Code: b0yl4ngtuchjy3umjnh3m
MID-TERM EXAM
Module: Principle of Marketing
60 minutes
Choose the one alternative that best completes the statement or answers the question.
1. 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
2. When marketers set low expectations for a market offering, the biggest risk they run
is ________.
A) disappointing loyal customers D) failing to understand their customers'
B) decreasing customer satisfaction needs
C) failing to attract enough customers
3. Which customer question is answered by a company's value proposition?
A) "Why should I buy your brand rather than D) "What kind of experience will I have with
a competitor's?" products and services associated with this
B) "How does your brand benefit society?" brand?"
C) "What are the costs and benefits of your E) "What are the benefits of being a loyal
brand?" consumer of your brand?"
4. Which of the following reflects the marketing concept?
A) "The supplier is king."
B) "Marketing should be viewed as foraging 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) "Customers need to be told where they want to go."
5. Which of the following is NOT considered a source of competitive marketing
intelligence?
A) suppliers D) causal research
B) resellers E) activities of competitors
C) key customers
6. A good MIS balances the information users would ________ against what they really
________ and what is ________
A) need; like; feasible D) need; can afford; used by the competition
B) like; can analyze; needed E) use; have to use; available
C) like to have; need; feasible to offer
7. Causal research is used to ________.
A) test hypotheses about cause-and-effect relationships
B) gather preliminary information that will help define problems
C) uncover information in an unstructured way
D) describe marketing problems or situations
E) quantify observations that produce insights unobtainable through other forms of research
8. Which of the following statements is NOT true regarding information collected for
marketers?
A) Many managers lack information of the D) Many managers are burdened by data
right kind. overload.
B) Most managers do not need more E) Managers have enough of the right
information. information.
C) Most managers need better information.
9. Which of the following is information gathered directly from respondents in order to
specifically address a question at hand?
A) competitive marketing intelligence D) secondary data
B) experimental hypotheses E) internal data
C) primary data
10. Which type of market buys goods and services to produce public services or to transfer
them to others who need them?
A) government D) consumer
B) reseller E) retail
C) wholesale
11. Rachel Patino works for a wholesale company called Distributors Unlimited. She is
responsible for buying and selling goods at a profit to small retailers. What is her
market?
A) business D) consumer
B) reseller
C) wholesale E) retail
12. Which of the following terms is used to describe the factors and forces outside
marketing that affect marketing management's ability to build and maintain
successful relationships with target customers?
A) the marketing environment D) target markets
B) the cultural environment E) the marketing mix
C) strategic planning
13. ________ are people within a reference group who, because of special skills,
knowledge, personality, or other characteristics, exert influence on others.
A) Opinion leaders D) Stealth marketers
B) Habitual buyers E) Laggards
C) Social networkers
14. 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 D) attitudes
B) reference groups E) psychographics
C) perceptions
15. The buyer decision process consists of five stages. Which of the following is NOT one
of these stages?
A) need recognition D) purchase decision
B) information search E) postpurchase behavior
C) variety-seeking buying behavior
16. The owners of the company you work for have developed a core network of suppliers
they are working closely with to ensure an appropriate and dependable supply of
products. This is an example of ________ management.
A) value chain D) core channel
B) network relationship E) supplier development
C) channel captain
17. When Positive Image, Inc. caters to clothing, cosmetics, and toiletries markets, it most
likely uses which type of segmentation?
A) readiness D) occasions
B) gender E) geographic
C) behavior
18. The division of buyers into groups based on their knowledge, attitudes, uses, or
responses to a product is ________ segmentation.
A) behavioral D) demographic
B) psychographic E) geographic
C) age and life cycle
19. The markets you have chosen to serve in four western states can be effectively
reached and served. You would tell the marketing manager that these segments
are ________.
A) measurable D) actionable
B) accessible E) profitable
C) substantial
20. 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 D) impulse
B) psychographic E) emergency
C) occasion
21. The collection of businesses and products that make up a company is called its
________.
A) strategic business unit D) business portfolio
B) mission statement E) operational factor
C) strategic plan
22. 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 D) a PLC
B) the BCG E) a value delivery network
C) an SBU
23. In the BCG approach, ________ are high-share, high-growth businesses or products.
They need heavy investment to finance rapid growth. When their growth slows down,
they turn into ________.
A) cash cows; stars D) stars; cash cows
B) question marks; dogs E) dogs; cash cows
C) stars; question marks
24. Mountain Home Farms is now using the product/market expansion grid to develop
strategies. The owners of the company have most likely found the grid to be quite
useful for identifying ________.
