UNIVERSITY OF BOTSWANA
FACULTY OF BUSINESS
DEPARTMENT OF MARKETING
Course Code: MKT100
Course Title/Name: Principles of Marketing
ACADEMIC YEAR: 2023-2024
TEST 2
Semester: Two
Date: 15 April 2023
Duration: 60 mins
Total Marks: 60
INSTRUCTIONS:
• Attempt all questions.
• There are 100 questions altogether.
• All questions carry equal marks.
• Please answer all the questions on the answer booklet.
• Please, do not tum this page until you have been told to do so by
the invigilator.
1. Society and culture shape the basic form of human needs called
A) needs
B) wants
C) demands
D) value
2 All of the following are accurate descriptions of modern marketing today, except which one?
A) Marketing is creation of value for customers.
B) Marketing is customer satisfaction at a profit.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves building and managing profitable customer relationships.
E) None of the above statements is true.
3 According to the simple five step model of the marketing process, a company needs to ---------
before designing a customer driven marketing strategy
A) determine how to deliver superior value
B) Build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct key components of a marketing program
5. - ------- is defined as a social and managerial process by which individuals and
organizations obtain what they need and want through value creation and exchange
A) Selling
B) Advertising
C) Bartering
D) Marketing
[Link] steps of the five-step marketing process are about understanding customers, creating
customer value, and building strong customer relationships?
A) the first two only
B) the first three only
C) the first four only
D) the last three only
E) the last four only
8. When backed by buying power, wants become ________.
A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges
9. What do companies call a set of benefits that they promise to consumers to satisfy their needs?
A) market offering
B) value proposition
C) demand satisfaction
D) need proposition
E) evoked set
10) Which of the following refers to sellers being preoccupied with their own products and
losing sight of underlying consumer needs?
A) selling myopia
B) marketing management
C) value proposition
D) marketing myopia
E) the product concept
11. Which of the following is the most likely result of a marketing strategy that attempts to serve
all potential customers?
A) All customers will be delighted.
B) Customer-perceived value will increase.
C) Customer evangelists will become unpaid salespersons for the service or product.
D) Not all customers will be satisfied.
E) The company will need to follow up with a marketing campaign.
12. The art and science of choosing target markets and building profitable relationships with
them is called ________.
A) marketing management
B) positioning
C) segmentation
D) selling
E) differentiation
20) Which of the following is the set of benefits a company promises to deliver the customer to
satisfy their needs?
A) a money-back guarantee
B) low pricing
C) good customer service
D) a value proposition
E) an attribute
[Link] customer question is answered by a company's value proposition?
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?"
22. Which of the following marketing management orientations focuses primarily on improving
efficiencies along the supply chain?
A) production concept
B) product concept
C) selling concept
D) marketing concept
E) social marketing concept
23. Which of the following marketing management concepts is most likely to lead to marketing
myopia?
A) customer-driven marketing
B) customer-driving marketing
C) social marketing
D) selling
E) production
24. The ________ concept is aligned with the philosophy of continuous product improvement
and the belief that customers will choose products that offer the most in quality, performance,
and innovative features.
A) product
B) production
C) customer
D) marketing
E) promotion
25. "Build a better mousetrap and the world will beat a path to your door" reflects the ________
concept.
A) production
B) marketing
C) selling
D) product
E) target marketing
[Link] concept calls for aggressive selling and focuses on generating transactions to obtain
profitable sales?
A) marketing
B) production
C) product
D) selling
E) societal marketing
[Link] concept holds that achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do?
A) product
B) production
C) selling
D) marketing
E) equity
28. A firm that uses the selling concept takes a(n) ________ approach.
A) outside-in
B) myopic
C) inside-out
D) societal
E) customer service
29. According to the production concept, consumers will favor products that are ________ and
________.
A) satisfying; quality focused
B) advertised; affordable
C) in high demand; hard to find
D) segmented; convenient
E) available; affordable
30. Though often criticized, the selling concept is particularly appropriate and effective with
which of the following types of products?
