Mktg 201 Test 2 Practice
A set of multiple choice questions to help you review for Test 2!
- 1.
Automobiles sold in California have to be adapted to meet strict emission regulations while automobiles sold in the mountain state of Colorado have to be adapted to account for the reduced oxygen levels at high altitudes. Hence automakers often consider these as separate markets from the rest of the USA. Automakers divide the automotive market into: California, Mountain, and Regular segments. These three segments are an example of segmentation by?
- A.
Demographic variables
- B.
Psychographic variables
- C.
Geographic variables
- D.
Usage rates
- E.
Benefits sought
Correct Answer
C. Geographic variablesExplanation
See p.235 in text for an explanation of segmentation by geographic variables. This example was the one given in the Segmentation lecture. Segmentation by benefits sought is a possible answer but it is not as good as segmentation by geography because the example clearly states that the segments are based on geographical location.Rate this question:
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- 2.
Many hotels offer frequent‑user programs e.g. stay six nights, get the seventh free. This is an probably an outcome of segmentation by?
- A.
Demographic variables
- B.
Psychographic variables
- C.
Geographic variables
- D.
Benefits sought
- E.
Usage rate
Correct Answer
E. Usage rateExplanation
See p.232-3 for a discussion of segmentation by usage rate. This question is quite similar to the example used in class, which was “frequent flier programmes,” The Marriott Hotels video briefly mentioned the “frequent hotel guest” segment briefly. In this example, the hotel is segmenting by usage rate, and targeting the heavy users.Rate this question:
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- 3.
Market segmentation groups consumers are the basis of two major criteria. The members of a segment must both
- A.
Represent a large share of the entire market, and have critical buying power.
- B.
Have common needs, and respond similarly to marketing actions
- C.
Have different needs, and potential for future growth.
- D.
Have different needs, and respond similarly to market actions.
- E.
Have similar responses and profiles
Correct Answer
B. Have common needs, and respond similarly to marketing actionsExplanation
Definition of a segment found in STP [seg-tar-pos] lecture, ppt and p.226 of the textRate this question:
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- 4.
Some magazines e.g. NZ Womens’s Weekly and Cosmopolitan are aimed at women, while others, e.g. Esquire and GQ are aimed at men. This targeting strategy is most likely a result of segmentation by?
- A.
Demographic variables
- B.
Psychographic variables
- C.
Geographic variables
- D.
Usage rate
- E.
Benefits sought
Correct Answer
A. Demographic variablesExplanation
Targeting some magazines at men, and some at women, implies that the magazine market may segment customers by gender. Segmenting by demographics is explained on p.231 and in Figure 9-3 (p.232).Rate this question:
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- 5.
The text lists several criteria to use when forming segments. Which of the following is NOT one of these criteria?
- A.
Potential for increased profit and ROI
- B.
Similarity of needs of potential buyers within a segment
- C.
Difference of needs of buyers between segments
- D.
Cost of reaching the segment
- E.
All of the above are criteria to use when forming segments
Correct Answer
D. Cost of reaching the segmentExplanation
This question was one where you needed to be clear about the difference between creating segments (“forming segments” p.231) and targeting segment(s). The cost of reaching a segment is a criterion to consider when deciding which segment(s) to target (p. 239 text).Rate this question:
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- 6.
Toasters, jackets and shoes are examples of the type of consumer product classified as:
- A.
Convenience products
- B.
Unsought products
- C.
Shopping products
- D.
Specialty products
- E.
Limited products
Correct Answer
C. Shopping productsExplanation
The text explains shopping goods on p.257 as items for which consumers compare several alternatives on several criteria such as proce, quality or style. Note that we used the term "products" in lecture as these classifications can also be applied to services.Rate this question:
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- 7.
Famers wants to increase the amount each customer spends per sale. Which of the following is not a form of secondary data for Farmers?
- A.
Census data
- B.
Past sales records
- C.
Customer surveys sent out six months ago
- D.
A.C. Nielson data on retail sales
- E.
Researchers' observations of customer interactions with salespeople that will take place soon
Correct Answer
E. Researchers' observations of customer interactions with salespeople that will take place soonExplanation
All of the above are examples of secondary data except observations since these have not be undertaken yet and can be designed to answer the question at handRate this question:
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- 8.
