, but is the correct answer to the question.
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A concentrated marketing strategy would be best for a company that sells (A) processed foods (B) automobiles (C) cosmetics (D) software programs for both office and home use (E) timeshares in vacation properties
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A concentrated marketing strategy is one that focuses its efforts on a particular market segment such as people interested in buying timeshares, choice E.
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Two of the basic facilitating functions of a marketing manager are (A) transportation and storage (B) financing and risk taking (C) buying and selling (D) developing marketing information and inventory control (E) buying and selling and transportation and storage
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The four facilitating functions of marketing managers are grading, financing, risk taking, and developing market information. Choice B includes two of these functions, financing and risk taking, so choice B is correct.
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Alex is conducting market research to determine ways to extend a product line. After defining the research problem, his next step is to (A) design the survey instrument (B) conduct a situation analysis (C) gather data (D) decide on the metrics to be measured (E) decide on the research sample
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Before any research can be collected, the type of research that must be gathered has to be determined. This is part of developing an approach to the research problem, also known as conducting a situation analysis, choice B.
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All of the following are reasons that companies decide to export products EXCEPT to (A) benefit from financial incentives offered by host countries (B) extend product life (C) exploit comparative advantage (D) increase sales (E) avoid license requirements
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Licensing requirements are one of the tactics that host countries impose on foreign companies to limit imports, so choice E is not one of the reasons that companies decide to export products and the correct answer to the question.
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People who volunteer to answer surveys may introduce which type of bias into the results? (A) Halo effect (B) Interviewer bias (C) Response bias (D) Self-selection bias (E) Unrestricted sample
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Self-selection bias is bias for or against something that may be introduced into a survey as a result of people volunteering to answer the survey, choice D.
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A nonprofit's customers are (A) its funders (B) the users of its services (C) the government agencies that regulate it (D) the public (E) its board of directors
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A nonprofit's customers are its users, choice B.
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A store advertises that for one day only a particular brand of refrigerator is 70 percent off. When customers get to the store, they find that the refrigerator is half-sized. This is an example of (A) upselling (B) cross selling (C) false advertising (D) bait and switch (E) trade promotion
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Bait and switch, choice D, occurs when retailers offer a product at a very low price, in a very limited quantity, or of inferior quality to get customers into the store with the intention of selling them a higher priced product. Besides being unethical, it is illegal.
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In marketing products, companies want to maximize (A) revenue, profits, and costs (B) profits, revenue, and return on investment (C) return on investment, customer satisfaction, and brand acceptance (D) brand acceptance, profits, and return on investment (E) brand acceptance, revenue, and profits
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In marketing products, companies want to maximize profits, return on investment (ROI), and revenue, so only choice B is correct.
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In a microenvironmental marketing analysis, banks belong to which sector? (A) Implementors (B) Suppliers (C) Publics (D) Marketing intermediaries (E) Customers
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Bankers along with insurance companies and credit companies are part of financial intermediaries, a subcategory of marketing intermediaries, choice D.
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The increase in online social influence marketing has resulted in a decrease in (A) promotions (B) direct mail (C) virtual gifting (D) display ads (E) blogs
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The volume of direct mail pieces has decreased as social influence marketing (SIM) has increased, so choice B is the correct answer.
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The Sunshine Company wants to measure the influence that its brand has in the blogosphere. What metric should it use? (A) How many unique visitors come to the Sunshine blog (B) How many page views take place (C) How many click-throughs there are (D) How often visitors post comments on the brand's blog (E) How many times visitors make comments on competitors' blogs
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One metric that can be used to determine the influence that a brand has in the blogosphere is how often visitors post comments on the brand's blog, choice D.
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38. Larry designed a research project to analyze the market for a new dish detergent. The budget was cut and he needs to use research conducted for another product. All of the following are disadvantages of secondary research EXCEPT the (A) lack of applicability to the current research project (B) high cost of secondary research (C) datedness of the data (D) lack of accuracy and reliability of the data (E) lack of sufficient data
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Secondary research has little cost in relation to primary research; the person/department that ordered the primary research project paid for it. High cost is not a disadvantage of secondary research, so choice B is the correct answer.
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Which of the following products is considered a component product? (A) Computer chip (B) Paint (C) Broom (D) Margarine (E) Lubricating oil
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Choice A, a computer chip, is a considered a component part because it is used in manufacturing another product.
