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OBJECTIVE QUESTION PAPPER : Marketing Management ( MBA 016)

(Faculty : Vishal Srivastava)
1. Behavioral Dimensions of the Consumer Market : 24
2. Finding Target Markets through Segmentation : 22
3. Marketing's Role within Organizations : 20
4. Product Planning for Goods and Services : 22
5. Strategic Market Planning and the Evaluation of Marketing Opportunities : 21
6. The Buying Behavior of Business and Organizational Customers : 16
7. The Consumer Market- Demographic and Economic Dimensions : 22
8. The Changing Marketing Environment : 20
TOTAL : 167
[1] Behavioral Dimensions of the Consumer Market

1 Wants are needs that are learned during a person's life.

A) True
B) False

2 Adding lemon scent to a furniture polish is an example of using a positive cue.

A) True
B) False

3 When consumers make a purchase, the time they have available for shopping will influence their
A) True
B) False

4 It is possible for marketing managers to change or create new attitudes about goods and services—but
overcoming negative attitudes is a really tough job.
A) True
B) False

5 Different purchase situations may require different marketing mixes, even though the same target market is
A) True
B) False

6 Why would most consumers spend more on a product than they know it is available for elsewhere?
A) The consumer is not an economic buyer.
B) The consumer is not in a rush to buy.
C) The consumer hasn't considered his or her economic needs.
D) The consumer never learned numbers in school.
E) The consumer doesn't feel it is worth travelling to get the lower price.

7 Some people say that marketing managers can manipulate consumers to buy products against their will.
Why is this not possible?
A) Consumer wants cannot be influenced.
B) Internal drives cannot be created.
C) Consumer needs are not met prior to the manipulation.
D) Brainwashing is illegal.
E) Insufficient research has been done to make it possible.

8 According to the hierarchy of needs model, the first needs most people try to satisfy are their:
A) social needs.
B) safety needs.
C) physiological needs.
D) personal needs.
E) any of the above.

9 A teenage girl continually nags her mother to buy her a pair of high-heeled shoes that feel very
uncomfortable to walk in, but are worn by all of her friends. This is an example of:
A) physiological needs.
B) personal needs.
C) safety needs.
D) social needs.
E) childish needs.
10 Desmond is planning to buy a scooter. Recently he has been noticing more scooter ads in the magazines
he reads. This illustrates:
A) Effective target marketing.
B) Selective perception.
C) Dissonance.
D) Need satisfaction.
E) Selective exposure.

11 Which of the following is incorrect about consumer learning?

A) Learning is a change in a person's thought processes caused by prior experience.
B) Learning must involve a conscious effort by the consumer.
C) Learning may be based on association.
D) Almost all consumer behavior is learned.
E) Reinforcement of the learning process occurs when the response is followed by a reduction in the drive.

12 Reinforcement is best explained by:

A) products, signs, ads, and other environmental stimuli.
B) an effort to satisfy a drive.
C) occurs in the learning process when the response is followed by satisfaction.
D) the unlearning process.
E) non-routine purchase decisions.

13 A supermarket puts its ovens for its in-store bakery right behind the counter so that the aroma of baking
can be smelled by customers. This is:
A) a violation of the selective processes.
B) olfactory (smell) marketing.
C) an example of trying to link a cue with a marketing mix.
D) likely to have no effect because selective retention will eliminate any effect of the smell.
E) a case of linking a response with a drive.

14 The statement, "I like Hershey bars," is an example of a(n):

A) belief.
B) intention.
C) attitude.
D) reinforcement.
E) drive.

15 What is the best response to existing attitudes toward a product when undertaking a marketing
A) Change the attitudes to be more favourable to your product.
B) Show the consumer why his or her attitude toward your product is wrong.
C) Find a spokesperson who will endorse the product and speak out against the existing attitudes.
D) List 10 reasons why the consumer's attitude is illogical and should change.
E) Build a marketing campaign that is aligned with the existing attitudes.

16 A consumer's expectations are most likely NOT to be satisfied in which of the following situations?
A) A woman attends her first self-help group meeting of an organization she knows little about.
B) An economy-class passenger is seated in business class because of lack of seats.
C) A student waits in line one minute at a bank branch on the first day of the month.
D) A Canadian vacationing at a resort promoted in brochures as fancy, arrives there to find frequent power
failures and no running water.
E) A specialized item a customer wants is out of stock and the sales clerk offers to order it.
17 Personality affects people's behaviour, but:
A) takes too much research to measure economically.
B) is the least useful of all the social influences.
C) hasn't been much help in predicting which specific products people buy.
D) is impossible to observe in an actual situation.
E) none of the above.