Air Luxury provides its passengers with a frequent flyers club. This club allows customers to earn air points which can be redeemed as flights, seat up-grades, or hotel bookings. This product feature is part of the?
- A.
Final product
- B.
Actual product
- C.
Augmented product
- D.
Selected product
- E.
Core product
Correct Answer
C. Augmented productExplanation
The frequent flier programme is not part of the core, or main attributes being purchased by the consumer. See reading uploaded to Week 7 under "other" tab for more on this topic.Rate this question:
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- 9.
After much thought, Melanie has decided to purchase a designer ball gown for an up and coming event. She specifically wants to purchase a ball gown which has been created by Karen Walker, a famous New Zealand fashion designer. A designer ball gown such as the one Melanie wants to buy is an example of a/an:
- A.
Shopping good
- B.
Convenience good
- C.
Unsought good
- D.
Specialty good
- E.
Limited good
Correct Answer
D. Specialty goodExplanation
Specialty products (as opposed to convenience and shopping products) are difficult to substitute, usually quite expensive and are not intensively distributed (usually a designer dress would be sold through a boutique outlet rather than a wide range of clothing shops). Also the brand name is important. Specialty goods/products are explained on p.257 of your text.Rate this question:
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- 10.
University Magazine asks its readers to fill out a form with many questions on it to provide their opinions of the magazine at one point in time. This type of research is referred to as?
- A.
Field experiment
- B.
Survey
- C.
Focus group
- D.
Panel tracking
- E.
Observation
Correct Answer
B. SurveyExplanation
This is an example of the primary data collection method known as a survey. An example of a survey is depicted on p.212-3 of your text.Rate this question:
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- 11.
Which type of product has equally rapid introduction and decline stages of the product life cycle?
- A.
Fashion products
- B.
High-learning products
- C.
Low-learning products
- D.
Fad products
- E.
Harvested products
Correct Answer
D. Fad productsExplanation
the text explains on p.285-6 that fad products experience rapid sales on introduction and then a rapid decline. Examples are rubber dresses and some children's toys like Scoobies (plastic strings that can be woven into jewellery).Rate this question:
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- 12.
Which of the following is NOT a disadvantage of primary data as compared to secondary data?
- A.
More expensive to collect
- B.
Takes longer to collect
- C.
More specific to the problem
- D.
All of the above are disadvantages of primary data
- E.
None of the above are disadvantages of primary data
Correct Answer
C. More specific to the problemExplanation
Primary data is more time consuming and more expensive to collect, but has the ADVANTAGE of being more specific to the problem you are trying to understand and/or solve. See p. 215.Rate this question:
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- 13.
__________ provide(s) ideas about a relatively vague problem.
- A.
Research objectives
- B.
Measures of success
- C.
Exploratory research
- D.
Descriptive research
- E.
Causal research
Correct Answer
C. Exploratory researchExplanation
p.201 explains that exploratory research provides ideas about a relatively vague problem.Rate this question:
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- 14.
Secondary data are the?
- A.
Facts and figures that are newly collected for the project at hand.
- B.
Facts and figures obtained by watching people mechanically rather than in person
- C.
Facts and figures obtained by asking people questions.
- D.
Facts and figures that have already been recorded before the current project.
- E.
Conclusions developed from information obtained from a representative sample of a population.
Correct Answer
D. Facts and figures that have already been recorded before the current project.Explanation
Secondary data is data that has already been collected, for other purposes. Primary data is data that is collected specifically for the current purpose. See p.204 text.Rate this question:
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- 15.
MyTwinn makes dolls that look like young girls. For $119 they will make a doll that looks just like a photograph. So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of
- A.
Mass-customisation
- B.
Repositioning
- C.
Synergy
- D.
Implementing the 80/20 rule
- E.
Target marketing
Correct Answer
A. Mass-customisationExplanation
p.229 explains that mass-customisation involves tailoring goods or services to suit the tastes (preferences) of individual customers on a high volume scale.Rate this question:
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Current Version
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Mar 20, 2023Quiz Edited by
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Apr 28, 2010Quiz Created by
Kfer020
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