practiceTest.txt

Com 250 Mid-Term 2
Com 250 Fall 2013
Instructor: Trial User
Phone: (cell) 250-888-8402
Email: dboag@uvic.ca
Room Number: BEC 228
Duration: 1 Hour 35 Minutes
Student Number:
Name:
Test Instructions:
There are 85MC Questions. Answer all questions in pencil. Place your name
and student number on both the exam booklet and opscan sheet and hand both
back at the end of the exam. The attendant will not answer any questions
relating to the exam. Good Luck! .
Multiple Choice Questions:

1. Nationally distributed consumer convenience products are most likely distributed
through a _________ channel.
a. producer - consumer
b. producer - wholesaler - consumer
c. producer - industrial distributor - retailer - consumer
d. producer - wholesaler - retailer - consumer

answer:producer - wholesaler - retailer - consumer

2. Many new financial investments are not easy to understand and as a result it may be
difficult for the average investor to understand how the investment will make money.
As a result many potential investors, having no ability to evaluate them (this is
certainly the case of one form of derivative product – principal protected notes
(PPN)). In terms of what marketers understand to be the characteristics which
determine the rate at which new innovations are adopted, the relative difficulty in
understanding PPN's would be a measure of the innovation's _________.
a. superiority
b. communicability
c. trialability
d. relative advantage

answer:

3. Organizations that use a follow-the-competition pricing strategy _________.
a. price noticeably higher than their competitors
b. price noticeably below their competitors
c. tend to administer prices
d. tend to emphasize non-price elements of their marketing mix

answer:

4. After several years of having a presence in the Australian and New Zealand markets,
an online publisher of educational directories profiling opportunities for
undergraduate studies in Canada, North America, Australia, New Zealand and the UK
is deciding whether to abandon its efforts in Australia and New Zealand because of
the limited size and potential of these markets. This is a decision that deals with
product policy at the _________ level.
a. VP Marketing
b. sales department
c. Board of Directors
d. senior management of the business uinit

answer:

5. What would be the mark-up on selling price given a retailer's desire to achieve a 23%
mark-up based on an initial unit cost of $50?
a. $45
b. $75
c. $55
d. $65

answer:

6. An organization's marketing objectives will influence price setting. An organization
that pursues an objective of market share leadership is likely to __________.
a. set prices equal to the "commodity" value of its products/services
b. set prices that achieve certain sales volumes relative to its manufacturing capacity
c. set prices low or price along a continuum to appeal to many market segments
d. set prices high to symbolize exceptional value

answer:

7. When a producer has a conflict with its wholesalers, the producer is experiencing
___________ conflict.
a. multichannel
b. direct channel
c. vertical channel
d. horizontal channel

answer:

8. Market segmentation is most heavily emphasized during the _________ stage of the
product life cycle.
a. growth
b. decline
c. introductory
d. maturity

answer:

9. Economies of scale refers to __________.
a. when an increase in the range of goods and services provided brings a decrease in the
average costs of operation
b. advantages achieved through the substitution of capital for labor
c. when the average costs of operation decline with increased sales
d. absolute cost advantages

answer:

10. Product differentiation is most preferred __________.
a. when products or services are in the maturity stage of the product life cycle
b. all of the statements are true
c. when consumers purchase products and services differently
d. when competing products fulfill the same need with the same key features and
minor changes in the product will allow competitors to position their offerings as
unique in the minds of consumers

answer:

11. An independent grocer want to know if cocktail and tartar sauce would sell better if
the two products were moved from the salad dressing section of the store to a
display next to the seafood section would most likely use _____ research.
a. causal
b. longitudinal
c. exploratory
d. ethnographic

answer:

12. Products for which there is no reference group influence are typically _________.
a. purchased infrequently
b. mostly durable goods
c. unknown to others and inconspicuous
d. low cost

answer:

13. Customer loyalty programs such as frequent purchaser programs, coupons and
price incentives are examples of marketers' use of an application of learning theory
called __________.
a. stimulus generalization
b. instrumental conditioning
c. cognitive learning
d. classical conditioning

answer:

14. A descriptive research is most likely to be used when the researcher seeks to
__________.
a. estimate proportions of the population that possess a certain characteristic
b. determine the research purpose
c. to predict the impacts of changing elements of the marketing program
d. determine what caused a situation

answer:

15. The best explanation of a product is _________.
a. the total set of product features offered to the customer
b. a tangible item which a customer can purchase and own
c. a device which solves a problem
d. the total set of benefits and experiences purchased by a customer

answer:

16. Which statement is not true about market driving organizations?
a. They focus on adopting current strategies to deliver customer value
b. They seek to meet hidden consumer needs
c. They seek to design new product and distribution systems that increase their relative
competitive advantage
d. They seek to create new product categories

answer:

17. An organization that creates a database system that will enable it to regularly
collect, analyze, model and distribute information about customer trends,
organization sales and competitors is creating a(n) __________.
a. market survey instrument
b. marketing decision support system
c. confirmatory research study
d. marketing information system

answer:

18. The distribution strategy that involves the use of more than a few but less than all of
the intermediaries who are willing to carry a particular product is called ___________.
a. exclusive distribution
b. intensive distribution
c. selective distribution
d. fragmented distribution

answer:

19. Differentiation marketing strategies are most effective when __________.
a. buyers do not see extra attributes as worth paying additional money for
b. market segments are not prepared to trade off specific benefits for lower prices
c. there is an absence of potential scale economies
d. buyers' needs are too diverse to be satisfied by a standard product

answer:

20. Market driven strategies and market driving strategies differ in that __________.
a. market driven strategies are customer focused; market driving strategies are process
focused
b. market driven strategies are focused on the creation of short term customer value;
market driving strategies are focused on the creation of long term customer value
c. they are essentially the same
d. market driven strategies are based on understanding and responding to
customers' needs; market driving strategies are focused on changing the structure
of the market or the behavior of its members

answer:

21. 14 years after Facebook's launch of the social media era, John's parents had been
reluctant to use any social media and holding to the view that email and telephone
were sufficient for staying in touch. Only when John indicated that he was planning
to use Facebook as a way of more easily communicating with family and friends
during he and his wife's six month cycling trip through Europe this upcoming
summer did they reluctantly decide to open a Facebook account. John's parents
would be considered to be _________ in the adoption process.
a. laggards
b. early majority adopters
c. reluctant buyers
d. late majority adopters

answer:

22. If the break-even point is 3,000 units, variable costs are $30 per unit, and fixed costs
are $60,000, what is the selling price?
a. $45
b. $20
c. $55
d. $50

answer:

23. Niche marketing offers smaller organizations the opportunity to compete more
successfully by focusing their limited resources on serving niches that may be
__________ or __________ larger organizations.
a. too small; undesirable to
b. too volatile for; too demanding for
c. unknown to; overlooked by
d. unimportant for; too costly for

answer:

24. Organizations that strive to satisfy customer needs and wants profitably while
contributing to long term customer welfare are holding to a __________ philosophy
of marketing.
a. sales
b. societal
c. engineering
d. production

answer:

25. What can be said about positioning is that __________.
a. it is based on an objective evaluation of the physical and technical attributes of a product
b. it is based on consumers' subjective evaluations
c. it is unaffected by a customer's past experiences or an organization's history
d. it is not required for an undifferentiated marketing strategy

answer:

26. A restaurant that uses a target return pricing strategy is pursuing a primary
objective of __________.
a. increasing profits
b. building customer satisfaction
c. achieving operational efficiencies
d. increasing sales

answer:

27. Dasio Canada's Richmond BC store which carries over 50 thousand types of
products appropriate to household- and daily living needs, hopes to attract a
specific segment of the community and prices most of its products around $2. This
practice is known as _________.
a. price discrimination
b. demand-based pricing
c. preceived-value pricing
d. price lining

answer:

28. Marketing is appropriate for __________.
a. for religious organizations
b. for profit organizations only
c. all of the statements are true
d. for entrepreneurial organizations

answer:

29. The goods classification system that summarizes products into the categories of
convenience, shopping and specialty goods is based upon _________.
a. needs and consumer income
b. degree of product complexity and market uncertainty
c. physical and search qualities of goods
d. shopping effort and risk

answer:

30. Information about a market that has already been collected or published is known as
__________.
a. tertiary data
b. secondary data
c. outdated data
d. primary data

answer:

31. _________ is a distribution strategy in which a producer makes products available in
as many relevant locations as possible in a geographic territory.
a. Selective distribution
b. Intensive distribution
c. Exclusive distribution
d. Multi-channel distribution

answer:

32. Channel members at the same level that come together to share resources are
known as a _________.
a. horizontal marketing channel
b. conventional marketing channel
c. vertical marketing channel
d. lateral marketing channel

answer:

33. Shaw offers several TV packages – Starter, Plus, Large and E-Large. This is an
example of _________.
a. product line extension
b. product bundling
c. scrambled merchandising
d. cross-selling

answer:

34. What can best be said about the early and late majority is that they _________.
a. gain the majority of their product knowledge from mass media, sales reps and
opinion leaders
b. obtain the majority of their product knowledge from opinion leaders within their reference
groups
c. gain the majority of their product knowledge from sources other than an organization's
promotion programs
d. have the greatest contact of all groups with sales reps

answer:

35. __________ would not normally be considered a committed marketing cost.
a. Selling commissions
b. Trade fair expenses
c. Sales force travel and subsistence
d. Sales support materials such as catalogues and brochures

answer:

36. The demand curve for prestige products is "backward bending". This means that
__________.
a. there is a negative relationship between price and demand
b. there is an optimum price at which the organization will break-even
c. the market is price inelastic
d. there is an optimum price above or below which demand is reduced

answer:

37. The view that individuals consciously evaluate the consequences of their behavior
and choose the alternative that is most likely to give them the greatest satisfaction is
called __________.
a. exchange theory
b. rational choice theory
c. social action theory
d. game theory

answer:

38. _________ is an application of learning theory by marketers to reward customers for
their continued purchases of their products or services.
a. Instrumental conditioning
b. Stimulus generalization
c. Classical conditioning
d. Cognitive learning

answer:

39. A _________ is a group of products that are related because they satisfy a common
set of needs, are sold to the same target market, are distributed through the same
distribution channels and share similar pricing.
a. product line
b. product assortment
c. product portfolio
d. product mix

answer:

40. What can be said about mass marketing is that __________.
a. it involves targeting all sub-segments of the total market to achieve large sales volumes
and lower costs
b. it incorporates high levels of R&D and a wide range of product models to obtain large
sales volumes and overall profitability
c. it involves targeting all segments, sub-segments, and specific market niches to obtain
large sales volumes and overall profitability
d. it leads to lower costs through scale and scope economies which can be
translated into overall profitability

answer:

41. _________ is a concept that explains how competitors enter the market as low priced
suppliers and then gradually change in terms of their status and margins.
a. Product assortment
b. Wheel of retailing
c. Hypercompetition
d. Retail life cycle

answer:

42. While traveling abroad John purchased a small, approximately 3 ft. x 5 ft. "Persian
rug" from a small, local merchant for his home office. This was his first such
purchase and he was not knowledgeable about materials (e.g., wool, cotton, silk,
jute, animal hair), designs, regions or production methods (e.g., handmade vs.
machine made) but he did want to purchase a good quality carpet. It is most likely
that he _________ as a measure of quality.
a. assessed the weave and quality of the knots
b. used the production method
c. relied on the seller's advice
d. used price

answer:

43. A research in which an organization wants to assess the relative effectiveness of
different advertising campaigns is a(n) __________.
a. confirmatory research
b. causal research
c. exploratory research
d. descriptive research

answer:

44. An online publisher of education directories provides information on study
opportunities, paid for by participating institutions, grouped into separate website
directories by level of study (i.e., undergraduate, graduate, and executive
development). Within each directory there are sections for displaying information on
various academic disciplines (business, engineering, nursing, etc.) The different
online directories represent the _____ dimension of the organization’s product line.
a. depth
b. length
c. width
d. exposure

answer:

45. An organization's price setting is linked to it internal costs. Setting high prices is a
likely price strategy when fixed costs are ___________ and variable costs are
__________.
a. low; high
b. high; low
c. low; low
d. high; high

answer:

46. Individuals or organizations that work for several non-competing producers in an
exclusive territory are known as _________.
a. manufacturers agents/representatives
b. brokers
c. industrial distributors
d. rack jobbers

answer:

47. Professionally managed and centrally coordinated distribution channels are known
as _________.
a. vertical marketing channels
b. conventional marketing channels
c. horizontal marketing channels
d. industrial marketing channels

answer:

48. Digital camera manufacturers plan to launch new models with ever more greater
picture resolution on as frequently as a 6 month rotation. This is an example of a
form of product obsolescence known as _________.
a. functional
b. backwards product movement
c. prevention of backporting
d. technological

answer:

49. Via Rail offers both winter and summer passenger rates with different rates for
seniors, adults, children and infants. This pricing practice is an example of
__________ pricing combined with __________ pricing.
a. high season; customer segment
b. bundled; aged-based
c. time-based; customer segment
d. money saving; age-based

answer:

50. Bayer Corporation’s positioning aspirin for the prevention of heart attack and
stroke, as well as pain relief, is an example of _________.
a. forwards product line extension
b. product category extension
c. reverse line extension
d. product element line extension

answer:

51. The purchase task is one of the __________ factors that influence consumer
behavior.
a. social
b. psychological
c. personal
d. situational

answer:

52. Research has revealed that as pharmacy customers age, they are much less likely to
use chains and considerably more likely to use mail/online pharmacies. This
presents suppliers with opportunities for __________ market segmentation.
a. psychographic
b. demographic
c. geodemographic
d. concentrated

answer:test

53. An organization is first to market with a revolutionary new image (i.e., photos)
management software. Over the next several years the organization focuses on
continuously improving its products but invests little effort in obtaining feedback
from its customers. This is likely evidence of a(n) __________ oriented marketing
approach.
a. sales
b. engineering
c. customer
d. production

answer:test

54. The customer service department of an online sales portal reported a 40% increase
in customer complaints over the last 4 months. The organization should _________.
a. commission an independent organization to conduct a full scale research of the problem
b. survey a sample of the most upset customers
c. provide additional training to the customer service representatives
d. conduct an exploratory research study to identify potential causes for the
increase in complaints

answer:test

55. The difference between a marketing strategy and an operational marketing plan is
__________.
a. strategy reflects medium term objectives
b. strategy is about major issues: tactics is about minor issues
c. strategy is formal, tactics are informal
d. marketing strategy is about overall direction: operational marketing is about ways
of getting there

answer:test

56. Offering several unrelated product lines in a single retail store is known as
_________.
a. lateral stretching
b. broadening the product line
c. retail mixing
d. scrambled merchandising

answer:test

57. An example of social marketing is _________.
a. news coverage of climate change debates
b. two-for-one purchase incentives
c. legislation to restrict lawn sprinkling
d. programs to encourage recycling

answer:test

58. A retailer that maximizes exposure to high margin items through the effective use of
shelf space and point-of-purchase displays is attempting to reduce problems
associated with consumers' __________.
a. learning
b. perception
c. drives
d. attitudes

answer:test

59. The contribution margin per unit expressed in dollars is equal to the __________.
a. unit selling price minus unit variable costs
b. total revenue minus total costs
c. difference between price and average total cost
d. difference between total fixed costs and total variable costs

answer:test

60. A _________ combines successive stages of production and distribution under
single ownership.
a. horizontal marketing system
b. corporate vertical marketing system
c. conventional marketing system
d. multichannel marketing system

answer:test

61. Economies of scope refers to __________.
a. absolute cost advantages
b. advantages achieved through the substitution of capital for labor
c. when an increase in the range of goods and services provided brings a decrease
in the average costs of operation
d. when the average costs of operation decline with increased sales

answer:test

62. What can be best said about marketing intelligence information is that it is
__________.
a. broad in scope but shallow in terms of its treatment of particular topics
b. generally expensive to obtain
c. generally relevant to solving most marketing problems
d. generally involves a significant period of time to collect

answer:test

63. All but one of the following statements about traits is true.
a. Traits are relatively stable
b. Traits are precise predictors of consumer behavior
c. Individuals with similar traits behave similarly
d. Traits can be measured

answer:test

64. When independent Canadian furniture retailers formed 'Mega Group' to provide
them with the services of the wholesaler, they formed a ___________.
a. catalog showroom
b. retailer-sponsored cooperative
c. franchise organization
d. wholesaler-sponsored voluntary chain

answer:test

65. An organization which seeks to emphasize profitability is most likely to _________.
a. seek to dominate all relevant markets through developing many product lines with
significant length and depth
b. enter several markets to which it offers each market limited product lines with limited
length or depth
c. seek dominance in a single market by offering a number of product lines with significant
length and depth
d. selectively choose one or two markets for which it offers limited high quality
product lines with limited length and depth

answer:test

66. Operational marketing concerns the __________.
a. near term allocation of the marketing mix
b. determination of how to compete to achieve competitive advantage
c. determination of how to communicate with stakeholders
d. identification of resource requirements

answer:test

67. An example of one of the most dangerous assumptions marketers can make about
markets is assuming __________.
a. that markets are homogenous
b. variability among national markets
c. variability among markets
d. none of the statements are true

answer:test

68. What is the break-even point in units based on a price per unit of $15, variable cost
per unit of $7 and total fixed costs of $9,000?
a. 1,250
b. 995
c. 1,125
d. 1,005

answer:test

69. A research in which an organization wants to determine the impact of changing its
marketing mix on customer responses is a(n) __________.
a. descriptive research
b. confirmatory research
c. causal research
d. exploratory research

