Chapter 01

Instructions
Answer the following questions and then press 'Submit' to get your score.
Question 1
Which of the following statements is correct?
a) Marketing is the term used to refer only to the sales function within a firm.
b) Marketing managers don't usually get involved in production or distribution
decisions.
c) Marketing is an activity that considers only the needs of the organization; not
the needs of society as a whole.
d) Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
Question 2
The term marketing refers to:
a) new product concepts and improvements.
b) advertising and promotion activities.
c) a philosophy that stresses customer value and satisfaction.
d) planning sales campaigns.
Question 3
In the history of marketing, when did the production period end?
a) In the late 1800s.
b) In the early 1900s.
c) In the 1920s.
d) After the end of the Second World War.
Question 4
A marketing philosophy summarized by the phrase 'a stronger focus on social and ethical
concerns in marketing' is characteristic of the _________ period.
a) production
b) sales
c) marketing
d) societal marketing
Question 5
Which skills and capabilities will marketers need to increasingly have?
a) market research.
b) digital and social media marketing.
c) strategic marketing.
d) sales.
Question 6
There are ________ main types of buyer-seller exchanges in marketing.
a) five
b) four
c) six
d) three
Question 7
In relationship marketing firms focus on __________ relationships with __________.
a) short-term; customers and suppliers
b) long-term; customers and suppliers
c) short-term; customers
d) long-term; customers
Question 8
A further 3Ps are incorporated into the marketing mix:
a) physical evidence, process and price.
b) process people and promotion.
c) physical evidence, people and production.
d) physical evidence, process and people.
Question 9
The consumer goods perspective of marketing assumes there are comparatively few suppliers
within a particular industry, all rivals for the___________.
a) quality of service.
b) aggregated demand.
c) supply chain.
d) procurement process.
Question 10
According to the Marketing and Sales Standards Setting Body (MSSSB), which of the
following is not a marketing function?
a) Promote marketing intelligence.
b) Develop sales tactics.
c) Develop the customer proposition.
d) Work with other business functions and third parties.
Question 11
Which of the following is not an element of the marketing mix?
a) Distribution.
b) Product.
c) Target market.
d) Pricing.
Question 12
The term 'marketing mix' describes:
a) a composite analysis of all environmental factors inside and outside the firm.
b) a series of business decisions that aid in selling a product.
c) the relationship between a firm's marketing strengths and its business
weaknesses.
d) a blending of strategic elements to satisfy specific target markets.
Question 13
Newsletters, catalogues, and invitations to organisation-sponsored events are most closely
associated with the marketing mix activity of:
a) Pricing
b) Distribution
c) Product development
d) Promotion
Question 14
The way in which the product is delivered to meet the customers' needs refers to:
a) new product concepts and improvements.
b) selling.
c) advertising and promotion activities.
d) place or distribution activities.
Question 15
The key term in the American Marketing Association's definition of marketing is:
a) process.
b) sales.
c) products.
d) value.
Question 16
A critical marketing perspective is the process of determining:
a) the value of a product, person, or idea.
b) how places compete with each other.
c) the worth and impact of marketing activities.
d) which type of promotional strategy works best.
Question 17
When customer expectations regarding product quality, service quality, and value-based
price are met or exceeded, _____ is created.
a) customer satisfaction
b) planning excellence
c) a quality rift
d) a value line
Question 18
A market orientation recognizes that:
a) price is the most important variable for customers.
b) market intelligence relating to current and future customer needs is important.
c) selling and marketing are essentially the same thing.
d) sales depend predominantly on an aggressive sales force.
Question 19
Four competing philosophies strongly influence the role of marketing and marketing
activities within an organization. Which if the following is not a component of market
orientation?
a) Customer orientation.
b) Profitability orientation.
c) Marketing orientation.
d) Competitor orientation.
Question 20
In order for exchange to occur:
a) a complex societal system must be involved.
b) organized marketing activities must also occur.
c) a profit-oriented organization must be involved.
d) each party must have something of value to the other party.
Submit my answers

Clear my answers


you have answered 11 out of 20 questions correctly.
