Professional Documents
Culture Documents
3 When consumers make a purchase, the time they have available for shopping will influence their
behaviour.
A) True
B) False
4 It is possible for marketing managers to change or create new attitudes about goods and services—but
overcoming negative attitudes is a really tough job.
A) True
B) False
5 Different purchase situations may require different marketing mixes, even though the same target market is
involved.
A) True
B) False
6 Why would most consumers spend more on a product than they know it is available for elsewhere?
A) The consumer is not an economic buyer.
B) The consumer is not in a rush to buy.
C) The consumer hasn't considered his or her economic needs.
D) The consumer never learned numbers in school.
E) The consumer doesn't feel it is worth travelling to get the lower price.
7 Some people say that marketing managers can manipulate consumers to buy products against their will.
Why is this not possible?
A) Consumer wants cannot be influenced.
B) Internal drives cannot be created.
C) Consumer needs are not met prior to the manipulation.
D) Brainwashing is illegal.
E) Insufficient research has been done to make it possible.
8 According to the hierarchy of needs model, the first needs most people try to satisfy are their:
A) social needs.
B) safety needs.
C) physiological needs.
D) personal needs.
E) any of the above.
9 A teenage girl continually nags her mother to buy her a pair of high-heeled shoes that feel very
uncomfortable to walk in, but are worn by all of her friends. This is an example of:
A) physiological needs.
B) personal needs.
C) safety needs.
D) social needs.
E) childish needs.
10 Desmond is planning to buy a scooter. Recently he has been noticing more scooter ads in the magazines
he reads. This illustrates:
A) Effective target marketing.
B) Selective perception.
C) Dissonance.
D) Need satisfaction.
E) Selective exposure.
13 A supermarket puts its ovens for its in-store bakery right behind the counter so that the aroma of baking
can be smelled by customers. This is:
A) a violation of the selective processes.
B) olfactory (smell) marketing.
C) an example of trying to link a cue with a marketing mix.
D) likely to have no effect because selective retention will eliminate any effect of the smell.
E) a case of linking a response with a drive.
15 What is the best response to existing attitudes toward a product when undertaking a marketing
campaign?
A) Change the attitudes to be more favourable to your product.
B) Show the consumer why his or her attitude toward your product is wrong.
C) Find a spokesperson who will endorse the product and speak out against the existing attitudes.
D) List 10 reasons why the consumer's attitude is illogical and should change.
E) Build a marketing campaign that is aligned with the existing attitudes.
16 A consumer's expectations are most likely NOT to be satisfied in which of the following situations?
A) A woman attends her first self-help group meeting of an organization she knows little about.
B) An economy-class passenger is seated in business class because of lack of seats.
C) A student waits in line one minute at a bank branch on the first day of the month.
D) A Canadian vacationing at a resort promoted in brochures as fancy, arrives there to find frequent power
failures and no running water.
E) A specialized item a customer wants is out of stock and the sales clerk offers to order it.
17 Personality affects people's behaviour, but:
A) takes too much research to measure economically.
B) is the least useful of all the social influences.
C) hasn't been much help in predicting which specific products people buy.
D) is impossible to observe in an actual situation.
E) none of the above.
21 Reference group:
A) influence is greatest for older people.
B) influence is equally strong for all brands and products.
C) influence is more important when others will be able to see the product or brand we are using.
D) members may not even know the person whose attitudes they influence.
E) both c & d.
22 Sally always buys gas at the gas station near her workplace. This is an example of:
A) limited problem solving.
B) routinized response behaviour.
C) automatic behaviour.
D) purchasing without thinking.
24 A marketing manager for a new line of detergent decides to mail free samples to consumers. The logic
for using this approach is best explained by:
A) the need to reduce dissonance.
B) consumer attitudes.
C) reinforcement.
D) the typical consumer's adoption process.
E) selective retention.
2 Combiners are firms that try to increase the size of their target markets by combining two or more
segments.
A) True
B) False
4 Qualifying dimensions are those that actually affect the consumer's purchase of a specific product or brand
in a product-market.
