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BUS560 Final Exam Solution

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BUS 560 Quizzes and Exams


BUS/560 All Quizzes and Exams Solved

1. The Southwind Camper Company's goal is to sell 10,000 camper trailers each year. What can
one conclude from this objective?
A. The company has a customer orientation
B. The company does not adhere to the marketing concept
C. The company is determined to satisfy customer needs
D. The company wants to use a customer focused strategy
2. The process of planning and executing conceptions, pricing, promotion and distribution of ideas,
goods and services to create exchange that satisfy individual and organizational goals is the
definition of
A. Marketing
B. Management
C. Strategic planning
D. Accounting
3. Identify the marketing type which is designed to attract donors, members, participants or
volunteers?
A. Product
B. Organization

C. Place
D. Cause
4. In large organizations, the marketing plans of individual departments are guided by
A. Plans rolled out by the production unit
B. Sales strategies of the marketing department
C. Planning activities of the organizational units
D. Strategic plans or blueprints for the entire organization
5. Which type of marketing would involve strategies to elect a political candidate?
A. Product
B. Service
C. Person
D. Place
6. The organization's mission, objectives, strategies and its portfolio plan are the four major
components of its
A. Strategic plan
B. Mission statement
C. Sales strategy
D. Marketing plan
7. _____ includes all the activities that lead to the development of a clear organizational mission,
organizational objectives and appropriate strategies to achieve those objectives.
A. Strategic planning
B. Organization's growth
C. Financial planning
D. Investment decisions
8. The organization's environment provides the _____ that sustains the organization, whether it is
a business, a college or university, or a government agency.

A. Products
B. Competition
C. Resources
D. Structure
9. The organization's environment provides the resources that sustain the organization. In
exchange for these resources, the organization must supply the environment with
A. Services without any additional cost
B. Highly priced but quality goods
C. Quality goods at an acceptable price
D. Community service at all times
Study Guide Questions
Page 1 of 22
10. Twenty years ago Bob and Aileen Long started the Vidalia Onion Store for the purpose of
sharing the taste of sweet Vidalia onions with the world. In recent years, the couple has
added other Georgia products, such as peanuts, peaches and pecans to its inventory, without
changing the business's name or its mission. The store can now be described as a
A. Drifting organization
B. Customer oriented organization
C. Competitive organization
D. Changing organization
11. The Steakhouse is a restaurant selling steaks. Its mission statement was to provide its
customers with the world's best steaks. Changes in consumer tastes resulted in fewer
customers for the steakhouse. The company had to venture into new and different markets to
maintain profitability. These new conditions and a redundant mission statement would make the
steakhouse a(n)
A. Process related organization

B. Organization without any strategy


C. Drifting organization
D. Functional organization
12. Organizations expand into new products, new markets and even new industries. In this
process, the organization's original purpose may become irrelevant. In these circumstances the
organization can be best described as a
A. Drifting organization
B. Functional organization
C. Horizontal organization
D. Cooperative organization
13. The mission statement, or purpose, of an organization is the description of its reason for
A. Revenues
B. Profitability
C. Existence
D. Growth
14. Which of the following is not stated as being a basic question an organization must answer
when examining and restating its mission?
A. What is our business?
B. Who is the customer?
C. What do customers value?
D. What is our sales strategy?
15. The core things that an organization does well are known as its
A. Distinctive values
B. Distinctive competencies
C. Distinctive ideals
D. Distinctive technologies

16. Which of the following statements about a mission statement is true?


A.
Even though no one denies the importance of the mission statement, it is the least used of all
of the management tools
B. An effective mission statement takes an internal organizational focus
C.
It should be focused on the physical product or service that the organization is offering at
present
D. It should be focused on the broad class of needs that the organization is seeking to satisfy
17. When the mission statement of an organization is focused on markets rather than products, it
means that the mission statement
A. Has an external rather than an internal focus
B. Needs to divert towards the internal problems
C. Needs to change its focus to services
D. Is focusing on the narrow class of needs
18. What is most likely wrong with the following mission statement for a store that sells lighting
fixtures: "Our mission is to make sure every customer who buys a lighting fixture at our store is
100 percent satisfied with his or her purchase?"
A. The mission statement is not specific
B. The mission statement is not well framed
C. The mission statement cannot fulfill the organizational productivity
D. The mission is not achievable or realistic
Study Guide Questions
Page 2 of 22
19. If formulated properly, all of the following are stated end results of an effective organizational
objective, except

A. They can be converted into mission and vision statements


B
.
They will provide direction and serve as a starting point for more specific and detailed
objectives at lower levels in the organization
C. They can establish long-run priorities for the organization
D
.
They can facilitate management control because they serve as standards against which
overall organizational performance can be evaluated
20. When an organization has formulated its mission and developed its objectives, the next
managerial task is to develop
A. Job descriptions
B. Organizational strategies
C. Mission and vision statements
D. Cross-functional teams
21. At the supermarket, Lisa noticed that her favorite stain remover now comes in spray bottles,
2 sizes of aerosol cans and a refill bottle. Given this information and the fact that the stain
remover has reduced its shelf price by 5 percent, you could say the manufacturer of the stain
remover has implemented a _____ strategy.
A. Market differentiation
B. Product development
C. Diversification
D. Market penetration
22. As part of its 1998 summer ad campaign, NBC ran ads that previewed reruns of popular TV
programs and used the slogan, "New to You" to get people who had missed the shows during

the previous season to watch. This slogan is most closely related to which of the organizational
growth strategies?
A. Product development
B. Market development
C. Market diversification
D. Market penetration
23. When weekend gardeners think of mulch to put around their plants and keep away the weeds,
they tend to think in terms of pine bark, wood chips, or pine straw. Slatescape has developed
mulch made out of crushed slate rock. The company first targeted landscape businesses and
was successful in marketing to businesses and to government agencies. In order to expand
its business, the company must now educate consumers about the product. Slatescape will be
implementing a
A. Market penetration strategy
B. Market differentiation strategy
C. Diversification strategy
D. Market development strategy
24. Product development strategy
A. Involves seeking new products for customers not currently being served
B. Offers product-line extensions of existing products to present customers
C. Is merely getting the product to a new market
D. Deals with developing a production plan for a product
25. The Mattel Corporation targets children from the age of 3 and up. Fisher-Price makes toys
for babies and toddlers. The Mattel Corporation recently purchased Fisher-Price for $1.1
billion. This acquisition gives Mattel a new product line aimed at the younger siblings of its
current target market. By targeting the under-three group with age-appropriate toys, Mattel has
implemented a _____ strategy.