Your percentage score is 55%.
Question 1
Which of the following statements is correct?
Your answer:
d) Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.
Feedback:
In their definition of marketing, the American Marketing Association (AMA) concentrates
on stakeholders' value by defining marketing as 'the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large' (AMA, 2007).
Page reference: 6
Question 2
The term marketing refers to:
Your answer:
c) a philosophy that stresses customer value and satisfaction.
Feedback:
The Chartered Institute of Marketing (CIM) defines marketing as: 'The management process
of anticipating, identifying and satisfying customer requirements profitably' (CIM, 2001).
The French definition of Marketing refers to 'the endeavour of adapting organizations to their
competitive markets in order to influence, in their favour, the behaviour of their publics, with
an offer whose perceived value is durably superior to that of the competition' (Lendrevie,
Lvy, and Lindon, 2006). In contrast, the AMA concentrates on 'customer value' by defining
marketing as 'the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large' (AMA, 2007).
Page reference: 6
Question 3
In the history of marketing, when did the production period end?
Your answer:
a) In the late 1800s.
Correct answer:
c) In the 1920s.
Feedback:
The development of marketing was first characterized by a production period that occurred
between the 1890s and 1920s. This period of marketing was characterized by a focus on
physical production and supply, where demand exceeded supply. There was little
competition and the range of products was limited. This phase took place after the industrial
revolution. Most marketing historians regard marketing as an invention of the twentieth
century (Keith, 1960) and most marketing texts present the development of marketing as a
four-stage sequence.
Page reference: 9
Question 4
A marketing philosophy summarized by the phrase 'a stronger focus on social and ethical
concerns in marketing' is characteristic of the _________ period.
Your answer:
d) societal marketing
Feedback:
The societal marketing period, from the 1980s to the present day, is characterized by a
stronger focus on social and ethical concerns in marketing. This phase took place during the
'information revolution' of the late twentieth century (Enright, 2002).
Page reference: 9
Question 5
Which skills and capabilities will marketers need to increasingly have?
Your answer:
c) strategic marketing.
Correct answer:
b) digital and social media marketing.
Feedback:
The marketing department of the future, however, increasingly needs to embrace the rapid
evolution of digital channels (e.g. Facebook, Twitter) and the increasing availability of
customer data that derives from marketing research, customer relationship management
systems, sales force data, and web statistics (Clawson, 2011). This means that marketers will
increasingly need to have skills and capabilities in social media marketing.
Page reference: 10
Question 6
There are ________ main types of buyer-seller exchanges in marketing.
Your answer:
c) six
Correct answer:
d) three
Feedback:
There are three main types of buyer-seller exchanges in marketing:
1. In the first exchange type, the exchange takes place between the police who protect the
general public from fire and provide emergency planning activity and services, and the
public who support them in return, sometimes politically through signing petitions to keep
them in service in a particular locale, and especially through their national and local taxes.
2. In the second exchange type, the one we are probably more familiar with as consumers,
we enter a shop and purchase the necessary goods by paying for these with money or by
credit/debit card.
3. In the third type of exchange, we have a manufacturer, and a retailer. Here, the retailer
purchases goods from the manufacturer through a credit facility, e.g. payment in 30 days, and
expects any damaged goods to be returnable, and wants the goods delivered on certain types
of pallets at a certain height, within a particular time limit. In return, the retailer undertakes
to pay a wholesale (i.e. trade discounted) price.
Page reference: 13-14
Question 7
In relationship marketing firms focus on __________ relationships with __________.
Your answer:
d) long-term; customers
Correct answer:
b) long-term; customers and suppliers
Feedback:
Relationship marketing is an evolution of the marketing concept; there is a shift in focus
from the need to engage in short-term transactions towards the need to develop long-term
customer and supplier relationships. Relationship marketing concerns not only the
development of longer-lasting relationships with customers, but also the development of
stronger relationships with other external markets.
Page reference: 18
Question 8
A further 3Ps are incorporated into the marketing mix:
Your answer:
d) physical evidence, process and people.