A) True
B) False
5 Positioning shows how customers think about proposed and/or present brands in a market.
A) True
B) False
11 A credit union offers its members a regular credit card and chequing account. A competing bank from the
United States offers a variety of credit cards, all of which are essentially the same as the one offered by the
credit union except for their colour (Gold) or association with an organization (alumni association or charity;
these are known as "affinity cards").
Both the credit union's and bank's credit cards:
A) are targeted at the same consumers.
B) provide the same functional benefits.
C) compete with chequing accounts as a method of payment.
D) both b and c.
E) a, b, and c.
13 A market segment:
A) is a heterogeneous group of customers.
B) will respond to a marketing mix in a similar way.
C) contains consumers who are different from one another.
D) cannot be profitably served by an organization.
E) is best served with a "one size fits all" approach.
14 Customers in different segments should be as different as possible with respect to their likely responses to
marketing mix variables and their segmenting dimensions. This best describes which of the following
segmenting criteria?
A) homogeneous within.
B) heterogeneous between.
C) substantial.
D) operational.
E) none of the above.
15 The segment should be large enough to be profitable. This best describes which of the following
segmenting criteria?
A) homogeneous within.
B) heterogeneous between.
C) substantial.
D) operational.
E) none of the above.
19 An airline established a call centre and Web site to promote its economy-class vacation destinations. The
same airline sent sales representatives to visit the largest travel agencies in the business district to promote
its business-class services. This airline is using a:
A) single target market approach.
B) multiple target market approach.
C) combined target market approach.
D) mass market approach.
E) promotional approach.
20 A rival "no frills" airline has only one class of service and caters to both business and leisure travellers. It
is using a:
A) no frills approach.
B) multiple target market approach.
C) combined target market approach.
D) mass market approach.
E) promotional approach.
21 For most business airline passengers, a determining dimension in selecting an airline may be:
A) flight schedule (time of departure and arrival).
B) weight of baggage allowed.
C) choice of food served in flight.
D) free newspaper and massage in departure lounge.
E) friendliness of call centre operators.
22 Approaches to find similar patterns within sets of data are known as:
A) clustering techniques.
B) positioning.
C) lifestyle analysis.
D) databasing.
E) sequencing.
3 Changes in the demographic, social, political, economic, and technological environments have altered
people's preferences for how they want their needs to be satisfied.
A) True
B) False
4 Adopting the marketing concept requires that a company eliminate all functional departments.
A) True
B) False
5 Farmers going to the local village market to sell their crops were in the simple trade era.
A) True
B) False
6 Micro-marketing:
A) anticipates customer needs and directs need-satisfying goods and services from producer to
customer.
B) applies to Nortel (a for-profit company).
C) applies to Mountain Equipment Co-op (a non-profit co-operative)
D) is more than persuading customers.
E) all of the above.
9 Which of the following is NOT likely to be found in a company with a marketing orientation? The
company:
A) sells whatever it can make.
B) designs its packaging as a selling tool.
C) uses marketing research to see if it is satisfying its customers.
D) sees delivery as a service.
E) focuses on locating new opportunities.
11 Marketing is:
A) a very broad set of activities required to ensure that consumers can get the products and
services they want and need.
B) limited to only selling and advertising.
C) purchasing goods and services that most consumers don't need using aggressive tactics to
overcome consumer resistance.
D) making a good product that sells itself.
E) producing goods and/or services.
14 The main difference between the "marketing department era" and the "marketing company era" is:
A) there is no difference.
B) more emphasis on short-run planning in the marketing company era.
C) whether the whole company is customer-oriented.
D) whether the president of the firm has a background in marketing.
E) more emphasis on selling and advertising in the marketing department era.
15 A major company is well known for market-oriented long-range planning. This company is probably
operating in the _______________ era.
A) marketing research
B) marketing department
C) marketing company
D) marketing concept
E) long-range planning
16 Customer value:
A) will be the same for all consumers.
B) is easy to calculate in a numerical formula.
C) is thought about a lot by customers.