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In defining a market segment, marketers look for segments that are (A) substantial and homogeneous within (B) substantial and well defined (C) heterogeneous in relation to other segments and well defined (D) operational and at a certain income level (E) well defined and operational
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(A) substantial and homogeneous within... The five factors that marketers look for in determining whether a market segmentation is worthwhile pursuing are whether it is substantial, homogeneous within, heterogeneous in relation to other segments, accessible, and operational.
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The societal approach to marketing (A) puts social responsibility before company goals (B) considers company goals, customer needs and wants, and society's interests (C) uses social responsibility as the determining factor in product decisions (D) is the same as social media marketing (E) is another name for "green" marketing
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While sociographics, the analysis of social networks, may be useful in marketing by nonprofits, global marketing, and mass marketing using the Internet, the best answer is social influence marketing (SIM), choice D, because it's the most precise.
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Which of the following is an example of a typical industrial distribution channel? (A) Manufacturer to manufacturer's sales force to retailer to industrial customer (B) Manufacturer to wholesaler to jobber to retailer to industrial customer (C) Manufacturer to wholesaler's representative to industrial customer (D) Manufacturer to wholesaler to industrial customer (E) Manufacturer to manufacturer's representative to industrial distributor to industrial customer
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There are several possible channels for industrial products, but choice E is the only correct one listed in the answers. (Others are manufacturer to industrial customer; manufacturer to industrial distributor to industrial customer; manufacturer to manufacturer's sales force to industrial distributor to industrial customer.)
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Most precisely, sociographics has become an important tool in (A) marketing by nonprofits (B) business-to-business marketing (C) global marketing (D) social influence marketing (E) mass marketing
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While sociographics, the analysis of social networks, may be useful in marketing by nonprofits, global marketing, and mass marketing using the Internet, the best answer is social influence marketing (SIM), choice D, because it's the most precise.
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The characteristics of package labels include all of the following EXCEPT that (A) they attract customer attention (B) depending on the product, they include the product's ingredients (C) they make the product easier to use (D) they provide product information (E) they need to be in multiple languages if a company sells in multiple countries
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Choice C describes the functionality of the package—its structure and design—not its label, so choice C is the correct answer
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The BIG Shoe Company maintains a Web site that sells a variety of shoe brands for big and tall men. The company acts as an intermediary, sending orders to shoe manufacturers that send the shoes to BIG Shoe's customers. BIG Shoe is a (A) selling agent (B) full-service wholesaler (C) purchasing agent (D) drop shipper (E) rack jobber
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A drop shipper, choice D, receives orders from customers, passes the orders to manufacturers to fill, and receives a percentage of the sales as compensation.
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A company advertises it high-end foreign cars with a campaign that shows people turning around and staring as the car drives by. This campaign might be derived from which of Maslow's levels of basic needs? (A) Physiological (B) Love, affection, and belongingness (C) Safety (D) Self-actualization (E) Esteem
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Advertising an expensive foreign-made car with a campaign based on turning people's heads could be built on Maslow's fourth level, esteem or prestige, choice E.
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ISIC stands for (A) International Standards for Internet Classification (B) International Standard Industrial Classification (C) Internet Standardization Interglobal Categories (D) Industrial Standards Internet Categories (E) International Standardization Industrial Categories
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ISIC stands for International Standard Industrial Classification, choice B. It is the international version of the North American Industry Classification System (NAICS) that replaced the Standard Industrial Classification (SIC) in 1997.
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Which of the following would be classified as a public service ad? (A) An ad explaining the benefits of a particular antidepressant (B) An ad announcing an upcoming family night at a baseball game (C) An election ad by an incumbent reminding constituents of what she has done for the district (D) An ad raising awareness of breast cancer (E) A testimonial by a patient who underwent heart surgery at a local hospital
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The goal of a public service ad is to raise awareness of an issue that will benefit the public in some way. An ad to raise breast cancer awareness classifies as a public service ad, so choice D is correct.
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Identifying potential markets is called (A) segmentation (B) positioning (C) forecasting (D) targeting (E) environmental audit
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Identifying potential markets is market segmentation, choice A.
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All of the following are a host country's governmental influences on foreign trade EXCEPT the (A) multiplicity of languages spoken (B) stability of the political system (C) amount of competition allowed (D) tax system (E) legal system
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The number of languages in a nation is a cultural influence, not a government political influence, so choice A is the correct answer
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Qualitative research is (A) objective (B) machine tabulated (C) not systematic in its design (D) deductive (E) not open to generalizations
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Choice E is correct because qualitative research is not used for developing generalizations about the market.