Feedback:
To illustrate how marketing needed to market services differently, Booms and Bitner (1981),
incorporated a further 3Ps into the marketing mix as follows:
1. Physical evidence-to emphasize that the tangible components of services were strategically
important, e.g. potential university students often assess whether or not they want to attend a
university and a particular course by requesting a copy of brochures and course outlines,
looking at graduate employability statistics, or by visiting the campus.
2. Process-to emphasise the importance of the service delivery. When processes are
standardized, it is easier to manage customer expectations, e.g. DHL International GmbH,
the German international express, overland transport, and air freight company, is a master at
producing a standardized menu of service options, e.g. track and trace delivery services,
which are remarkably consistent around the world.
3. People-to emphasize the importance of customer service personnel. How they interact with
customers, and how satisfied customers are as a result, is of strategic importance (see
Chapter 12 for a more detailed discussion of the extended mix).
Page reference: 14-15
Question 9
The consumer goods perspective of marketing assumes there are comparatively few suppliers
within a particular industry, all rivals for the___________.
Your answer:
a) quality of service.
Correct answer:
b) aggregated demand.
Feedback:
The consumer goods perspective of marketing has been dominant in the history and study of
marketing. The concept is concerned with ideas of the 'marketing mix' and the 4Ps. The
consumer goods perspective, borrowing heavily from neoclassical economics, assumes there
are comparatively few suppliers within a particular industry, all rivals for the aggregated
demand (i.e. demand totalled at the population level rather than at the individual level).
Page reference: 21
Question 10
According to the Marketing and Sales Standards Setting Body (MSSSB), which of the
following is not a marketing function?
Your answer:
a) Promote marketing intelligence.
Correct answer:
b) Develop sales tactics.
Feedback:
The Marketing and Sales Standards Setting Body (MSSSB) works with relevant stakeholders
to map out how the marketing function operates. Their consultation indicated that the job
covered eight functions:
- Provide market intelligence and customer insight
- Provide strategic marketing direction for the organization
- Develop the customer proposition
- Manage and provide marketing communications
- Use and develop marketing and customer information
- Lead marketing operations and programmes
- Work with other business functions and third parties
- Manage and develop teams and individuals.
Page reference: 10; See Figure 1.2
Question 11
Which of the following is not an element of the marketing mix?
Your answer:
c) Target market.
Feedback:
Target market is not an element of the marketing mix. The marketing mix comprises:
- product: the offering and how it meets the customer need, its packaging and labelling
- place (distribution): how the product is delivered to meet the customers' needs
- price: the cost to the customer, and the cost plus profit to the seller
- promotion: how the product's benefits and features are conveyed to the potential buyer.
Page reference: 12
Question 12
The term 'marketing mix' describes:
Your answer:
d) a blending of strategic elements to satisfy specific target markets.
Feedback:
Neil Borden developed the concept of the Marketing Mix in his teaching at Harvard
University in the 1950s, although he did not formally write the theory up until 1964. The idea
came from the idea that the marketing manager was a 'mixer of ingredients'; a chef who
concocted a unique marketing recipe to fit the requirements of the customers' needs at any
particular time. The emphasis was on the creative fashioning of a mix of marketing
procedures and policies to produce the profitable enterprise.
Page reference: 11
Question 13
Newsletters, catalogues, and invitations to organisation-sponsored events are most closely
associated with the marketing mix activity of:
Your answer:
d) Promotion
Feedback:
These activities are associated with the promotion element of the marketing mix. e.g. how
the product's benefits and features are conveyed to the potential buyer
Page reference: 12
Question 14
The way in which the product is delivered to meet the customers' needs refers to:
Your answer:
b) selling.
Correct answer:
d) place or distribution activities.
Feedback:
The way in which the product is delivered to meet the customers' needs refers to place
(distribution); ie. the way in which the product is delivered to meet the customers' needs.
Page reference: 12
Question 15
The key term in the American Marketing Association's definition of marketing is:
Your answer:
d) value.