A) convenience
B) shopping
C) specialty
D) unsought
E) demarketed
31. Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and
anticipates customer needs even better than customers themselves do and creates products and
services to meet current and future wants and demands. Marie's firm practices ________
marketing.
A) customer-driven
B) customer-driving
C) relationship
D) donor
E) social
32. Which concept holds that firms must strive to deliver value to customers in a way that
maintains or improves the consumer's and society's well-being?
A) marketing
B) selling
C) product
D) societal marketing
E) equity
33. The three areas of consideration that should be balanced in the societal marketing concept are
consumer wants, society's interests, and ________.
A) human welfare
B) want satisfaction
C) company profits
D) short-run wants
E) long-term needs
34. The set of marketing tools a firm uses to implement its marketing strategy is called the
________.
A) promotion mix
B) product mix
C) marketing mix
D) TQM
E) marketing effort
35. Of the following, which is the most important concept of modern marketing?
A) customer relationship management
B) societal marketing
C) consumer-generated marketing
D) properly trained salespeople
E) low prices
36. Building, keeping, and growing profitable relationships by delivering customer value and
satisfaction is called ________.
A) customer lifetime value
B) customer perceived value
C) customer relationship management
D) database marketing
E) societal marketing
37. Customer-perceived value is determined by a customer's ________ of the benefits and costs
of a market offering relative to those of competing offers.
A) personal assessment
B) rational expectations
C) accurate assessment
D) objective evaluation
E) emotional understanding
[Link] is most accurate to say that customers buy from stores and firms that offer which of the
following?
A) the highest value for the dollar
B) the highest customer-perceived value
C) the highest level of customer satisfaction
D) the most attractive company image
E) the most concern for society's interests
39. ________ is defined as the customer's evaluation of the differences between all the benefits
and all the costs of a marketing offer relative to those of competing offers.
A) Customer equity
B) Customer satisfaction
C) Customer evangelism
D) Customer-perceived value
E) Marketing myopia
40. Using customer profitability analysis to weed out unprofitable customers and target winning
ones for pampering is referred to as ________.
A) customer relationship management
B) positioning
C) database marketing
D) selective relationship management
E) marketing myopia
41. In today's world, marketing should be done by ________ employees in an organization.
A) only marketing
B) only marketing, sales, and customer-support
C) only sales and technology
D) only management and marketing
E) all
[Link] final step in the marketing process is ________.
A) capturing value from customers
B) creating customer loyalty
C) creating customer lifetime value
D) understanding the marketplace
E) designing a customer-driven marketing strategy
[Link] of the following is currently the fastest-growing form of marketing?
A) consumer-generated marketing
B) online marketing
C) mass media marketing
D) social marketing
E) word-of-mouth marketing
44. Greg Williams now has the buying power to purchase the computer system he has wanted
for the last six months. Greg's want now has become a(n) ________.
A) need
B) necessity
C) demand
D) exchange
E) transaction
45. 113) Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories
with a profitable focus on buyers who have relatively modest means. This is an example of
________.
A) convenience
B) social marketing
C) market segmentation
D) target marketing
E) value packing
46. Jolene's firm markets preplanning services for a mortician. She finds that most of her target
market wants to avoid discussing their future funeral needs, and she must somehow first get their
attention. Jolene's firm is most likely practicing the ________.
A) production concept
B) marketing concept
C) selling concept
D) relationship concept
E) societal marketing concept
47. Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced
further for increased consumer affordability. This reflects the ________ concept.
A) product
B) production
C) selling
D) marketing
E) societal marketing
48. 116) Railroads were once operated based on the thinking that users wanted trains rather than
transportation, overlooking the challenge of other modes of transportation. This reflects the
________ concept.
A) product
B) production
C) selling
D) marketing
E) societal marketing
[Link] of the following reflects the marketing concept?
A) "The supplier is king."
B) "Marketing should be viewed as hunting and not gardening."
C) "This is what I make; won't you please buy it?"
D) "This is what I want; won't you please make it?"
