Midterm exam 2015, questions and answers PDF

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University of Alberta, Faculty of Business Marketing 301 Midterm Exam A1: Professor:

Peter T.L. Popkowski Leszczyc

50 Multiple choice questions. Answer any 45 questions each right question is worth about 2.2 points. Choose the one alternative that best completes the statement or answers the question. Name:___________________________________ Student Id:___________________________ 1. Many major purchases result in ________, or discomfort caused by postpurchase conflict. A. need recognition B. cognitive dissonance C. purchase decisions D. legitimization E. dissatisfaction 2. ________ is(are) the most basic cause(s) of a person's wants and behaviour. A. Culture B. Brand personality C. Cognitive dissonance D. Social factors E. Selective perception 3. ________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviours. A. Social classes B. Cultures C. Reference groups D. Attitudes E. Lifestyles 4. ________ are groups to which an individual wishes to belong, as when a teenage hockey player hopes to play someday for the Canadian Olympic Hockey team. A. Membership groups B. Aspirational groups C. Leading adopter groups D. Leisure groups E. Social class groups 5. ________ is a person's pattern of living as expressed in his or her psychographics, including his or her activities, interests, and opinions. A. Personality B. Culture C. Lifestyle D. Motive E. Social class

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6. What is the most pressing in Maslow's Hierarchy of Needs at any given time? A. physiological needs B. social needs C. esteem needs D. self-actualization needs E. safety needs 7. Applying ________, marketers can affect demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement. A. subliminal advertising B. social classes C. learning theory D. need recognition E. cognitive dissonance 8. The buying process differs for frequently purchased and durable goods. For frequently purchased goods the need recognition is normally followed with ________. A. information search B. evaluation of alternatives C. purchase decision D. separation of needs and wants Use the information below to answer questions 9 and 10: The Body Shop has always been committed to socially responsible marketing. The company's latest move is the introduction of Ruby. Represented in posters, her facial features are similar to Barbie's but Ruby's dimensions match the average real woman's. Ruby's ambitions are "to help everyone develop more positive selfesteem, so they can find inner contentedness and realize their full potential within society." The introduction of Ruby is the latest move by The Body Shop in what it calls an "ongoing commitment" to help people appreciate who they are. In addition to in-store posters, Body Shop outlets across Canada are selling Ruby postcards for a quarter, with a portion of the proceeds going to the company's charitable foundation. 9) Which consumer concern does The Body Shop's Ruby address? A) outrageous markups B) unsafe products C) false wants D) weblining E) planned obsolescence 10) Which principle of enlightened marketing does Ruby represent the most? A) sense-of-mission marketing B) customer-oriented marketing C) societal marketing D) value marketing E) innovative marketing 11. Effective marketing should begin with A. An effort to persuade unwilling customers to buy the firm's products. B. Potential customer needs. C. The marketing manager making important production, accounting, and financial decisions for the firm. D. A decision about what the firm can produce efficiently. E. Evaluation of the effect of the firm's decisions on the marketing system. 2

12. According to management the major aim of Benetton’s advertising campaigns was? A. To provoke controversial reactions all around the world and thereby create lots of free publicity and word of mouth. B. Create brand awareness through repeated exposure of the Benetton name in the ads. C. To increase sales by persuading consumers to shop for the company products. D. To communicate the company's values and to raise social awareness. E. All of the above. 13. The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________. A. short-run costs and profits B. short-run ethics C. long-run welfare D. immediate health E. value propositions 14. Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. The key to this goal is to match the customer-perceived performance of his product with ________. A. company-perceived performance B. customer values C. customer expectations D. relationship levels E. company expectations 15. A. B. C. D. E.

The term market is best defined as: people with a need and a want for a product. organizations with the need and desire for a product. organizations with products which satisfy people's needs and wants. people with the desire and ability to buy a product. people with the desire and the need for a product.

16. Assume Tim Hortons is engaging in a market development strategy. Which of the following actions best illustrates a market development strategy? A. B. C. D. E.

running a “roll up the rim to win” promotion, whereby customers have a chance to win prizes with each purchase opening the first Tim Hortons in China adding a line of new deli sandwiches to the existing menu giving coupons for free fries when customers purchase meal combos developing a line of Tim Hortons coffee makers

17. An effective value proposition answers the question _______________. A. "Why should I buy your brand rather than a competitor's?" B. "How does your brand benefit me and society?" C. "What are the costs and benefits of your brand?" D. "What kind of experience will I have with products and services associated with this brand?" E. "What are the benefits of being a loyal consumer of your brand?"

