2007 fall midterm exam with answers

Download 2007 fall midterm exam with answers

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<p>Midterm Exam, Mark 6361, Fall 2007Name: __________________________________ UH ID:__________________________________ Please write your UH ID# on the scantron as well and blacken the matching circles. Multiple Choice: Each questions worth 2 points. Choose the one alternative that best completes the statement or answers the question. 1. What distinguishes a panel from other sources of market research data, we said in class, is the fact that panel data: a. are free b. come from businesses, not consumers c. come from consumers, not businesses d. come from the same respondents in different time periods e. reflect behavior, not opinions 2. Marketers selling to organizations are likely to encounter inelastic demand, we said in class. Therefore: a. Personal relationships will not be important b. Price cuts may not increase total sales c. Salespeople may adjust their forecasting estimates d. Compared to consumer marketing, buyers will be smaller and more widely dispersed geographically e. Purchases by governments will not be factor in total sales 3. Brand can play a number of specific roles within a companys brand portfolio. For example, a __________ is positioned to compete directly with one or more competitors brands so that more important and profitable brands retain their desired positioning. a. cash cow b. mid-market brand c. low end, entry level brand d. high end, prestige brand e. flanker 4. A ___________ occurs when the parent brand is used on a new product targeting a new market segment within a category currently served by the parent. a. joint venture co-brand b. line extension. c. category extension d. multiple sponsor co-brand e. same company co-brand</p> <p>5. _________ is the ability to prepare, on a mass basis, individually designed products to meet each customers requirements. a. Concentrated marketing b. Clustered marketing c. Specialized d. Niching e. Mass customization 6. __________ has been defined as a deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. a. Delight b. Deep satisfaction c. Satisfaction d. Loyalty e. Value delivery 7. Frequency programs acknowledge that ________ of a companys customers may well account for _____ of its business. a. less than 5 percent; nearly all b. 75 percent; a slight majority c. most; most d. 30 percent; 50 percent e. 20 percent; 80 percent 8. To enhance its marketing efforts, a wise marketer makes it _____ to complain. a. easy b. very difficult c. moderately difficult d. a two-step process e. None of the above. Since complaints are not positive, companies should discourage them altogether. 9. Fidelity Investments puts through certain customers calls more quickly than others to improve the value of the companys customer base. While on the phone, the longerwaiting customers hear messages encouraging them to complete their transaction via the company web site. This is an example of a. Enhancing the potential growth potential of each customer. b. Making low-profit customers more profitable. c. Increasing the longevity of the customer relationship d. Managing phone queues via illegal and discriminatory practices e. Reducing customer defection rate.</p> <p>2</p> <p>10. Which is true of competitive advantage? a. Benjamin Franklin first talked about it. b. It is the ability to copy the best practices of other companies c. Being the fastest to the market guarantees competitive advantage, according to Porters Five Forces d. Companies that hope to endure must continually invent new advantages. e. A characteristic that is of no importance to customers can be a customer advantage. 11. Which of following is true? a. If marketers raise expectations too high, the buyer is likely to be disappointed. b. If the company sets expectations too low, the buyer is likely to be disappointed. c. If marketers raise expectations too high, they will soon have many copycat offerings competing in the marketplace. d. If marketers raise expectations too high, they wont attract enough customers. e. If the company sets expectations too low, exceeding buyers expectation becomes difficult. 12. ________ are trademarkable devices that identify and differentiate the brand. a. Brand equities b. Intellectual properties c. Brand promises d. Brand elements e. Consumer knowledge bases 13. Marketers are advised to define a strategic business unit (SBU) in terms of : a. production process employed, key material(s) employed, price level b. customer groups served, customer needs met, technology employed c. relative market share, length of time the company has been in this business, uniqueness of its offering compared to competitors d. management strength, autonomy within the parent company, relation of this SBUs products to the companys other products e. price, product, promotion, and distribution</p> <p>3</p> <p>14. According to the work of Frederick Herzberg ________. a. Marketers can use laddering to determine the appropriate appeal to be used in their ads b. A person moves from stated instrumental motivation to terminal ones. c. A bottle of Estee Lauder perfume arouses a different set of motives in consumers than an Avon perfume. d. Polite store clerks will not necessarily be a satisfier for a consumer, but impolite ones would be a dissatisfier. e. People are driven by particular needs at particular times. 15. Which of the following is an example of a behavioral segmentation variable? a. Education level b. Family life cycle c. Stage of readiness to buy d. Lifestyle e. Occupation 16. Aarons hunting and fishing activities, his interest in military history, and his opinions about an all-volunteer army reflect his _________. a. demographics b. personality c. social class d. lifestyle e. self-concept 17. A new supplier is least likely to make a sale to a prospect involved in which of the following buying situations? a. Direct purchase b. Functional rebuy c. Modified rebuy d. Straight rebuy e. New task 18. Advertising usually has its greatest impact at the ___________ stage of new task buying. a. trial b. adoption c. interest d. awareness See page 105. e. evaluation</p> <p>4</p> <p>19. A(n) _______ establishes a long-term relationship in which the supplier promises to re-supply the buyer as needed at agreed upon prices over a specified period. a. over-run contract b. purchase order contract c. blanket contract d. superior order contract e. specialized contract 20. The point of showing in class that a bank might target those newly divorced or a school of nursing might target men was to emphasize the potential payoff from: a. casting as wide a net as possible b. selecting related segments to target two or more with obvious similarities c. focusing on one segment d. directing marketing efforts to the largest possible segment e. directing marketing efforts to the segment closest to the