Introduction to Business BUS-102

Chapter 13 Quiz (Prof Clay Lifto 2007)

Name _______________________________

 

Instructions: Circle the letter of one best answer to each question.

 

 

1.

____________ is the process of identifying factors that can affect marketing success.

 

A)

Environmental scanning

 

B)

Target marketing

 

C)

Niche marketing

 

D)

Segmentation analysis

 

 

2.

The greatest marketing need during the production era was for:

 

A)

production and selling.

 

B)

distribution and storage.

 

C)

advertising and financing.

 

D)

production and storage.

 

 

3.

Businesses have found that employees will not provide first-class goods and services to customers unless they receive:

 

A)

union representation.

 

B)

frequent promotions and pay raises.

 

C)

first-class treatment themselves.

 

D)

the education and training that prepares them for more responsibility.

 

 

4.

Which of the following has been the most powerful contribution to the popularity of customer relationship management in recent years?

 

A)

The recognition by marketers that earning a profit is not the primary goal of a firm

 

B)

The development of production techniques that enable firms to cost effectively produce small or larger quantities of a product.

 

C)

The dramatic increase in the number of firms providing software that allows firms to become “customer-centric.”

 

D)

The recognition that attracting new customers is the most effective strategy to increase profits over time.

 

 

5.

Andre is a real estate agent who has an idea for a software program that will help perform real estate appraisals more quickly and more accurately.  He has worked with a buddy who is good at programming to develop a detailed description of what the software will do and how it differs from existing applications. Now Andre has taken this description and shown it to a number of fellow real estate agents to see if his idea appeals to them. Andre is engaging in:

 

A)

prototype outsourcing.

 

B)

test marketing.

 

C)

concept testing.

 

D)

word-of-mouth advertising.

 

 

6.

All of the following are part of the marketing process except:

 

A)

Developing an understanding of the customer behavior.

 

B)

Determining the brand name for a new product.

 

C)

Designing the most efficient method of production of a new product.

 

D)

Contacting buyers after a sale to ensure customer satisfaction.

 

 

7.

Which of the following statements is most accurate?

 

A)

The most dramatic global change affecting marketing efforts of most firms is the rise of the Euro as a dominant world currency.

 

B)

While the Internet has had a significant impact on the global reach of marketing, it has had little impact on the competitive environment most firms face.

 

C)

The most important technological changes in the marketing environment have been the growth of consumer databases and the evolution of the Internet.

 

D)

Extensive research indicates that economic and competitive trends are the only environmental factors that have a lasting impact on a firm's marketing success.

 

 

8.

Kelly buys only Calvin jeans and Nike sport shoes because these products are endorsed by her favorite entertainers.  Furthermore, her attitudes and values are shaped by statements by these celebrities.  This illustrates how consumer decision making is influenced by:

 

A)

marketing mix variables.

 

B)

cognitive dissonance.

 

C)

a reference group.

 

D)

primary group identification.

 

 

9.

H2 O'Yeah has designed a water purification device that is drastically different and far superior to any product currently on the market.  Although consumer response was positive to the idea of the new product, management wants to find out more before committing to full scale production.  The next step H2 O'Yeah's marketing department is likely to take is to:

 

A)

locate a low cost production site.

 

B)

seek a joint venture with a larger competitor.

 

C)

test market prototypes of the product among potential users.

 

D)

develop an advertising campaign to persuade consumers of the value of the new water purifier system.

 

 

10.

Marketers define a ________ as any physical good, service, or idea that satisfies a want or need.

 

A)

product

 

B)

brand

 

C)

prototype

 

D)

concept test

 

 

11.

One factor that influences the consumer decision making process is __________, which refers to the set of values, attitudes, and ways of doing things passed from generation to another in a given society.

 

A)

cognitive dissonance

 

B)

legal environment

 

C)

group behavior

 

D)

culture

 

 

12.

__________ consists of all the techniques sellers use to persuade consumers to buy their goods and services.

 

A)

Advertising

 

B)

Promotion

 

C)

Pre-selling

 

D)

Closing

 

 

13.

A firm gathers ___________ data by conducting surveys, interviewing customers, or mailing out questionnaires.

 

A)

primary

 

B)

secondary

 

C)

non-referenced

 

D)

unbiased

 

 

14.