A. Diversification
B. Product differentiation
C. Porter's model
D. Market penetration
26. Which of the following pertains to strategic business units?
A. They share the organizational mission statement
B. They have centralized management, no competitors and little autonomy
C.
They are a number of organizations which have come together to achieve some common
goal
D. They can be planned independently of the other businesses of the total organization
Study Guide Questions
Page 3 of 22
27. Monsanto is an enterprise that is composed of three parts. Its biotech section, (researching
to develop crops that are pest and disease-resistant) provides about half of its sales.
Pharmaceuticals from its G.D. Searle subsidiary contribute a third of its revenues; and food
products, dominated by the artificial sweetener NutraSweet, make up less than 20 per cent of its
total revenue. Monsanto's three strategic business units would generally
A. Have no external competitors
B. Share the same mission as Monsanto
C. Use centralized planning and not operate independently
D. Have their own distinct missions
28. Since September 11, 2001, the number of people attending church and looking to religion to
provide solace has increased. As a result, Bible publishers have developed the Starting Point
Study Bible that explains what they are reading and includes a dictionary of biblical terms.
Identify the type of environment which caused this change.

A. Social
B. Competitive
C. Cooperative
D. Economic
29. The removal of tariffs on the importation of Canadian lumber will adversely affect the U.S.
lumber industry because Canada is able to produce lumber much more inexpensively than the
U.S. This tariff removal is an example of how the _____ environment can affect businesses.
A. Cooperative
B. Comparative
C. Social
D. Legal
30. Which of the following is not an interrelated task in the process of marketing planning?
A. Developing the product
B. Developing the marketing mix
C. Establishing marketing objectives
D. Selecting the target market
31. All of the following are true with respect to establishing marketing objectives except they
A. Are derived from organizational objectives
B. Are stated as standards of performance
C. Provide the framework for the marketing plan
D. Are a set of controllable variables used for the target market
32. Establishing objectives, selecting the target market and developing the marketing mix are three
interrelated tasks pertaining to
A. The selling concept
B. Market planning
C. Organizational mission

D. Performance objectives
33. Identify the factor that is not stated as being generally useful for ranking the present and
potential target markets.
A. Profitability of the target markets
B. Present and future sales volume of the target markets
C.
Match between what it takes to appeal successfully to the segment and the organization's
capabilities
D. Dependence on industrial buyers and market segmentation
34. Performing marketing tasks according to a predefined schedule is a part of
A. Establishing the marketing plan
B. Developing the marketing plan
C. Implementing the marketing plan
D. Controlling the marketing plan
35. Which of the following is not a functional area plan derived from the strategic plan?
A. Production plan
B. Finance plan
C. Operations plan
D. Technology plan
Study Guide Questions
Page 4 of 22
36. Portfolio models
A. Provide a long-term time perspective for analyzing the organization's external environment
B. Examine the competitive position of an organization's principal rivals
C.
Classify SBUs to determine the future cash contribution that can be expected from each of

them
D.
Are not effective in situations where management must make resource allocation decisions
across product lines
37. According to the BCG matrix, _____ are often market leaders, but the market they are in is not
growing rapidly.
A. Cash cows
B. Question marks
C. Stars
D. Dogs
38. In 1997, Monsanto sold its chemical products division because the division was showing
slow growth in a market that was rapidly expanding. Monsanto used a _____ strategy with
its chemical products division, which would be classified by the BCG Portfolio Model as a
_____.
A. Divest; question mark
B. Divest; dog
C. Hold share; cash cow
D. Harvest; cash cow
39. Which of the following objectives seek to increase the products short-term cash flow without
concern for the long run impact?
A. Hold share
B. Harvest
C. Divest
D. Build share
40. Which of the following pertains to the objective "build share"?
A. Sacrifices immediate earnings to improve market share

B. Increases the product's short-term cash flow without concern for the long-run impact
C.
Involves selling or divesting the SBU because better investment opportunities exist
elsewhere
D. Seeks to preserve the SBU's market share
41. The process by which information about the environment is generated, analyzed and interpreted
for use in marketing decision making is called
A. Marketing concept
B. Marketing research
C. Marketing strategy
D. Product research
42. Charles Walker wants to build a distribution center in Colorado. When you meet him for lunch,
he shows you the marketing research that guarantees his new enterprise will be a success.
What should you tell him to curb his unbridled optimism?
A. Walker should execute research very carefully to make it error free
B. Walker needs to formulate a better plan for his organization
C.
Walker should know that even the most carefully executed research can be fraught with
errors
D. Walker should be laying stress on strategic planning and not research
43. Since marketing research does not make decisions, why should an organization bother with it at
all?
A. To make strategies error free
B. To reduces the risks associated with managing marketing strategies
C. To equalize the risk of profit and loss and get maximum returns on investment
D. To eliminate consumer concerns

44. The first step in the research process is to determine


A. Information about the changing elements of the market
B. The marketing strategy
C. The research and development and production systems
D. Explicitly why research is needed and what it is to accomplish
Study Guide Questions
Page 5 of 22
45. Which of the following best describes primary data?
A. Data collected specifically for the research problem under investigation
B.
Data that has previously been collected for other purposes but can be used for the problem
at hand
C. Data collected through business and industry publications
D. Data collected through government reports such as Statistical Abstracts of the United States
46. Belinda Nunez wants to open a gallery in which she will feature young Hispanic artists. She was
unsure if the new business would succeed until she read in the local newspaper that 55 percent
of the community in which she will be operating the gallery is Hispanic. What type of research
(data) has she used to aid her in decision making?
A. Primary data
B. Secondary data
C. Qualitative research
D. Observational research
47. What is the advantage of secondary data over primary data?
A. It is always available for strategy-specific research questions
B. There are limited sources for secondary data making it easier to use
C. It is less expensive

D. It is very systematic
48. All of the following are different types of quantitative research, except
A. Observations
B. Surveys
C. Experiments
D. Focus groups
49. Which of the following involves the collection of data by means of a questionnaire either by mail,
phone or in person?
A. Experimental research
B. Long interviews
C. Survey research
D. Observational research
50. Reading of Toledo, Inc. makes a streaked griddle that produces char-broiled looking meat
without the grease flare-ups, smoke or wasted energy. Sales have been down recently for its
streaked griddle. Its marketing manager wonders if consumer health concerns about grilled
meat causing cancer are responsible for the decrease in sales. The manager wants to conduct
marketing research to see if the firm needs to modify the product or advertise more. He sends
out a questionnaire by mail to gather relevant information. What type of research is he using?
A. Observational research
B. Experimental research
C. Survey research
D. Mathematical research
51. Quaker Oats has introduced a line of breakfast cereal packaged in bags. These are typically
found on the bottom shelf of the cereal display as they don't stack or display as well as boxes.
The bags are more economical and produce less waste. Quaker Oats attempts to judge
whether they are a part of the buyers' consideration set by watching people buy cereal. Identify

the type of quantitative research Quaker Oats is using?