D) is a cost-to-benefit analysis by consumers
E) means consumers always select the lowest-priced product.
17 One way of helping to build a long-term relationship with existing customers is:
A) introducing new products for new target markets.
B) having everyone in an organization work together to provide customer value before and after
each purchase.
C) slashing prices.
D) aggressively attacking competitors with negative publicity.
E) by introducing a policy that "all sales are final" to reduce costs.
18 Non-profit organizations:
A) may provide services to people paid for by others.
B) have the same measures of success as a for-profit business.
C) do not have a profit objective, so the marketing concept does not apply.
D) are fundamentally different from business firms; so they should adopt a production
orientation rather than a marketing orientation.
E) do not face competition.
1 A product with better features is not a high-quality product if the features are not what the target market
wants.
A) True
B) False
2 Consumer product classes are based on the way people buy products.
A) True
B) False
3 The same product may be considered as a staple by some consumers and as a heterogeneous shopping
product by other consumers.
A) True
B) False
5 Components are processed expense items that become part of a finished product.
A) True
B) False
6 A product is:
A) goods, not services.
B) a well-advertised item with an established brand name.
C) the need-satisfying offering of a firm.
D) all the services needed with a physical good.
E) all of a firm's production and distribution activities.
8 Most products are a combination of tangible and intangible elements. Which of the following is an
intangible service provided by a new home builder?
A) upgraded carpeting.
B) assistance in obtaining a mortgage.
C) laying sod (grass).
D) thermal glazed windows.
E) fencing around the yard.
10 Loblaws carries tea, canned goods, cake mixes, and snacks. These are part of the company's:
A) product assortment.
B) marketing mix.
C) product line.
D) product classes.
E) individual products.
11 Each of the items in Question 10—tea, canned goods, cake mixes, and snacks—is a(n):
A) product assortment.
B) marketing mix.
C) product line.
D) product class.
E) individual product.
12 Consumer product classes are based on ___________, while business product classes are based on
_____________.
A) the durability of the product; the type of product.
B) how consumers shop for the product; how the product is to be used.
C) how the product is produced; how the product is sold.
D) the quality of the product; the age of the product.
E) how the product is sold; how the product is assembled.
15 Staple products:
A) need widespread distribution near probable points of use.
B) can have limited availability as long as display is good.
C) need little representation in major shopping areas.
D) are products that a consumer spends time and effort to find.
E) need maximum exposure and widespread distribution at low cost.
16 Specialty products:
A) can have limited availability.
B) need widespread distribution near probable points of sale.
C) need enough exposure to facilitate price comparison.
D) must have a low price to gain sales.
E) need adequate representation near similar products.
17 Which of the following orderings suggests the amount of effort (from little to much) that consumers are
willing to spend searching for the "right" product?
A) homogeneous shopping products, staples, heterogeneous shopping products.
B) staples, heterogeneous shopping products, unsought products.
C) heterogeneous shopping products, specialty products, unsought products.
D) convenience products, homogeneous shopping products, specialty products.
E) unsought products, homogeneous shopping products, impulse products.
18 Classify the following business items as an expense item or as a capital item: (1) food for a restaurant;
(2) stove for a restaurant; (3) blank CDs for a recording company; (4) assembly-line for a manufacturing
plant.
A) (1) expense item; (2) capital item; (3) capital item; (4) capital item.
B) (1) expense item; (2) capital item; (3) expense item; (4) capital item.
C) (1) expense item; (2) expense item; (3) capital item; (4) capital item.
D) (1) expense item; (2) expense item; (3) expense item; (4) capital item.
E) (1) capital item; (2) capital item; (3) expense item; (4) capital item.
21 Packaging:
A) can be a part of quality control.
B) can open up new market opportunities.
C) is an issue even with services.
D) provides more promotion effect—and at a lower cost—than advertising
E) all of the above
22 Placing the price per unit of measure on the shelf near the product is:
A) called unit pricing.
B) helpful to consumers in making price comparisons.
C) mandatory by law.
D) a and b.
