1. The first four steps of the marketing process focus on: creating value for customers.

2. Marketing myopia refers to sellers being preoccupied with their own products and losing sight
of underlying potential consumer and market needs.
3. When backed by purchasing power, wants become demands.
4. Exchange is the act of obtaining a desired object from someone by offering something in return.
5. A market is the set of actual and potential buyers of a product.
6. Wants are human needs as shaped by individual personality and culture.
7. Which customer question is answered by a company’s value proposition?
“Why should I buy your brand rather than a competitor’s?”
8. The art and science of choosing target markets and building profitable relationships with them is
called marketing management.
9. According to the simple model of the marketing process, a company needs to understand the
marketplace and customer needs and wants before designing a customer-driven marketing
strategy.
10. Wendy purchased Brand X hand lotion. In comparing her perception of how the lotion
performed to her expectations for such a lotion, she was measuring her level of customer
satisfaction.
11. A CRM team leader aims to improve the overall firm profitability and assesses her firm’s most
profitable and loyal customers. Which of the following customer relationship group do these
customers belong to?
True friends
12. Which of the following best explains why consumers have greater power and control in today’s
marketplace?
Through new communication technologies, customers have more access to information and
more method of sharing their opinions with other customers.
13. Contemporary marketing practice is the responsibility of which group or groups of
organisational employees?
All above Marketing and finance; sales and customer support; information technology; general
management.
14. A highly profitable, short-term customer is a butterfly.
15. The production concept holds that consumers will favour products that are available and highly
affordable.
16. The product concept holds that consumers will favour products that offer the most quality,
performance and innovative features.
17. The marketing concept holds that achieving organizational goals depends on determining the
needs and wants of target markets and delivering the desired satisfaction more effectively and
efficiently than competitors.
18. The selling concept holds that consumers won’t buy enough of the organisation’s products
unless it undertakes a large-scale selling effort as part of its promotional program.
19. The societal marketing concept questions whether the pure marketing concept is adequate in
the age of environmental problems, resource shortages, rapid population growth, worldwide
economic problems and neglected social services.
20. The two fold goal of marketing is to attract new customers by promising superior value and to
keep and grow current customers by delivering satisfaction. True
21. The elements of the marketing mix are price, place, promotion and product. True
22. The elements of the extended marketing mix are product, price, placement logistics and
promotion plus people, process and physical evidence. True
23. Amy’s law office has developed a new format and wording for wills. Staff believe that they offer
superior quality, performance and innovative features. Her law office is practicing the
production concept. False
24. If a product’s performance falls short of the customer’s expectations, the buyer will be
dissatisfied. True
25. In its broadest sense, customer relationship management (CRM) is a customer data
management activity. False
26. Delivering superior customer value and customer satisfaction are the two keys to building lasting
customer relationships. True
27. Marketers often split Generation Z into three smaller groups: children's, tweens'; teens'
28. Cause-related marketing is a primary form of corporate giving.
You have been directed to study the actors close to the company that affect its ability to serve
its customers---departments with the company, suppliers, marketing intermediaries, customer
markets, competitors, and publics. Which environment are you studying? The
microenvironment.
29. Which of the following descriptions most accurately characterizes the baby boomers? They hold
nearly half of Australia’s wealth.
30. Which of the following descriptions most accurately characterizes Gen Xers? They are they first
to grow up in the internet era.
31. Which of the following descriptions most accurately characterizes Millennials? They are children
of baby boomers.
32. Value marketing is the strategy of offering consumers reasonable quality at a fair price.
33. Some experts warn against extensive use of generational marketing since each generation spans
decades of time and many socioeconomic levels.
34. The overall marketing environment facing both new and old marketing organizations consists of
the actors and forces outside marketing that affect marketing management’s ability to develop
and maintain successful transactions with its target customers.
35. The macroenvironment consists of larger societal forces that affect the whole
microenvironment----demographic, economic, natural, technological, political and cultural
forces.
36. The marketing environment is made up of a macro environment and a micro environment.
37. Systematic methods for collecting information about the marketing environment include
marketing research; marketing intelligence
38. Marketing intermediaries help an organization to promote, sell and distribute its goods to final
buyers.
39. Marketing service agencies are the facilitating agencies that help the organization to target and
promote its products to the right markets.
40. Financial intermediaries include banks, credit organizations, insurance organizations and other
businesses whose role includes helping to insure against the risks associated with the buying
and selling of goods.
41. Overseas buyers, including consumers, producers, resellers and governments, are part of the
 international market.
42. Consumer groups, environmental groups, minority groups and other public interest groups that
question an organization’s marketing decisions are part of the citizen-action public.
43. The microenvironment consists of the forces close to the organization that affect its ability to
serve its customers---the organization, marketing channel firms, customer markets, competitors
and publics.
