Bus M&l 650 Exam 1
Questions and Answers
- 1.
Data mining enabled Harrah’s to identify its most profitable customer segment-
- A.
Global high rollers
- B.
Off duty employees
- C.
Betters who lost modest amounts frequently
- D.
The rich and famous
Correct Answer
C. Betters who lost modest amounts frequentlyExplanation
Data mining allowed Harrah's to analyze customer data and identify a specific customer segment that was consistently losing modest amounts of money. By targeting this segment, Harrah's was able to maximize its profits by providing tailored offers and incentives to encourage these customers to continue gambling at their establishments.Rate this question:
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- 2.
The definition of marketing used over and over in class refers to 3 ways of relating to customers that are listed below. Which one of the following, however, is NOT part of that definition.
- A.
Satisfying customers
- B.
Changing customers
- C.
Understanding customers
- D.
Identifying customers
Correct Answer
B. Changing customersExplanation
The definition of marketing used in class includes satisfying customers, understanding customers, and identifying customers. However, changing customers is not part of that definition. Marketing focuses on understanding customers' needs and preferences, identifying the target audience, and satisfying their demands through various strategies. While marketing efforts may influence customer behavior to some extent, the primary goal is not to change customers but rather to meet their existing needs and preferences.Rate this question:
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- 3.
Conveniently located vending machines around campus make it easy for you to buy a Coca Cola beverage and a snack between classes. This convenience is a part of the _____________ element of the marketing mix.
- A.
Product
- B.
Place
- C.
Promotion
- D.
Price
Correct Answer
B. PlaceExplanation
The given statement mentions that there are conveniently located vending machines around campus, making it easy for students to buy a Coca Cola beverage and a snack between classes. This suggests that the element being referred to is the "place" element of the marketing mix. The "place" element focuses on making the product easily accessible to the target market, and in this case, the vending machines strategically placed around campus serve this purpose.Rate this question:
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- 4.
If an organization makes voluntary exchanges, it is “doing marketing” regardless of whether there is a marketing department, marketing is approved of, etc. To understand this inevitability, we talked about the discovery of _____________.
- A.
America
- B.
Breathing
- C.
Communication media
- D.
Dynamite
Correct Answer
B. BreathingExplanation
The correct answer is "breathing". This answer suggests that the inevitability of an organization "doing marketing" is compared to the inevitability of breathing. Just like breathing is a natural and essential process for living beings, engaging in voluntary exchanges is a fundamental aspect of marketing for any organization, regardless of the presence of a marketing department or approval of marketing practices.Rate this question:
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- 5.
The manufacturers of consumer goods concentrate on the creation of ______________ utility.
- A.
Advertising
- B.
Form
- C.
Time
- D.
Place
Correct Answer
B. FormExplanation
The manufacturers of consumer goods concentrate on the creation of form utility. Form utility refers to the value added to a product by changing its form or shape to make it more useful or desirable to consumers. This can include aspects such as design, packaging, and customization. By focusing on the creation of form utility, manufacturers aim to enhance the appeal and functionality of their products, ultimately increasing their marketability and consumer satisfaction.Rate this question:
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- 6.
The evolution of organizational orientations looks at changes in _______________ over time.
- A.
Marketing definitions
- B.
Buyer behavior
- C.
The way customers have been treated
- D.
Competitive practices
Correct Answer
C. The way customers have been treatedExplanation
The evolution of organizational orientations focuses on the changes that have occurred in how customers have been treated over time. This means examining the shifts in customer service, satisfaction, and overall customer experience that organizations have adopted and modified throughout their history. By studying this evolution, businesses can gain insights into how their approach to customer treatment has changed and identify areas for improvement in order to meet the changing needs and expectations of customers.Rate this question:
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- 7.
The marketing orientation is just about the opposite of the _____________ orientation.
- A.
Production
- B.
Product
- C.
Selling
- D.
Social responsibility
Correct Answer
C. SellingExplanation
The marketing orientation is just about the opposite of the selling orientation. While the marketing orientation focuses on identifying and satisfying customer needs and wants, the selling orientation emphasizes aggressive sales techniques and pushing products onto customers. The selling orientation is more concerned with making immediate sales and generating revenue, whereas the marketing orientation takes a more customer-centric approach, aiming to build long-term relationships and create customer value.Rate this question:
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- 8.
Deregulation increases the importance of marketing because it ___________.
- A.
Makes customers harder to satisfy
- B.
Increases costs
- C.
Increases product quality
- D.
Intensifies competition
Correct Answer
D. Intensifies competitionExplanation
Deregulation removes government restrictions and regulations, allowing more companies to enter the market. This increased competition forces businesses to focus on marketing in order to differentiate themselves and attract customers. With more options available to consumers, companies need to work harder to satisfy their customers and stand out from their competitors. Therefore, deregulation intensifies competition, making marketing even more important.Rate this question:
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- 9.