A) target markets D) new products
B) growth opportunities E) suppliers
C) key customers
25. If Under Armour, the successful maker of moisture-wicking shirts and shorts,
considered introducing a line of Under Armour fitness equipment, the company would
be considering ________.
A) marketing controls D) market penetration
B) market development E) product adaptation
C) diversification
26. ________ are consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort.
A) Shopping products D) Industrial products
B) Unsought products E) Line extensions
C) Specialty products
27. Which of the following product offerings is intangible?
A) fish for an aquarium C) a mink coat
B) refillable ink cartridges for a computer D) a meal at a fast-food restaurant
printer E) a limousine ride
28. Which of the following is/are examples of product line length?
A) hamburger and cheeseburger D) A and C
B) hamburger and apple pie E) all of the above
C) Coke and Diet Coke
29. Product mix ________ refers to the number of different product lines the company
carries.
A) length D) perimeter
B) height E) depth
C) width
30. ________ contributes to a product's usefulness as well as to its looks.
A) Style D) Brand
B) Design E) Functionality
C) Conformance quality
31. The purpose of idea generation is to create a ________ number of ideas. The purpose
of succeeding stages is to ________ that number.
A) small number; reduce D) large number; reduce
B) small number; increase E) limited number; sustain
C) large number; increase
32. A review of the sales, costs, and profit projections for a new product to find out
whether they satisfy the company's objectives is called a ________.
A) business feasibility plan D) product acceptance
B) marketing strategy development E) proposal
C) business analysis
33. New-product development starts with ________.
A) idea generation
B) idea screening
C) concept development
D) concept testing
E) test marketing
34. 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 D) how to compete in the market
B) which market to compete in E) how long to compete in the market
C) whether to launch the new product
35. Which of the following is a reason for a company to raise its prices?
A) to address the issue of overdemand for a D) to boost sales volume
product E) to balance out decreasing costs
B) to win a larger share of the market
C) to use excess capacity
36. ________ is an important element in the marketing mix. It is the only element that
does not represent costs.
A) Profit maximization D) Product quality leadership
B) Market share leadership E) The target market
C) Price
37. Valeo Fashions has just introduced a new line of fashion dresses for teens. It will
initially enter the market at high prices in a ________ pricing strategy.
A) market-penetration D) psychological
B) market-skimming E) demographic
C) competitive market
38. In the case of services, captive product pricing is called ________ pricing.
A) by-product D) bundle
B) optional product E) segmented
C) two-part
39. Using product bundle pricing, sellers combine several products and offer the bundle
________.
A) as a functional unit D) as a reward to loyal customers
B) at a reduced price E) at a premium price
C) as a complete self-service package
40. Service Industries, Inc. plans to offer a price-adjustment strategy in the near future.
It could consider each of the following EXCEPT ________. adjustment called?
A) discount and allowance pricing D) promotional pricing
B) segmented pricing E) location pricing
C) physiological pricing
41. When General Motors provides payments or price reductions to its new car dealers as
rewards for participating in advertising and sales support programs, it is granting a
________.
A) trade discount D) promotional allowance
B) functional discount E) trade cred
C) cash discount
42. At minimum, a marketing channel consists of a producer and a(n) ________.
A) wholesaler D) intermediary
B) agent E) customer
C) broker
43. 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 E) fewer channel partners
C) fewer potential ideas
D) higher taxes
44. Which type of stores usually carry more specialty goods for which customers like to
be "waited on" and have much higher operating costs, which are passed along to the
customer?
A) self-service stores D) independent stores
B) category killer stores E) specialty-service retailers
C) full-service stores
45. Which type of retailer tends to be the most frequently shopped? ________.
A) convenience stores D) supermarkets
B) department stores E) off-price retailers
C) superstores
46. The communication channel a company uses to move its advertising messages from
sender to receiver is called the ________.
A) message D) communicator
B) media E) feedback loop
C) encoder
47. In the AIDA model, the D stands for ________.
A) demand D) do-it-yourself
B) desire E) decoding
C) data
48. Advertising, sales promotion, personal selling, public relations, and direct
marketing are all ________.
A) communications channels that should be integrated under the concept of integrated
marketing communications
B) communications channels focused more on narrowcasting than broadcasting
C) promotional tools used for push strategies but not pull strategies
D) promotional tools used for pull strategies but not push strategies
E) promotional tools adapted for use in mass marketing
49. The use of short-term incentives to encourage the purchase or sale of a product or
service is called ________.
A) direct marketing D) public relations
B) sales promotion E) publicity
C) personal selling
50. ________ is the company's most expensive promotion tool.
A) Advertising D) Public relations
B) Personal selling E) Publicity
C) Mass media