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18. Which of the following is the final step in the strategic planning process? A. B. C. D. E.

defining the company mission setting company objectives and goals designing the business portfolio planning marketing and other functional strategies identifying the company's culture

19. Intel and Microsoft have been accused in recent years of holding back their next generation computer chips or software until demand is exhausted for the current generation. This is a problem found under the concept of _________. A. B. C. D. E.

product deletion planned obsolescence demarketing product wear-out sustainable marketing

20. A. B.

A key difference between cause-related marketing (CRM. and an outright charitable contribution is: a charitable contribution counts as a higher tax deduction. there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of CRM efforts made in the course of one year. charitable donations are contributed at the sole discretion of the firm; with CRM the amount is directly affected by the consumers' purchases. cause-related marketing is generally linked to public causes and concerns and straight charitable contributions are generally given to private institutions. there is essentially no difference between a straight charitable contribution and cause-related marketing.

C. D. E.

21. Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers. A. services B. housing and construction C. food and beverage D. consumer electronics and computer E. financial and entertainment 22. A heavily promoted brand of flu medicine sells for much more than a virtually identical store-branded product. Critics would likely charge that promotion for the branded flu medicine adds only ________ to the product rather than functional value. A. B. C. D. E.

consistency strength psychological value quality informational value

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23. Albatross Enterprises was accused of deceptive pricing. Which of the following explains what might have happened? A. Albatross refused to advertise sale prices in the local paper. B. Albatross lured customers to the store for a bargain that is out of stock. C. Albatross advertised a large price reduction from a phony high retail list price. D. Albatross misrepresented a product's features in an ad. E. any of the above 24. A company or association's ________ is designed to help guide responses to complex social responsibility issues. A. code of ethics B. cause-related marketing C. discretion in enforcing regulations D. privacy policy E. core value system 25. Marketers respond to charges of planned obsolescence with the following: A. Consumers lead change and innovation. B. The product sells itself. C. The product will eventually wear out anyway. D. For most technical products, customers want the latest innovations, even if the older model still works. E. Companies do not want to lose their brands. 26. It is most accurate to say that within a company, ethics and social responsibility require a ________. A. future-looking approach B. total corporate commitment C. separate budget D. time commitment that most firms do not have E. high-level ethical officer 27. Given Honest Tea’s strength and weaknesses what opportunities and threats in the macro environment should they be most concerned about? A. Economic environment B. Technological environment C. Cultural Environment D. Demographic environment E. All are equally important 28. Which of the following terms best describes the environment that includes the forces close to the company that affect its ability to serve its customers, such as the marketing channels? A. B. C. D. E.

macroenvironment value chain internal environment external environment microenvironment

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Use the information below to answer questions 29, 30 and 31: The baby boomers are getting older... and they are also getting younger! As a generation obsessed by aging they are seeking products and services that promise youth. From plastic surgery to cosmetics, companies are taking advantage of technology to satisfy customer needs. Each company is trying to provide a unique advantage for the customer that no other company can provide. With the large amounts of sales to be had because of the large demand by baby boomers, the market for the fountain of youth is highly competitive. In Canada, many products in this market are regulated by the Food and Drug Act to ensure the safety of customers who use them. As the economy gets stronger, more and more customers are willing to spend money on trying new and expensive products and services promising to get rid of tell-tale signs of aging. The large baby boomer population is a global phenomenon and many of these companies market their products internationally. Ingredients used in a product may be acceptable in Canada but not in Europe. 29) The factors affecting the "fountain of youth" market mentioned above are in the A) minds of the customer. B) microenvironment. C) company. D) competition. E) macroenvironment. 30) Advances in science continue to affect the products created to find the fountain of youth. Which factor is this associated with? A) economic B) natural C) technology D) political E) social 31) The factor related to baby boomers' need to retain their youth is A) economic. B) natural. C) cultural. D) political. E) technological. 32. Given Honest Tea’s strength and weaknesses what opportunities and threats in the micro environment should they be most concerned about? A. Competition from Coke and Pepsi B. Suppliers C. Marketing intermediaries D. Demographic trends E. All are equally important

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33. Which of the following factors is not part of the macroenvironment? A. demographics B. economics C. technology D. cultural forces E. intermediaries 34. The authors argue that the _____________ is most quickly changing society's destiny. A. demographic environment B. cultural environment C. technological environment D. competitive environment E. natural environment 35 A. B. C. D. E.