A. Observational
B. Modeling
C. Experimental
D. Survey
52. ______ involve(s) discussions among a small number of individuals led by an interviewer; and
are (is) designed to generate insights and ideas.
A. Observational research
B. Long interviews
C. Focus groups
D. Market segments
53. Which of the following is not a type of quantitative research?
A. Mathematical modeling
B. Long interviews
C. Experiments
D. Surveys
Study Guide Questions
Page 6 of 22
54. Company T manufactures and markets computer games. Their latest addition is a game
called "Thunderbolt". This game is targeted at the age group 13-16. The company recruited a
volunteer group of kids in this target market and made them play the game. After the gaming
session, the company executives conducted intense discussions with this group and gauged
their feedback. What kind of research is undertaken by Company T?
A. Qualitative research
B. Observational research
C. Survey research

D. Experimental research
55. _____ research typically involves face-to-face interviews with respondents and is designed to
develop a better understanding of what they think and feel concerning a research topic.
A. Experimental
B. Quantitative
C. Mathematical modeling
D. Qualitative
56. What type of research would you expect a consumer products company to use if it wanted
to study household buying habits (specifically aisle and shelf location for its products) using
secondary data sets each containing 500,000 items?
A. Short interviews
B. Mathematical modeling
C. Experimental Research
D. Long interviews
57. The price of a product in one test store was changed while it was left the same in other stores.
Comparing sales in the test store to those in other stores provided evidence about the impact of
price change in the overall market. The type of research used here is
A. Experimental
B. Mathematical modeling
C. Observational
D. Surveys
58. Mathematical modeling is useful for marketing research because it provides
A.
Exact answers about how the market will behave and guidelines for implementing the
marketing mix
B. An efficient way to study problems with extremely large secondary data sets

C. A simple way to quantify data


D. A way to convert data into graphs
59. A disadvantage of mall intercepts is that
A. Sample composition or representativeness is suspect
B. Collection of data takes a very long time
C. Response rates are very low
D. No flexibility in collecting data, answering questions, probing respondents
60. One of the disadvantages of internet surveys is that
A. They are very expensive
B. Responses must be checked for duplication, bogus responses
C. Visual stimuli cannot be evaluated
D. Real-time data processing is not possible
61. Which of the following is a disadvantage of personal (in-depth) interviews?
A. Limited depth of response
B. Easy to transmit biasing cues
C. Unable to assess opinions of attitudes causing behaviors
D. Requires expert moderators
62. Which of the following does not pertain to internet surveys?
A. Responses must be checked for duplication, bogus responses
B. Difficulty in generating sample frames for probability sampling
C. Limited ability to qualify respondents and confirm responses
D. Cost per contact is high
63. Which of the following does not pertain to mall intercepts?
A. Flexibility in collecting data, answering questions, probing respondents
B. Data collected quickly
C. Excellent for concept tests, copy evaluations, other visuals

D. Unlimited time
Study Guide Questions
Page 7 of 22
64. Identify the marketing research method in which the survey can be answered at the
convenience of the respondent and where visual stimuli can be evaluated.
A. Telephone surveys
B. Internet survey
C. Mail survey
D. Mall intercepts
65. One advantage of internet surveys is
A. That the responses are accurate
B. That the responses need not be checked for duplication
C. The ability to qualify respondents and confirm responses
D. That real-time data processing is possible
66. One disadvantage of the projective technique is that
A. It is highly threatening to respondents for sensitive topics
B. It is not useful in word association tests of new brand names
C. It is not possible to identify important motives underlying choices
D. It requires trained interviewers and the cost per interview is high
67. The advantage of personal interviews is that
A. They do not involve the element of bias
B. The cost per contact is quite low; hence they are highly cost effective
C. They have no time constraints
D. They generate substantial number of ideas compared with group methods
68. What kinds of people buy our products, where do they live and how much do they earn are
_____ questions that marketing research can help answer.

A. Segmentation
B. Demand estimation
C. Environmental assessment
D. Control assessment
69. _____ is the process of extraction of hidden predictive information from large data bases.
A. Data mining
B. Marketing research
C. Planning
D. Mail surveys
70. The appropriate analysis techniques for collected data depend on the
A. Number of respondents and their abilities
B. Nature of the research question and the design of the research
C. Manipulation of variables
D. Data mining tools available
71. The major goal of most _____ is to measure new product sales on a limited basis where
competitive retaliation and other factors are allowed to operate freely.
A. Mathematical modeling
B. Test marketing
C. Process researches
D. Data evaluation
72. Which of the following is not a stated criterion for the evaluation of marketing research reports?
A. Determining whether type of research is appropriate for the research questions
B. Determining if the limitations of the study are recognized and explained in detail
C. Determining whether analysis conducted is according to standards accepted in the field
D. Determining if the research report used technical jargon
73. All of the following are instances where deception could be considered acceptable in research,

except where
A. It is needed to obtain valid results
B. There is minimal risk to respondents
C. Respondents are debriefed explaining the real purpose of the study
D. Unethical behavior could be concealed but rewarded
74. All of the following are ethical responsibilities of marketing researchers to the respondents,
except
A. Preserving respondent anonymity
B. Avoiding mental stress for respondents
C. Avoiding opportunities for unethical behavior
D. Avoiding the use of dangerous equipment or techniques
Study Guide Questions
Page 8 of 22
75. Which of the following does not fall under the responsibility of the market researchers towards
respondents?
A. Preserving respondent anonymity
B. Avoiding mental stress
C. Avoiding detrimental questions
D. Overlooking unethical behavior
76. Which of the following should an ethical marketing research firm avoid doing?
A. Should price its work fairly with no hidden charges
B. Promote the correct usage of research and prevent the misuse of findings
C. Not reveal information about a client to its competitors
D. Should hastily identify companies as clients
77. Test-market products advertised or promoted beyond a profitable level for the market in
general

A. Are representative of the competitive retaliation in the market


B. Are capable of invalidating test marketing study results
C. Are the result of an unethical work environment
D. Are examples of how manipulating one variable impacts other variables
78. Marketing decision support system
A. Is a popular form of marketing information system
B. Is a group of technical staff aiding managerial decisions
C. Is a firewall that does not permit marketers to explore external databases
D. Are only designed to handle information from internal sources
79. Marketing decision support systems are designed to handle information from both internal and
external sources. Which of the following is an example of an internal source of data that could
be used with a marketing decision support system?
A. Company expenditure data on advertising
B. Industry expenditure data on sales promotions
C. Economic environmental changes
D. Global information on competitors
80. Which of the following best illustrates an external source of data that could be used with a
marketing decision support system?
A. Information on sales territories' allocated to the various salespeople
B. Company expenditures on personal selling
C. Average size of commissions paid to sales personnel
D. Information on advances in the field of software technology
81. _____ is one of the most basic influences on an individual's needs, wants and behavior, since
all facets of life are carried out against the background of the society in which an individual
lives.
A. Politics

