Practice Test for Midterm – Chs 1,2,4,5,6,7,8,9 – Answers are provided in the end.

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. Selecting which segments of a population of customers to serve is called ________.

a. market segmentation
b. positioning
c. customization
d. target marketing
e. choosing a value proposition

3. It is most accurate to say that a customer will buy from the company that offers the highest
________.
a. value for the dollar
b. customer-perceived value
c. level of customer satisfaction
d. company image
e. concern for society's interests

4. The final step in the marketing process is ________.

a. capturing value from customers
b. creating customer loyalty
c. creating customer lifetime value
d. understanding the marketplace
e. designing a customer-driven marketing strategy

5. Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single

customer sale. He feels that this amounts to losing the entire stream of future purchases that
a customer is likely to make if he or she remains in the area. This is an illustration of
________.
a. share of customer
b. market share
c. profitability
d. customer lifetime value
e. market share maintenance
6. Which of the following is currently the fastest growing form of marketing?
a. consumer-generated marketing
b. online marketing
c. mass media marketing
d. promotional sampling
e. word-of-mouth marketing

7. Jolene's firm believes that consumers will not buy enough of its products unless the firm
undertakes a large-scale selling and promotion effort. Jolene's firm is practicing the
________.
a. production concept
b. marketing concept
c. selling concept
d. relationship concept
e. social advertising campaign

8. Pete Sanchez, a recent graduate of business school, has a different approach than his
marketing manager, who believes in keeping customers at arm's length and using mass
media advertising. Pete knows that today few successful firms still practice this type of true
________ and are instead turning to selective relationship management.
a. club marketing
b. frequency marketing
c. mass marketing
d. customer satisfaction
e. marketing segmenting

9. The first step in strategic planning is to ________.

a. set objectives and goals
b. develop the business portfolio
c. define the company mission
d. plan marketing strategies
e. identify a problem

10. 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
b. question marks; dogs
c. stars; question marks
d. stars; cash cows
e. dogs; cash cows
11. The four possible strategies that can be pursued for each SBU are building, holding,
________, and ________.
a. harvesting; divesting
b. promoting; selling
c. downsizing; expanding
d. diversifying; penetrating
e. developing; growing

12. ________ is the marketing logic by which a company hopes to achieve profitable
customer relationships.
a. Price
b. Being a low-cost operator
c. A consistent product mix
d. Marketing strategy
e. Implementing a differentiation strategy

13. In the four Ps of the marketing mix, design, packaging, services, and variety all fall under
the category of ________.
a. product
b. price
c. promotion
d. place
e. position

14. With the rise of social media, two major challenges facing marketers today are
__________.
a. keeping up with the changing technology and learning how to use it
b. keeping up with changing technology and choosing the best ones to use
c. understanding how to use the tools in a way that achieves marketing goals and
measuring the effects of social media programs
d. understanding how to use the tools in a way that achieves marketing goals and
interpreting the information gathered
e. measuring the most effective tools for use and measuring the effects of social media
programs

15. The Bank of Ontario bought Pershing, an off-shore investment firm with operations in
India, from Credit Suisse First Boston. The Bank of Ontario is pursuing a ________.
a. product development strategy
b. downsizing strategy
c. diversification strategy
d. market penetration strategy
e. product adaptation
16. Acme, Inc., has modified the production processes of its widgets and gadgets in order to
tap into the Eastern European market. Acme is likely following a ________ strategy.
a. market penetration
b. market development
c. diversification
d. harvesting
e. product development

17. Saturn is "a different kind of company, a different kind of a car"; the Hummer is "like
nothing else." These statements reflect a firm's ________.
a. product portfolio
b. target markets
c. market positioning
d. strategy
e. market niche

18. Juanita Castro is looking at whether her company's strategies are well matched to its
opportunities. Juanita is utilizing ________.
a. marketing control
b. operating control
c. strategic control
d. SWOT analysis
e. marketing auditing

19. The collection of larger societal forces affecting a company is referred to as _________.
a. the macroenvironment
b. the microenvironment
c. the marketing environment
d. the marketing mix
e. the global environment