E) "Customers need to be told where they want to go."
50. Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing
so they contribute to a national obesity epidemic and environmental problems. These fast-food
restaurants overlook the ________ philosophy.
A) marketing concept
B) product concept
C) production concept
D) societal marketing concept
E) selling concept
[Link] purchased Brand X lotion. In comparing her perception of how the lotion made her
skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of
________.
A) customer-perceived value
B) customer satisfaction
C) customer equity
D) demand
E) customer lifetime value
52. FedEx offers its customers fast and reliable package delivery. When FedEx customers
weigh these benefits against the monetary cost of using FedEx along with any other costs of
using the service, they are acting upon ________.
A) loyalty
B) relationship marketing
C) customer-perceived value
D) social relationships
E) a societal marketing campaign
[Link] Gray attempts to deliver customer satisfaction every day in his Audio Expressions
installation business. He is a smart operator who knows that the key to this goal is to match
________ with ________.
A) company performance; competition
B) company performance; competitive prices
C) relationship building; performance tools
D) company performance; unique products
E) customer expectations; company performance
54. Refer to the scenario below to answer the following questions.
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small,
seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the
Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but
then faced a tremendous downturn in business during the winter months. "But, given the industry
in the nearby towns, very little year-round competition, and our close proximity to Portland,"
Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a
promotional package designed to attract business travelers year-round. Carol's plan, then,
involved a seasonal promotional gimmickto be implemented from early winter to late spring–
that would attract the same numbers as the large summer crowd. Her idea worked! During her
second winter, Carol greeted numerous business travelers–both satisfied repeat guests as well as
new guests who had been snagged by her promotional appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers delicious
entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to
eventually provide our own. These are goals I hope to achieve in a few years. Our first project,
however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then
added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer
weekend get-aways throughout winter."
55. Which of the following groups is specifically part of Seagull Terrace's target market?
A) seasonal business travelers
B) young families
C) retirees
D) summer campers
E) athletes
[Link] Veldt's use of "promotional gimmicks" is an example of the ________ concept.
A) selling
B) marketing
C) product
D) production
E) societal marketing
57. Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area
are examples of the ________ concept.
A) selling
B) marketing
C) product
D) production
E) societal marketing
58. Carol Veldt has decided to ask selected guests to participate in an extensive survey about
their experience at Seagull Terrace and about their most desired amenities and vacation
experiences. By implementing the suggestions she receives from guests, Carol would be
following the ________ concept.
A) production
B) product
C) selling
D) marketing
E) societal
CHAPTER TWO
59. Which of the following involves adapting a firm to take advantage of opportunities in its
constantly changing environment?
A) long-range planning
B) short-range planning
C) media planning
D) strategic planning
E) annual planning
60. Which of the following is the first step in strategic planning?
A) set objectives and goals
B) develop the business portfolio
C) define the company mission
D) plan marketing strategies
E) identify threats and weaknesses
61. Which of the following is NOT a step in the strategic planning process?
A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating all members of the value chain
62. Which of the following provides an answer to these questions: What is our business? Who are
our customers? What do our customers value? What should our business be?
A) objectives and goals
B) a mission statement
C) a business portfolio
D) marketing and functional strategies
E) operational strategies
63. ________ should be market oriented and defined in terms of ________.
A) Annual plans; product needs
B) Strategic plans; company needs
C) Long-range plans; company needs
D) Mission statements; customers' needs
E) Objectives; competitors' threats
64. All of the following are accurate guidelines for a company's mission statement EXCEPT
which one?
A) A mission statement should be realistic.
B) A mission statement should be narrow.
C) A mission statement should emphasize the company's strengths in the marketplace.
D) A mission statement should be specific.
E) A mission statement should motivate employees
65. A company's mission statement serves as a statement of ________.
A) fact
B) values
C) purpose
D) financial goals
E) employee commitment
66. Which of the following is NOT a market-oriented business definition?
A) "to make the Internet buying experience fast, easy, and enjoyable"
B) "to sell tools and home repair and improvement items"
C) "to deliver low prices every day"
D) "to be the guardian of our customers' financial dreams"
E) "to bring aspiration and innovation to every athlete in the world"
67. All of the following are examples of product-oriented mission statements, EXCEPT which
one?