Feedback:
The AMA concentrates on 'stakeholder value' by defining marketing as 'the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large' (AMA, 2007).
Page reference: 6
Question 16
A critical marketing perspective is the process of determining:
Your answer:
a) the value of a product, person, or idea.
Correct answer:
c) the worth and impact of marketing activities.
Feedback:
Because marketing's contributions to society are not necessarily all good, it is important that
we develop a critical approach to understanding marketing. This allows us to constantly
evaluate and re-evaluate marketing, to improve it, so that marketing continues to operate in a
desirable manner within society. A critical approach to marketing can help us to understand
the nature of marketing knowledge. 'Marketing can then be learned from the many varieties
of market that exist rather than concentrating on branded, mass consumption products in
developed economies' (Easton, 2002), as marketing is so often portrayed.
Page reference: 28-29
Question 17
When customer expectations regarding product quality, service quality, and value-based
price are met or exceeded, _____ is created.
Your answer:
a) customer satisfaction
Feedback:
A customer orientation is concerned with creating superior value by continuously developing
and redeveloping product and service offerings to meet customer needs through product
quality and value-based pricing. To do this, we must measure customer satisfaction on a
continuous basis, and train and develop front-line service staff accordingly.
Page reference: 8
Question 18
A market orientation recognizes that:
Your answer:
a) price is the most important variable for customers.
Correct answer:
b) market intelligence relating to current and future customer needs is important.
Feedback:
Developing a market orientation refers to 'the organization-wide generation of market
intelligence pertaining to current and future customer needs, dissemination of the intelligence
across the departments, and organization-wide responsiveness to it' (Kohli and Jaworski,
1990). So a market orientation doesn't just involve marketing, it involves all aspects of a
company, and gathering and responding to market intelligence. I.e. customers' verbalized
needs and preferences, data from customer surveys, sales data, and information gleaned
informally from discussions with customers and trade partners.
Page reference: 8
Question 19
Four competing philosophies strongly influence the role of marketing and marketing
activities within an organization. Which if the following is not a component of market
orientation?
Your answer:
b) Profitability orientation.
Feedback:
Developing a market orientation refers to 'the organization-wide generation of market
intelligence pertaining to current and future customer needs, dissemination of the intelligence
across the departments, and organisation-wide responsiveness to it' (Kohli and Jaworski,
1990). So a market orientation doesn't just involve marketing, it involves all aspects of a
company, and gathering and responding to market intelligence. I.e. customers' verbalized
needs and preferences, data from customer surveys, sales data, and information gleaned
informally from discussions with customers and trade partners. Developing a market
orientation means developing customer orientation, competitor orientation and inter-
functional coordination.
Page reference: 8
Question 20
In order for exchange to occur:
Your answer:
d) each party must have something of value to the other party.
Feedback:
Marketing is a two-way process. It's not just about the marketing organization doing all the
work. The customer also has a strong input. In fact, not only must they specify how we might
satisfy customer needs as marketers, because marketers are not mind-readers, but they must
also pay for the product or service. In the mid-1970s, there was increasing belief that the
underlying phenomenon in marketing related to the exchange process between buyers and
sellers and associated supply chain intermediaries. Exchange relationships might not only be
economic, such as a consumer buying groceries, but social as well, such as the service
undertaken by the social worker on behalf of society paid for by government (Bagozzi,
1975).
Page reference: 13
Chapter 02
Instructions
Answer the following questions and then press 'Submit' to get your score.
Question 1
Which of the following is not part of the external marketing environment?
a) Political.
b) Legal.
c) Product.
d) Socio-cultural.
Question 2
Tobacco advertising is now virtually banned in all marketing communication forms in many
countries around the world. This can be explained as an influence of:
a) technological environment.
b) legal environment.
c) economic environment.
d) ecological environment.
Question 3
A firm has decided to alter its pricing and promotional strategies in response to slower than
expected job growth and declining personal incomes. The firm is responding to changes in
its:
a) socio-cultural environment.
b) political environment.
c) economic environment.
d) competitive environment.