20. Which type of organization helps companies to stock and move goods from their points of
origin to their destination?
a. financial intermediary
b. physical distribution firm
c. marketing service firm
d. reseller
e. supplier
21. A popular blogger who writes and passes along news, features, and editorial opinions
about your area is best classified as which type of public?
a. financial
b. media
c. citizen-action
d. local
e. regional

22. The three largest age groups in North America are the baby boomers, Generation Xers,
and ________.
a. Seniors
b. Millennials
c. Teens
d. Tweens
e. Toddlers

23. This demographic segment of the Canadian population includes about 7 million people
born between 1967 and 1976.
a. Seniors
b. Baby Boomers
c. Generation X
d. Generation Y
e. The Great Generation

24. The number of ________ households is now growing faster than the number of ________
households.
a. traditional; nontraditional
b. large; traditional
c. nontraditional; smaller
d. nontraditional; traditional
e. male-dominant; female-dominant

25. The natural resources that are needed as inputs by marketers or that are affected by
marketing activities are referred to as the ________.
a. raw material market
b. natural environment
c. endangered environment
d. green movement
e. factors of production
26. A society's basic values, perceptions, preferences, and behaviours are all part of its
________ environment.
a. social
b. cultural
c. political
d. cultural-economic
e. natural

27. ING, an international insurance and financial services company, is the primary sponsor of
the annual New York City Marathon, which is attended by over one million fans and
watched by approximately 300 million viewers worldwide. The ING logo and name
appear throughout the race course. ING most likely sponsors the event in order to appeal
to which type of public?
a. financial
b. local
c. government
d. general
e. internal

28. Noora DeLange is helping her company develop a marketing program for a new product
line. The program involves emphasizing experience over acquisition and uses a marketing
pitch that is less overt than the company's previous programs. The marketing program is
most likely designed to appeal to which of the following demographic groups?
a. Gen Xers
b. Nontraditional households
c. "Micropolitan" populations
d. Millennials
e. Manufacturing workers

29. Assume that you are a manager at a firm that has hired lobbyists to influence legislation
affecting your firm's industry to its advantage. Your firm takes a(n) ________ approach to
the marketing environment.
a. reactive
b. proactive
c. adversarial
d. passive
e. team work

30. The real value of a company's marketing research and information system lies in the
________.
a. amount of data it generates
b. variety of contact methods it uses
c. efficiency with which it completes studies
d. quality of customer insights it provides
e. marketing information system it follows
31. ________ 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

32. Competitor intelligence can be collected _________.

a. only from people outside the company
b. from suppliers, resellers, and customers
c. from monitoring the company's own website
d. only from internal sources
e. only from official corporate documents

33. The objective of ________ research is to gather preliminary information that will help
define the problem and suggest hypotheses.
a. descriptive
b. exploratory
c. causal
d. corrective
e. descriptive and exploratory

34. 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

35. Survey research is least likely to be conducted through which of the following?
a. the Web
b. the mail
c. the telephone
d. observation
e. person-to-person interactions

36. Which of the following contact methods is generally the least flexible?
a. telephone interviewing
b. personal interviewing
c. mail questionnaires
d. online surveys
e. online panels
37. 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

38. The most common research instrument used is the ________.

a. mechanical device
b. live interviewer
c. questionnaire
d. telephone interviewer
e. moderator

39. In CRM, findings about customers discovered through ________ techniques often lead to
marketing opportunities.
a. data warehousing
b. data mining
c. customer strategy
d. customer loyalty management
e. value network

40. What source of marketing information provides those within the company ready access to
research information, stored reports, shared work documents, contact information for
employees and other stakeholders, and more?
a. an intranet
b. an extranet
c. the Internet
d. marketing research
e. marketing intelligence

41. One challenge with using secondary data gathered by international researchers is that the
data may be __________.
a. difficult to compare
b. obtained from too many domestic research services
c. expensive to collect
d. lacking credibility
e. collected improperly
42. The study of consumer behaviour begins and ends with ________.
a. culture
b. the individual
c. beliefs
d. lifestyles
e. social classes

43. According to Statistics Canada, by the year 2017 roughly ________ of the population will
be a member of a visible minority.
a. 10%
b. 20%
c. 30%
d. 40%
e. 50%