A) "We provide online services."
B) "We run theme parks."
C) "We sell shoes."
D) "We sell lifestyle and self-expression; success and status; memories, hopes, and dreams."
E) "We rent hotel rooms.
68. The collection of businesses and products that make up a company is called its ________.
A) strategic business unit
B) mission statement
C) strategic plan
D) business portfolio
E) operational factor
69. Unlike strategic-planning efforts of the past, which were conducted primarily by senior
managers, today's strategic planning is ________.
A) short-term oriented
B) decentralized
C) limitation-free
D) product oriented
E) centralized
70. Which department in a company carries the primary responsibility for achieving profitable
growth?
A) accounting
B) product development
C) operations
D) human resources
E) marketing
71. Making more sales to current customers without changing a firm's products is ________.
A) market attractiveness
B) market penetration
C) market development
D) product development
E) diversification
72. Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This
effort by Starbucks management is an example of ________.
A) market development
B) product development
C) diversification
D) market penetration
E) product adaptation
73. A common practice among marketers is to identify and develop new markets for their
existing products. This practice is called ________.
A) market development
B) product development
C) market penetration
D) market skimming
E) dual adaptation
74. Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting
its own XM satellite radio station. This represents which strategy for growth?
A) product development
B) market development
C) market penetration
D) diversification
E) partner development
75. Which of the following is NOT a reason that a firm might want to abandon products or
markets?
A) The market has changed, making some of the products less profitable.
B) The firm has entered areas in which it does not have expertise.
C) The economic environment is showing signs of recovery.
D) The firm has grown too rapidly.
E) The firm has not properly researched foreign markets which it has entered
76. Which of the following is the marketing logic by which a company hopes to achieve
profitable customer relationships?
A) price
B) a consistent product mix
C) the value delivery network
D) marketing strategy
E) differentiation
77. A sound marketing strategy begins with which of the following?
A) customer analysis
B) positioning
C) differentiation
D) promotion
E) SWOT analysis
78. Your firm is attempting to divide up the total market to determine the best segments it can
serve. Which is the correct order of doing so?
A) market segmentation, target marketing, market positioning
B) target marketing, market positioning, market segmentation
C) market positioning, market segmentation, target marketing
D) market segmentation, market positioning, target marketing
E) mass marketing, demographic segmentation, psychographic segmentation
79. Which of the following is the process of dividing a market into distinct groups of buyers with
different needs, characteristics, or behaviors?
A) market targeting
B) market segmentation
C) positioning
D) marketing strategy
E) differentiation
80. The process of customer-driven marketing involves which of the following?
A) product; price; promotion; adaptation
B) market segmentation; target marketing; differentiation; positioning
C) marketing analysis; planning; implementation; feedback
D) analysis; targeting; implementation; control
E) problem identification; information search; decision; implementation
81. Your new employer has asked you, as a new marketing graduate, to develop a group of
potential customers who might respond in a similar way to a given set of marketing efforts. You
have been asked to develop a(n) ________.
A) target market
B) market segment
C) market
D) market strategy
E) undefined niche
82. Which of the following involves evaluating each market segment's attractiveness and
selecting one or more segments to enter?
A) market segmentation
B) differentiation
C) market targeting
D) the market mix
E) positioning
[Link] of the following is the place a product occupies in the consumer's mind relative to
competition?
A) position
B) placement
C) market segmentation
D) market targeting
E) product promotion
84. Effective positioning begins with ________ the company's marketing offer in order to give
consumers more perceived value.
A) pricing
B) aligning
C) differentiating
D) promoting
E) placing
85. Which of the four Ps describes the goods-and-services combination the company offers to
the target market?
A) price
B) promotion
C) product
D) place
E) package
86. In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the
category of ________.