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Which of the following can be branded? (A) Person, product, service, and value (B) Person, product, place, and service (C) Product, place, and service (D) Value, product, place, and service (E) Quality, value, product, and service
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A brand may be a person (celebrity), product (autos), place (theme park), or service (accounting company) that buyers perceive as having unique added values that match their needs more than competitors, so choice B is correct.
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Highlighting how much better the company's product is over the competitors' is an advertising strategy for which stage of the product life cycle? (A) Development (B) Introduction (C) Growth (D) Maturity (E) Decline
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Competitive advertising is typically a feature of the maturity stage of the product life cycle, choice D.
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An example of the perishable nature of services is (A) the difficulty in achieving economies of scale (B) the quality of an Internet marketing campaign (C) a cancelled concert tour by a band (D) the interconnectedness of the provider of the services with the service (E) the seasonal nature of ski instruction
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A cancelled concert tour is an example of the perishable nature of services, so choice C is the correct answer.
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In a pure competitive environment, a firm has (A) complete control over pricing (B) no control over pricing (C) some control over pricing (D) a great deal of control over pricing (E) from no control to a great deal of control over pricing, depending on the product
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In a pure competitive environment, companies have no control over pricing, so choice B is correct.
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The Jefferson Manufacturing Company buys sheet metal from the same supplier each month. In January, it changes its order to aluminum tubing. This is an example of a (A) straight buy (B) straight rebuy (C) new task buying (D) modified rebuy (E) modified buy
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A modified rebuy is buying new products from a current supplier, so choice D is correct
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Which of the following is NOT a step in the consumer adoption process model? (A) Trial (B) Awareness (C) Evaluation (D) User recommendations (E) Interest
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A recommendation from a friend or family who uses a product is not a step in the consumer adoption process, although user recommendations may be part of building awareness. Because it is not a step, choice D is not true, but the correct answer.
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To enter the Asian market, The Lion Company changed its formula for hot sauce, but kept its slogan and promotional materials, based on market research. This is an example of (A) product adaptation and promotion extension (B) product extension and promotion adaptation (C) product extension and promotion extension (D) product adaptation and promotion adaptation (E) development of a new product and promotion
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Modifying a product to meet consumer needs in a foreign market while keeping the same promotion is called product adaptation and promotion extension, choice A.
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The production aspect of product development includes (A) product design and manufacturing (B) purchasing, manufacturing, and warehousing (C) quality control and test marketing (D) manufacturing, quality control, and test marketing (E) manufacturing, warehousing, and distribution
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The production of product includes purchasing, manufacturing, quality control, warehousing, and shipping. Choice B includes three correct elements: purchasing, manufacturing, and warehousing, so choice B is correct.
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Loss leader pricing is (A) pricing a product just below its main competitor (B) pricing a product at or below cost to get customers into a store with the hope of selling them other more profitable product (C) based on keeping all costs involved, such as manufacturing, as low as possible (D) based on the value that customers perceive the product holds (E) pricing a product as part of a bundle to get rid of unwanted inventory
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Loss leader pricing is a sales promotion technique that is used to get people into a store with the hope that they will buy more expensive products, so choice B is correct.
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During the maturity stage of the product life cycle, the number of competitors (A) explodes (B) declines (C) increases incrementally (D) remains the same (E) rises and falls with economic conditions
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There is a shakeout of competitors as sales increase at a decreasing rate and price begins to decrease during the maturity stage of the product life cycle, so choice B is correct.
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Market research tasks include all of the following EXCEPT (A) identifying market segments (B) test marketing (C) conducting focus groups (D) selecting distribution channels (E) measuring brand loyalty
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Selecting distribution channels is not a market research task, so choice D is the correct answer to the question
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The diffusion process in marketing refers to (A) the innovation process within a company (B) the rate of adoption of new product by consumers (C) the spread of information in the marketplace about new product (D) a promotion campaign (E) a direct mail campaign
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The rate of adoption of new products in the marketplace is called the diffusion process, so choice B is correct.
question
Karen is buying a new winter coat. She has heard that the manufacturer of the last coat that she bought uses sweatshop labor, so she buys another coat brand. By doing this, Karen exhibits (A) brand preference (B) brand recognition (C) brand indifference (D) brand rejection (E) brand disinterest
answer
Karen recognizes the brand and refuses to buy it, so she exhibits brand rejection, choice D.