B. Culture
C. Education
D. Technology
82. Cultural values are transmitted through all of the following basic organizations except
A. Family
B. Religious organizations
C. Educational institutions
D. Financial institutions
83. _____ is based on such things as geographic areas, religions, nationalities, ethnic groups and
age.
A. History
B. Financial need
C. Subculture
D. Value
84. Marketing managers should adapt the marketing mix to _____ and constantly monitor value
changes and differences in both domestic and global markets.
A. Sales strategies
B. The selling concept
C. Cultural values
D. Brand image
Study Guide Questions
Page 9 of 22
85. The behavior of individual members is influenced by social classes which tend to have
A. A significant amount of homogeneity
B. Different attitudinal configurations and values
C. A dominance of people having high incomes

D. Decreased influence of religious values


86. _____ is the single best indicator of social class.
A. Family size
B. Religion
C. Occupation
D. Possessions
87. Increased earnings among the _____ have led to spending on more "worthwhile experiences"
for children, including winter ski trips, college education and shopping for better brands of
clothes at more expensive stores.
A. Upper Americans
B. American middle class
C. Lower Americans
D. American working class
88. The group of Americans referred to as "family folk," who depend heavily on relatives for
economic and emotional support, are commonly referred to by marketers as the
A. Lower American class
B. Working class
C. Middle class
D. Upper American class
89. An emphasis on _____ is one sign of how much more limited and different working-class
horizons are socially, psychologically and geographically compared to those of the middle
class.
A. Prestige products
B. Emulating the Upper Americans
C. Buying what is popular
D. Family ties

90. Which of the following is an example of a social influence on consumer behavior?


A
.
The fashion editor of Seventeen magazine writes that any teen who wants to be
considered in' with the times must wear a shirt that shows her bellybutton
B. The manufacturer of a line of aromatherapy candles markets them at very exclusive stores
C.
Ernie decides to buy a new dress for Easter, but decides not to buy anything because the
store was overcrowded
D.
Billie purchases a pair of Honey brand clogs instead of the Birkenstocks because the
Birkenstocks were too expensive
91. Primary reference groups include
A. College fraternity members
B. Office colleagues
C. Family and close friends
D. Sports groups
92. When preparing Thanksgiving dinner, Marissa worried that her parents would disapprove of
her having used ready-to-serve pumpkin pies bought from the local grocery store, rather than
making her own. In terms of social influences on her behavior, Marissa was most concerned
with
A. A primary reference group
B. A subculture influence
C. A secondary reference group
D. Family life cycle
93. All of the following are marketing influences on consumer decision making except

A. Product influences
B. Price influences
C. Promotion influences
D. Technical influences
94. When consumers are seeking low-involvement products, _____ is important.
A. Order processing
B. Order booking
C. Ready availability
D. Information about warranty
Study Guide Questions
Page 10 of 22
95. These situational features are the most readily apparent features of a situation.
A. Current conditions
B. Task features
C. Physical features
D. Social features
96. What best describes those factors particular to a time and place of observation that have a
demonstrable and systematic effect on current behavior?
A. Social influences
B. Product knowledge
C. Product involvement
D. Situational influences
97. Darla considers herself to be an expert on gourmet cuisine and she has dined at many of the
finest restaurants in the United States. On a recent trip to New Orleans, she refused to eat at a
restaurant that was purported to have some of the best Cajun food because it had oil cloth and
plastic flowers on the tables. Which situational influence explains Darla's refusal to eat at this

restaurant?
A. Marketing mix
B. Task features
C. Current conditions
D. Physical features
98. The difference in consumer behavior when purchasing a fire protection system for a warehouse
full of steel furniture and when purchasing a fire protection system for a home, full of
irreplaceable antiques, can be attributed to which of the following situational influences?
A. Social features
B. Task features
C. Current conditions
D. Physical features
99. On Friday, Pierce went to an antique mall to hunt for a Victorian table. He left shortly after he
arrived since he found the background music distasteful. On returning the next day, he found
the music was much more to his liking. This time he stayed and purchased a Victorian table he
found there. Which situational influence on consumer behavior is described by Pierce's actions?
A. Social features
B. Task features
C. Current conditions
D. Physical features
100
.
Because Carter was tired, he decided to go to a restaurant and order a cool drink and a big
piece of chocolate pie. Which situational influence most likely caused Carter's behavior?
A. Task features
B. Social features

C. Current conditions
D. Physical features
101
.
Since Nadia was bored with her living room furniture, she decided to buy a whole new set.
Which situational influence on consumer behavior is described by Nadia's actions?
A. Time
B. Task features
C. Current conditions
D. Physical features
102
.
Consumers are unlikely to engage in extensive search when they are seeking
A. High-involvement products
B. Low-involvement products
C. Financial capital
D. Capital goods
103
.
Identify the element which refers to a consumer's perception of the importance or personal
relevance of an item.
A. Product knowledge
B. Promotion influences
C. Product involvement
D. Product influences
Study Guide Questions

Page 11 of 22
104
.
Jerri wanted to undertake some remodeling prior to moving in to her new home. She was
convinced she must first replace the carpeting because the previous owners smoked. She did
not want to buy just any carpeting because she knew carpeting varied as per style and quality.
Neither did she want to spend $3,000 for carpeting that had to be replaced in five years. For
Jerri, the purchase of the carpeting most likely involved _____ decision making.
A. Selective
B. Limited
C. Extensive
D. Routine
105
.
Which of the following statements about product involvement is true?
A. Product knowledge is unrelated to product involvement
B
.
A consumer is just as likely to develop the same level of product involvement with a product
requiring routine decision making as with a product requiring extensive decision making
C.
Product involvement does not affect how quickly a consumer moves through the purchase
decision-making process
D. A consumer's level of product involvement will determine how quickly the purchase is made
106
.

For which of the following purchases would a consumer most likely engage in extensive
decision making?
A. Purchase of a pair of panty hose at a hotel gift shop
B. Purchase of a cup of coffee from Starbucks
C. Purchase of a case of cat food
D. Purchase of a new car
107
.
For a high-involvement product purchase, consumers are likely to develop a high degree of
_____ so that they can be confident that the item they purchase is just right for them.
A. Brand loyalty
B. Satisfaction
C. Product knowledge
D. References
108
.
All of the following pertain to product knowledge except that it
A. Refers to the amount of information a consumer has stored in memory about the product
B. Refers to the initial level of knowledge which may affect purchase decision
C. Influences how quickly a consumer goes through the decision making process
D. Refers to a consumer's perception of the importance or personal relevance of an item
109
.
A consumer buying a new toothbrush would likely view this as a(n)
A. Low-involvement purchase
B. High-involvement purchase

C. Extensive decision making process


D. Limited decision making process
110
.
_____ constitutes moderate consumer behavior, but still involves time and effort searching for
and comparing alternatives.
A. Limited decision making
B. Informed decision making
C. Routine decision making
D. Extensive decision making
111
.
When buying clothes, consumers may shop at several stores and compare a number of
different brands and styles before purchasing an item. Identify the decision making type
involved.
A. Extensive decision making
B. Limited decision making
C. Routine decision making
D. Selective decision making
112
.
_____ is the most common type of consumer decision process and the way consumers
purchase most packaged goods.
A. Limited decision making
B. Extended decision making
C. Routine decision making