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

45. People change the goods and services they buy over time because of the two changing
factors of ________.
a. belief and attitude
b. perception and personality
c. age and life-cycle stage
d. groups and learning
e. family and tradition

46. Researchers found that a number of well-known brands tended to be strongly associated
with one particular trait, such as Jeep with "ruggedness." Which of the following terms
would a marketer use to describe a specific mix of human traits that may be attributed to a
particular brand?
a. brand perception
b. product image
c. brand personality
d. new product
e. brand equity
47. Maslow's theory is that ________ can be arranged in a hierarchy.
a. stimuli
b. beliefs and attitudes
c. perceptions
d. human needs
e. decisions

48. People forget much that they learn. They tend to retain information that supports their
attitudes and beliefs. This is called ________.
a. selective retention
b. selective distortion
c. selective attitude
d. selective attention
e. perceptual vigilance

49. The information sources that are most effective at influencing a consumer's purchase
decision are ________. These sources legitimize or evaluate products for the buyer.
a. commercial
b. public
c. experimental
d. personal
e. social

50. Many major purchases result in ________, or discomfort caused by postpurchase conflict.
a. need recognition
b. cognitive dissonance
c. purchase decisions
d. legitimization
e. dissatisfaction

51. Which business buying situation is the marketer's greatest opportunity and challenge?
a. modified rebuy
b. straight rebuy
c. new task
d. multiple rebuys
e. system rebuy

52. A shoe company uses ads featuring the members of a country music band with the hope
that the band's fans will see them wearing the company's shoes and want to wear the same
shoes. The shoe company is hoping that fans of the band view the band as a ________.
a. membership group
b. reference group
c. brand personality
d. subculture
e. lifestyle
53. Blake is in the process of buying a new car. He is highly involved in the purchase and
perceives significant differences among his three favourite models. Blake's next step is
most likely to be ________.
a. postpurchase behaviour
b. evaluation of alternatives
c. opinion leadership
d. cognitive dissonance
e. purchase decision

54. A well-known food retailer buys a lot of cranberry products in December due to
seasonally high consumer demand. This is an example of ________ demand.
a. joint
b. derived
c. elastic
d. fluctuating
e. inelastic

55. 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
e. market recognition, market preference, market targeting, and market insistence

56. When Burger King targets children, teens, adults, and seniors with different ads and
media, it is practicing ________ segmentation.
a. geographic
b. age and life cycle
c. psychographic
d. behavioural
e. usage rate

57. Markets can be segmented into groups of nonusers, ex-users, potential users, first-time
users, and regular users of a product. This method of segmentation is called ________.
a. user status
b. usage rate
c. benefit
d. behaviour
e. loyalty status
58. 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 behaviour
d. age and life-cycle; psychographic
e. income; usage rate

59. When a market segment is large or profitable enough to serve, it is termed ________.
a. measurable
b. accessible
c. substantial
d. actionable
e. differentiable

60. Mass marketers, such as Target and Venture Stores, often ignore market segment
differences and target the whole market with one offer. What is their approach to
segmenting?
a. undifferentiated marketing
b. differentiated marketing
c. target marketing
d. concentrated marketing
e. micromarketing

61. ________ marketing tailors brands and promotions to the needs and wants of specific
cities, neighborhoods, and even stores.
a. Undifferentiated
b. Differentiated
c. Niche
d. Local
e. Variable

62. A company or market offer can be differentiated along the lines of product, image,
services, channels, or ________.
a. prices
b. nonprice factors
c. people
d. customer service
e. location
63. "Less-for-much-less" positioning involves meeting consumers' ________.
a. quality performance requirements at a lower price
b. lower quality requirements in exchange for a lower price
c. lower quality requirements at the lowest possible price
d. high quality requirements at a discounted rate
e. high quality requirements at the lowest possible price

64. When Pacific Fisheries groups its customers as countries by regions such as Asia,
Australia, or New Zealand, it is using which segmenting base?
a. economic factors
b. political and legal factors
c. geographic location
d. benefits sought
e. demographics

65. Sanguine Services practices a marketing strategy where its limited resources are used to
go after a large share of two small niches. Sanguine practices which one of these
strategies?
a. undifferentiated
b. differentiated
c. mass
d. concentrated
e. geographically dispersed