44. The study of human populations in terms of size, density, location, age, sex, race, occupation
and other statistics is known as demography.
45. A company that experiences negative word of mouth on blogs or social networking sites should
ignore rumours, as answering any complaints will only make them seem more legitimate. False
46. When a marketing manager discusses factors and forces outside marketing that affect marketing
management’s ability to build and maintain successful relationships with target customers, she
is talking about the external marketing concept. False
47. Marketers, more than any other group in the company, must be aware of the microenvironment
and macroenvironment, tracking trends and seeking opportunities. True
48. The microenvironment consists of larger societal forces that affect a company, such as
demographic, economic, political and cultural forces. False
49. The macroenvironment consists of the factors close to the company that affect its ability to
service its customers, such as suppliers, customer markets, competitors and publics. False
50. Population diversity refers to changes in a population’s ethnic composition. False
51. What source of marketing information provides those within the company ready access to
research information, stored reports, shared work documents, contact information for
employees and other stakeholders, and more? An intranet.
52. In CRM, findings about customers discovered through data mining techniques often lead to
marketing opportunities.
53. Causal research is used to test hypotheses about cause-and-effect relationships.
54. Exploratory research is used to define the problem and identify hypotheses.
55. Secondary data consists of information that already exists somewhere but was collected for
another purpose.
56. Ethnographic research is gathered from people in their ‘natural habitat’.
57. Survey research, though used to obtain may kinds of information in a variety of situations, is the
approach best suited for gathering descriptive information.
58. A marketing information system (MIS) consists of people and procedures to assess information
needs, develop the needed information and help decision makers analyze and use the
information.
59. The major advantage of survey research is its flexibility.
60. Survey research is LEAST likely to be conducted through which of the following? Observation.
61. Which of the following contact methods is generally the least flexible? Mail questionnaires.
62. The real value of a company’s marketing research and information system lies in how it is used---
in the customer insights it provides
63. Focus group interviewing has become one of the major marketing research tools for getting
insight into consumer thoughts and feelings. However, if the sample size is small, a researcher
would be most concerned about which of the following? Generalizing from the results.
64. What is a major drawback of probability sampling? It can be time consuming.
65. AMF Research Group must guard against problems during the implementation phase of
marketing research for its clients. Which of the following is NOT a problem that should be
anticipated during this phase? Interpreting and reporting the findings.
66. When marketers use online data to target ads and offers to specific consumers, what are they
engaging in? online behavioural targeting.
67. With the ability to conduct quantitative research, internet is quickly replacing the telephone as
the dominant data collection methodology.
68. Open-ended survey questions are particularly useful in exploratory research. True
69. An effective MIS assesses information needs, develops needed information and distributes the
information to help managers use it in decision making. True
70. Good sources of marketing intelligence information include competitors’ annual reports,
business publication, trade show exhibits, press releases, advertisements and web pages. True
71. You have just identified the ‘touch points’ of the 400 best customers in your database. At this
point, you want to manage detailed information about each of them to maximise customer
loyalty. You should use customer relationship management (CRM). True
72. The misuse of marketing research can harm or annoy consumers. True
73. Five different roles can be identified in most buying processes. Which of the following is NOT
normally considered to be a decision role? Performer
74. The person who first suggests or think of the idea of buying a given product or service is known
as the initiator.
75. The person who ultimately makes a buying decision or any part of it---whether to by, what to
buy, how to buy or where to buy--- is the decider.
76. Having read an article about Honda’s new super-efficient, low-polluting cars that are propelled
by hybrid combinations of battery-powered electric motors and small gasoline engines, a buyer
now wants to learn even more about the new car. In terms of the adoption process. The
potential buyer has moved from awareness to interest.
77. Of the five adopter groups, the cohort that tends to be skeptical and adopts an innovation only
after the majority of people have tried it is known as late majority.
78. Of the five adopter groups, the cohort that is tradition-bound and is the last to adopt an
innovation is laggards.
79. Groups that serve as direct (face-to-face) or indirect points of comparison or reference in
forming a person’s attitudes or behavior are called reference groups.
80. During which stage of the business buying process is a buyer most likely to conduct product or
service analysis, carefully studying components to determine if they can be redesigned,
standardized or made less expensive? Product specification.
81. A problem with the rapidly expanding use of e-procurement is that it can also erode decades-old
customer-supplier relationships.
82. One who always knows about the trendiest fashions, actively shares her knowledge with a wide
group of friends and colleagues about where to shop for cutting-edge fashion at great deals, and
whose advice is often followed, is called an opinion leader
83. A woman has been attending aerobics classes for the past three years. Her diligence and effort
have paid off, and she has attained a very high level of skill which she hopes will qualify her for a
position as an aerobics instructor. When she attends classes, she carefully notes the brands of
footwear and apparel worn by the instructors at her local fitness centre. She actively models her
 purchasing on the fitness instructors’ preferences, and purchases comparable brands for her
own personal use. For her, the fitness instructors are an example of an aspirational group.