D. Alternative search
113
.
everything one is capable of becoming.
A. Physiological needs
B. Self-actualization needs
C. Esteem needs
D. Belongingness and love needs
Study Guide Questions
Page 12 of 22
114
.
The headline for the Rockport shoes ad reads, "I'm comfortable being the greatest that ever
was or will be. Be comfortable. Uncompromise. Start with your feet." The ad shows a picture of
Muhammad Ali, world famous boxer. In terms of Maslow's hierarchy, this ad was designed to
appeal to the consumer's
A. Physiological need
B. Need for esteem
C. Safety needs
D. Self-actualization needs
115
.
An article in a local newspaper ranking the facilities of nursing homes in the immediate area on
the basis of cleanliness, staff-patient ratio, on-staff care providers and other key determinants
would be an example of a(n) _____ source of information.
A. Marketing

B. Social
C. Experiential
D. Public
116
.
The perceived risk literature emphasizes that consumers generally try to _____ in their decision
making.
A. Endure risk
B. Tolerate risk
C. Reduce risk
D. Accept risk
117
.
The intensity of postpurchase dissonance will be greatest when
A. The product is a specialty product with few alternative choices
B. The product has low functional risk and high psychosocial risk
C. The product is a convenience product with numerous alternatives
D. The product has a number of available alternatives with many desired features
118
.
After buying a new Whirlpool washer-dryer combination, Allison was pleased when she got a
phone call from a Whirlpool customer service representative who wanted to know if she was
happy with her purchase and the installation service. What is the best explanation for this
practice?
A. To reduce the possibility of postpurchase dissonance
B. As a part of its ongoing consumer research

C.
To reduce the perceived psychosocial risks associated with the purchase decision of a
private luxury item
D.
To reduce the functional risks consumers perceive to be associated with the purchase of
expensive household products
119
.
Intensity of anxiety related to dissonance will be greater when which of the following conditions
exist?
A. The decision is an important one psychosocially or financially or both
B.
Groups that an individual looks to when forming attitudes and opinions have made the same
purchasing decision
C. The forgone alternatives did not have many favorable features
D. The decision has been made deliberately and with plenty of feedback from friends and family
120
.
One implication of the _____ approach for marketers is that care must be taken not to raise
prepurchase expectations to such a level that the product cannot possibly meet them.
A. Disconfirmation paradigm
B. Cognitive dissonance
C. Prepurchase decision
D. Routine decision making
121
.

What is the full form of NAICS?


A. National American Industrial Computer Services
B. North American Industry Classification System
C. North American Institutional Career Services
D. North American Industrial Control Systems
122
.
Marketing to producers and intermediaries is called
A. Business-to-business marketing
B. Affiliate marketing
C. Marketing channel
D. Marketing management
Study Guide Questions
Page 13 of 22
123
.
Which of the following constitute the largest group of organizational buyers?
A. Intermediaries
B. Government agencies
C. Producers
D. Other institutions
124
.
All of the following influence the organizational buying process except
A. Purchase-type influences
B. Structural influences

C. Political influences
D. Behavioral influences
125
.
Intermediaries or resellers purchase products to
A. Resell at a profit
B. Modify and sell it at a better rate
C. Increase the value of products
D. Help the companies advertise their products
126
.
Identify the type of purchase which routinely involves reordering from the same supplier a
product that has been purchased in the past.
A. Modified purchase
B. New task purchase
C. Modified rebuy
D. Straight rebuy
127
.
Which type of purchasing do organizations use when they are experienced at buying the
product, have an ongoing need for it and have regular suppliers of it?
A. Straight rebuy
B. Modified purchase
C. New task purchase
D. Modified rebuy
128

.
What kind of purchase decision would most likely require joint decision making because many
kinds of expertise are required to make the best decision?
A. Straight rebuy
B. Modified rebuy
C. New task rebuy
D. Straight task buy
129
.
Which of the following examples would most likely use straight rebuy?
A. A company looking to buy suitable premises for its new branch office
B. A physicians' office planning to buy a $35,000 endoscope
C. A manufacturer lawn mowers ordering spare parts regularly from the same supplier
D
.
A cold storage warehouse planning to buy a $100,000 generator to keep its 200,000 square
feet of storage area cold in the event of an electric outage
130
.
_____ involves extensive search for information and a formal decision process.
A. Modified rebuy
B. Straight rebuy
C. New task purchase
D. Initiator purchase
131
.

In which of the following scenarios is new task purchase most likely to be used?
A. For the purchase of a pair of shoes
B. For the purchase of household furniture
C. For the purchase of a mattress
D. For the purchase of real estate
132
.
Which of the following is the best example of a new task purchase?
A.
A dentist who has been in practice for 10 years buys a replacement dental chair just like the
old one
B. A supermarket manager reordering 24 replacement plastic pallets for storing food
C.
A Dallas-based hotel chain with 120 hotels and resorts buying new software of $1.6 million to
secure its networks
D
.
A department store upgrades its security system by installing a second video camera at the
employee's entrance to the store
Study Guide Questions
Page 14 of 22
133
.
Identify the type of purchase common among organizations practicing just-in-time inventory and
where buyers do not have time to search for potential suppliers and solicit bids.
A. Straight purchase

B. Modified rebuy
C. New task purchase
D. Straight rebuy
134
.
Organizations that use just-in-time inventory tend to favor suppliers with a strong commitment
to
A. Profit
B. Quality
C. Yield
D. Revenue
135
.
All of the following are reasons why an organization using a straight rebuy may shift to modified
rebuy for making organizational purchases, except
A. A supplier discontinues a product
B. The price of a usual product rises
C. A new product becomes available to meet the same need
D. A one time, big-ticket item needs to be purchased
136
.
This is a system of replenishing parts or goods for resale just before they are needed.
A. Just-in-time inventory
B. Vendor managed inventory
C. Process flow
D. Inventory evaluation

137
.
Marge and Louellen Price own a cleaning service. Marge and her office manager Phyllis
want to install a time clock and require each employee to sign in and sign out using the clock.
Louellen thinks the clock is a waste of time. She believes it is more efficient for their employees
to go directly to their first work site rather than waste time coming to the central office. Two
employees, Kari and Alicia, responded when asked what they thought of a time clock. Kari
brought in research information showing how employees in various industries reacted to a time
clock. Alicia, who is one of the company's best workers, said she would be happy to sign in and
sign out by means of the time clock. In terms of the buying center, Alicia probably
A. Was a gatekeeper
B. Was a user
C. Was a decider
D. Was an initiator
138
.
It is common in organizational buying for purchases to be made cross functionally with
representatives from different functional departments playing various roles in the process.
Taken collectively, these are called the
A. Buying centers
B. Intermediaries
C. New task processes
D. Gatekeeper facilities
139
.
Who in an organization has the formal or informal power to select or approve the supplier that

receives the contract in an organization?