18 Toy advertisements are aimed at young children:

A) because they are the real decision makers.
B) in the hope that they will influence their parents.
C) because they have a great deal of purchasing power.
D) because TV ads aimed at children in Quebec are subsidized by the government.
E) to shift purchases to lower-margin items.

19 The social class system in Canada:

A) is much more rigid than in Europe and Asia.
B) results in social groupings that are about equal in size.
C) makes people remain in the class in which they are born.
D) makes it obvious that the lower class is the worst target market.
E) often groups people with very different incomes in the same social class.

20 Compared to lower-class consumers, middle-class consumers generally:

A) live for the present.
B) have simplistic ideas about how things work.
C) are more self-confident and willing to take risks.
D) want help with decision making.
E) feel controlled by the world.

21 Reference group:
A) influence is greatest for older people.
B) influence is equally strong for all brands and products.
C) influence is more important when others will be able to see the product or brand we are using.
D) members may not even know the person whose attitudes they influence.
E) both c & d.

22 Sally always buys gas at the gas station near her workplace. This is an example of:
A) limited problem solving.
B) routinized response behaviour.
C) automatic behaviour.
D) purchasing without thinking.

23 Consumers looking for post-purchase reinforcement are experiencing:

A) dissonance.
B) anxiety.
C) interest.
D) trial.
E) behaviour that should not be reacted to by marketers.

24 A marketing manager for a new line of detergent decides to mail free samples to consumers. The logic
for using this approach is best explained by:
A) the need to reduce dissonance.
B) consumer attitudes.
C) reinforcement.
D) the typical consumer's adoption process.
E) selective retention.

Finding Target Markets through Segmentation

1 A generic market description includes product-type terms.

A) True
B) False

2 Combiners are firms that try to increase the size of their target markets by combining two or more
A) True
B) False

3 It may make sense to have a segment consisting of only a single customer.

A) True
B) False

4 Qualifying dimensions are those that actually affect the consumer's purchase of a specific product or brand
in a product-market.
A) True
B) False

5 Positioning shows how customers think about proposed and/or present brands in a market.
A) True
B) False

6 Prior to selecting a target marketing approach, an organization must:

A) have a product to sell.
B) name broad product markets and segment them into possible target markets.
C) set up production schedules.
D) attempt a mass market approach.
E) avoid learning more about potential customer groups and their needs and preferences.

7 Describing markets in terms of products they sell is commonly done by:

A) product managers.
B) customer service managers.
C) marketing managers.
D) production-oriented managers.
E) none of the above.

8 A better way to define a market than by product is by:

A) sales volume.
B) market size.
C) customer needs.
D) how long the market has existed.
E) ease of entry into the market.

9 Status seekers are an example of a:

A) generic market.
B) product market.
C) narrow market.
D) close substitute.
E) money-losing opportunity.

10 A complete product-market definition includes:

A) product type.
B) customer (user) needs.
C) customer types.
D) geographic area.
E) all of the above.

11 A credit union offers its members a regular credit card and chequing account. A competing bank from the
United States offers a variety of credit cards, all of which are essentially the same as the one offered by the
credit union except for their colour (Gold) or association with an organization (alumni association or charity;
these are known as "affinity cards").
Both the credit union's and bank's credit cards:
A) are targeted at the same consumers.
B) provide the same functional benefits.
C) compete with chequing accounts as a method of payment.
D) both b and c.
E) a, b, and c.

12 Referring to question 11, emotional needs are satisfied by:

A) the chequing account.
B) the regular credit union credit card.
C) the Gold and affinity credit cards.
D) both b and c.
E) a, b, and c.

13 A market segment:
A) is a heterogeneous group of customers.
B) will respond to a marketing mix in a similar way.
C) contains consumers who are different from one another.
D) cannot be profitably served by an organization.
E) is best served with a "one size fits all" approach.

14 Customers in different segments should be as different as possible with respect to their likely responses to
marketing mix variables and their segmenting dimensions. This best describes which of the following
segmenting criteria?
A) homogeneous within.
B) heterogeneous between.
C) substantial.
D) operational.
E) none of the above.

15 The segment should be large enough to be profitable. This best describes which of the following
segmenting criteria?
A) homogeneous within.
B) heterogeneous between.
C) substantial.
D) operational.
E) none of the above.