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All of the following are behavioristic criteria used for segmenting markets EXCEPT (A) user rate (B) occupational status (C) buyer readiness (D) product loyalty (E) desired benefits
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User rate, buyer readiness, product loyalty, and desired benefits are all behavioristic criteria, so choices A, C, D, and E are incorrect answers to the question. Choice B, occupational status, is a demographic criterion, so it is the correct answer to the question.
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The Peters Manufacturing Company has a number of locations around the country where goods are warehoused, orders are taken and processed, and products are shipped to customers. These locations are (A) customer service centers (B) distribution centers (C) call centers (D) intermodal transportation centers (E) merchant wholesaler centers
answer
Distribution centers, choice B, warehouse goods, take and process orders, and ship the filled orders to customers in specific areas.
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A manufacturer that employs intermediaries in its distribution channel is using (A) a corporate channel (B) vertical integration (C) horizontal integration (D) an indirect channel (E) a direct channel
answer
Using intermediaries in the distribution channel indicates that a company is using an indirect channel approach, choice D.
question
A cosmetics ad that highlights the wrinkle erasing and skin brightening powers of the product is using what kind of appeal? (A) Scarcity (B) Youth (C) Snob (D) Humor (E) Social
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Erasing wrinkles and brightening skin are both qualities that promise a youthful appearance, so choice B is correct.
question
Which of the following is NOT a form of media marketing? (A) Infomercials (B) Internet shopping (C) Home shopping channels (D) Catalogue shopping (E) Mobile Web apps
answer
Catalogue shopping is not a form of media marketing, so choice D is the correct answer to the question.
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Cookies are important to online advertisers because they enable advertisers to (A) identify social networks (B) count page views (C) customize content for visitors (D) track visitors to find out where they go after they leave their Websites (E) identify unique versus repeat visitors
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Choice C is correct because cookies enable advertisers to customize content to repeat visitors.
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In online marketing, CPM stands for (A) Cost Per Mille (B) Cost Per Million (C) Customer Performance Measure (D) Customer Preference Metric (E) Cost Performance Metric
answer
CPM stands for cost per mille, "mille" meaning thousand in Latin, so choice B is correct. CPM is a standard measure of online advertising costs, such as $100 per 1,000 appearances on a Web site.
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The ability to "name your own price" online for airline tickets and hotel rooms is an example of (A) supply pricing (B) price-setting power (C) condition pricing (D) dynamic pricing (E) situational pricing
answer
The use of dynamic, or variable, pricing is a characteristic of e-commerce, so choice D is the correct answer.
question
Influencers are important to marketers for all of the following reasons EXCEPT that influencers (A) are early adopters and trendsetters (B) have large social networks (C) have money (D) are respected (E) are socially active in their communities and various movements and organizations
answer
Influencers do not necessarily have money, so choice C is correct.
question
In conducting a situation analysis, a company would look at what factors related to the retail customer environment? (A) Market size, benefits customers are looking for, and frequency of purchase (B) Product line, market size, and frequency of purchase (C) Buying process, suppliers, and distributors (D) Market size, competitors' products, and buying process (E) Trends, company's image in the marketplace, and market segments
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A situation analysis deals with the three C's: company, customers, and competitors. Market size, the benefits that customers are looking for, and the frequency of purchase are three elements of the customer environment that a company would analyze in considering new product development, so choice A is correct.
question
Decision support systems can aid market research by (A) analyzing inventory needs at various times of the year (B) identifying target markets (C) developing sales forecasts (D) developing simulations to estimate the value of long-term customers (E) applying the regression method to survey results
answer
The decision support system (DSS) aids market research in a number of ways including identifying target markets, so choice B is correct.
question
Which of the following is a purchase that typically is a high-involvement decision? (A) Buying a week's worth of groceries (B) Renting a vacation unit for a month (C) Buying a tuxedo (D) Buying a SUV (E) Outfitting a student dorm room
answer
High-involvement decision-making behavior comes into play when a purchase is important to the person making the purchase and is relatively expensive, the purchaser expects to receive a great deal of benefit from the purchase, and there is risk involved. The purchaser also lacks information about the intended purchase and expends time and energy conducting research. Only choice D satisfies all criteria for a high-involvement decision, so choice D is correct.