A) product
B) price
C) promotion
D) place
E) position
87. In a basic SWOT analysis the "T" stands for ________.
A) timing
B) trust
C) threats
D) trade
E) tangible
88. In a basic SWOT analysis, the "S" stands for ________.
A) situation
B) solutions
C) satisfactions
D) strengths
E) strategy
89. In SWOT analysis, which of the following would be considered a strength?
A) internal limitations
B) trends in the market
C) favorable factors in the environment
D) factors that challenge the company's performance
E) internal resources
90. In SWOT analysis, which of the following refers to factors in the external environment?
A) strengths
B) strategies
C) weaknesses
D) opportunities
E) trends
91. The main section of the marketing plan presents a detailed ________ analysis of the current
marketing situation.
A) who, when, where
B) when, where, how
C) SWOT
D) competitor
E) economic
92. The current mission statement of the Girl Scouts of America reads "where girls grow
strong." The organization's former mission statement had read "to prepare young girls for
motherhood and wifely duties." This change reflects the guideline that mission statements should
be ________.
A) realistic
B) motivating
C) narrow
D) market-oriented
E) specific
93. A vendor for Ford Motor Company received the following message from one of Ford's
marketing managers: "As we move forward during the 21st century, Ford is committed to
building profitable customer relationships by creating environmentally better cars and getting
them to market faster at lower costs." The marketing manager is referring to Ford's ________.
A) marketing strategy
B) marketing mix
C) business portfolio
D) mission statement
E) business objectives
94. When the makers of a ballpoint pen state they are in the communication equipment
business, they are defining their mission too ________.
A) narrowly
B) realistically
C) specifically
D) broadly
E) futuristically
95. Fence Patrol has developed an entirely new mounting system for chain link fences.
Although they are a local company, through the acquisition of a distributor they now have the
ability to market their products nationwide. Fence Patrol is most likely to be following a
________ strategy.
A) market penetration
B) market development
C) diversification
D) divesting
E) product development
96. For Hyundai Corporation, customers who care about the price of a car and its operating
economy make up one ________.
A) market position
B) value network
C) market segment
D) customer extension
E) value chain
97. Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing
else." These statements reflect a firm's ________.
A) product portfolio
B) target markets
C) market positioning
D) strategy
E) niche
98. Harris, the marketing manager at a small sports retail chain, has conducted a marketing
analysis. He has investigated the company's internal resources and situational factors, as well as
factors and trends in the competitive sports retail chain market. Which of the following has
Harris completed?
A) a SWOT analysis
B) a business portfolio analysis
C) an executive summary
D) a marketing plan
E) a marketing mix
99. Which of the following most accurately identifies a difference between a weakness and a
threat in SWOT analysis?
A) A company is more able to change a threat than a weakness.
B) A company is more able to change a weakness than a threat.
C) A company can be more negatively affected by a weakness than by a threat.
D) A company can be more negatively affected by a threat than by a weakness.
E) A company can more easily identify threats than weaknesses
100. Which of the following would be classified as an opportunity in a SWOT analysis of Fun
Spot?
A) A rival amusement park announces plans to open three new rides next season.
B) A new luxury hotel is being constructed in the area, with the aim of luring more high-
spending families on vacation.
C) Gail and Ron have paid off the mortgage on Fun Spot, significantly reducing their monthly
expenses.
D) Fun Spot employees tend to be enthusiastic and young, projecting an image of fun and vitality
at Fun Spot.
E) Fun Spot plans to further diversify its offerings by beginning a two-week summer camp for
elementary school students.
Chapter 3
101. You are directed to study the actors close to the company that affect its ability to serve its
customers-departments within the company, suppliers, marketing intermediaries, customer
markets, competitors, and publics. What are you studying?
A) the macroenvironment
B) the microenvironment
C) the marketing environment
D) the demographic environment
E) the global environment
102. Which of the following terms is used to describe the factors and forces outside marketing that
affect marketing management's ability to build and maintain successful relationships with target
customers?