66. Ford Motor Company emphasizes "Quality first–Ford tough" in its truck products. The
company has developed a differentiation strategy based on ________.
a. people
b. image
c. channels
d. services
e. positioning

67. The third level of a product that product planners consider is a(n) ________ around the
core benefit and actual product that offers additional consumer services and benefits.
a. augmented product
b. brand equity
c. brand extension
d. industrial product
e. image
68. ________ are industrial products that aid in the buyer's production or operations,
including installations and accessory equipment.
a. Materials
b. Parts
c. Capital items
d. Specialty items
e. Supplies

69. Your firm asks you to consult internal sources for new product ideas. All of the following
are common external sources.
a. customers
b. suppliers
c. competitors
d. trade shows and magazines
e. the firm's managers

70. Once managers of The Grecian Urn have decided on their product concept and marketing
strategy, they can evaluate the business attractiveness of the proposal in the ________
stage of the new-product development process.
a. business feasibility
b. feasibility study
c. business analysis
d. product acceptance
e. concept testing

71. ________ refers to a detailed version of the new-product idea stated in meaningful
consumer terms.
a. Product generation
b. The product concept
c. Product testing
d. Product commercialization
e. Product crowdsourcing

72. In which stage of the PLC would promotional expenditures most likely increase as a
company attempts to react to increasing competition?
a. product development
b. introduction
c. growth
d. maturity
e. decline
73. When a product enters the maturity stage, the company should consider ________.
a. harvesting the product
b. modifying the product, market, or marketing mix
c. divesting the product
d. maintaining the product
e. dropping the product

74. A sensational ________ may grab consumers' attention and produce pleasing aesthetics,
but it does not necessarily improve a product's performance.
a. design
b. style
c. experience
d. service-profit chain
e. augmented product

75. ________ means that services cannot be separated from their providers, whether the
providers are people or machines.
a. Service intangibility
b. Service inseparability
c. Service variability
d. Service perishability
e. Service heterogeneity
 Test Name:Practice Test for Midterm

1. d.understand the marketplace and customer needs and wants

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2. d.target marketing
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3. b.customer-perceived value
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4. a.capturing value from customers

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5. d.customer lifetime value

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6. b.online marketing
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7. c.selling concept
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8. c.mass marketing
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9. c.define the company mission

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10. d.stars; cash cows

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11. a.harvesting; divesting

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12. d.Marketing strategy
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13. a.product
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14. c.understanding how to use the tools in a way that achieves marketing goals and measuring
the effects of social media programs
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15. c.diversification strategy

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16. b.market development

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17. c.market positioning

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18. c.strategic control

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19. a.the macroenvironment

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20. b.physical distribution firm

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21. b.media
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22. b.Millennials
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23. c.Generation X
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24. d.nontraditional; traditional

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25. b.natural environment

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26. b.cultural
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27. d.general
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28. a.Gen Xers

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29. b.proactive
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30. d.quality of customer insights it provides

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31. b.Marketing intelligence

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32. b.from suppliers, resellers, and customers

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33. b.exploratory
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34. c.that already exists somewhere but was collected for another purpose
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35. d.observation
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36. c.mail questionnaires

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37. b.sample
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38. c.questionnaire
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39. b.data mining

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40. a.an intranet

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41. a.difficult to compare

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42. b.the individual

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43. b.20%
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44. b.social
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45. c.age and life-cycle stage

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46. c.brand personality

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47. d.human needs
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48. a.selective retention

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49. d.personal
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50. b.cognitive dissonance

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51. c.new task

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52. b.reference group

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53. b.evaluation of alternatives

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54. b.derived
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55. c.market segmentation, targeting, differentiation, and positioning

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56. b.age and life cycle

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57. a.user status

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58. c.benefits; buying behaviour

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59. c.substantial
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60. a.undifferentiated marketing

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61. d.Local
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62. c.people
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63. b.lower quality requirements in exchange for a lower price

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64. c.geographic location

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65. d.concentrated
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66. b.image
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67. a.augmented product

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68. c.Capital items

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69. e.the firm's managers

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70. c.business analysis

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71. b.The product concept
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72. c.growth
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73. b.modifying the product, market, or marketing mix

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74. b.style
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75. b.Service inseparability

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