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Offering a 60-day money back guarantee as a sales promotion is one way to deal with post-purchase behavior known as (A) delay (B) satisfaction dissonance (C) loyalty dissonance (D) cognitive dissonance (E) bounce back
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Cognitive dissonance, in some circumstances referred to as buyer's remorse, is post-purchase behavior in which a purchaser has second thoughts about the wisdom of the purchase, so choice D is correct.
question
Which of the following is NOT an example of "green" marketing? (A) Using post-consumer waste in manufacturing new product (B) Reducing the use of product packaging (C) Sponsoring a community-wide clean-up day (D) Allowing consumers to opt out of receiving direct mail catalogues (E) Sending recycled electronics abroad for disposal
answer
Accepting recycled electronics at home and then sending them abroad for disposal may reduce harm to the home country's environment, but does nothing for the other country or the environment in general, so choice E is not "green" marketing.
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Stickiness of a Web site is measured in terms of the (A) money spent on the site (B) click-throughs generated (C) ease of searching the site (D) number of repeat visits (E) average minutes per month that visitors spend on the site
answer
The correct answer is E. Stickiness can be measured by the average minutes per month that visitors spend on a Web site, a combination of the number of repeat visits and time spent per visit.
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Which of the following is NOT an advantage that a multibrand strategy offers the PT Soap Company? (A) A multibrand strategy creates internal competition among PT's brand managers. (B) By using a multibrand strategy, PT's brands take sales away from one another. (C) A multibrand strategy means that PT's competitors have limited shelf space for their products. (D) By having a number of brands, PT has brands for a variety of price and quality levels. (E) By having multibrands, PT will attract or keep more consumers who like to try different products.
answer
The downside to a multibrand strategy is that some brands eat into the sales for a company's other brands, so choice B is the correct answer.
question
Customer stability in the maturity phase of the product life cycle is (A) low (B) very stable (C) characterized by well-established buying patterns and customer loyalty (D) characterized by some loyalty (E) characterized by a declining customer loyalty
answer
Choice C is correct because the customer stability factor in the maturity stage of the product life cycle is characterized by customer loyalty and well-established buying patterns.
question
The most important step in the marketing process for a nonprofit is (A) identifying its target market (B) developing promotional materials (C) keeping its database of donors up to date (D) implementing a social media marketing program (E) creating a Web site
answer
Like a for-profit organization, a nonprofit first has to define its target market for promotion, so choice A is correct.
question
When a pharmaceutical maker brings out a low-cost version of one of its drugs, it is manufacturing a (A) product line extension (B) brand extension (C) brand generic (D) generic brand (E) brand choice
answer
A generic brand is a low-priced item that has no individual brand, so choice D is correct.
question
A company selling Internet, phone, and cable service together is an example of (A) a cross promotion (B) a product bundle (C) product integration (D) a discount program (E) a complementary product
answer
Marketing several items together creates a product bundle, or package, choice B.
question
Which of the following is NOT within the control of a company? (A) Price (B) Economic conditions (C) Advertising (D) Distribution (E) Personal selling
answer
A company can't control economic conditions, so choice B is the correct answer to the question.
question
Individuals or groups within an organization who affect the decision-making process include (A) buyers, users, and marketers (B) users, influencers, marketers, and goaltenders (C) buyers, users, influencers, and goaltenders (D) users, influencers, marketers, and gatekeepers (E) buyers, users, influencers, and gatekeepers
answer
In addition to deciders, decision making in an organization include buyers, users, influencers, and gatekeepers, so choice E is the most complete and only correct answer.
question
The Internet has facilitated the place function of the marketing mix by (A) reducing costs involved in customer service (B) speeding the automated delivery of orders and invoicing (C) providing information on customer needs and wants without using costly research methods (D) offering coupons and other discounts (E) continually updating advertising information and online catalogues
answer
Speeding the automated delivery of orders and invoices, choice B, typically facilitates the place function for companies.
question
Exchange trading companies can help importers with all of the following functions EXCEPT (A) arranging for financing (B) conducting research on new products to satisfy foreign market needs (C) providing promotional activities at foreign trade shows (D) arranging for packaging for the foreign market (E) negotiating for the cancellation of export duties
answer
Choice E is incorrect because export duties don't affect importers and exchange trading companies (ETC) have no control over export duties, which are set by governments.
question
The purpose of a SWOT analysis is to identify (A) a company's strengths and weaknesses as well as the threats to its success in the marketplace (B) the strengths and weaknesses of competitors and a company's own opportunities and threats in the marketplace (C) the strengths and weaknesses of competitors and their opportunities and threats in the marketplace (D) a company's external strengths and weaknesses and internal opportunities and threats to its success (E) a company's internal strengths and weaknesses and its opportunities and threats in the marketplace
answer
A SWOT analysis identifies a company's own strengths and weaknesses and the opportunities and threats to it in the marketplace, so choice E is correct.
