MKT 571 Week 1 Quiz

1. Costco is able to keep its inventory expenditure relatively low through its management technology and cutting-edge point-of-sale inventory management technology. As a result, Costco is able to pass these savings on to consumers in the form of low prices. This strategy is best described as 

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differentiation

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market development 

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integrative growth

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overall cost leadership 

2. The Soccer World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n)

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event

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place

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service

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idea

3. Which strategy does this exemplify? Kayak and Orbitz provide their customers with a variety of travel options including flight reservations, vacation packages, flight and hotel options with or without car rentals, and cruise offerings. 

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Differentiation

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Diversification

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Promotional 

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Focus

4. A company's sales potential would be equal to market potential when which situations exists? 

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Industry marketing expenditures approach infinity for a given marketing environment.

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The company gets 100 percent share of the market.

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The marketing expenditure of the company is reduced to zero.

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The market is nonexpandable.

5. One of the most critical steps in the defining process of market research is

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analyzing the internal environment

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defining the problem, the decision alternatives, and research objectives

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reading marketing research journals 

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developing a research plan

6. What data analysis type is being used here? When Sam thought about opening a foreign car repair shop in Phoenix, he researched all of the firms in the area before deciding on a location. He also analyzed their capabilities and found articles about many of them in terms of their capabilities, strengths, and weaknesses.

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Licensed information 

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Secondary data

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Primary data

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Tertiary information

7. In the U.S., consumer expenditures on homes and other large purchases tend to slow down during a recession because

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of stringent credit policies adopted by the Fed before the onset of recession

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the consumers have a high debt-to-income ratio

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of steady supply of loanable funds in the economy during recession

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consumer borrowing increases during recession

8. Which of the following is correct about marketing management?

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It is defined as the field that deals with planning and managing a business at the highest level of corporate organization.

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It is primarily concerned with the systematic gathering, recording, and analysis of data about issues related to marketing products and services.

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It occurs when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.

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It focuses mostly on monitoring the profitability of a company's products and services.

9. Which of the following industries is most likely to use database marketing?

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A physician’s office

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A school system

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A local restaurant

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A supermarket chain

10. Marketing is considered both an art and a science. How do the 4Ps, or marketing mix, help us bridge the gap between art and science?

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Marketing is involved with price as the major factor.

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Marketing focuses on sales as the primary goal.

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Marketing balances the need for data with that of creativity.

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Marketing is about advertising.

11. Which of the following elements of sociocultural environment can be associated with the growing demand for social surrogates like social networking sites, television, and so on?

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Views of ourselves

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Views of others

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Views of organizations

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Views of nature

12. Which of the following statements demonstrates behavioral loyalty towards a brand?

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Myfavorite Laundry detergent is so easy to use. 

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I always buy Myfavorite Laundry detergent when purchasing laundry detergent.

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My friends agree Myfavorite Laundry detergent is the best.

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Myfavorite Laundry detergent smells good.

13. Wabash Bank would like to understand if there is a relationship between the advertising or promotion it does and the number of new customers the bank gets each quarter. What type of research is this an example of? 

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Exploratory

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Secondary

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Qualitative

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Causal

14. Which market do customers who have purchased and are driving Audi automobiles represent?

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Penetrated market

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Target market

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Potential market

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Available market

15

By 2015, projections indicate that the largest category of households will be composed of

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single-parent families

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singles living with nonrelatives

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childless married couples and empty nesters

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married couples with children 

16. During the holidays, companies often provide gifts to customers. The more a client spends, the larger the gift, usually. To segment customers in this way, for what purpose is this data being mined?

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To decide which customers should receive a new sales offer

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To avoid serious customer mistakes

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To deepen customer loyalty

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To beat the competition to a sale

17. When Apple introduced iTunes, a new market was opened. Which of the following describes this type of innovation?

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Operational excellence 

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Value capture 

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Presence 

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Value chain

18. How does the market demand curve change (as a function of marketing expenditure) during recession?

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Shifts downward

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Remains unaffected

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Shifts upward

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Becomes vertical