16 Which of the following segments would be the least operational?

A) fishermen in Newfoundland coastal communities.
B) loggers in the British Columbia interior earning $50,000 or more.
C) mothers in their mid-thirties living in Iqaluit.
D) urban people who like to talk.
E) previous customers who spent more than $60.

17 A segmenter can use:

A) a single target market approach.
B) a multiple target market approach.
C) both a and b
D) a combined target market approach.
E) a mass market approach.

18 As the combining of segments increases:

A) risk declines.
B) sales may grow too quickly for a firm to handle.
C) the marketing mix chosen will appeal to more consumers in the combined segments.
D) customer satisfaction increases.
E) a competitor may enter the market, better catering to one of the combined segments.

19 An airline established a call centre and Web site to promote its economy-class vacation destinations. The
same airline sent sales representatives to visit the largest travel agencies in the business district to promote
its business-class services. This airline is using a:
A) single target market approach.
B) multiple target market approach.
C) combined target market approach.
D) mass market approach.
E) promotional approach.

20 A rival "no frills" airline has only one class of service and caters to both business and leisure travellers. It
is using a:
A) no frills approach.
B) multiple target market approach.
C) combined target market approach.
D) mass market approach.
E) promotional approach.

21 For most business airline passengers, a determining dimension in selecting an airline may be:
A) flight schedule (time of departure and arrival).
B) weight of baggage allowed.
C) choice of food served in flight.
D) free newspaper and massage in departure lounge.
E) friendliness of call centre operators.

22 Approaches to find similar patterns within sets of data are known as:
A) clustering techniques.
B) positioning.
C) lifestyle analysis.
D) databasing.
E) sequencing.

Marketing's Role Within Organizations

1 Marketing creates task utility, but not time or place utility

A) True
B) False

2 Macro-marketing emphasizes how the whole marketing system works.

A) True
B) False

3 Changes in the demographic, social, political, economic, and technological environments have altered
people's preferences for how they want their needs to be satisfied.
A) True
B) False

4 Adopting the marketing concept requires that a company eliminate all functional departments.
A) True
B) False

5 Farmers going to the local village market to sell their crops were in the simple trade era.
A) True
B) False

6 Micro-marketing:
A) anticipates customer needs and directs need-satisfying goods and services from producer to
B) applies to Nortel (a for-profit company).
C) applies to Mountain Equipment Co-op (a non-profit co-operative)
D) is more than persuading customers.
E) all of the above.

7 A company adopting new "gee whiz" technology:

A) always greatly benefits consumers.
B) increases its credibility with older consumers.
C) is guaranteed to gain more customers.
D) may lose sight of its customers and their needs.
E) is innovative in its marketing practices.

8 During the sales era:

A) a company emphasized selling because of decreased competition.
B) the emphasis was on "getting people to buy what we make."
C) production techniques were very flexible.
D) companies thought "if we can make it, it will sell."
E) all marketing activities are brought under the control of one department.

9 Which of the following is NOT likely to be found in a company with a marketing orientation? The
A) sells whatever it can make.
B) designs its packaging as a selling tool.
C) uses marketing research to see if it is satisfying its customers.
D) sees delivery as a service.
E) focuses on locating new opportunities.

10 Both production and marketing contribute to providing:

A) possession utility.
B) place utility.
C) form and task utility.
D) time and place utility.
E) none of the above.

11 Marketing is:
A) a very broad set of activities required to ensure that consumers can get the products and
services they want and need.
B) limited to only selling and advertising.
C) purchasing goods and services that most consumers don't need using aggressive tactics to
overcome consumer resistance.
D) making a good product that sells itself.
E) producing goods and/or services.

12 The marketing concept says that a business firm should:

A) produce those products that it can make at lowest cost.
B) place heavy emphasis on developing new products.
C) place heavy emphasis on advertising and selling.
D) aim all its efforts at satisfying its customers—at a profit.
E) aim all its efforts at meeting society's needs—regardless of profitability

13 Complete acceptance of the "marketing concept" would require:

A) having all production, finance, accounting, and human resource managers report directly to
the marketing manager.
B) placing less emphasis on profit as the objective of the firm.
C) trying to satisfy the needs of each and every customer.
D) making sure that all departments focus their efforts on satisfying customer needs.
E) all of the above.

14 The main difference between the "marketing department era" and the "marketing company era" is:
A) there is no difference.
B) more emphasis on short-run planning in the marketing company era.
C) whether the whole company is customer-oriented.
D) whether the president of the firm has a background in marketing.
E) more emphasis on selling and advertising in the marketing department era.

