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Exam 2013, questions - Exam Review

Introductory Marketing SFW (University of Guelph)

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

Version 1

1. Although test marketing costs can be high, they are often small when compared with
________.
a. the final results
b. the costs of a major mistake
c. management's approval and acceptance
d. stockholders' confidence
e. research and development costs

2. A salesperson's compensation plan is typically made up of several elements-a fixed amount,

________, expenses, and fringe benefits.
a. a base salary
b. a pension plan
c. a variable amount
d. nonmonetary rewards
e. recognition

3. Product costs set a(n) ________ to a product's price.

a. demand curve
b. experience curve
c. floor
d. ceiling
e. break-even cost

4. A ________ is a name, term, sign, symbol or design that identifies the maker or seller of a
product or service.
a. brand
b. line extension
c. touchpoint
d. label
e. package

5. To compete with the national brands Loblaws created a private brand called President's
Choice. The President's Choice brand bas become so popular that Loblaws now licenses it to
retailers in 15 countries where Loblaws has no stores of its own. In effect the private brand
has grown into ________.
a. a megabrand
b. a gold mine
c. a national brand
d. a phenomenon
e. a fluke

6. Marketing researchers usually draw conclusions about large groups of consumers by

studying a small ________ of the total consumer population.
a. group
b. sample
c. population
d. target group
e. audience

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

7. The collection of businesses and products that make up a company is called its ________.
a. strategic business unit
b. mission statement
c. strategic plan
d. business portfolio
e. operational factors

8. In the retail positioning matrix discussed in class, what firm would occupy the broad
assortment - low value quadrant?

a. walmart
b. just for fee
c. tiffany
d. dollarama

9. More companies are adopting the concept of ________, which carefully coordinates the
company's many communication channels to deliver a clear, consistent, and compelling
message about the organization and its brands.
a. integrated marketing communications
b. integrated personal selling
c. integrated competitive methods
d. nonpersonal communication channels
e. buzz marketing

10. Producers benefit from using intermediaries because they ________.

a. offer greater efficiency in making goods available to target markets
b. bring a fresh point of view to strategy development
c. eliminate risk
d. are generally backlogged with orders
e. refuse to store products for longer than a few days

11. What is the first step in the marketing research process?

a. developing a marketing information system
b. defining the problem and research objectives
c. developing the research plan for collecting information
d. implementing the research plan
e. interpreting data and deciding on type of research

12. ________ are a form of product that consists of activities, benefits, or satisfactions offered
for sale that are essentially intangible and do not result in the ownership of anything.
a. Line extensions
b. Services
c. Brands
d. Consumer products
e. Supplements

13. Sales promotion features a wide assortment of tools. Which is one set of these tools?
a. contests, catalogues
b. catalogues, premiums
c. catalogs, coupons
d. coupons, contests
e. dealer warranties, coupons

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

14. As we discussed in class, some important Psychological effects that need attention when
setting prices are:
a. memory perception and behavioral pricing
b. mental financiing and memory prices
c. congnotive perception and reference cost
d. mental accounting and reference prices

15. Which type of retailer tends to be the most frequently shopped?

a. department stores
b. convenience stores
c. supermarkets
d. superstores
e. off-price retailers

16. Because of the scarcity of good secondary data, international researchers often must collect
their own primary data. An initial problem with this collection is developing good ________.
a. samples
b. research firms
c. customer relationships with nationals
d. relationships with channel members
e. analytical models

17. Companies facing the challenge of setting prices for the first time can choose between two
broad strategies: market-penetration pricing and ________.
a. market-competitive pricing
b. market-skimming pricing
c. market-level pricing
d. market-price lining
e. market-price filling

18. There ________ to segment a market.

a. is one single best way
b. is no single way
c. is not a most effective way
d. are limited ways
e. are four ways

19. A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional
salespeople to sell its products to wholesalers and cities. This is an example of ________.
a. sales promotion
b. personal selling
c. public relations
d. direct marketing
e. advertising

20. A person's buying choices are influenced by four major psychological factors. Which is one
of these factors?
a. money
b. manipulation
c. motivation
d. mockery
e. misjudgment

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

21. Secondary data consists of information ________.

a. that already exists somewhere but is outdated
b. that does not currently exist in an organized form
c. that already exists somewhere but was collected for another purpose
d. that is used by competitors
e. that the researcher can only obtain through surveys and observation

22. 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
e. differentiation

23. The R-W-W framework asks three questions: Is it real? Can we win? Is it worth doing?
Marketers should ask these questions during the ________ stage of the new-product
development process.
a. idea generation
b. idea screening
c. concept testing
d. product development
e. commercialization

