University of Economics

The University of Danang

******
Midterm Examination
Marketing Management
2014
There are one-hour test and 100 points on the exam. Answer all 40 questions. Your score for these questions is 2
points for each correct answer. Circle the best answer for each question.
1) Which of the following statements about marketing is
true?
A) It is of little importance when products are
standardized.
B) It can help create jobs in the economy by increasing
demand for goods and services.
C) It helps to build a loyal customer base but has no
impact on a firm's intangible assets.
D) It is more important for bigger organizations than
smaller ones.
E) It is seldom used by nonprofit organizations.
Answer: B
Page Ref: 4
Objective: 1
Difficulty: Easy

4) Julia is worried about the rising pollution levels in her

city. She doesn't mind paying extra for goods and
services that use sustainable processes to help control
pollution. This is an example of ________ for pollution.
A) declining demand
B) nonexistent demand
C) latent demand
D) negative demand
E) unwholesome demand
Answer: D
Page Ref: 8
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate

2) ________ goods constitute the bulk of most countries'

production and marketing efforts.
A) Durable
B) Impulse
C) Physical
D) Luxury
E) Intangible
Answer: C
Page Ref: 5
Objective: 2
Difficulty: Easy

5) In the case of ________, consumers dislike the

product and may even pay a price to avoid it.
A) nonexistent demand
B) overfull demand
C) irregular demand
D) negative demand
E) declining demand
Answer: D
Page Ref: 8
Objective: 2
Difficulty: Easy

3) The "Malaysia, Truly Asia" ad campaign that

showcased Malaysia's beautiful landscape and its
multicultural society in order to attract tourists is an
example of ________ marketing.
A) event
B) property
C) service
D) place
E) idea
Answer: D
Page Ref: 6
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate

6) Companies address needs by putting forth a

________, a set of benefits that they offer to customers
to satisfy their needs.
A) brand
B) value proposition
C) deal
D) marketing plan
E) demand
Answer: B
Page Ref: 10
Objective: 3
Difficulty: Moderate
7) The task of any business is to ________.

A) create customer needs

B) differentiate in terms of cost of production
C) deliver customer value at a profit
D) reduce competition
E) communicate similar value as provided by
competitors
Answer: C
Page Ref: 33
Objective: 1
Difficulty: Easy
8) The last step in the value creation and delivery
sequence is ________ the value where the sales force,
sales promotion, advertising, and other communication
tools announce and promote the product.
A) developing
B) positioning
C) communicating
D) reversing
E) researching
Answer: C
Page Ref: 34
Objective: 1
Difficulty: Easy
9) Which of the following can be considered a primary
activity in the value chain process?
A) procurement
B) human resource management
C) technology development
D) inbound logistics
E) firm infrastructure
Answer: D
Page Ref: 34
Objective: 1
AACSB: Analytic skills
Difficulty: Easy
10) ________ has three characteristics: (1) it is a source
of competitive advantage in that it makes a significant
contribution to perceived customer benefits; (2) it has
applications in a wide variety of markets; and (3) it is
difficult for competitors to imitate.
A) Core competency
B) Market sensing process
C) Corporate social responsibility
D) Strategic business unit
E) Philanthropy
Answer: A
Page Ref: 35
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate

11) The marketing plan, the central instrument for

directing and coordinating the marketing effort, operates
at ________ levels.
A) functional and operational
B) strategic and tactical
C) corporate and operational
D) customer and expenditure
E) corporate and division
Answer: B
Page Ref: 36-37
Objective: 2
AACSB: Analytic skills
Difficulty: Easy
12) Which of the following is an example of growth by
diversification?
A) a company introducing its existing products in a new
market
B) a company introducing new product category in a
new market
C) a company increases its product line in an existing
market
D) a company introducing a new product category in an
existing market
E) a company integrates backward to cut costs
Answer: B
Page Ref: 43
Objective: 2
Difficulty: Moderate
13) As the manager of an organization that is attempting
to build a Marketing Information System (MIS), you
have been informed that a MIS is built upon three
fundamental information sources. The sources are
________, marketing intelligence activities, and
marketing research.
A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the
Better Business Bureau
Answer: D
Page Ref: 69
Objective: 1
Difficulty: Easy
14) A ________ is a direction or sequence of events that
has some momentum and durability; it reveals the shape
of the future and can provide strategic direction.
A) fad
B) fashion
C) trend
D) megatrend