question
Which of the following demonstrates customer goodwill toward a company? (A) Sponsorship of events hosted by nonprofit organizations (B) A strong brand name (C) Proactive post-purchase customer relations (D) Promotional activities that offer price reductions (E) A loyal-customer program
answer
A strong brand name, choice B, is an indicator of customer goodwill toward a company.
question
People who buy toothpaste for its whitening properties make up a market segment based on (A) demographics (B) usage rate (C) buyer readiness (D) lifestyle (E) benefits sought
answer
Benefits sought is a subcategory of behavioristic criteria used in determining market segmentation; the subcategory is based on attracting a market segment interested in certain benefits of a product, so choice E is correct.
question
In looking for secondary information online, market researchers may look at all of the following EXCEPT (A) search directories (B) intranets (C) social media sites (D) discussion groups (E) periodical and newspaper archives
answer
An intranet, choice B, is a private computer network maintained by a company or an organization that limits access to it to employees of the company or organization. The only way unauthorized people can view it is by hacking it, which is illegal.
question
The best use of focus groups in new product development is (A) to extrapolate from them how many people will buy the product (B) in identifying a price point for the product (C) in determining the issues that consumers are concerned about in a particular product category (D) to gain ideas for refining a sales presentation (E) to gain data for inventory management
answer
Focus groups are best used in new product development to find out the issues that are important to consumers, choice C.
question
Charging passengers to check bags on airlines is changing prices (A) by changing the terms of sale (B) by changing the quality of products (C) by changing the amount or size (D) based on the laws of supply and demand (E) based on full demand
answer
When something that was free is now charged for, the terms of sale have been changed, choice A.
question
A furniture chain begins as a discounter. Then it adds lamps and other home accessories. It then offers an interior decorating service while also upgrading its furniture lines. Over time the store adds more departments and services. This describes the (A) retail life cycle (B) retail model (C) retail cycle (D) wheel of retailing (E) superstore evolution
answer
The phenomenon described in the question is known as the wheel of retailing theory, choice D.
question
Marketing materials for nonprofits should include all of the following EXCEPT (A) the organization's services (B) the resume of the executive director (C) opportunities for donations (D) testimonials from users (E) the organization's mission
answer
Including the resume of the executive director is not appropriate, so choice B is the correct answer to the question. However, noting a former affiliation of the executive director may be useful if there is a connection to the current organization, for example, noting that the executive director of an opera company was once an opera star.
question
Which of the following commercials uses a lifestyle approach in its creative execution? (A) Animated characters talk about the benefits of a particular window cleaner. (B) A couple thinks about going on a cruise and then finds themselves on the cruise boat. (C) A movie star endorses skin care products. (D) An actor spills some liquid and then uses two brands of paper towel to soak it up; the sponsor's towel does a better job. (E) A family of five is packing camping equipment into a new SUV and talking about how roomy it is and how it fits not just camping equipment, but all their everyday sports equipment, grocery bags, etc.
answer
An ad that uses a lifestyle creative approach shows how easily the product fits into a certain lifestyle, so choice E is the best answer.
question
Which of the following is an example of how integrated marketing communications affects advertising? (A) Advertising is based on customer needs and wants as determined through market research. (B) Advertising is aimed at broad markets rather than narrower segments. (C) Loyalty programs have become more important. (D) More emphasis is placed on traditional media advertising than on online and mobile marketing. (E) Building relationships with customers is no longer seen as the essential message
answer
The focus of integrated marketing communications (IMC) is to connect all facets of internal and external marketing to communicate a single sales-related message to stakeholders, so choice A is correct.
question
All of the following comprise services that can be added to enhance a product EXCEPT (A) warranty (B) delivery (C) financing (D) brand name (E) add-ons
answer
The brand name is an intangible aspect of a product and isn't one of the services that can be used to enhance a product, so choice D is the correct answer to this EXCEPT question.
question
Churn rate is the (A) number of unique visitors to a site (B) number of customers who stop doing business with a company (C) number of purchases an individual makes on a particular site (D) another name for click throughs (E) number of calls a call center operator can handle in a day
answer
Churn rate is the number of customers who stop doing business with a company, also known as the attrition rate, so choice B is correct.