Question 4
Robert is a marketer for a global consumer products company. He is working on the
promotional campaign designed to reach a target audience in a new international market.
Robert is working hard to make sure that the promotional campaign is clearly understood by
the nation's consumers and doesn't offend anyone. Which of the factors in the external
environment is he being influenced by?
a) Socio-cultural environment.
b) Competitive environment.
c) Economic environment.
d) Legal environment.
Question 5
The process of collecting information about the external marketing environment is:
a) environmental management.
b) environmental scanning.
c) marketing management.
d) marketing research.
Question 6
The six dimensions usually considered to constitute the external marketing environment
include all of the following except:
a) political considerations.
b) suppliers
c) socio-cultural aspects.
d) economics issues.
Question 7
Marketing decision makers in a firm must constantly monitor competitors' activities - their
products, prices, distribution, and promotional efforts - because:
a) the competitors may be violating the law and can be reported to the authorities.
b) the actions of competitors may threaten the monopoly position of the firm in its
industry.
c) the actions of competitors may create an oligopoly within an industry.
d) new product offerings by a competitor with the resulting competitive variations
may require adjustments to one or more components of the firm's marketing mix.
Question 8
The phenomenon that customers are happy to work with companies and organizations to
solve problems is referred as:
a) crowd-sourcing.
b) communication-sourcing.
c) customer co-creation.
d) mass-sourcing.
Question 9
New technology results in new goods and services, and it can also:
a) lower the quality of existing products.
b) lower the available level of customer service.
c) reduce prices through new production and distribution methods.
d) bring back products that were considered obsolete.
Question 10
Toyota's Prius and Honda's hybrid Civic are examples of technological products inspired by:
a) style considerations in the Japanese automobile industry.
b) social pressure to develop more fuel-efficient vehicles with fewer dangerous
emissions.
c) the desire of many engineers to simply make interesting products.
d) the realization that Japanese people didn't need large, high-speed cars.
Question 11
_____ is the collection and interpretation of information about forces, events, and
relationships that may affect the organization.
a) Environmental scanning
b) Stakeholder analysis
c) Market sampling
d) Opportunity analysis
Question 12
The differentiation of a firm's products or services is underlined to promote environmental
responsibility. One of the examples includes Marks and Spencer's Plan A initiative. This
strategy is referred to as:
a) Eco-efficiency
b) Eco-branding
c) Beyond compliance leadership
d) Environmental cost leadership
Question 13
Marketing managers cannot control _____________ but they can at times influence it.
a) where advertising is placed
b) how products or services are delivered
c) the external environment
d) how products are priced
Question 14
As technology continues to offer more different methods for shopping online, manufacturers
and traditional retailers are finding themselves in direct competition with each other. In this
case, unless marketing managers understand ________, retailers cannot intelligently plan for
the future.
a) their competitors' strategies
b) the economic conditions which influence the growth of technology
c) changing social attitudes towards technology
d) their competitors' strategies, the economic conditions which influence the
growth of technology and changing social attitudes towards it
Question 15
The external environment:
a) can be controlled in much the same manner as the internal marketing mix.
b) does not change over time.
c) does not have an impact on Fortune 500 companies.
d) must be continually monitored by marketing managers.
Question 16
The differentiation of a firm's products or services to promote environmental responsibility is
referred to as:
a) social branding.
b) eco-branding.
c) me-too branding.
d) brand personality.
Question 17
Which of the following elements is not part of Porter's Five Forces model for industry
competitiveness?
a) Threat of substitutes.
b) Threat of suppliers.
c) Power of buyers.
d) Threat from government.
Question 18
Which of the following characteristics would usually make a market less competitive?
a) High barriers to entry.
b) Lots of potential substitutes exist.
c) Strong bargaining power among buyers.
d) Strong bargaining power among suppliers.
Question 19
To evaluate an organization's Strategic Business Units (SBU), the Boston Consulting Group
developed a portfolio performance framework that characterizes some of the SBUs as:
a) question marks.
b) quick winners.
c) charging bulls.
d) cash outs.