E) all of the above.
1 Finding attractive opportunities and developing profitable marketing strategies are the tasks included in
the marketing manager's strategy planning job.
A) True
B) False
3 Any series of firms or individuals from producer to final user or consumer is a channel of distribution
A) True
B) False
4 A "marketing program" blends all of a firms' marketing plans into one big plan.
A) True
B) False
5 Firms that excel at marketing achieve significantly higher volume and profitability.
A) True
B) False
6 A company has modified and enlarged its product line to meet the changing needs of its current
customers. This is an example of:
A) market development.
B) market penetration.
C) diversification.
D) product development.
E) market share.
8 The difference between target marketing and mass marketing is that target marketing:
A) is a shotgun approach, while mass marketing is a rifle approach.
B) focuses on specific customers, while mass marketing aims at an entire market.
C) focuses on short-run objectives, while mass marketing focuses on long-run objectives.
D) aims at increased sales, while mass marketing focuses on increased profits.
E) means concentrating on a small market.
10 Mass selling:
A) involves direct communication between sellers and potential customers.
B) is communicating with small numbers of customers.
C) has two major forms: advertising and publicity.
D) has a higher cost of reaching a target customer than personal selling.
E) uses a salesforce.
15 Unilever uses many intermediaries to reach its target markets; TD Bank uses none. Which of the
marketing mix variables is being considered here?
A) promotion
B) product
C) place
D) price
E) penetration
18 Sales promotion:
A) is free.
B) tries to help the personal selling and mass selling people.
C) is the main form of advertising.
D) lets the salesperson adapt the marketing mix to each potential customer.
E) is designed to replace salespeople.
20 A hotel restaurant offers an inexpensive Sunday brunch to get customers on the weekend. Normally
during the week the restaurant serves business travellers. This effort to get new customers for the available
facility is an example of:
A) market development.
B) diversification.
C) product development.
D) market penetration.
E) a production orientation.
21 Portfolio management:
A) treats products or SBUs as though they were stock investments.
B) may place too much emphasis on easy-to-compare quantitative criteria.
C) tends to emphasize short-run profitability and return on investment.
D) identifies which opportunities should be supported, "milked," or sold off.
E) All of the above are true.
1 More purchases are made by businesses and other organizations than by final consumers.
A) True
B) False
3 Consumer markets tend to use more indirect channels than business markets.
A) True
B) False
9 At Sally Chong's car dealership, owner Sally Chong read an article in the paper that the local municipality
was collecting used motor oil. She instructed her service manager, Jeff Ford, to find more information on
used oil collection systems that she recalled reading about in a trade magazine. After doing a Web search and
making several phone calls, Jeff arranged for three companies to send brochures about their systems. He
read them and set criteria for what he wanted. Then he invited two of the companies to send sales
representatives to make a proposal. Sally agreed to allow Jeff to decide which system to purchase, to
negotiate the price, and to make arrangements for its installation. Before making his final decision, Jeff also
asked for the opinion of Mohammed, his senior mechanic. After it was installed, Mohammed and the rest of
the mechanics began to use it.
The person in the buyer role in this case was:
A) Sally.
B) Mohammed.
C) Jeff.
D) salespeople from the oil collection system companies.
E) cannot determine from information provided.
11 Referring to question 9, Sally and Jeff working together on this is an example of:
A) split responsibility.
B) lack of gatekeepers.
C) not having need awareness.
D) multiple buying influence.
E) evaluation of the product.
12 Referring to question 9, the decider in this case was:
A) Sally.
B) Mohammed.
C) Jeff.
D) salespeople from the oil collection system companies.
E) cannot determine from information provided.
15 A straight rebuy:
A) is a routine purchase that may have been made many times before.
B) takes only a small amount of an organized buyer's time.
C) is routinized by using requisitions.
D) does not involve the buyer searching for new information or sources of supply.
E) all of the above.
1 According to David Foot, author of Boom Bust & Echo, demographics explain about two thirds of
everything.