84. Facebook.com and YouTube are example of social networks.
85. All of the following make up a person’s lifestyle EXCEPT buying behavior.
86. A customer’s lifestyle can be measured using the AIO dimensions. What does AIO stand for?
Activities, Interests, Opinions.
87. A person’s buying choices are influenced by four major psychological factors. Which is NOT one
of these factors? Alternative evaluation.
88. A motive is a need that is sufficiently pressing to direct a person to seek satisfaction of the need.
89. According to Freud’s theories, people are unaware of many of the psychological forces shaping
their behaviour.
90. What is the LEAST pressing in Maslow’s Hierarchy of Needs? Self-actualisation needs.
91. A woman looked at her September issue of Women’s Health magazine and did not see anything
of interest. However, after her mother was diagnosed with bipolar disorder, she found the issue
extremely interesting because it offered advice on how to help people who are suffering from
this problem. The September issue of the magazine became quite interesting to her due to
selective attention.
92. People cannot focus on all of the stimuli that surround them each day. A person’s tendency to
screen out most of the information to which he or she is exposed is called selective attention.
93. Although there is little evidence for its existence, some consumers still fear that they are being
manipulated by subliminal messages.
94. Learning describes changes in an individual’s behavior arising from experience.
95. A belief is a descriptive thought that a person has about something.
96. The marketer wants to understand how the stimuli are changed into responses inside the
buyer’s black box, which has two parts: the buyer’s characteristics that influence how he or she
perceives and reacts to the stimuli and the buyer’s decision process itself.
97. Culture is the most basic cause of a person’s wants and behavior.
98. When a consumer learns about a new product for the first time and makes a decision to try it,
the consumer is engaged in the alternative evaluation process. False
99. People differ greatly in their readiness to try new products. In each product area, there are
‘consumption pioneers’. They are also called early adopters. False
100. Members of the early majority are deliberate; although they rarely are leaders, they adopt
new ideas before the average person. True
101. Two characteristics that are especially important in influencing an innovation’s rate of
adoption are relative advantage and compatibility. True
102. Buyer and seller are less dependent upon each other in the business buying process than in
the consumer buying process. False
103. Niche marketing offers smaller companies the opportunity to compete by focusing their
limited resources on serving niches that may be unimportant to or overlooked by larger
companies.
104. When food retailer, IGA, customises its merchandise store by store to meet shopper needs,
it is practicing local marketing
105. In target marketing, the issue is not really who is targeted, but rather how and for what.
106. A product’s position is based on important attributes as perceived by consumers.
107. Which type of differentiation is used to gain competitive advantage through the way a firm
designs its distribution coverage, expertise and performance? Channel differentiation.
108. When firms use symbols, colours or characters to convey their personalities, they are using
image differentiation.
109. Which positioning strategy offers consumers a ‘good deal’ by offering equivalent-quality
products or services at a lower price? Same-for-less.
110. ‘Less-for-much-less’ positioning involves meeting consumers’ lower quality requirements in
exchange for a lower price.
111. When Burger King targets children, teens, adults and seniors with different ads and media,
it is practicing age and life-cycle segmentation.
112. Markets can be segmented into groups of nonusers, ex-users, potential users, first-time
users and regular users of a product. This method of segmentation is called user status.
113. Consumers can show their allegiance to brands, stores or companies. Marketers can use
this information to segment consumers by loyalty status.
114. Shampoo marketers rate buyers as light, medium or heavy product users. This is usage rate
segmentation.
115. People cannot focus on all of the stimuli that surround them each day. A person's tendency
to screen out most of the information to which he or she is exposed is called Selective attention.
116. Many firms make an effort to identify smaller, better-defined target groups by using
multiple segmentation bases.
117. When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia
or New Zealand, it is using which segmenting base? Geographic location.
118. MTV targets the world’s teenagers, who have similar needs and buying behaviour even
though they are located in different countries. This is called intermarket.
119. The market segments your company is targeting are conceptually distinguishable and
respond differently to different marketing mix elements and programs. Therefore, these
segments are differentiable.
120. Which of the following statements is expressed solely as a psychographic profile of a
consumer? Rab likes nothing better than to unwind his mates, over a drink, at the football.
121. Sanguine Services practices a marketing strategy where its limited resources are used to go
after a large share of two small niches. Sanguine practices which one of these strategies?
Concentrated
122. Using micromarketing, companies tailor their marketing programs to the needs and wants
of narrowly defined geographic, demographic, psychographic, behavior or benefit segments.