A. Initiators
B. Buyers
C. Users
D. Deciders
140
.
Waddell Engineering manufactures molded plastic components for a leading toy manufacturer.
Roy supervises the production line; he would like to see the company use an injection molding
machine that has a faster cycle time. Petra and Robin are quality control managers for the
company and have just returned from a trade show with information on the new Logic Devices
molding machines. They hand this information to Mike Waddell, CEO of the company, who
is concerned about the $400,000 cost. Roy, Robin and Petra meet with Mike and Ailene, the
company's purchasing agent, to discuss why the company needs to buy the new machine.
Robin does not think the company needs to invest in the machine and does not tell anyone that
the same machine can be purchased for 30 percent less from another company. Who typifies
the role of gatekeeper?
A. Petra
B. Robin
C. Roy
D. Mike
Study Guide Questions
Page 15 of 22
141
.
Brad is an information systems manager working for Company X. His job entails him to

determine the specifications in the purchase of a new computer system for the company.
Identify which of the following best describes Brad's purchase role in this scenario.
A. Influencer
B. Initiator
C. Decider
D. Gatekeeper
142
.
Three college friends, Alan, Thomas and Will, have turned their interest in backpacking and
wilderness exploration into a profitable business partnership. They conduct exploration camps
lasting anywhere from two days to six weeks. They hire Alan's girlfriend Rosalyn, who assists
Alan in the operational activities of the business. Thomas interacts with various vendors to
procure the supplies needed for the business and Will looks after the company's finances. Who
would most probably be the buyer in this business?
A. Will
B. Alan
C. Thomas
D. Rosalynn
143
.
Which of the following statements about the types of organizational purchases is false?
A.
There are more suppliers to deal with in a new task purchase than any other type of
purchase
B. The time frame for a straight rebuy is much shorter than for a modified rebuy
C. New task purchases are more complex than straight rebuys

D. The time frame for a new task purchase is much shorter than for a modified rebuy
144
.
In differentiating organizational buyers, which of the following interpretations is false?
A. Web integration while marketing to organizational buyer is comparatively limited
B.
Marketing to organizational buyers requires more unique promotional strategies than to final
consumers
C. Marketing to organizational buyer has no variation in buyer-seller relationships
D. The distribution channel for organizational buyers is longer than for final consumers
145
.
Which of the following is most likely true of marketing to organizational buyers?
A. Less variation in buyer-seller relationships
B. Larger distribution channels
C. Standard promotional strategies
D. Greater Web integration
146
.
Once billboard signs are printed, most still need to be trimmed to a standard size. Western
Graphtec is a company that makes machines used for trimming signs quickly and accurately.
The company's management is made up almost completely of engineers. If a salesperson
calling on the company described Western Graphtec as technology-oriented, he or she would
be referring to the _____ that influence the organization buying process.
A. Purchasing policies and procedures
B. Purchasing roles

C. Organization-specific factors
D. Manufacturing processes
147
.
A large organization that is highly decentralized is more likely to _____ for other than straight
rebuys.
A. Use joint decision making
B. Employ longer distribution channels
C. Rely on less personal selling
D. Use autonomous decision making
148
.
Organizations that are highly _____ are less likely to have joint decision-making.
A. Decentralized
B. Cost-centered
C. Centralized
D. Profitable
149
.
Organizational buyers are engaging in sole sourcing because they are more concerned with
_____ than buying only on the factor of price.
A. Geographical proximity
B. Branded products
C. Quality and timely deliveries
D. Horizontal markets
Study Guide Questions

Page 16 of 22
150
.
Eastlake Furniture Company, a manufacturer of Victorian furniture reproductions, will only use
3M Jet-melt Adhesives for its finely crafted products. The adhesive can bond wood just as well
as hot melt adhesives without damaging heat-sensitive areas, so it satisfies the needs of the
company's craftspeople. Even though 3M adhesive is slightly more expensive than the hot-melt
glues made by competitors, 3M retains its clientele as it guarantees delivery just two days after
an order is placed. This best illustrates that Eastlake Manufacturing is using
A. Sole sourcing
B. Outsourcing
C. Industry-specific sourcing
D. Organization-wide sourcing
151
.
Steve, the purchasing agent for a carpet manufacturer received a memo indicating that an
upcoming financial review would determine which employees were most successful at reducing
costs within their departments. The review would also assess which employees would continue
working for the company as a result of their cost-cutting efforts. A salesperson trying to sell
a new weave-pattern machine to Steve claims that the machine would save costs for the
company in the long-run. Steve, however, is faced with the risk of termination made by any false
moves. In this case, _____ would influence the organizational buying decision.
A. Personal motivation
B. Structural factors
C. External competition
D. Purchase-type factors

152
.
Which of the following is not a personal motivation factor that influences organizational buying?
A. Professional pride
B. Personal ambitions and uncertainty
C. Friendship, trust and fear
D. Extent of institutional commitment to role
153
.
In _____, individuals approach their occupational roles with a weak commitment to expected
norms of behavior.
A. Lethargic organizations
B. Innovative firms
C. Committed firms
D. Adaptive firms
154
.
Carrie Guissop is an organizational buyer for a company that provides nursery products to WalMart. In a management meeting, she proposes that the company replace the three currently
used suppliers of plastic containers and trays - working with the company for the past 20
years - with a single supplier who guarantees on-time delivery. Attendees at the meeting are
unenthusiastic about Carrie's proposal as they like the traditional suppliers and are unwilling to
switch. Carrie, in order to maintain acceptance and status within the organization and to keep
conflict to a minimum, suggests that they try the plan for three months and revert to the original
if it fails to work. What kind of an organizational climate is described in this example?
A. Innovative

B. Autonomous
C. Adaptive
D. Lethargic
155
.
In which kind of an organization is there moderate commitment?
A. Lethargic organization
B. Innovative organization
C. Adaptive organization
D. Supportive organization
156
.
An organizational buyer in a(n) _____ organization would have a strong commitment to
traditionally accepted behavior and act accordingly.
A. Innovative
B. Autonomous
C. Adaptive
D. Lethargic
157
.
_____ is the process by which buyers rate each potential supplier on various performance
measures such as product quality, on-time delivery, price, payment terms and use of modern
technology.
A. Quantity research
B. New task purchase
C. Priori segmentation