A) the marketing environment
B) the cultural environment
C) strategic planning
D) target markets
E) the marketing mix
103. You are directed to study the demographic, economic, natural, technological, political, and
cultural factors that are larger societal forces affecting your company. What are you studying?
A) the macroenvironment
B) the microenvironment
C) the external environment
D) the marketing mix
E) the global environment
104. Which of the following is NOT a type of factor in a company's macroenvironment?
A) demographic
B) economic
C) technological
D) competitive
E) political
105. All of the groups within a company are called the ________.
A) culture
B) diversity
C) internal environment
D) climate
E) range
106. Which type of organization helps companies to stock and move goods from their points of
origin to their destination?
A) financial intermediaries
B) physical distribution firms
C) marketing services agencies
D) resellers
E) suppliers
107. Banks, credit companies, insurance companies, and other businesses that help finance
transactions or insure against the risks associated with the buying and selling of goods and
services are referred to as ________.
A) financial intermediaries
B) physical distribution firms
C) marketing services agencies
D) resellers
E) wholesalers
108. Workers, managers, and members of the board are all part of a company's ________ public.
A) general
B) internal
C) local
D) intermediary
E) market
109. Percy Original caters to a market of individuals and households that buys goods and services
for personal consumption. Percy Original caters to a ________ market.
A) business
B) reseller
C) government
D) consumer
E) marketing intermediary
110. Which type of market buys goods and services for further processing or for use in the
production process?
A) business
B) reseller
C) wholesale
D) consumer
E) retail
111. Which type of market buys goods and services to produce public services or to transfer them
to others who need them?
A) government
B) reseller
C) wholesale
D) consumer
E) retail
112. Rachel Patino works for a wholesale company called Distributors Unlimited. She is
responsible for buying and selling goods at a profit to small retailers. What is her market?
A) business
B) reseller
C) wholesale
D) consumer
E) retail
113. Your marketing department is currently researching the size, density, location, age, and
occupations of your target market. Which environment is being researched?
A) demographic
B) psychographic
C) economic
D) geographic
E) cultural
114. The ________ environment consists of factors that affect consumer purchasing power and
spending patterns.
A) cultural
B) political
C) technological
D) economic
E) natural
115. Marketers should be aware of laws, government agencies, and pressure groups that influence
or limit various organizations and individuals in a given society. This is most accurately
described as the ________ environment.
A) socio-legal
B) cultural
C) political
D) legal-technological
E) economic
116. A society's basic values, perceptions, preferences, and behaviors are all part of its ________
environment.
A) social
B) cultural
C) political
D) cultural-economic
E) natural
117. Marketers should understand that a society's core beliefs and values have a high degree of
________.
A) persistence
B) flexibility
C) similarity
D) ethnocentrism
E) conformity
118. Your company is making negotiations to enter a market in Lower Albania. You would most
likely discover that ________ beliefs and values are open to change in this country.
A) inherited
B) secondary
C) primary
D) core
E) traditional
119. A society's ________ are expressed in how people view themselves, organizations, society,
nature, and the universe.
A) social codes
B) cultural values
C) demographics
D) public policies
E) economies
120. As indicated in the chapter opener, change in the ________ environment has had the most
impact on the marketing strategy at Xerox.
A) technological
B) natural
C) economic
D) cultural
E) political
121. Assume that you are a manager at a firm that has hired lobbyists to influence legislation
affecting your firm's industry to its advantage. Your firm takes a(n) ________ approach to the
marketing environment.
A) reactive
B) proactive
C) adversarial
D) passive
E) team work
Refer to the scenario below to answer the following questions.
Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a
sandwich counter on one side and a bait shop and grocery on the other, The Landing was an
immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked
at the piers and bought all their lake needsrods and reels, bait, fishing licenses, snacks, soft
drinksat The Landing. Even during the winter months, snowmobilers and ice fishermen were
lured to The Landing for a snack and hot coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a year-round residential area. Many of the houses, which
were built as cottages in the 1950s and 1960s, were being remodeled into year-round homes. By
the end of the 1970s, the days of small motor boats and 10 mile-per-hour speed limits were gone;
skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of
patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing could
not compete with larger local retailers. He eventually enlarged the sandwich counter,
transforming the bait shop and grocery into a restaurant with a full menu typical of any diner.
"Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer
crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four
months of profit."
As the 1990s approached, the atmosphere of Witmer Lake and the neighboring lakes
became upscale. "I could see that people were spending more on their speed boats than what they
had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being
inherited by children and grandchildren of the original owners. Once again, the scene started to
change as many of the lake houses were used only as weekend lake homes. Unlike the previous
generation, a vast number of the current owners could afford to live closer to their jobs while
maintaining lake homes. "At this point, business wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner atmosphere of The
Landing into a bar with a lounge area. "The change might have been too drastic," Casey said,
"but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces."
127
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
122. Which microenvironment actors have affected The Landing the most?
A) competitors
B) suppliers
C) intermediaries
D) natural environment
E) economic environment
123. Which of the following macroenvironmental forces has had the greatest effect on The
Landing?
A) the demographic environment
B) the technological environment
C) the sustainable environment
D) the political environment
E) the social responsibility environment
124. Which macroenvironmental force is most responsible for The Landing's 43-year survival?
A) the demographic environment
B) the natural environment
C) the economic environment
D) the political environment
E) the legal environment
Chapter 4
125. Despite the data glut that marketing managers receive, they frequently complain that they lack
________.
A) enough information of the right kind
B) timely information
C) accurate information
D) reliable information
E) valid information
126. Which of the following statements is NOT true regarding information collected for marketers?
A) Many managers lack information of the right kind.
B) Most managers do not need more information.
C) Most managers need better information.
D) Many managers are burdened by data overload.
E) Managers have enough of the right information.
127. A marketing information system (MIS) consists of people and procedures to assess
information needs, ________, and help decision makers analyze and use the information.
A) experiment to develop information
B) test market the information
C) develop the needed information
D) critique the needed information
E) question the needed information
128. ________ is the systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
A) The marketing information system
B) Marketing intelligence
C) Marketing research
D) Competitive intelligence
E) Causal research
129. What is the first step in the marketing research process?
A) developing a marketing information system
B) defining the problem and research objectives
C) developing the research plan for collecting information
D) implementing the research plan
E) hiring an outside research specialist
130. Which step in the four-step marketing research process has been left out of the following list:
defining the problems and research objectives, implementing the research plan, and interpreting
and reporting the findings?
A) developing the research budget
B) choosing the research agency
C) choosing the research method
D) developing the research plan
E) comparing and contrasting primary and secondary data
131. In the second step of the marketing research process, research objectives should be translated
into specific ________.
A) marketing goals
B) information needs
C) dollar amounts
D) research methods
E) information sources
132. Secondary data consists of information ________.
A) that already exists somewhere but is outdated
B) that does not currently exist in an organized form
C) that already exists but was collected for a different purpose
D) used by competitors
E) that researchers can only obtain through surveys and observation
133. Information collected from online databases is an example of ________ data.
A) primary
B) secondary
C) observational
D) experimental
E) ethnographic
134. Which form of data below can usually be obtained more quickly and at a lower cost than the
others?
A) primary
B) survey research
C) experimental research
D) secondary
E) observational research
135. Secondary data are ________.
A) collected mostly via surveys
B) expensive to obtain
C) never purchased from outside suppliers
D) always necessary to support primary data
E) not always very usable
136. Your assistant wants to use secondary data exclusively for the current research project. You
advise him that the use of secondary data has some potential problems. Which of the following is
NOT one of them?
A) It may not exist.
B) It may not be relevant.
C) It is generally more expensive to obtain than primary data.
D) It may not be current.
E) It may not be impartial
137. For primary data to be useful to marketers, it must be relevant, current, unbiased, and
________.
A) complete
B) accurate
C) inexpensive
D) collected before secondary data
E) experimental
138. Which method could a marketing researcher use to obtain information that people are
unwilling or unable to provide?