organizations current customer base 21. When we talked about stars, dogs, cash cows, and the like, we made the point that a. it is useful for a company to relocate periodically b. it makes sense to earn surplus cash with some products and invest that cash in other products c. tax considerations should be included in marketing decisions d. growth markets are the least profitable e. companies with high market share relative to competitors have the most difficult time gaining profits 22. We talked in class about PRIZM to make the point that a. Lifestyle segmentation is easier to accomplish than demographic segmentation b. Segmentation by types of neighborhoods can be helpful for finding similar segments in different cities c. Demographic segmentation is only helpful for retailers d. Demographic segmentation considers activities, interests, opinions e. A segment and a sector are different words for the same concept 23. Marketing strategy has three elements, we said in class: a. concentration, development, and diversity b. sales potential, sales budgets, and sales forecasts c. markets to target, products to offer, and differential advantage over competitors d. attaining, retaining, and growing customers</p> <p>5</p> <p>e. customer identification, customer relationship management, and customer experience management 24. The marketing activity particularly concerned with consumer learning and memory, we said in class, is a. product mix selection b. choosing channels of distribution c. designing packaging d. designing advertising e. planning pricing 25. To win back lost customers, the textbook recommends a. immediate action call to ask what problem led to their defection b. delayed action waiting a month or two, so the customer can assess how they view their new supplier c. price cuts as the only useful method once a customer has selected a new supplier d. raising prices, so the customer will see the company as higher in quality e. changing the product, so the customer will not object to a higher price 26. Marketers should consider the political-legal environment because a. legislation affecting businesses decreases over time, and it is wise to seek opportunities as regulations expire b. marketing transactions are unaffected by pressure groups c. legal departments are not involved in marketing issues and leave them to marketing managers d. special interest groups are declining in influence e. competitive behavior, product safety, and product labeling are regulated 27. The textbook suggests improving the quality of marketing intelligence by a. establishing a consumer advisory panel b. asking competitors to share pricing plans, in exchange for sharing ones own pricing plans with them c. replacing the purchase of information such as scanner data with survey data d. using a trial and error approach to marketing decisions e. avoiding observational data and focus groups 28. Based on environmental considerations, marketers should be concerned with a. promoting branded products over store brand substitutes</p> <p>6</p> <p>b. helping shoppers to justify visits to stores rather than purchasing from Websites c. increasing the number of disposable items in the product mix d. increasing prices to reduce unnecessary consumption e. learning how buyers use and dispose of products 29. The textbook recommends increasing structural ties with buyers. An example, for an airline, would be a. promoting a Visa card that awards miles flown on that airline b. price reductions on specific, less popular routes c. increasing the number of flights on more popular routes d. creating a low price, low frills airline with the same ownership but a different brand name e. raising prices, to add prestige to flying that particular airline 30. Thinkers, achievers, strivers, and similar categories are terms associated with a. income, education, and other variables measured by the U.S. Census b. primary motivation and resources, within the VALS Network c. Zip codes d. sector of the U.S. in which these segments are found e. the North American Industrial Classification System (NAICS)</p> <p>Please turn over this page to answer short-answer questions.</p> <p>7</p> <p>Please</p> <p>BRIEFLY answer each question.</p> <p>Each answer is worth up to 10 points each.</p> <p>Complete sentences are not necessary. Be sure you say SOMETHING in response to each question. 31. Michael Porter lists five factors that determine the attractiveness of a market (you could alsothink of it as an industry) in which an organization might decide to compete or not to. Please list any four of the five (I stop reading after four.) You got five points for showing up. Then you got one point additional for each correct answer or five altogether if you got them all. See pp. 161-2, where it tells you that Porter lists threats of intense segment rivalry, of new entrants, of substitute products, of the bargaining power of buyers, and the bargaining power of suppliers.</p> <p>32. To be useful, says the textbook and a slide we discussed, methods of segmenting a marketmust rate favorably on five key criteria. Please list any four of those criteria (I stop reading after four) and in one sentence, explain the meaning of any one of the four (just one, please, but make clear which one) to a college sophomore. You got five points for showing up. Then you got one additional point for each correct answer. This was the slide with pink ovals, or as listed on pp. 127-128 market segments must be measurable, substantial, accessible, differentiable (please notice what that means), and actionable.</p> <p>33. The textbook and a slide we discussed in class list five stages in the consumer buyingprocess, beginning with problem recognition. Please list any three of the other four (I stop reading after three), and suggest for a bicycle retailer how marketing dollars could be effectively employed in targeting consumers at the problem recognition stage. Youre getting the picture.5 points for showing up, then in a diagram you will see at the top of p. 92 the stages are listed: problem recognition was followed by information search, evaluation of alternatives, purchase decision, postpurchase behavior. The bicycle retailer needs to help people see that they need a bike, a second bike, or a new bike however that would be done. It could NOT be done by designing a better bike retailers dont do that, right? You got one point added to the 5 for each correct answer, or 5 if you got them all correct.</p> <p>34. Explain derived demand to a college sophomore, briefly, and why it matters in forecastingsales for any business-to-business marketer. Again, 5 points automatic. Most people did either OK or well on this. For a full 10 points I had to see some reference to the customers customers, but I gave partial credit for knowing something to indicate an understanding that demand for one set of offerings might depend on demand for another.</p> <p>8</p>