24. Which of the five major promotion tools includes building up a positive corporate image and
handling unfavorable stories and events?
a. sales promotion
b. personal selling
c. direct marketing
d. public relations
e. direct marketing

25. In a SWOT analysis, which of the following refers to factors in the external environment?
a. strengths
b. strategies
c. weaknesses
d. opportunities
e. trends

26. As discussed in class the following is true about the super bowl commercials:
a. They cost more than $ 100 millions per a 30 second -spot
b. They are usually inexpensive to produce
c. They can be inexpensive per contact
d. They are free in Canadian television

27. The process of customer-driven marketing involves ________, ________, and ________.
a. product; price; promotion;
b. market segmentation; market targeting; positioning
c. marketing analysis; planning; implementation;
d. analysis; targeting; implementation; control
e. problem identification; information search; decision

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

28. Which of the listed choices is very important positioning task?

a. identifying a set of possible competitive advantages upon which to build a position
b. surveying frequent uses of the product
c. selecting a specific positioning statement
d. effectively selling the cheapest position to the market
e. selecting the right competition

29. Which of the following phrases reflects the marketing concept?

a. The supplier is king.
b. Marketing should be viewed as hunting and not gardening.
c. This is what I make, won't you please buy it?
d. This is what I want, won't you please make it?
e. none of the above

30. Which of the following most accurately identifies a difference between a weakness and a
threat in SWOT analysis?
a. A company is more able to change a threat than a weakness.
b. A company is more able to change a weakness than a threat.
c. A company can be more negatively affected by a weakness than by a threat.
d. A company can be more negatively affected by a threat than by a weakness.
e. A company can more easily identify threats than weaknesses.

31. From the lectures and simulation we learned that in order to be effective, advertisement
should concentrate on:
a. the most important benefits
b. the most complex messages
c. at least three benefts
d. the positioning of the most succesful competitor

32. 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
e. construct key components of a marketing program

33. ________ involves charging a constant low price with few or no temporary price discounts.
a. High-low pricing
b. Target return pricing
c. Cost-plus pricing
d. Everyday low pricing (EDLP)
e. Penetration pricing

34. When a company determines the number of channel members to use at each level, three
strategies are available: intensive, exclusive, and ________ distribution.
a. multichannel
b. selective
c. international
d. direct
e. extensive

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

35. Which method of setting an advertising budget is based on analyzing competitors'

spending?
a. affordable method
b. percentage-of-sales method
c. competitive-parity method
d. objective-and-task method
e. integrated method

36. ________ is a measure of the percentage of people in the target market who are exposed to
the ad campaign during a given period of time.
a. Reach
b. Qualitative value
c. Impact
d. Premium
e. Frequency

37. Salespeople should know how to recognize ________ signals from the buyer, which can
include physical actions such as leaning forward and nodding or questions about prices and
credit terms.
a. qualifying
b. approach
c. objection
d. closing
e. follow-up

38. The major purpose of test marketing is to provide management with the information needed
to make a final decision about ________.
a. how to develop a market strategy
b. which market to compete in
c. whether to launch the new product
d. how to compete in the market
e. how long to compete in the market

39. The qualities that buyers value most in salespeople include empathy, honesty, dependability,
thoroughness, follow-through, and ________.
a. good listening
b. good presenting
c. sympathy
d. caring
e. candor

40. Which of the following are major categories in the promotion mix?
a. advertising, sales promotion
b. sales promotion, positioning
c. positioning, public relations
d. positioning, advertising
e. advertising, indirect marketing

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

41. Branding helps sellers. The following is definitely an example of this help.
a. Brand names provide legal protection for unique product features.
b. Brand names provide guarantees that consumers will spend their money.
c. Brand names are easy to sell.
d. Brand names work for everyone.
e. Brand names provide advertising.

42. Which of the following is most essential to any definition of marketing?

a. demand management
b. the production concept
c. customer relationships
d. making a sale
e. making a profit

43. Clean and Clear, a large producer of all-natural hair care and beauty products, is most likely
to use which of the promotion mix strategies to gain increased shelf space in stores and to
gain increased customer sales?
a. push
b. pull
c. push and pull
d. pulse
e. continuity

44. ________ 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
e. Line extensions

45. A ________ is defined as anything that can be offered to a market for attention, acquisition,
use, or consumption that might satisfy a want or need.
a. private brand
b. service variability
c. service
d. product
e. service encounter

46. Consumer perceptions of the product's value set the ________ for prices.
a. demand curve
b. floor
c. ceiling
d. variable cost
e. image

47. ________ involves designing and producing the container or wrapper for a product.
a. Packaging
b. Product line
c. Service
d. Branding
e. Labeling

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

48. Family is one of the ________ factors that influence consumer behaviour.
a. cultural
b. social
c. personal
d. psychological
e. business