The __________ market consists of individuals and organizations that want goods and services to produce other goods and services or to sell, rent, or supply those goods to others.

 

A)

consumer

 

B)

B2B

 

C)

target

 

D)

super

 

 

15.

Which of the following would best benefit the development of niche marketing?

 

A)

A decline in the cost of advertising on radio and newspapers enabling firms to more efficiently reach a wide audience.

 

B)

A Supreme Court ruling that limits the market share individual firms in a market are allowed to serve.

 

C)

A growing acceptance of free trade agreements such as NAFTA.

 

D)

A manufacturing improvement enabling firms to more efficiently design and produce specialized products for small groups of consumers.

 

 

16.

By employing a relationship marketing strategy, Jocelyn found success as an entrepreneur.  The goal of this strategy is to:

 

A)

use radio and television advertising to attract new customers.

 

B)

work closely with existing customers to better satisfy their wants and needs.

 

C)

target large market segments of potential customers by working closely with a variety of suppliers. 

 

D)

communicate to buyers the advantages offered by your firm's low prices and standardized products.

 

 

17.

The __________ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.

 

A)

mercantile philosophy

 

B)

hierarchy of needs

 

C)

relationship approach to marketing

 

D)

marketing concept

 

 

18.

Which of the following describes the time period immediately after the development of mass production assembly lines?

 

A)

Production era

 

B)

Selling era

 

C)

Marketing era

 

D)

Customer relationship era

 

 

19.

Which of the following would be considered part of a firm's marketing mix?

 

A)

Identifying the best source of funds to finance a firm's marketing activities.

 

B)

Determining the best pricing strategy for a product.

 

C)

Establishing a production schedule that enables the firm to meet forecasted sales.

 

D)

Designing the most efficient production plan.

 

 

Use the following to answer question 20:

 

Callie is a successful woman executive who is also a fitness enthusiast. For years she worked out at Big Jim's Gym, the only gym in her small hometown. However, she felt that the environment at Big Jim's was too masculine, and discovered that her female friends agreed. They disliked the small, smelly locker room, and the limited selection of aerobics equipment. Most of them eventually quit going to Big Jim's. Callie talked to Jim Nasium, the owner of Big Jim's, about things he could do to attract more women, but Jim had little interest in making any changes. "I've got all the business I can handle," he told Callie. "Why should I spend a bunch of money to redecorate and add extra equipment? Besides, lots of the guys who work out here tell me they like the simple, no-frills atmosphere."

 

Frustrated by Jim's indifference to her ideas, Callie began looking into the possibility of starting a health club to appeal to young, well-educated women. After visiting health clubs in other towns and talking to several friends to get ideas, she came up with a detailed plan for her club. She then described her ideas to women in the community to see how much interest there was in this type of facility. The extremely positive response encouraged her to go ahead with her plans. It took a while, but she ultimately obtained the financial backing to go into business.

 

Callie calls her new health club Curves and Shapes. It offers a spacious and attractive locker room, better aerobics equipment, a child care area so young mothers can have someone watch their toddlers while they work out, and exercise classes designed to appeal to young women. When a woman joins her health club, Callie schedules a free session with a personal trainer who works with the new member to design a personalized workout program. Callie tries hard to keep close to her customers, sending them a monthly newsletter that includes a survey asking what they like and don't like about Curves and Shapes. She wants to please her existing customers and keep them coming back. In fact, now that Curves and Shapes has a strong membership base, Callie believes it is more important to keep existing customers loyal than to attract new customers. In addition to the comments from her own customers, Callie also spends a lot of time tracking economic, social, and competitive trends in the health club industry, trying to identify factors that can affect the marketing success of her health club. She subscribes to several journals that cover trends and report on research findings related to the health club business. She has found that these journals provide her with an inexpensive source of useful information.

 

 

20.

When Callie wants to obtain information to research changes in her market or determine what her customers are likely to want in the future, she relies on the articles and data available in trade journals, feedback from surveys, and personal observation of her customers. Which of the following statements about Callie's sources of information is most accurate?

 

A)

Callie is relying entirely on primary data for her research needs.

 

B)

Callie is relying entirely on secondary data for her research.

 

C)

The surveys and personal observations provide primary data, while the journals provide secondary data.

 

D)

The surveys and personal observations provide secondary data, while the journals provide primary data.