PRACTICE FOR FINAL EXAMINATION

PART 1 - COMPULSORY MULTIPLE-CHOICE QUESTIONS

Write clearly the question number and the letter corresponding to the correct answer for each question in the answer
booklet provided.
1) All of the following are accurate descriptions of modern marketing, EXCEPT which one?
A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers' needs.
2) Which of the following is(are) examples of product line depth?
A) hamburger and cheeseburger
B) hamburger and fries
C) Coke and Diet Coke
D) A and C
3) According to the simple five-step model of the marketing process, a company needs to ________ before
designing a customer-driven marketing strategy.
A) determine how to deliver superior value
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
4) ________ involves first identifying and assessing competitors and then selecting which competitors to
attack or avoid.
A) Market leading
B) Benchmarking
C) Customer-centered analysis
D) Competitor analysis
5) All of the following are examples of product-oriented mission statements, EXCEPT which one?
A) "We provide online services."
B) "We run theme parks."
C) "We sell shoes."
D) "We sell lifestyle and self-expression; success and status; memories, hopes, and dreams."
6) Which of the following is the principle objective of a market-oriented mission statement?
A) to satisfy basic customer needs
B) to satisfy basic supplier needs
C) to satisfy basic stockholder needs
D) to satisfy basic owner needs
7) Which of the following can be a company division, a product line within a division, or sometimes a single
product or brand?
A) a market
B) the BCG
C) an SBU
D) a PLC
8) Marketers should be aware of laws, government agencies, and pressure groups that influence or limit
various organizations and individuals in a given society. This is most accurately described as the ________
environment.
A) socio-legal
B) cultural
C) legal-technological
D) political
9) All of the groups within a company are called the ________.
A) culture
B) diversity
C) internal environment
D) climate
10) Banks, credit companies, insurance companies, and other businesses that help finance transactions or
insure against the risks associated with the buying and selling of goods and services are referred to as
________.
A) financial intermediaries
B) physical distribution firms
C) marketing services agencies
D) resellers
11) Consumers learn about new products for the first time and make the decision to buy them during the
________.
A) need recognition stage
B) trial process
C) evaluation process
D) adoption process
12) Your firm is attempting to divide up the total market to determine the best segments it can serve. Which
is the correct order of doing so?
A) market segmentation, market positioning, target marketing
B) market positioning, market segmentation, target marketing
C) market segmentation, target marketing, market positioning
D) target marketing, market positioning, market segmentation
13) A marketing information system (MIS) consists of people and procedures to assess information needs,
________, and help decision makers analyze and use the information.
A) experiment to develop information
B) test market the information
C) develop the needed information
D) critique the needed information
14) Information collected from online databases is an example of ________ data.
A) primary
B) experimental
C) observational
D) secondary
15) ________ is never simple, yet understanding it is the essential task of marketing management.
A) Brand personality
B) Consumption pioneering
C) Early adoption
D) Consumer buying behavior
16) Most large companies research ________ buying decisions to find out what they buy, where they buy,
how and how much they buy, when they buy, and why they buy.
A) market
B) permanent
C) consumer
D) social
17) When a company identifies the parts of the market it can serve best and most profitably, it is practicing
________.
A) concentrated marketing
B) mass marketing
C) market targeting
D) segmenting
18) Which of the following contact methods has the poorest response rate?
A) online
B) telephone
C) personal
D) mail
19) Which of the four Ps describes the goods-and-services combination the company offers to the target
market?
A) price
B) promotion
C) product
D) place
20) General Electric's campaign stating, "We bring good things to life" is an example of ________.
A) personal marketing
B) product line
C) product quality
D) corporate image marketing
21) According to one analyst, a Harley-Davidson motorcycle can make you feel like "the toughest, baddest
guy on the block." Harley-Davidson promotes its motorcycles with images of independence, freedom, and
power. Harley-Davidson has created a ________.
A) lifestyle
B) life-cycle stage
C) brand personality
D) brand motivation
22) Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits and use
excess market capacity, Helene Curtis then marketed shampoo for oily hair and color-treated hair. This is
an example of ________.
A) people marketing
B) social marketing
C) a shopping product
D) line filling

23) ABC Company has decided to use mail questionnaires to collect data. Management recognizes this
method has all the following advantages EXCEPT which one?