15 A major company is well known for market-oriented long-range planning. This company is probably
operating in the _______________ era.
A) marketing research
B) marketing department
C) marketing company
D) marketing concept
E) long-range planning

16 Customer value:
A) will be the same for all consumers.
B) is easy to calculate in a numerical formula.
C) is thought about a lot by customers.
D) is a cost-to-benefit analysis by consumers
E) means consumers always select the lowest-priced product.

17 One way of helping to build a long-term relationship with existing customers is:
A) introducing new products for new target markets.
B) having everyone in an organization work together to provide customer value before and after
each purchase.
C) slashing prices.
D) aggressively attacking competitors with negative publicity.
E) by introducing a policy that "all sales are final" to reduce costs.

18 Non-profit organizations:
A) may provide services to people paid for by others.
B) have the same measures of success as a for-profit business.
C) do not have a profit objective, so the marketing concept does not apply.
D) are fundamentally different from business firms; so they should adopt a production
orientation rather than a marketing orientation.
E) do not face competition.

19 Social responsibility is best explained as:

A) a firm's willingness to go the extra mile for its customers.
B) a firm's safety record measured by number of accidents per year caused by its products.
C) a firm's obligation to increase its positive effects on society and reduce its negative effects.
D) a firm's willingness to increase profits at the expense of others.
E) a firm being nice to its competitors.

20 Being socially responsible:

A) is easy to do because everyone agrees what activities are socially responsible.
B) may cause a company to produce harmful products.
C) must be done to be in compliance with the law.
D) may conflict with a firm's profit objective.
E) means there are no choices to be made.

Product Planning for Goods and Services

1 A product with better features is not a high-quality product if the features are not what the target market
A) True
B) False

2 Consumer product classes are based on the way people buy products.
A) True
B) False

3 The same product may be considered as a staple by some consumers and as a heterogeneous shopping
product by other consumers.
A) True
B) False

4 The sale of installations is routine and very quick.

A) True
B) False

5 Components are processed expense items that become part of a finished product.
A) True
B) False

6 A product is:
A) goods, not services.
B) a well-advertised item with an established brand name.
C) the need-satisfying offering of a firm.
D) all the services needed with a physical good.
E) all of a firm's production and distribution activities.

7 From a marketing perspective, a high-quality haircut:

A) is performed by a well-known hair-stylist.
B) takes three hours and costs $100.
C) uses 10 different cutting and styling instruments.
D) succeeds in satisfying a customer's needs.
E) is very stylish.

8 Most products are a combination of tangible and intangible elements. Which of the following is an
intangible service provided by a new home builder?
A) upgraded carpeting.
B) assistance in obtaining a mortgage.
C) laying sod (grass).
D) thermal glazed windows.
E) fencing around the yard.

9 All of the following are true about services except:

A) services often have to be produced in the presence of customers.
B) services can be stored for later use.
C) information technology can automate some services.
D) variations in demand make providing services costly.
E) services often must be duplicated at each place the service is provided.

10 Loblaws carries tea, canned goods, cake mixes, and snacks. These are part of the company's:
A) product assortment.
B) marketing mix.
C) product line.
D) product classes.
E) individual products.

11 Each of the items in Question 10—tea, canned goods, cake mixes, and snacks—is a(n):
A) product assortment.
B) marketing mix.
C) product line.
D) product class.
E) individual product.

12 Consumer product classes are based on ___________, while business product classes are based on
A) the durability of the product; the type of product.
B) how consumers shop for the product; how the product is to be used.
C) how the product is produced; how the product is sold.
D) the quality of the product; the age of the product.
E) how the product is sold; how the product is assembled.

13 Convenience products include:

A) unsought products.
B) shopping products.
C) specialty products.
D) staples.
E) all of the above.

14 Which of the following products in a supermarket is most likely to be an impulse product?

A) shampoo.
B) magazine.
C) apples.
D) milk.
E) broccoli.

15 Staple products:
A) need widespread distribution near probable points of use.
B) can have limited availability as long as display is good.
C) need little representation in major shopping areas.
D) are products that a consumer spends time and effort to find.
E) need maximum exposure and widespread distribution at low cost.

16 Specialty products:
A) can have limited availability.
B) need widespread distribution near probable points of sale.
C) need enough exposure to facilitate price comparison.
D) must have a low price to gain sales.
E) need adequate representation near similar products.