answer:test

70. Which one of the following is not a factor that would favor an organization's use of
penetration pricing?
a. The product/service is easily imitated by rivals
b. The unit costs of producing of the product will decline substantially as output increases
c. The majority of the market is characterized by price sensitive buyers
d. Several customer price sensitivity segments are present

answer:test

71. The tendency to pay attention to messages consistent with one's attitudes and
beliefs and to ignore messages that are inconsistent is called ___________ .
a. selective retention
b. selective exposure
c. selective attention
d. selective comprehension

answer:test

72. Which of the following statements best describes product strategy?
a. Since most organizations are unlikely to possess or acquire the same distribution as an
incumbent, focusing on distribution is a typical approach to achieving long term success
b. Since most organizations are unlikely to possess or acquire the same technology as an
incumbent, focusing on technology is a typical approach to achieving long term success
c. Product strategy should focus on achievng superiority on a large range of tangible and
augmented product elements.
d. Product strategy should focus on the incorporation of a unique combination of
tangible and augmented product elements.

answer:test

73. CNN has for almost a decade stressed that it has "The Best Political Team on
Television". The promotion is trying to influence the attitude toward CNN by
__________.
a. changing the basic service
b. adding a new attribute and re-positioning the service
c. adding a new attribute to their service
d. changing the audiences' perceived importance of the attribute

answer:test

74. Which one of the following sources of data is not an example of primary data?
a. results of a focus group research commissioned by an organization
b. results of an organization's customer satisfaction survey
c. a Conference Board of Canada economic forecast
d. results of an organization's new product test market

answer:test

75. Which of the following is most appropriate to pricing complementary products that
reduce shopping time and effort?
a. use every day low pricing
b. set high prices on all products
c. use profit maximization pricing
d. typically set overall low prices with some product categories with high prices

answer:test

76. The tourist industry's use of exotic sites, landscapes and experiences in TV
advertisements designed to create a mental image with consumers is an example of
marketers' use of __________.
a. cognitive learning
b. classical conditioning
c. stimulus generalization
d. instrumental conditioning

answer:test

77. The primary advantage of intermediaries is that they _________.
a. increase typical order sizes
b. reduce breakage and theft
c. limit the amount of liability assumed by the manufacturer
d. increase efficiency and reduce costs

answer:test

78. The Director of a university's MBA program was required to set tuition for the
forthcoming year. The Director knew that the general pricing practice was to price
within one of three groups: within the range of top level university MBA's costing in
the $40,000 - $60,000 range; mid-tier university MBA's in the $30,000 - $40,000 range;
and lower-tier university MBA's at under $20,000. In considering these other
institutions in arriving at a new MBA tuition price, the Director was most likely
focusing on a __________ pricing objective.
a. non-price
b. market share
c. target return
d. sales maximization

answer:test

79. A descriptive research can generate answers to all but one of the following types of
questions.
a. When do they buy?
b. Where do they live?
c. Why do they buy?
d. Who are our customers?

answer:test

80. IGA (Independent Grocers Alliance) is an example of a(n) _________.
a. corporate chain
b. independent chain
c. conventional vertical marketing system
d. wholesaler's cooperative chain

answer:test

81. The concept of a reference group can best be described as _________.
a. a social group to which an individual looks when forming opinions about relevant
behaviors, including consumption
b. a social group to which an individual belongs
c. a social group to which an individual strives to belong
d. a group of people that an individual finds attractive

answer:test

82. Overpositioning occurs when _________.
a. multiple positions are communicated
b. communication of position is vague and offers little value to the market
c. too many benefits or solutions are communicated
d. too few benefits or solutions are communicated to attract a sufficiently large
enough market

answer:test

83. Profits tend to peak in the early majority growth stage of the product life cycle for
which of the following reason(s)?
a. competition within the product category has yet to peak
b. most of the research and development costs have been recovered
c. sales are high due to expanded distribution and greater consumer awareness
d. all statements are true

answer:test

84. MS Office 365 is a suite of hosted applications for business that includes SharePoint
Online, Exchange Online, Lync Online, Office Web Apps and an optional Office
Professional Plus software package that is available at package prices starting at
under $5 per month. This is an example of MicroSoft's use of _________ pricing.
a. perceived value
b. optional features
c. bundled
d. product line

answer:test

85. A shirt producer has estimated her unit cost to produce a shirt to be $10. If the
producer uses a 25% mark-up on cost method for price setting, what would her
selling price be?
a. $22.50
b. $12.50
c. $16.67
d. $13.33

answer:test