D. Vendor analysis
Study Guide Questions
Page 17 of 22
158
.
Diversified Neon, Inc. makes neon signs. Its CEO recently attended a trade show where he
examined the new Neon Wizard 5.0, a machine that allows you to create three-dimensional
computer-generated designs, feed the designs into a machine with neon tubing and have the
neon extruded in almost any shape imaginable. He believes this machine will increase his
company's output by at least 30 percent and reduce its wastage by at least 50 percent. In which
stage of the organizational buying process is the CEO?
A. Purchase activities
B. Organizational need
C. Vendor analysis
D. Postpurchase evaluation
159
.
Recognizing _____ and a willingness and ability to meet them, often results in organizational
purchases.
A. Financial limitations
B. Vendor requirements
C. Cost benefits
D. Organizational needs
160
.
Delivery and reliability of purchases in a manner that interruption of production schedules is

minimized would most likely be a key concern in which functional area of organizational buying?
A. Maintenance
B. Purchasing
C. Quality control
D. Production
161
.
A complete situational analysis when embarking on a new or modified marketing program aids a
firm in all of the following ways, except
A.
Determining objectives, opportunities and constraints to be considered when selecting target
markets
B. Developing marketing mixes
C
.
Giving a clear idea of the amount of financial and other resources that will be available for
developing and executing marketing plans
D. Developing a long-term, departmental objective within the organization.
162
.
Which of the following statements about market segmentation is true?
A.
According to the model of market segmentation analysis, the process usually begins with
deciding segmentation strategy
B.
Market segmentation analysis proceeds product positioning, the cornerstone of sound market

planning
C
.
The logic of market segmentation is quite simple and is based on the idea that a single
product item can seldom meet the needs and wants of all consumers
D.
According to the model of market segmentation analysis, the process begins with design
marketing mix strategy
163
.
Which of the following statements about market segmentation is not true?
A. Market segmentation is the process of dividing markets into groups of similar customers
B. The decision to mass market a product does not require any market segmentation analysis
C. Generally, the first step in market segmentation is to delineate firm's current situation
D
.
Consumers are grouped on the basis of one or more similarities and treated as a
homogeneous segment of a heterogeneous total market
164
.
MicroBionics manufactures digital hearing aids, which unlike analog hearing aids, can be
programmed to mask out external noise. The company has determined that its competitive
advantage lies in its product, while its weakness is the associated manufacturing costs. Target
market opportunities exist within the maturing baby boomer segment. One challenge lies in
the existence of a competing, well-established brand called BelTone. In terms of the market
segmentation process, MicroBionics has completed which step?

A. Development of product positioning strategy


B. Delineation of firm's current position
C. Division of market on relevant segmentation variables
D. Design of marketing mix strategy
165
.
Market segmentation, when analyzed as a six-stage process, includes all of the following
stages, except the
A. Delineation of the firm's current situation
B. Determination of the consumer's needs and wants
C. Development of product positioning strategies
D. Design of the sales strategies
Study Guide Questions
Page 18 of 22
166
.
Consumer attitudes, preferences and benefits sought that are determined through marketing
research
A. Are commonly used for segmentation purposes
B. Help to implement and control promotional strategies
C. Need not always be aligned with the organization's overall objectives
D. Benefit the business by helping them in their financial planning
167
.
Jan Karon sold more than 10 million copies of her novels about Mitford, a fictitious town in
North Carolina. Karon's series of books focus on small town life as seen through the eyes

of an Episcopal priest who is honest and lovable and who believes strongly in God and the
promotion of godly virtues. Viking Press, publisher of the books, initially determined the market
segmentation strategy to use for the Mitford books was to target people who expressed a desire
for Christian-value-based entertainment and who shopped at Christian bookstores. It conducted
marketing research to determine the sizes and other characteristics of these markets across the
country. Viking Press used a(n) _____ segmentation approach.
A. A priori
B. A posteriori
C. Post hoc
D. Empiricism
168
.
Real world segmentation has followed one of two general patterns, an a priori segmentation
approach and a _____ approach.
A. Post hoc segmentation
B. Empiricism segmentation
C. Benefit segmentation
D. Psychographic segmentation
169
.
Post hoc segmentation is an approach in which people are grouped into segments on the basis
of
A. Demographic approach
B. Psychographic profiles
C. Market-orientation
D. Research findings

170
.
World Explorer Cruises advertises that it sells "Cruises for your heart, mind and soul. Even
better, it comes in a pint-sized budget!" What segmentation is the cruise line using?
A. Demographic segmentation
B. Geodemographic segmentation
C. Geographic segmentation
D. Benefit segmentation
171
.
_____ attempts to measure consumer value systems and consumer perceptions of various
brands in product class.
A. Benefit segmentation
B. Psychographic segmentation
C. Demographic segmentation
D. Geodemographic segmentation
172
.
Lifestyles are measured by asking customers about their .
A. Financial soundness
B. Activities, interests and opinions
C. Educational backgrounds
D. Influence on their immediate society
173
.
Consumers today are highly pressed for time. They're spending more time in their cars and

more time eating fast food while they are driving. To such a consumer, the cup holder is of vital
importance. Car manufacturers are designing cup holders that use gyroscopes to keep the cup
straight and the contents from sloshing out. This type of product development is aimed at a
market that can be readily defined through which segmentation?
A. Demographic
B. Behavior
C. Benefit
D. Person/situation
174
.
Benefit segmentation is clearly a
A. Demographic approach
B. Behavioral approach
C. Market-oriented approach
D. Consumer-lifestyles approach
Study Guide Questions
Page 19 of 22
175
.
What does "AIO" stand for?
A. Activities, interest and organizations
B. Administration, information and organizations
C. Activities, interest and opinion
D. Administration, information and opinion
176
.

A manufacturer of a new biodegradable cat litter learned from its research that a lot of cat
owners were not buying ordinary litter because of the difficulty in disposing the used claybased
litter. It cannot be flushed due to the build up in pipes and certain municipalities have
decreed that cat litter is a hazardous waste and must be disposed of in a specified matter. Cat
owners want litter that is easily disposed of and more absorbent than newspaper, which is a
common make-do method. The cat manufacturer has used which of the following segmentation
approaches to identify the stated information?
A. Benefit segmentation
B. Psychographic segmentation
C. A priori segmentation
D. Post hoc segmentation
177
.
A handbag manufacturer has segmented its market according to how women use them.
For instance, some women want large handbags so they can carry everything they could
possibly need. Other women want small, attractive handbags as accessories for their outfits.
Some women want handbags with lots of pockets to help them better organize. The purse
manufacturer uses which segmentation base?
A. Thoughts and feelings
B. Geographic
C. Person/situation
D. Geodemographic
178
.
Research studies showed Procter & Gamble that vacuum brick-packs of coffee sell much
better in the urban uptown than coffee in cans. As a result, Procter & Gamble repackaged their

Folgers coffee for the urban uptown and developed an advertising campaign to market them
to the region. Sales of Folgers coffee in this region increased by 32 percent. In this example,
Procter & Gamble used which segmentation to market its coffee?
A. Demographics
B. Psychographics
C. Person/situation
D. Geodemographic
179
.
What does the term "horizontal dimension" in VALS refer to?
A. Secondary needs
B. Resources
C. After-sale service
D. Primary motivation
180
.
What does geodemographic segmentation identify?
A
.
The belief that the benefits people are seeking in consuming a given product are the basic
reasons for the existence of true market segments
B
.
Specific households in a market by focusing on local neighborhood geography to create
classifications of actual, addressable, mappable neighborhoods where people live and shop
C.