In most organizations, the delivery of daily customer satisfaction depends mainly on ______________.
- A.
Lower level management and their staff
- B.
Middle management
- C.
Top management
- D.
Marketing management
Correct Answer
A. Lower level management and their staffExplanation
Lower level management and their staff play a crucial role in delivering daily customer satisfaction in most organizations. They directly interact with customers, handle their queries, and ensure their needs are met. They are responsible for maintaining a positive customer experience and resolving any issues that may arise. Middle management and top management may set the overall direction and strategy, but it is the lower level management and staff who execute these plans and directly engage with customers on a daily basis. Marketing management, although important, focuses more on promoting the organization's products or services rather than directly delivering customer satisfaction.Rate this question:
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- 10.
“High tech – high touch” is a way to make products more ______________.
- A.
Acceptable
- B.
Predictable
- C.
Flaw-free
- D.
Feasible (possible)
Correct Answer
A. AcceptableExplanation
"High tech - high touch" is a way to make products more acceptable. This means that by combining advanced technology with a personal and human touch, products become more appealing and agreeable to consumers. The term "high tech" refers to the use of cutting-edge technology, while "high touch" emphasizes the importance of human interaction and personalized experiences. By incorporating both elements, products can meet the expectations and preferences of consumers, ultimately making them more acceptable in the market.Rate this question:
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- 11.
For most of the 20th century, the political-legal environment of marketing _______________.
- A.
Saw shifts in the majority position every 20 years or so
- B.
Moved constantly toward deregulation and looser enforcement of existing laws
- C.
Was one that usually favored consumer interests over producer interests
- D.
Had no clear overall patterns
Correct Answer
A. Saw shifts in the majority position every 20 years or soExplanation
The correct answer is "saw shifts in the majority position every 20 years or so." This means that throughout the 20th century, the political-legal environment of marketing experienced changes in the dominant viewpoint or stance every couple of decades. This suggests that there were significant shifts in the political and legal landscape that influenced marketing practices and regulations over time.Rate this question:
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- 12.
The 5 forces model applies to the _____________ environment.
- A.
Social
- B.
Competitive
- C.
Cultural
- D.
Demographic
Correct Answer
B. CompetitiveExplanation
The 5 forces model applies to the competitive environment. This model, developed by Michael Porter, is used to analyze the competitiveness and attractiveness of an industry. It helps identify the competitive forces that shape an industry's profitability and attractiveness. These forces include the bargaining power of suppliers and buyers, the threat of new entrants, the threat of substitute products or services, and the intensity of competitive rivalry. By understanding these forces, businesses can develop strategies to gain a competitive advantage in their industry.Rate this question:
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- 13.
Married couples are now part of about ______% of American households.
- A.
40
- B.
50
- C.
60
- D.
70
Correct Answer
B. 50Explanation
Married couples are now part of about 50% of American households. This means that half of the households in America consist of married couples. This statistic indicates that marriage is still a prevalent and common living arrangement for many Americans.Rate this question:
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- 14.
The class notes included detailed comparisons of the _____________ of Asian, Black, Latino, and White Americans.
- A.
Prejudices
- B.
Shopping behavior
- C.
Cultural preferences
- D.
Demographics
Correct Answer
B. Shopping behaviorExplanation
The class notes included detailed comparisons of the shopping behavior of Asian, Black, Latino, and White Americans. This suggests that the class focused on analyzing and understanding the different ways in which these racial and ethnic groups engage in consumer activities such as shopping. By studying their shopping behavior, the class may have aimed to gain insights into their preferences, habits, and trends, which can be valuable for various purposes such as marketing strategies or understanding societal dynamics.Rate this question:
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- 15.
Which of the following developments will reduce the spending of current empty nesters?
- A.
The boomerang generation
- B.
Social security financing
- C.
Longer life expectancy
- D.
All of the above
- E.
None of the above
Correct Answer
D. All of the aboveExplanation
All of the above developments will reduce the spending of current empty nesters. The boomerang generation refers to adult children who move back in with their parents, which can result in increased financial support from empty nesters. Social security financing can provide additional income for empty nesters, reducing their overall spending. Longer life expectancy means empty nesters will need to budget their savings and retirement funds for a longer period of time, potentially leading to reduced spending. Therefore, all three developments mentioned will contribute to a decrease in the spending of current empty nesters.Rate this question:
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- 16.
“Cynical disdainers” and “Traditional materialists” are 2 subgroups within the _____________ generation that are just about the opposites of each other.
- A.
Over 60
- B.
Baby boomers
- C.
Baby bust
- D.