E) style
Answer: C
Page Ref: 74
Objective: 4
Difficulty: Easy
15) ________ provide diagnostic information about how
and why we observe certain effects in the marketplace,
and what that means to marketers.
A) Marketing insights
B) Marketing metrics
C) Marketing channels
D) Marketing information systems
E) Marketing-mix models
Answer: A
Page Ref: 97
Objective: 1
Difficulty: Easy
16) Which of the following is considered to be the last
step in the marketing research process?
A) presenting findings
B) analyzing information
C) controlling the environment
D) arriving at a decision
E) drafting the report
Answer: D
Page Ref: 99
Objective: 1
Difficulty: Easy

17) Which of the following is true for the modern

company organization chart?
A) Frontline employees are less important than top
management.
B) Customers are at the top of the pyramid.
C) Top management is at the top of the pyramid.
D) Customers are less important than middle
management.
E) Frontline employees are at the top of the pyramid.
Answer: B
Page Ref: 124
Objective: 1
AACSB: Reflective thinking
Difficulty: Easy
18) When a consumer considers a product or service, he
or she will choose whichever product or service delivers
the highest ________.
A) customer-perceived value
B) customer-perceived cost
C) customer profitability analysis
D) customer equity

E) customer lifetime value

Answer: A
Page Ref: 125
Objective: 1
AACSB: Analytic skills
Difficulty: Easy
19) Which of the following is the first step in customer
value analysis?
A) Examine how customers in a specific segment rate
the company's performance.
B) Assess the company's and competitors' performances
on the different customer values against their rated
importance.
C) Identify the major attributes and benefits that
customers value.
D) Monitor customer values over time.
E) Assess the quantitative importance of the different
attributes and benefits.
Answer: C
Page Ref: 126
Objective: 1
Difficulty: Easy
20) Total customer satisfaction is measured based on the
relationship of ________.
A) expected value and total customer benefit
B) perceived performance and expectation
C) advertised outcomes and real outcomes
D) past experience and present experience
E) customer attitude and salesperson's attitude
Answer: B
Page Ref: 128
Objective: 1
AACSB: Reflective thinking
Difficulty: Easy
21) Which of the following is the best method of
recovering customer goodwill?
A) sending service people to conduct door-to-door
surveys
B) contacting the complaining customer as quickly as
possible
C) identifying prospective customers from the customer
database
D) customizing products according to individual
customer need
E) defining and measuring the customer retention rate
Answer: B
Page Ref: 131
Objective: 1
Difficulty: Easy
22) A profitable customer ________.

A) yields a cost stream that exceeds by an acceptable

amount his revenue stream
B) yields a revenue stream that exceeds the company's
cost stream
C) yields a cost stream that exceeds the company's
revenue stream
D) yields a revenue stream that exceeds by an acceptable
amount his cost stream
E) yields a revenue stream that equals the company's
cost stream
Answer: B
Page Ref: 133
Objective: 2
Difficulty: Easy
23) ________ is the study of how individuals, groups,
and organizations select, buy, use, and dispose of goods,
services, ideas, or experiences to satisfy their needs and
wants.
A) Target marketing
B) Mind mapping
C) Consumer activism
D) Consumer behavior
E) Product differentiation
Answer: D
Page Ref: 151
Objective: 1
Difficulty: Easy
24) Joe is a computer service technician. People in his
neighborhood usually depend on his suggestions for
purchasing any computer accessory or hardware, as they
believe that he has access to far more information on
computer technology than the average consumer. The
neighbors are also aware that Joe has the required
knowledge and background for understanding the
technical properties of the products. Within this context,
Joe can be called a(n) ________.
A) transactional leader
B) opinion leader
C) role model
D) gate-keeper
E) international marketer
Answer: B
Page Ref: 153
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate
25) The family in a buyers life consisting of parents and
siblings is the ________.
A) family of procreation
B) family of influence
C) family of efficiency