A) observational
B) survey
C) questionnaire
D) focus groups
E) personal interviews
139. Survey research is least likely to be conducted through which of the following?
A) the Web
B) the mail
C) the telephone
D) in person
E) observation
140. Which of the following contact methods has the poorest response rate?
A) mail
B) telephone
C) personal
D) online
E) individual
141. Which of the following has the highest rating for speed of data collection and compilation?
A) open-ended questionnaires
B) personal interviews
C) mail surveys
D) Internet surveys
E) ethnographic research
142. Which of the following is NOT a disadvantage of telephone interviews?
A) They are more expensive to conduct than mail questionnaires.
B) Interviewer bias is introduced.
C) Under time pressures, some interviewers might cheat.
D) Interviewers can explain some questions and probe more deeply on others.
E) Potential respondents may refuse to participate
143. Which of the following contact methods is generally the LEAST flexible?
A) mail
B) telephone
C) Internet surveys
D) online panels
E) personal
144. Marketing researchers usually draw conclusions about large groups of consumers by
studying a small ________ of the total consumer population.
A) group
B) target group
C) population
D) sample
E) audience
145. The most common research instrument used is the ________.
A) mechanical device
B) live interviewer
C) questionnaire
D) focus group
E) people meter
146. In marketing research, the ________ phase is generally the most expensive and most subject
to error.
A) exploratory research
B) planning
C) interpreting the findings
D) reporting the findings
E) data collection
147. Typically, customer information is buried deep in separate databases, plans, and records of
many different company functions and departments. To overcome such problems, which of the
following should you try?
A) customer satisfaction management
B) more sophisticated hardware
C) customer relationship management
D) decreased marketing intelligence
E) a marketing information system
148. Which of the following is true about customer relationship management (CRM)?
A) It relies on information produced through primary research.
B) Its aim is to maximize profit margins.
C) Its aim is to increase the efficiency of each customer touchpoint.
D) Its aim is to maximize customer loyalty.
E) Most companies who first implemented CRM have greatly benefited from the results
149. When managers use small convenience samples such as asking customers what they think or
inviting a small group out to lunch to get reactions, they are using ________.
A) experiments
B) informal surveys
C) observation
D) marketing intelligence
E) direct marketing
150. Small organizations can obtain, with minimal effort, most of which type of data available to
large businesses?
A) observational
B) experimental
C) touch point
D) primary
E) secondary
151. The availability of which of the following is most problematic in international marketing
research?
A) primary data
B) research specialists
C) secondary data
D) intelligence limitations
E) consumers willing to answer survey questions
152. Because of the scarcity of good secondary data, international researchers often must collect
their own primary data. An initial problem with this collection is developing good ________.
A) samples
B) research firms
C) customer relationships with nationals
D) relations with channel members
E) analytical models
153. Consumers will be most likely to gladly provide research information when researchers
provide ________.
A) coupons
B) value for the exchange
C) prizes
D) rebates
E) social network membership
154. Diana Dion is currently researching data sources from within her company to make
marketing decisions. Diana is making use of ________ databases.
A) online
B) internal
C) external
D) public
E) search service
155. Your marketing department is attempting to improve strategic decision making, track
competitors' actions, and provide early warning of opportunities and threats. To achieve this goal,
which of the following would be the best for your department to use?
A) internal databases
B) external databases only
C) company reports only
D) marketing intelligence
E) the Internet
156. Maryann Rose is conducting research to determine consumers' personal grooming habits.
Because of the personal nature of the survey questions about this topic, Maryann wants to select
the contact method that is most likely to encourage respondents to answer honestly. Which
contact method should Maryann select?
A) mail questionnaires
B) telephone interviews
C) individual interviews
D) focus group interviews
E) online panels
157. Loft Industries sells roof trusses to contractors and builders and would like to conduct
research to determine how customers assess customer service. Which of the following research
instruments would be best for this firm?
A) people meters
B) checkout scanners
C) questionnaires
D) eye cameras
E) BlueEyes technology
158.