Baby boom echo
Correct Answer
C. Baby bustExplanation
The given answer "baby bust" refers to a generation that experienced a decline in birth rates after the baby boom period. The term "Cynical disdainers" suggests a group of individuals within this generation who are skeptical and dismissive, while "Traditional materialists" implies another subgroup that adheres to traditional values and prioritizes material possessions. These two subgroups are described as opposites, highlighting the contrasting attitudes and beliefs within the baby bust generation.Rate this question:
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- 17.
We talked about old and new stereotypes applying to the ____________ generation.
- A.
Over 65
- B.
Baby boomers
- C.
Baby bust
- D.
Baby boom echo
Correct Answer
A. Over 65Explanation
The given correct answer is "over 65". This suggests that the discussion revolved around stereotypes that are applicable to individuals who are above the age of 65. It implies that the conversation focused on the older generation and the various stereotypes associated with them.Rate this question:
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- 18.
As discussed in class, the process of ____________ is very selective.
- A.
Motivation
- B.
Perception
- C.
Learning
- D.
Personality development
Correct Answer
B. PerceptionExplanation
In class, it was discussed that the process of perception is very selective. This means that individuals tend to selectively attend to certain stimuli while ignoring others, and they interpret and organize these stimuli based on their own unique experiences and beliefs. Perception plays a crucial role in shaping how individuals understand and make sense of the world around them.Rate this question:
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- 19.
The shift from “either-or” to “multiple choice” is a major change in how ______________affects consumer behavior.
- A.
Social class
- B.
Buzz marketing
- C.
Culture
- D.
Sub-culture
Correct Answer
C. CultureExplanation
The shift from "either-or" to "multiple choice" suggests that consumer behavior is no longer solely influenced by one factor, but rather by a combination of factors. Culture plays a significant role in shaping consumer behavior as it encompasses a wide range of beliefs, values, norms, and customs that influence individuals' preferences and decision-making processes. With the shift towards multiple choices, consumers are exposed to various cultural influences that impact their behavior, such as different sub-cultures and buzz marketing strategies.Rate this question:
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- 20.
The PRIZM system described in class is an example of the influences of _______________ on consumer behavior.
- A.
Social class
- B.
Buzz marketing
- C.
Culture
- D.
Sub-culture
Correct Answer
D. Sub-cultureExplanation
The PRIZM system described in class is an example of the influences of sub-culture on consumer behavior. Sub-cultures are smaller groups within a larger culture that share unique values, beliefs, and behaviors. The PRIZM system categorizes consumers based on their shared characteristics, such as lifestyle, demographics, and behaviors, which are often influenced by their sub-culture. By understanding these sub-cultures, marketers can tailor their strategies to effectively target and appeal to specific consumer groups.Rate this question:
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- 21.
Pick out the single FALSE statement about opinion leaders from the following: These people are generally ____________.
- A.
Very brand loyal
- B.
Aware of specialized media
- C.
The same social class as those they influence
- D.
Early adapters
Correct Answer
A. Very brand loyalExplanation
Opinion leaders are not necessarily very brand loyal. While they may have influence over others in their social circle, their loyalty to a particular brand may vary depending on their personal preferences and experiences. Therefore, it is not accurate to say that opinion leaders are always very brand loyal.Rate this question:
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- 22.
In B2B markets demand is _____________.
- A.
Completely rational and information-based
- B.
Price elastic
- C.
Steadier than in consumer markets
- D.
Dependent on demand from customers' customers
Correct Answer
D. Dependent on demand from customers' customersExplanation
In B2B markets, demand is dependent on demand from customers' customers. This means that the demand for a product or service in a business-to-business market is influenced by the demand from the end customers of the business's customers. In other words, the demand for a product or service in a B2B market is driven by the needs and demands of the ultimate consumers or users of the product or service. This is because businesses in B2B markets often serve as intermediaries or suppliers to other businesses, and their demand is closely tied to the demand from their own customers.Rate this question:
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- 23.
For what type of organizational customer is price “a special case” with respect to price?
- A.
Producers
- B.
Intermediaries
- C.
Governments
- D.
Institutions
Correct Answer
C. GovernmentsExplanation
Governments can be considered a special case when it comes to price because they often have unique purchasing requirements and considerations. They may have specific regulations or policies that dictate how they can purchase goods or services, which can impact price negotiations. Additionally, governments may have different budgetary constraints or funding sources compared to other organizational customers, which can also affect their willingness or ability to pay a certain price. Therefore, pricing for governments requires special attention and consideration.Rate this question:
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- 24.
In class we focused on __________________.
- A.
The similarities between consumer and B2B markets
- B.
The differences between consumer and B2B markets
- C.
How simple it is to understand business customers and to market to them
- D.