The fastest growing age segment in Canada is composed of: infants. people over 50 years of age. children of baby boomers. teens. people in their early 30s.

36. Shelly, the manager of a large grocery store, was concerned. She had received complaints from several customers who said they had been treated rudely by clerks at the store. In order to determine whether or not her clerks were indeed rude, Shelly hired a team of marketing researchers. The researchers posed as customers shopping in the store, but were actually taking notes and recording the actions of the store clerks. Later, Shelly reviewed those notes. The research notes Shelly reviewed were a form of _____ data. A. Secondary B. Developmental C. Observational D. Experimental E. Conceptual 37. It is most accurate to say that secondary data are ________. A. collected mostly via surveys B. expensive to obtain C. not always relevant D. never purchased from outside suppliers E. always necessary to support primary data 38. ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has the following advantage. A. flexibility B. speed of data collection C. control of interviewer effects D. response rate E. control of subject

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39. When Karsh & Hagan Advertising Agency uses information found in Nielsen Reports, published by the A.C. Nielsen Company, to plan television advertising schedules for its clients it is relying on _____ data. A. proprietary B. primary C. secondary D. survey E. experimental

40. As marketing vice president of Health Care Services, Inc., you are in charge of conducting research to test what the effect is of increasing the number of salespeople assigned to a territory on sales of health care services in the territory. Which research will do this best? A. manipulating the independent variable of sales and assessing the impact by measuring the dependent variable of satisfied customers of health services B. Conduct a survey asking consumers purchase intentions due to increased/improved service (due to an increase in the number of salespeople). C. Talk to salespeople, who have direct contact with consumers, and ask for their opinion about the impact of increasing the number of salespeople on sales. D. manipulating the independent variable of satisfied health service customers and assessing the impact by measuring the dependent variable of salespeople assigned E. manipulating the independent variable of salespeople assigned to a territory and assessing the impact by measuring the dependent variable of sales of health services 41. A. B. C. D. E.

The basic techniques of exploratory research are: secondary data analysis, focus groups, depth interviews. mail surveys, telephone surveys, focus groups descriptive research, causal research. secondary data analysis, focus groups all of the above.

42. Of all the survey contact methods available for the marketing researcher, the ________ method has the best control of sample. A. mail survey B. telephone survey C. personal interview D. online survey E. all of the above. 43. Survey research, though used to obtain many kinds of information in a variety of situations, is the approach best suited for gathering ________ information. A. interpersonal B. causal C. attitudinal D. descriptive E. exploratory

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44. As was shown for the New Coke introduction, often the most difficult step to accomplish successfully in the marketing research process is A. convince senior management of the need to spend money on research. B. implement the research plan, and collect and analyze the data. C. define the problem and research objectives. D. develop the research plan for collecting information. E. interpret and report the findings.

Answer the following two questions using the below graph.

45. Sales and profits for strategic business unit (SBU) C have been declining. According to BCG portfolio analysis the best strategy for SBU C is to? A. Invest to build market share moving SBU towards SBU G or H. B. Use a harvesting strategy. C. Sell off SBU C immediately. D. Invest to build market share moving SBU towards SBU A or B 46. Looking at the portfolio of SBUs we can say that this company: A. Appears to be quite profitable. B. Appears to have a balanced portfolio. C. Appears to have too many SBUs. D. Should “milk the cash cows” to try improve the position of SBUs C and D. 47. Hewlett-Packard decided that too many other companies were attracting its customers by cutting their prices of their computer printers. So Hewlett-Packard designed a new promotional campaign with a completely new positioning and pricing strategy targeted to a different more upscale target market. This was an effort at: A. Market development. B. Diversification. C. Product development. D. Market penetration. 9

48. Mountain Home Farms is now using the product/market expansion grid to develop strategies. The owners of the company have most likely found the grid to be quite useful for identifying ________. A. target markets B. growth opportunities C. key customers D. new products E. suppliers 49. A. B. C. D. E.

A strategic business unit refers to an organization that: Directs overall strategy for the organization. Markets a set of related products to a clearly defined group or groups of customers. Conducts marketing activities. Also has a comparable non-business unit. Does not have its own mission and objectives.

50. Which of the following accurately reflects a problem with the BCG matrix approach? A. It focuses on future planning. B. It can be costly to conduct. C. It detracts from the focus on profit maximization. D. It can lead to over estimation of profits. E. It focuses on classifying future businesses.

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