A) has an average response rate
B) may encourage more honest answers
C) no interviewer to bias respondents' answers
D) low cost per respondent
24) Your company is making negotiations to enter a market in Lower Albania. You would most likely
discover that ________ beliefs and values are open to change in this country.
A) inherited
B) core
C) primary
D) secondary
25) ) Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at a sales
meeting. ________ should appear in the center of her diagram depicting marketing strategies and the
marketing mix.
A) Sales goals
B) Customer value and relationships
C) Customer retention rates
D) Company objectives
26) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely
with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of
an efficient ________.
A) business portfolio
B) value chain
C) product mix
D) value delivery network
27) When Netflix began delivering DVDs directly to customers through the mail instead of using a brick-
and-mortar system, Netflix was following the trend of ________.
A) indirect marketing
B) disintermediation
C) a franchise system
D) exclusive distribution
28) General Electric and Whirlpool each produce a full line of medium-price appliances supported by good
service. In contrast, Sub-Zero and Viking produce a narrower line of higher quality appliances, offer a
higher level of service, and charge a premium price. The first group and second group of companies are in
the same ________ group.
A) leading
B) target
C) branding
D) strategic
29) Marialba Hooper is conducting marketing research for a company that is investigating the possibility of
entering multiple international markets. As Marialba plans her research in 30 different countries, upon
which of the following is she LEAST likely to rely?
A) free secondary data
B) translators
C) primary data collected for the purpose of her research
D) the same process domestic researchers use
30) Mark has long supported the actions and decisions of his city's mayor. However, many recent news
stories have raised questions about the ethics of the mayor's programs and initiatives. Mark doubts that the
mayor, in whom he has such faith, could behave unethically, and Mark tends to distrust the information in
the media. Mark continues to support the mayor. Mark has engaged in ________.
A) selective attention
B) selective attitude
C) selective retention
D) selective distortion
PART 2 – MULTIPLE CHOICE QUESTIONS (40 questions/ 4 marks)
1) What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
2) Even though several options are available at any one time, there to segment a market.
A) is one single best way
B) are limited ways
C) is a most effective way
D) are four ways
3) Demographic variables are so frequently used in market segmentation because they
.
A) create smaller segments than other methods do
B) create more easily reached segments than other methods do
C) do not involve stereotypes
D) are easy to measure in comparison to many other methods
4) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely
using which type of segmentation?
A) age and life cycle
B) gender
C) behavior
D) psychographic
5) Which type of segmentation centers on the use of the word when, such as when consumers get the
idea to buy, when they actually make their purchase, or when they use the purchased item?
A) behavioral
B) psychographic
C) occasion
D) impulse
6) As in consumer segmentation, many marketers believe that and ____ segmentation provide
 the best basis for segmenting business markets.
A) geographic; demographic
B) user status; user loyalty
C) benefits; buying behavior
D) income; usage rate
7) To differentiate themselves, many companies are going beyond products and services, they are
developing and delivering customer .
A) quality
B) experiences
C) brands
D) product lines
8) The third level of a product that product planners must consider is a(n) around the core benefit and
actual product that offers additional consumer services and benefits.
A) brand equity
B) augmented product
C) brand extension
D) industrial product
9) Products and services fall into two broad classifications based on the types of consumers that use them.
Which is one of these broad classes?
A) industrial products
B) supplies and services
C) materials and parts
D) convenience products
10) are less frequently purchased consumer products and services that customers compare
carefully on suitability, quality, price, and style. Consumers spend much time and effort in
gathering information and making comparisons about these products.
A) Shopping products
B) Convenience products
C) Unsought products
D) Industrial products
11) Most manufactured materials and parts are sold directly to . Price and service are the major
marketing factors; branding and advertising tend to be less important.
A) consumers
B) industrial users
C) brand extensions
D) co-branders
12) consists of activities undertaken to create, maintain, or change the attitudes and behavior of
target consumers toward an organization.
A) Person marketing
B) Organization marketing
C) Internal marketing
D) Service variability
13) Public health campaigns to reduce alcoholism, drug abuse, smoking, and obesity are all
examples of .
A) specialty products
B) social marketing
C) shopping products
D) consumer products
14) is one of the marketer's major positioning tools because it has a direct impact on product or
service performance; it is therefore closely linked to customer value and satisfaction.
A) Packaging
B) Product quality
C) Total quality management
 D) Specialty product marketing
15) What are the two dimensions of product quality?