D) family of orientation
E) purchasing family
Answer: D
Page Ref: 154
Objective: 1
Difficulty: Easy
26) The Marlboro Man was depicted in the
advertisements of Marlboro cigarettes as a rugged
outdoor, tough cowboy type. This was done to establish
what is called ________.
A) trademarking
B) a brand name
C) a brand personality
D) co-branding
E) a brand reference
Answer: C
Page Ref: 157
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate
27) ________ portrays the "whole person" interacting
with his or her environment.
A) Attitude
B) Personality
C) Lifestyle
D) Self-concept
E) Subculture
Answer: C
Page Ref: 157
Objective: 1
Difficulty: Easy
28) Which of the following theories developed by
Frederick Herzberg distinguishes dissatisfiers from
satisfiers?
A) trait-role theory
B) psychological constraint theory
C) probability theory
D) leadership model
E) two-factor theory
Answer: E
Page Ref: 161
Objective: 2
Difficulty: Moderate
29) A(n) ________ is a descriptive thought that a person
holds about something.
A) attitude
B) belief
C) desire
D) feeling
E) emotion

Answer: B
Page Ref: 168
Objective: 3
Difficulty: Easy
30) ________ refers to the decision-making process by
which formal organizations establish the need for
purchased products and services and identify, evaluate,
and choose among alternative brands and suppliers.
A) Marketing channels
B) Organizational buying
C) Corporate retailing
D) Brand auditing
E) Inventory control
Answer: B
Page Ref: 183
Objective: 1
Difficulty: Easy
31) Which of the following is a challenge in which
business marketers differ from the consumer marketers?
A) understanding deep customer needs in new ways
B) identifying new opportunities for organic business
growth
C) geographically concentrated buyers
D) calculating better marketing performance and
accountability metrics
E) competing and growing in global markets,
particularly China
Answer: C
Page Ref: 184-185
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate
32) Sometimes a rise of only 10% in consumer demand
can cause as much as a 200% rise in business demand
for products for the next period. This is an example of
________.
A) inelastic demand
B) direct purchasing
C) fluctuating demand
D) derived demand
E) a straight rebuy
Answer: C
Page Ref: 185
Objective: 1
Difficulty: Easy
33) In the purchasing decision process, the major role of
________ is in selecting vendors and negotiating.
A) gatekeepers
B) buyers
C) initiators

D) approvers
E) deciders
Answer: B
Page Ref: 188
Objective: 3
Difficulty: Easy
34) Which of the following statements about market
segmentation is true?
A) It involves changing the identity of a product, relative
to the identity of competing products, in the collective
minds of the target market.
B) It is a process of evaluating each segment's
attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the
product in the minds of the target market.
D) It is a process of identifying and profiling distinct
groups of buyers who differ in their needs and wants.
E) It is the quality of how marketers go to market with
the goal of optimizing their spending to achieve good
results.
Answer: D
Page Ref: 213
Objective: 2
Difficulty: Moderate
35) Hilton Hotels customizes rooms and lobbies
according to location. Northeastern hotels are sleeker
and more cosmopolitan. Southwestern hotels are more
rustic. This is an example of ________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural
Answer: D
Page Ref: 214
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate
36) If a marketing manager segments the market into
culture-oriented, sports-oriented, or outdoor-oriented
groups, he or she is segmenting on the basis of
________.
A) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage
Answer: D
Page Ref: 215
Objective: 2
AACSB: Analytic skills

Difficulty: Easy

Difficulty: Easy

37) According to the VALS segmentation system,

________ are successful, goal-oriented people who
focus on career and family. They favor premium
products that demonstrate success to their peers.
A) thinkers
B) innovators
C) achievers
D) believers
E) experiencers
Answer: C
Page Ref: 226
Objective: 2
Difficulty: Easy

39) Which of the following best describes a car

company's value proposition?
A) We charge a 20% premium on our cars.
B) We target safety-conscious upscale families.
C) We sell the safest, most durable wagon.
D) We are the market leader in the small car category.
E) We focus on expanding in faster-growing markets.
Answer: C
Page Ref: 276
Objective: 1
AACSB: Analytic skills
Difficulty: Moderate

38) All marketing strategy is built on

STP segmentation, targeting, and ________.
A) positioning
B) product
C) planning
D) promotion
E) performance
Answer: A
Page Ref: 275
Objective: 1
AACSB: Analytic skills

40) ________ are defined as companies that satisfy the

same customer need.
A) Communities
B) Competitors
C) Trendsetters
D) Industries
E) Task groups
Answer: B
Page Ref: 278
Objective: 1
Difficulty: Easy