The type of lifestyles, which are measured by asking consumers about their activities,
interests and opinions
D.
Primary motivation and whether consumers are driven by ideals, achievement and/or selfexpression
181
.
Consumers driven by a goal of demonstrating success to their peers are motivated primarily
by
A. Ideals
B. Achievements
C. Role models
D. Self-expression
182
.
The 2002 ad campaign for Carnival cruises emphasized the number of activities offered;
including hang gliding, mountaineering, hiking and scuba diving that people taking any of the
Carnival line cruises could participate in. The cruise line was trying to negate the concept
that all people do on a cruise was eat and sleep as well as the idea that only older, more
conservative people take cruises. Carnival's ads would appeal most to which of the following
consumers?
A. Survivors
B. Believers
C. Experiencers
D. Thinkers
Study Guide Questions
Page 20 of 22

183
.
Which of the following observations about geodemographic segmentation is true?
A. It does not identify specific individuals of households within a market
B.
It creates classifications of actual, addressable, mappable neighborhoods where consumers
live and shop
C.
It is based on the assumptions that consumers in particular neighborhoods are similar in
many respects
D.
It identifies consumer needs and wants and to satisfy them by providing products and
services with the desired benefits
184
.
Each PRIZM NE cluster is based on zip codes, demographic information from the U.S. census
and information on _____, media usage and lifestyle preferences to create profiles of the people
who live in specific neighborhoods.
A. Product usage
B. Resale value
C. Word-of-mouth publicity
D. Odd-even pricing
185
.
What assumption is the PRIZM NE system based on?
A.

Degree to which consumers are active is directly related to occupational and educational
factors
B
.
Consumers in particular neighborhoods are similar in many respects and that the best
prospects are those who actually use a product or other consumers like them
C.
Implementing and control of the marketing plan requires segmentation based on
psychographic lines
D. Achievement oriented targets need to be made in order to increase sales of an organization
186
.
The PRIZM NE system includes maps of different areas that
A. Rank neighborhoods on their potential to purchase specific products or services
B. Group consumers in particular countries that are similar in many respects
C. Help implement and control the strategic plan of that area
D. Are used for slotting allowances
187
.
Let's say you wanted to build a bowling alley in Canada. Market research shows you that
western Canadians enjoy bowling and similar pastimes significantly more than those in eastern
Canada. By locating your alley in the western province of Alberta, you would have used a _____
segmentation strategy.
A. Benefit
B. Behavior
C. Psychographic

D. Geodemographic
188
.
The slogan used by Miele vacuum cleaners is "Anything else is a compromise." The
manufacturer of Miele vacuum cleaners uses positioning
A. Based on superiority to competitive products
B. In terms of use or application
C. In terms of particular types of product users
D. Relative to a product class
189
.
When Post Grape-Nuts cereal ads show the cereal being used as a topping on yogurt, served
hot as an alternative to oatmeal and as a snack food, Post is using a positioning strategy
A. Based on superiority to competitive products
B. In terms of superior product users
C. Relative to a product class
D. By use or application
190
.
The ad for Pioneer complete buttermilk pancake mix says it makes pancakes as good as your
grandmother's. It then asks, "Why settle for your aunt's?" and shows a box of Aunt Jemima
buttermilk complete pancake mix. This is an example of positioning
A. Based on superiority to competitive products
B. In terms of superior product users
C. Relative to a product class
D. Directly against particular competitors

191
.
An ad for First Union Bank describes the bank as not only providing all banking services
a consumer could ever want, but also offering brokerage house services. Instead of just
competing against banks, First Union increased its versatility by using positioning
A. Based on superiority to competitive products
B. In terms of superior product users
C. Relative to a product class
D. By use or application
Study Guide Questions
Page 21 of 22
192
.
While churches are still marketed as places for traditional religious training, some churches
are reaching to other segments of the population by offering music-based services, youth-led
services and televised services. Churches are using positioning
A. Based on superiority to competitive products
B. In terms of superior product users
C. Relative to a product class
D. By on use or application
193
.
Maalox advertised its new Soft Chews as able to neutralize more stomach acid than Tums
Regular Strength could. Maalox was using positioning
A. Based on superiority to competitive products
B. In terms of particular types of product users

C. Relative to a product class


D. Directly against particular competitors
194
.
Which of the following statements is true with regard to a positioning map?
A. It can be used to determine how well customers perceive the information in an ad
B.
It allows marketers to evaluate consumers in terms of willing to buy, ability to buy and
authority to buy
C.
It is used by the U.S. Department of Commerce to create a geodemographic model of the
nation
D. It is a visual description of customers' perceptions of competitive products, brands or models
195
.
Different positioning techniques should be used depending on whether the firm is a market
leader or follower. The followers usually should not attempt to position directly against the
industry leader because
A. Competing with market leaders can be costly and not often successful
B. A follower's product already dominates in sales and in the minds of customers
C. Followers find it difficult to select segmentation strategies
D. The market can be so small that marketing to that portion is not profitable
196
.
All of the following are situations when a firm may decide not to segment but to be a mass
marketer, except

A. The market is so small that marketing to a portion of it is not profitable


B.
Heavy users make up such a large proportion of the sales volume that they are the only
relevant target
C.
The brand is the dominant brand in the market and targeting to a few segments would not
benefit sales and profits
D.
There are viable target markets which have been identified by the firm and are relevant to the
firm's domain
197
.
Heileman Brewing Company planned to market a new brand of malt liquor called PowerMaster.
Malt liquor is disproportionately consumed by African Americans and in low-income
neighborhoods. Targeting a group of consumers here is unethical on two dimensions. The first
is the degree to which the product can harm the consumers and the second is the
A. Vulnerability of the group
B. Pricing of the product
C. Attitude of the manufacturers
D. Lack of marketing communication
198
.
Three important criteria on which to base a segmentation strategy decision are that a viable
segment must be
A. Continual, presentable and restricted
B. Measurable, meaningful and marketable

C. Political, cultural and assured


D. Prestigious, non-deceptive and demographic
199
.
One of the difficulties associated with segmenting on the basis of social class is that the concept
and its divisions are not
A. Diverse and definitive
B. Clearly defined and measured
C. Available and relevant
D. Relevant and varied
200
.
Although the marketing mix design, according to the marketing model, happens at the end,
many marketing mix decisions are made in conjunction with
A. Alternative ideas
B. Financial backing
C. Target market selection
D. Deceptive pricing
Study Guide Questions
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