17 Which of the following orderings suggests the amount of effort (from little to much) that consumers are
willing to spend searching for the "right" product?
A) homogeneous shopping products, staples, heterogeneous shopping products.
B) staples, heterogeneous shopping products, unsought products.
C) heterogeneous shopping products, specialty products, unsought products.
D) convenience products, homogeneous shopping products, specialty products.
E) unsought products, homogeneous shopping products, impulse products.

18 Classify the following business items as an expense item or as a capital item: (1) food for a restaurant;
(2) stove for a restaurant; (3) blank CDs for a recording company; (4) assembly-line for a manufacturing
A) (1) expense item; (2) capital item; (3) capital item; (4) capital item.
B) (1) expense item; (2) capital item; (3) expense item; (4) capital item.
C) (1) expense item; (2) expense item; (3) capital item; (4) capital item.
D) (1) expense item; (2) expense item; (3) expense item; (4) capital item.
E) (1) capital item; (2) capital item; (3) expense item; (4) capital item.

19 Which of the following is not a raw material?

A) steel.
B) logs.
C) grease.
D) coal.
E) corn.

20 Which of the following would NOT be favourable to successful branding?

A) product quality that is easy to maintain.
B) economies of scale in production and distribution.
C) product that is hard to identify by brand or trademark.
D) widespread availability in the market.
E) large demand for the general product class.

21 Packaging:
A) can be a part of quality control.
B) can open up new market opportunities.
C) is an issue even with services.
D) provides more promotion effect—and at a lower cost—than advertising
E) all of the above

22 Placing the price per unit of measure on the shelf near the product is:
A) called unit pricing.
B) helpful to consumers in making price comparisons.
C) mandatory by law.
D) a and b.
E) all of the above.

Strategic Market Planning and the Evaluation of Marketing Opportunities

1 Finding attractive opportunities and developing profitable marketing strategies are the tasks included in
the marketing manager's strategy planning job.
A) True
B) False

2 Target marketing limits an organization's profit potential.

A) True
B) False

3 Any series of firms or individuals from producer to final user or consumer is a channel of distribution
A) True
B) False

4 A "marketing program" blends all of a firms' marketing plans into one big plan.
A) True
B) False

5 Firms that excel at marketing achieve significantly higher volume and profitability.
A) True
B) False

6 A company has modified and enlarged its product line to meet the changing needs of its current
customers. This is an example of:
A) market development.
B) market penetration.
C) diversification.
D) product development.
E) market share.

7 Which of the following is true about the marketing management process?

A) Marketing managers should plan to maintain the status quo.
B) Consumers' needs, competitors, and the environment keep changing.
C) After implementing the plans, the process is finished.
D) Planning is done by the marketing department in isolation.
E) None of the above.

8 The difference between target marketing and mass marketing is that target marketing:
A) is a shotgun approach, while mass marketing is a rifle approach.
B) focuses on specific customers, while mass marketing aims at an entire market.
C) focuses on short-run objectives, while mass marketing focuses on long-run objectives.
D) aims at increased sales, while mass marketing focuses on increased profits.
E) means concentrating on a small market.

9 Compared to mass marketing, target marketing:

A) offers greater efficiency.
B) is more expensive.
C) offers more potential customers.
D) is an older method of marketing.
E) doesn't use the 4 Ps.

10 Mass selling:
A) involves direct communication between sellers and potential customers.
B) is communicating with small numbers of customers.
C) has two major forms: advertising and publicity.
D) has a higher cost of reaching a target customer than personal selling.
E) uses a salesforce.

11 Sales promotion can involve all of the following EXCEPT:

A) point-of-purchase materials.
B) outdoor billboards.
C) samples.
D) catalogues.
E) coupons.

12 Selecting a target market and developing a marketing mix:

A) are not strategy jobs.
B) are decisions made by different departments in isolation from one another.
C) should be decided independently.
D) are decisions that should be made together.
E) cause managers to search for customers who dislike what they have to offer.

13 Product market screening criteria should:

A) be quantitative.
B) be qualitative.
C) be achievable.
D) summarize in one place what the firm wants to accomplish.
E) all of the above.

14 A firm's marketing mix would NOT include:

A) product.
B) price.
C) profit.
D) promotion.
E) place.

15 Unilever uses many intermediaries to reach its target markets; TD Bank uses none. Which of the
marketing mix variables is being considered here?
A) promotion
B) product
C) place
D) price
E) penetration

16 The term "product" is NOT concerned with:

A) packaging.
B) branding.
C) quality level.
D) warranty.
E) selling.