123. Product position is the way a product is defined by consumers on important attributes.
124. A marketing organization or market offer can be differentiated along lines of product,
services, personnel and image.
125. Geographic segmentation divides a market into units such as nations, regions, states,
municipalities, cities or neighbourhoods.
126. Demographic segmentation divides a market into groups based on variables such as
education, religion and nationality.
127. In evaluating different market segments, a firm must look at three factors: segment size
and growth, segment structural attractiveness, and company objectives and resources. True
128. Developing a stronger position within several segments creates more total sales than
undifferentiated marketing across all segments. True
129. A product line is a group of products that are closely related because they function in a
similar manner, are sold to the same customer groups, are marketed through the same type of
outlets or fall within given price ranges
130. The major product line decision involves product line length.
131. A company can expand its product line in one of two common ways. Which of the following
is one of those ways? Line filling
132. An alternative to product line stretching is product line filling, that is, adding more items
within the present range of the line.
133. The second level of a product is the actual product, which refers to the tangible product
itself, service features, design, quality level, brand name and packaging.
134. When a company lengthens its product line beyond its current range, it is product line
stretching.
135. Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits
and use excess market capacity, Helene Curtis then marketed shampoo for oily hair and colour-
treated hair. This is an example of line filling.
136. A Product mix consists of all the product lines and items that a particular seller offers for
sale.
137. Product mix width refers to the number of different product lines the company carries.
Sony markets a wide range of consumer and industrial products around the world, from TVs to
semiconductors.
138. A company can increase its business in four ways. Which is NOT one of these ways? It can
discontinue some of its lines.
139. Product-line length is influenced by company objectives and resources.
140. Some billboards advertise that a certain service station has clean restrooms with the idea
that clean restrooms imply the entire operation is devoted to customer satisfaction. Advertising
a clean restroom is one method used to manage the service characteristic of intangibility.
141. The factor of perishability indicates that when considering services, there is no stored
inventory.
142. When a brand loses the trust it has engendered, its value soon declines.
143. Products that are bought frequently, immediately and with little deliberation, like soft
drinks and chewing gum, are called convenience goods.
144. Products that the customer either does not know about or knows about but does not think
of buying are known as unsought products.
145. Companies are realising the power of good packaging to create immediate consumer
recognition of a brand. For example, an average supermarket stocks 44 000 items.
146. The typical shopper makes three out of four purchase decisions in stores and passes by
some 300 items per minute.
147. Labels and brand logos can support the brand’s positioning and add personality to the
brand.
148. A company can expand its product line in two ways: by line filling or by line stretching.
149. In which stage of the PLC will promotional expenditures be especially high in an attempt to
create consumer awareness? Introduction.
150. In which stage of the PLC would a company keep its promotional spending at the same or a
slightly higher level to react to increasing competition? Growth
151. In the growth stage, the firm faces a trade-off between high market share and high profit.
152. Which stage in the PLC normally lasts longer and poses strong challenges to the marketing
managers? Maturity
153. Most products in the marketplace are in the maturity stage of the product life-cycle.
154. Which of the following would lead to greater competition in the maturity stage of the PLC?
Overcapacity in the market.
155. When a product enters the maturity stage, the company should consider modifying the
product, market, or marketing mix.
156. Mattel’s Barbie is an example of a product with an extended life. Barbie, first launched in
1959, has undergone many incarnations. In spite of her age, Barbie is both timeless and trendy
and would be said to be in the maturity stage of the PLC.
157. Over the past 100 years or so, Crayola crayons have become a household staple in more
than 80 countries around the world. Crayola crayons are in the maturity stage of the PLC.
158. When Easy-Off oven cleaner replaced the harsh chemical smell of the cleaner with a fresh
lemon fragrance, the Easy-Off manufacturer improved an existing product.
159. A manufacturer with a product in the decline stage of the product life-cycle might decide to
maintain the product without change if it has reason to hope that competitors will leave the
industry.
160. Carrying a weak product during the decline stage of the PLC can be very costly to a firm,
and not just in profit terms. Which one of these is NOT likely to be one of those costs? Few
customer concerns about company image.
161. When Kraft focused on cost-cutting with its older and established brands, leaving them
without much investment or modification, Kraft had decided to harvest the older products.
162. The advantages of standardising an international product include all of the following
EXCEPT the adaptation of products to different markets.
163. The growth stage of the product life-cycle is a period of rapid market acceptance and
increasing profits.
164. The maturity stage of the product life-cycle is a period of slowdown in sales growth
because the product has achieved acceptance by most potential buyers
165. A fashion is a currently accepted or popular style in a given field and is characterized by a
product life-cycle showing slow growth, a period of popularity and then a slow decline.
166. Packaging may also need to be tailored to meet the physical characteristics of consumers in
various parts of the world.