A) True
B) False
2 Canada's largest CMAs, Toronto, Montreal and Vancouver, together comprise approximately one third of
the total Canadian population.
A) True
B) False
3 The 1996 census revealed that nearly half of the Canadian population has moved during the previous five
years.
A) True
B) False
5 New parents are younger, less educated, and less experienced than their predecessors were a generation
ago.
A) True
B) False
6 According to the text, which of the following is NOT a reason that some marketers sell only in large
metropolitan areas?
A) fewer intermediaries are required
B) fewer advertising media are required
C) less travel time for sales force
D) less travel time for customers
E) consumers living there have more money to spend
7 According to the text, which of the following provinces had the LARGEST percentage increase in
population between 1982 and 2000?
A) Ontario and Quebec
B) British Columbia and Ontario
C) Saskatchewan and British Columbia
D) Alberta and Ontario
E) Newfoundland and British Columbia
9 Which of the following statements about Census Metropolitan Areas (CMAs) is true?
A) The 25 CMAs contain just under half of the total Canadian population.
B) They offer less than their population alone would indicate due to below average incomes in those areas.
C) The CMAs are evenly distributed geographically—with at least one in every province.
D) Vancouver is the largest CMA in terms of population.
E) None of the above are true.
10 Purchase patterns are different in the suburbs. Which of the following might a suburban resident be more
likely to buy than a downtown city resident?
A) books
B) stereo
C) computer
D) car
E) towels
12 Of the following ethnic groups, which is least likely to experience strong growth in Canada?
A) Chinese
B) Japanese
C) Polish
D) East Indian
13 There are counties in Ontario and New Brunswick that are often considered part of the French market
because:
A) the mother tongue of over half the population is French.
B) they are frequently served by Quebec distributors.
C) they receive considerable overflow advertising from Quebec.
D) all of the above.
14 Which product would most likely benefit from the increase in single-person households?
A) single-serving food packages
B) sport utility vehicles
C) paint
D) toys
E) dishwashers
17 The amount of income that a household has left after paying for its necessities is called:
A) disposable income.
B) taxable income.
C) marginal income.
D) frills.
E) discretionary income.
21 Consumers who believe that the company behind the product is as important as the product itself are
most likely to belong to which of the following categories?
A) young couples
B) young parents
C) empty nesters
D) old singles
E) swingers
3 Marketers should be aware of federal legislation, as well as provincial and local laws, when planning
marketing strategy.
A) True
B) False
4 Countertrade is a special type of bartering in which products of one country are traded for products from
another.
A) True
B) False
8 Along with studying trends in the environment, a first step in looking for attractive opportunities is to:
A) estimate product market potentials.
B) hire a publicist.
C) find new markets for present products.
D) decide which product markets the firm will enter.
E) understand the resources and objectives of the firm.
14 Which of the following is NOT likely to be one of the major consumer and environmental issues over
the next decade?
A) genetically modified organisms
B) consumer privacy
C) global warming
D) cell phone safety
E) falling prices
15 Consumers in Newfoundland buy different brands of tea than consumers on Vancouver Island. This is an
example of:
A) homogeneous markets.
B) ocean-lifestyle consumption segments.
C) regional differences within Canada.
D) major urban areas.
E) French-English differences.
16 In response to a society's basic cultural values and social attitudes, a marketing manager's firm should:
A) work very hard to influence the rate of change in these attitudes and values so consumers will demand
more of the firm's product.
B) ignore trends going on, producing what it feels is best for consumers.
C) stop producing popular products, and instead produce other ones designed to shift values.
D) keep informed of current attitudes and work within these constraints to seek new and better
opportunities.
E) work against them to increase profits.
17 A property management company has noticed an increase in the number of single people looking for
apartments over the years. This is a change in the:
A) technological environment.
B) competitive environment.
C) social environment.
D) legal environment.
E) customer environment.
18 In Quebec there are billboards encouraging residents to spend their vacation in Quebec. This is an
example of:
A) consumerism.
B) federalism.
C) discouraging tourism.
D) transnationalism.
E) nationalism.