17 _______________ involves direct communication between sellers and potential customers.

A) Advertising
B) Publicity
C) Sales promotion
D) Mass selling
E) Personal selling

18 Sales promotion:
A) is free.
B) tries to help the personal selling and mass selling people.
C) is the main form of advertising.
D) lets the salesperson adapt the marketing mix to each potential customer.
E) is designed to replace salespeople.

19 An appropriate marketing mix should be determined primarily by:

A) the budget available to spend.
B) the past experiences of the marketing manager.
C) the needs of the target market.
D) what has worked for the company in the past.
E) how well a firm can achieve economies of scale in producing a product.

20 A hotel restaurant offers an inexpensive Sunday brunch to get customers on the weekend. Normally
during the week the restaurant serves business travellers. This effort to get new customers for the available
facility is an example of:
A) market development.
B) diversification.
C) product development.
D) market penetration.
E) a production orientation.

21 Portfolio management:
A) treats products or SBUs as though they were stock investments.
B) may place too much emphasis on easy-to-compare quantitative criteria.
C) tends to emphasize short-run profitability and return on investment.
D) identifies which opportunities should be supported, "milked," or sold off.
E) All of the above are true.

The Buying Behavior of Business and Organizational Customers

1 More purchases are made by businesses and other organizations than by final consumers.
A) True
B) False

2 The number of buyers is larger in business markets compared to consumer markets.

A) True
B) False

3 Consumer markets tend to use more indirect channels than business markets.
A) True
B) False

4 Most of the workday of a purchasing manager spent with customers.

A) True
B) False
5 ISO 9000 is a way for a supplier to document its quality procedures according to internationally
recognized standards.
A) True
B) False

6 Compared to consumer markets, business-to-business markets:

A) use more personal selling.
B) involve less leasing.
C) have less complex negotiations.
D) have more impersonal buyer-seller relationships.
E) all of the above.

7 The cost-in-use of a product includes:

A) the price paid.
B) costs incurred in buying the product.
C) costs in taking possession of the product.
D) costs for using the product.
E) all of the above.

8 Field defects, training, user labour, and disposal are:

A) possession costs.
B) sunk costs.
C) total cost-in-use.
D) usage costs.
E) acquisition costs.

9 At Sally Chong's car dealership, owner Sally Chong read an article in the paper that the local municipality
was collecting used motor oil. She instructed her service manager, Jeff Ford, to find more information on
used oil collection systems that she recalled reading about in a trade magazine. After doing a Web search and
making several phone calls, Jeff arranged for three companies to send brochures about their systems. He
read them and set criteria for what he wanted. Then he invited two of the companies to send sales
representatives to make a proposal. Sally agreed to allow Jeff to decide which system to purchase, to
negotiate the price, and to make arrangements for its installation. Before making his final decision, Jeff also
asked for the opinion of Mohammed, his senior mechanic. After it was installed, Mohammed and the rest of
the mechanics began to use it.
The person in the buyer role in this case was:
A) Sally.
B) Mohammed.
C) Jeff.
D) salespeople from the oil collection system companies.
E) cannot determine from information provided.

10 Referring to question 9, Sally's role in the buying process was:

A) initiator.
B) decider.
C) user.
D) influencer/gatekeeper.
E) buyer.

11 Referring to question 9, Sally and Jeff working together on this is an example of:
A) split responsibility.
B) lack of gatekeepers.
C) not having need awareness.
D) multiple buying influence.
E) evaluation of the product.
12 Referring to question 9, the decider in this case was:
A) Sally.
B) Mohammed.
C) Jeff.
D) salespeople from the oil collection system companies.
E) cannot determine from information provided.

13 Referring to question 9, Mohammed's role in the buying process was as a(n):

A) initiator.
B) influencer/gatekeeper.
C) mechanic.
D) buyer.
E) user.

14 Reciprocity is best explained by:

A) If you don't buy from me, I won't buy from your competitor.
B) a barter system.
C) two companies where each is a customer of the other.
D) fierce competition.
E) ISO 9000.

15 A straight rebuy:
A) is a routine purchase that may have been made many times before.
B) takes only a small amount of an organized buyer's time.
C) is routinized by using requisitions.
D) does not involve the buyer searching for new information or sources of supply.
E) all of the above.

16 The North American Industry Classification System (NAICS):

A) describes manufacturing industries only.
B) is an internationally accepted, more detailed variation of the SIC system.
C) is less detailed than SIC, but useful for selecting consumer target markets.
D) is a very old system that is not well suited for new or changing industries.
E) makes it easy for marketers to learn about consumers.