A) consistency and level
B) performance and resistance
C) design and innovation
D) conformance and style
16) Consumer perceptions of the product's value set the for prices.
A) demand curve
B) floor
C) ceiling
D) variable cost
17) Which of the following is a customer-oriented approach to pricing?
A) value-based pricing
B) sealed-bid pricing
C) break-even
D) target profit pricing
18) In, price is considered along with the other marketing mix variables before the marketing
program is set.
A) value-based pricing
B) cost-based pricing
C) variable costs
D) price elasticity
19) With , price is set to match consumers' perceptions of product value.
A) variable cost pricing
B) cost-plus pricing
C) cost-based pricing
D) value-based pricing
20) Underpriced products sell very well, but they produce less revenue than they would have if price
were raised to the _ level.
A) perceived
B) value-based
C) variable
D) demand curve
21) involves charging a constant, everyday low price with few or no temporary price discounts.
A) High-low pricing
B) Target pricing
C) Cost-plus pricing
D) EDLP
22) is a company's power to escape price competition and to justify higher prices and margins.
A) Variable cost
B) Pricing power
C) Target cost
D) Fixed cost
23) When there is price competition, many companies adopt rather than cutting prices to match
competitors.
A) pricing power
B) value-added strategies
C) fixed costs
D) price elasticity
24) the manufacturer or service provider is the set of firms that supply the raw materials,
components, parts, information, finances, and expertise needed to create a product or service.
A) Downstream from
B) Upstream from
 C) Separates from
D) Congruous to
25) A company's channel decisions directly affect every .
A) channel member
B) marketing decision
C) customer's choices
D) employee in the channel
26) Channel members add value by bridging the major gaps of that separate goods and services
from those who would use them.
A) time, place, and form
B) place, possession, and form
C) time, place, and possession
D) place, time, and need
27) To a producer of goods, a greater number of channel levels means _ and greater channel
complexity.
A) less distance between producer and end consumer
B) less control
C) more potential ideas
D) higher taxes
28) A channel consisting of one or more independent producers, wholesalers, or retailers that seek to
maximize their own profits even at the expense of profits for the channel as a whole is a(n) ________.
A) vertical marketing system
B) conventional distribution channel
C) independent channel allocation
D) corporate VMS
29) ____ conflict, which occurs between different levels of the same channel, is more common
than conflict, which occurs among firms at the same level of the channel.
A) Horizontal; vertical
B) Vertical; horizontal
C) Contractual; corporate
D) Corporate; franchise
30) A conventional distribution channel consists of one or more _ ____producers,
wholesalers, and retailers.
A) product-related
B) independent
C) contract
D) estranged
31) Which of the following are the three major types of vertical marketing systems?
A) corporate, contractual, and chain
B) contractual, corporate, and independent
C) contractual, corporate, and administered
D) administered, independent, and franchised
32) Hybrid marketing systems are also called .
A) dual distribution systems
B) multichannel distribution systems
C) administered franchises
D) horizontal multichannel systems
33) The use of multichannel systems in the United States is .
A) decreasing
B) increasing
C) holding steady
D) spreading abroad fast
34) The promotion mix is the company's primary communication activity; the marketing mix must
 be coordinated for the greatest communication impact. What is NOT included in the entire
marketing mix?
A) product
B) competitor
C) price
D) place
35) Moving a w a y f rom , marketers have been shifting toward highly focused marketing, spawning
a new generation of more specialized and highly targeted communications efforts.
A) mass marketing
B) advertising
C) direct marketing
D) pull strategies
36) Companies are doing less and more as a result of an explosion of more focused media that
better match today's targeting strategies.
A) marketing; media
B) media; sales
C) narrowcasting; broadcasting
D) broadcasting; narrowcasting
37) Integrated marketing communications require a company's mass-market advertisements, Web
site, e-mail, and personal selling communications to all have .
A) equal portions of the advertising budget
B) independent communications directors
C) separate marketing objectives
D) the same message, look, and feel
38) Integrated marketing communications produces better communications and greater
impact.
A) consistency; sales
B) sales; consistency
C) marketing; sales
D) variety; production
39) Integrated marketing communications involves identifying the target audience and shaping a
well-coordinated to elicit the desired audience response.
A) pull strategy
B) push strategy
C) promotional program
D) opinion leader
40) Which of the following is NOT one of the four major communication functions?
A) feedback
B) encoding
C) noise
D) response