The personal and emotional aspects of B2B buyer behavior
Correct Answer
B. The differences between consumer and B2B marketsExplanation
In class, the focus was on the differences between consumer and B2B markets. This implies that the instructor emphasized the contrasting characteristics, behaviors, and strategies associated with these two types of markets. The goal may have been to help students understand the unique dynamics and approaches required when marketing to consumers versus business customers.Rate this question:
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- 25.
Which kind of buying situation involves the most risk?
- A.
Consumer purchases
- B.
B2B new buys
- C.
B2B modified buys
- D.
B2B straight buys
Correct Answer
B. B2B new buysExplanation
B2B new buys involve the most risk because they typically involve purchasing products or services that have not been previously purchased by the organization. This means that there may be uncertainties about the quality, performance, or reliability of the product or service. Additionally, there may be a lack of familiarity with the supplier, which can further increase the risk. In contrast, consumer purchases involve products or services that are typically more familiar and have been used by other consumers, reducing the level of risk. B2B modified buys and B2B straight buys involve purchasing products or services that have been previously purchased, reducing the level of risk compared to new buys.Rate this question:
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- 26.
Large organizations usually choose the ____________ segmentation strategy.
- A.
Differentiated
- B.
Undifferentiated
- C.
Concentration
- D.
Mass market
Correct Answer
A. DifferentiatedExplanation
Large organizations usually choose the differentiated segmentation strategy. This is because they have the resources and capabilities to target multiple market segments with different products or marketing approaches. By catering to the specific needs and preferences of different customer groups, they can gain a competitive advantage and maximize their market share. This strategy allows them to effectively reach and serve diverse customer segments, ultimately leading to higher customer satisfaction and profitability.Rate this question:
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- 27.
Of the requirements for segmentation, ______________ is usually the easiest to accomplish.
- A.
Large enough
- B.
Responsive enough
- C.
Can be reached
- D.
Can be measured
Correct Answer
D. Can be measuredExplanation
Among the requirements for segmentation, measuring the segments is usually the easiest to accomplish. This is because measuring segments involves collecting data and analyzing it to determine the characteristics and behaviors of the target audience. It can be done through surveys, market research, and data analysis techniques. On the other hand, other requirements such as reaching the segments, ensuring they are large enough, or being responsive enough may involve more complex strategies and efforts.Rate this question:
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- 28.
The 80-20 rule discussed in class is directly related to ___________.
- A.
Benefits sought
- B.
Usage rate
- C.
Loyalty status
- D.
Degree of awareness
Correct Answer
B. Usage rateExplanation
The 80-20 rule, also known as the Pareto principle, states that 80% of the effects come from 20% of the causes. In the context of the question, the 80-20 rule is directly related to usage rate. This means that 80% of a product or service's usage comes from 20% of its customers. This principle highlights the importance of focusing on the most frequent users or customers who contribute the most to the overall usage or consumption of a product.Rate this question:
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- 29.
“Integrating the customer perspective throughout the organization” is an important part of _______________ orientation(s).
- A.
The production
- B.
The product
- C.
The selling
- D.
All of the above
- E.
None of the above
Correct Answer
E. None of the aboveExplanation
Integrating the customer perspective throughout the organization is an important part of customer orientation. This approach focuses on understanding and meeting the needs and preferences of customers, and aligning all aspects of the organization to deliver value to them. It goes beyond just production, product, or selling orientation, as it encompasses a holistic approach that puts the customer at the center of decision-making and strategy development.Rate this question:
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- 30.
Which of the environments has the most immediate impact on marketing?
- A.
Economic
- B.
Technological
- C.
Physical
- D.
Demographic
Correct Answer
A. EconomicExplanation
The economic environment has the most immediate impact on marketing because it directly influences consumers' purchasing power, spending patterns, and overall demand for products and services. Economic factors such as inflation, unemployment rates, interest rates, and income levels greatly impact consumer behavior and purchasing decisions. Marketers need to closely monitor and adapt to changes in the economic environment to effectively target their customers and adjust their marketing strategies accordingly.Rate this question:
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- 31.
In class we described how time poverty, instant gratification, and life simplification were all related to the _____________-.
- A.
Increasing LFPRMW
- B.
Baby boom
- C.
Majority fallacy
- D.
Age structure of the population
Correct Answer
A. Increasing LFPRMWExplanation
In class, we discussed how time poverty, instant gratification, and life simplification are all connected to the increasing LFPRMW. The increasing LFPRMW refers to the rising labor force participation rate of married women. As more married women enter the workforce, they face time constraints and may experience time poverty. This can lead to a desire for instant gratification and a need for life simplification to manage their busy schedules. Therefore, the increasing LFPRMW is linked to these factors.Rate this question:
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