The Consumer Market- Demographic and Economic Dimensions

1 According to David Foot, author of Boom Bust & Echo, demographics explain about two thirds of
A) True
B) False

2 Canada's largest CMAs, Toronto, Montreal and Vancouver, together comprise approximately one third of
the total Canadian population.
A) True
B) False

3 The 1996 census revealed that nearly half of the Canadian population has moved during the previous five
A) True
B) False

4 By 1996, almost one in every ten children lived in a single-parent family.

A) True
B) False

5 New parents are younger, less educated, and less experienced than their predecessors were a generation
A) True
B) False

6 According to the text, which of the following is NOT a reason that some marketers sell only in large
metropolitan areas?
A) fewer intermediaries are required
B) fewer advertising media are required
C) less travel time for sales force
D) less travel time for customers
E) consumers living there have more money to spend

7 According to the text, which of the following provinces had the LARGEST percentage increase in
population between 1982 and 2000?
A) Ontario and Quebec
B) British Columbia and Ontario
C) Saskatchewan and British Columbia
D) Alberta and Ontario
E) Newfoundland and British Columbia

8 A Census Metropolitan Area:

A) is the main labour market area of a continuous built-up area having 100,000 or more population.
B) usually includes several large cities.
C) must contain one city of 500,000 or more people.
D) is an urbanized area with a population of at least 600,000 people.
E) both B and D

9 Which of the following statements about Census Metropolitan Areas (CMAs) is true?
A) The 25 CMAs contain just under half of the total Canadian population.
B) They offer less than their population alone would indicate due to below average incomes in those areas.
C) The CMAs are evenly distributed geographically—with at least one in every province.
D) Vancouver is the largest CMA in terms of population.
E) None of the above are true.

10 Purchase patterns are different in the suburbs. Which of the following might a suburban resident be more
likely to buy than a downtown city resident?
A) books
B) stereo
C) computer
D) car
E) towels

11 After people move it is most important to:

A) market to them right away to help them locate new places to obtain goods and services that they will use
over and over again while they live there.
B) not bother marketing to them because most people are strapped for cash after a move.
C) remove them from old mailing lists.
D) offer to help them unpack.
E) stop advertising.

12 Of the following ethnic groups, which is least likely to experience strong growth in Canada?
A) Chinese
B) Japanese
C) Polish
D) East Indian

13 There are counties in Ontario and New Brunswick that are often considered part of the French market
A) the mother tongue of over half the population is French.
B) they are frequently served by Quebec distributors.
C) they receive considerable overflow advertising from Quebec.
D) all of the above.

14 Which product would most likely benefit from the increase in single-person households?
A) single-serving food packages
B) sport utility vehicles
C) paint
D) toys
E) dishwashers

15 The fall in the Canadian birthrate:

A) guarantees that Canada's population will decline in the future.
B) helps explain why the median age is rising.
C) will create opportunities for manufacturers of cribs, diapers, and children's toys.
D) will have no impact on the clothing industry.
E) is not important to marketers because babies don't buy anything.

16 Average annual family income in Canada:

A) has increased greatly in real terms since 1989.
B) has not increased much in real terms since 1989.
C) was a little over $22,000 in 1999.
D) is difficult to measure.

17 The amount of income that a household has left after paying for its necessities is called:
A) disposable income.
B) taxable income.
C) marginal income.
D) frills.
E) discretionary income.

18 In terms of earnings, the top 20 percent of families:

A) had income not much different than the national average.
B) received over 40 percent of total family income.
C) lived mainly in rural locations.
D) lost income from previous years.
E) spent a higher percentage of their earnings on necessities than other income groups.

19 The poverty line:

A) is defined by Statistics Canada as families required to spend more than 62 percent of their income on
B) varies from place to place depending on the cost of living.
C) shows us that many Canadian households aren't doing well economically.
D) is the most widely used approach to determine who is poor in Canada.
E) all of the above.
20 In terms of differences in spending between rural and urban residents, which of the following is FALSE?
A) rural residents spend a higher percentage of their income on food.
B) urban residents spend a higher percentage of their income on housing.
C) rural residents spend a higher percentage of their income on transportation.
D) urban residents spend a higher percentage of their income on food.
E) rural residents spend a lower percentage of their income on housing.