49. One advantage of using a channel of distribution over selling direct to consumers is that
each channel member plays a ________ in the channel.
a. time-saving part
b. specialized role
c. decisional role
d. informational role
e. disciplinary role

50. A ________ is a group of products that are closely related because they function in a similar
manner, are sold to the same customer groups, are marketed through the same type of
outlets, or fall within given price ranges.
a. product line
b. line extension
c. private brand
d. convenience product
e. product bandwidth

51. Which of the following is necessary for direct marketing to be effective?

a. an online presence
b. a good customer database
c. a well-trained sales force
d. inbound telephone marketing
e. use of new digital direct marketing technologies

52. The use of which of the new forms of direct-mail marketing is booming?
a. fax mail
b. e-mail
c. voice mail
d. Canada Post
e. samples

53. Which of the following is the final step in the strategic planning process?
a. defining the company mission
b. setting company objectives and goals
c. designing the business portfolio
d. planning marketing and other functional strategies
e. identifying the company's culture

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

54. A company's total marketing communications mix consists of a special blend of advertising,
sales promotion, public relations, personal selling, and direct-marketing tools that the
company uses to communicate customer value and build customer relationships. This is
also called ________.
a. direct marketing
b. integrated marketing
c. the promotion mix
d. competitive marketing
e. target marketing

55. Your marketing department is currently researching the size, density, location, age, and
occupations of your target market. Which environment is being researched?
a. demographic
b. psychographic
c. economic
d. geographic
e. cultural

56. Which of the following is an external factor that affects pricing decisions?
a. the salaries of production management
b. competition
c. the salaries of finance management
d. overall pricing objectives
e. the company's overall marketing strategy

57. Compared to Advertising, Public Relations have the advantage of:

a. higher cost and stornger impact
b. lower control and lower impact
c. lower cost and higher control
d. stronger impact and lower cost

58. ________ are human needs as shaped by individual personality and culture.
a. Deprivations
b. Wants
c. Demands
d. Values
e. Exchanges

59. A quantity discount is a price reduction to buyers who purchase ________.

a. frequently
b. large volumes
c. close outs
d. inferior merchandise
e. superior merchandise

60. ________ is the amount of money charged for a product or service.

a. Experience curve
b. Demand curve
c. Price
d. Wage
e. Salary

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

61. An increasing number of retailers and wholesalers have created their own ________, also
called store brands.
a. unsought products
b. private brands
c. specialty products
d. service variability
e. shopping products

62. Focus group interviewing has become one of the major marketing research tools for getting
insight into consumer thoughts and feelings. However, if the sample size is small, a
researcher would be most concerned about which of the following?
a. finding a representative sample
b. generalizing from the results
c. administering the questions
d. orchestrating cooperation among participants
e. finding enough secondary data to support the findings

63. ________ includes all the activities involved in selling products or services directly to final
consumers for their personal, nonbusiness use.
a. Franchising
b. Retailing
c. Brokering
d. Wholesaling
e. Disintermediation

64. Which product(s) will most likely be intensively distributed?

a. Olympus digital cameras
b. BMW cars
c. Guess blue jeans
d. Coca-Cola
e. Nike running shoes

65. Which of the following best explains why consumers have greater power and control in
today's marketplace?
a. The production concept and competition have lowered prices.
b. Implementation of the product concept has resulted in continually improving products.
c. Customer-driving marketing creates products and services that meet customers' future needs.
d. More companies are implementing societal marketing and weighing long-run costs and
benefits.
e. Through new communication technologies, customers have more access to information and
more methods of sharing their opinions with other customers.

66. A manufacturer with a product in the decline stage of the product life cycle might decide to
________ if it has reason to hope that competitors will leave the industry.
a. harvest the product
b. maintain the product without change
c. drop the product
d. search for replacements
e. delay planning

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MCS 1000 Final Review Questions - Fall 2013 - Professor Meza

67. A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage,
occupation, economic situation, lifestyle, and personality and self-concept.
a. personal characteristics
b. reference groups
c. perceptions
d. attitudes
e. psychographics

68. Which of the following provides an answer to these questions: What is our business? Who
are our customers? What do our customers value? What should our business be?
a. objectives and goals
b. mission statement
c. business portfolio
d. marketing and functional strategies
e. operational strategies

69. ________ is the systematic collection and analysis of publicly available information about
consumers, competitors, and developments in the marketing environment.
a. Marketing data
b. Marketing intelligence
c. Sales management
d. Customer intelligence
e. Competitive intelligence

70. Measuring ________ can be difficult. A company might conduct surveys or experiments to
test this in the different products they offer.
a. target returns
b. fixed costs
c. perceived value
d. break-even pricing
e. variable costs

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