21 Consumers who believe that the company behind the product is as important as the product itself are
most likely to belong to which of the following categories?
A) young couples
B) young parents
C) empty nesters
D) old singles
E) swingers

22 Most empty nesters:

A) spend most of their income to support others in their family.
B) feel financially squeezed.
C) are people over 65 who live alone because of divorce or the death of a spouse.
D) are young singles and couples who have no children and spend much of their money on discretionary
E) are no longer sacrificing for others and can therefore afford to indulge themselves.

The Changing Marketing Environment

1 Competitive barriers are conditions that make it difficult to compete in a market.

A) True
B) False

2 Pure competition can always be avoided, if a firm tries hard enough.

A) True
B) False

3 Marketers should be aware of federal legislation, as well as provincial and local laws, when planning
marketing strategy.
A) True
B) False

4 Countertrade is a special type of bartering in which products of one country are traded for products from
A) True
B) False

5 Quebec has stronger consumer protection legislation than other provinces.

A) True
B) False

6 Which of the following is NOT a basic objective of all firms?

A) organize to carry on the business and implement its strategies
B) do something useful for society
C) become a monopoly by driving competitors out of business
D) earn a profit
E) All of the above are basic objectives.
7 Which of the following is FALSE about objectives?
A) Objectives are useless if a firm lacks the resources to achieve them.
B) Particular marketing objectives should be guided by larger company objectives.
C) Objectives should be realistic and achievable.
D) Deciding marketing strategies should be done prior to setting objectives.
E) Company objectives guide managers as they search for opportunities.

8 Along with studying trends in the environment, a first step in looking for attractive opportunities is to:
A) estimate product market potentials.
B) hire a publicist.
C) find new markets for present products.
D) decide which product markets the firm will enter.
E) understand the resources and objectives of the firm.

9 A common barrier to entry into an otherwise attractive market is:

A) lack of product expertise.
B) fear of competition.
C) weak consumer protection legislation.
D) lack of financial strength.
E) low demand.

10 Regarding the competitive environment, a marketing manager usually can:

A) control it with the help of the political environment.
B) control it in the long run.
C) control it in the short run.
D) choose strategies to avoid head-on competition.
E) control it with the help of the legal environment.

11 Under monopolistic competition, competition still exists because:

A) companies raise prices.
B) companies lower prices.
C) governments regulate the market.
D) some consumers see the various alternatives as substitutes.
E) marketing mixes of firms in the market are seen as being the same by all consumers.

12 Tariffs and quotas:

A) are different terms for the same thing.
B) encourage international trade.
C) are taxes and quantity limits for imports/exports.
D) reduce conflict between nations.
E) are aimed to help firms trying to sell in new foreign markets.

13 NAFTA, WTO, and the EU are all examples of:

A) nationalism.
B) agreements to increase international trade.
C) multinational consumer protection legislation.
D) separation of markets.
E) isolationism.

14 Which of the following is NOT likely to be one of the major consumer and environmental issues over
the next decade?
A) genetically modified organisms
B) consumer privacy
C) global warming
D) cell phone safety
E) falling prices

15 Consumers in Newfoundland buy different brands of tea than consumers on Vancouver Island. This is an
example of:
A) homogeneous markets.
B) ocean-lifestyle consumption segments.
C) regional differences within Canada.
D) major urban areas.
E) French-English differences.

16 In response to a society's basic cultural values and social attitudes, a marketing manager's firm should:
A) work very hard to influence the rate of change in these attitudes and values so consumers will demand
more of the firm's product.
B) ignore trends going on, producing what it feels is best for consumers.
C) stop producing popular products, and instead produce other ones designed to shift values.
D) keep informed of current attitudes and work within these constraints to seek new and better
E) work against them to increase profits.

17 A property management company has noticed an increase in the number of single people looking for
apartments over the years. This is a change in the:
A) technological environment.
B) competitive environment.
C) social environment.
D) legal environment.
E) customer environment.

18 In Quebec there are billboards encouraging residents to spend their vacation in Quebec. This is an
example of:
A) consumerism.
B) federalism.
C) discouraging tourism.
D) transnationalism.
E) nationalism.

19 Compared to the United States, Canada:

A) has a much larger population.
B) has not been as aggressive in prohibiting mergers.
C) is more nationalistic.
D) has been more aggressive in prohibiting mergers.
E) is less group oriented.

20 In which of the external environments do changes usually occur most slowly?

A) competitive environment
B) resources and objectives of the firm
C) cultural and social environment
D) political and legal environment
E) economic and technological environment