Question 20
The quadrant of the Boston Consulting Group (BCG) matrix that represents both a high
market share and a high rate of market growth includes the:
a) cash cows.
b) question marks.
c) stars.
d) dogs.
Chapter 02
Results
You have answered 12 out of 20 questions correctly.
Your percentage score is 60%.
Question 1
Which of the following is not part of the external marketing environment?
Your answer:
c) Product.
Feedback:
In order to make sense of the external environment we use a framework known as PESTLE.
This is by far the easiest and one of the most popular frameworks with which to examine the
external environment. This technique was formerly referred to as PEST analysis but the
recent rise in concern and awareness attached to ecological and climatic issues has impacted
on most organizations. PESTLE therefore stands for the Political, Economic, Social,
Technological, Legal, and Ecological environments.
Page reference: 37
Question 2
Tobacco advertising is now virtually banned in all marketing communication forms in many
countries around the world. This can be explained as an influence of:
Your answer:
d) ecological environment.
Correct answer:
b) legal environment.
Feedback:
Here we can see how the legal environment has influenced advertising certain products. The
legal environment covers every aspect of an organization's business. Laws and regulation are
enacted in most countries ranging from the transparency of pricing, the prevention of
restrictive trade practices, minimum wages and business taxes, product safety, good practice
in packaging and labelling, the abuse of a dominant market position, to codes of practice in
advertising. As such it is very important for marketers to understand the implications that the
law, and changes in the law, can have on marketing activities.
Page reference: 45
Question 3
A firm has decided to alter its pricing and promotional strategies in response to slower than
expected job growth and declining personal incomes. The firm is responding to changes in
its:
Your answer:
a) socio-cultural environment.
Correct answer:
c) economic environment.
Feedback:
The firm is responding to changes in the economic environment. Companies and
organizations have to develop an understanding of the economic environment in which they
operate and trade. This is not least because a country's economic circumstances have an
impact on what economists term factor prices within a particular industry for a particular
firm or organization. These factors could include raw materials, labour, building and other
capital costs, or indeed any other input to a business.
Page reference: 39-40
Question 4
Robert is a marketer for a global consumer products company. He is working on the
promotional campaign designed to reach a target audience in a new international market.
Robert is working hard to make sure that the promotional campaign is clearly understood by
the nation's consumers and doesn't offend anyone. Which of the factors in the external
environment is he being influenced by?
Your answer:
d) Legal environment.
Correct answer:
a) Socio-cultural environment.
Feedback:
Robert is influenced by the country's socio-cultural environment. Lifestyles are constantly
changing and consumers are constantly shifting their preferences over time. Companies that
fail to recognize changes in the socio-cultural environment, and change their goods/service
mix accordingly, typically fail.
Page reference: 41
Question 5
The process of collecting information about the external marketing environment is:
Your answer:
d) marketing research.
Correct answer:
b) environmental scanning.
Feedback:
To understand how the external environment is changing, organizations need to put in place
methods and processes to inform them of developments. The process of doing this is known
as environmental scanning. Environmental scanning is the process of gathering information
about a company's external events and relationships, to assist top management in its decision
making, and so develop its future course of action (Aguilar, 1967).
Page reference: 49
Question 6
The six dimensions usually considered to constitute the external marketing environment
include all of the following except:
Your answer:
b) suppliers
Feedback:
The external marketing environment uses the PESTLE acronym, which includes the
following factors: political, economic, socio-cultural, technological, legal, and ecological. It
is important to note that some of these factors are more important than others in any
particular industry. The acronym is used to identify possible macroenvironmental factors
impacting upon any particular organization at a given time.
Page reference: 60
Question 7
Marketing decision makers in a firm must constantly monitor competitors' activities - their
products, prices, distribution, and promotional efforts - because:
Your answer:
d) new product offerings by a competitor with the resulting competitive variations may
require adjustments to one or more components of the firm's marketing mix.
Feedback:
Competitors are part of an organization's performance environment and can directly
influence the success of our marketing activities. In analysing the competitors within an
industry, we are interested in different types of goods and services that competitors offer in
different market sectors. Clark and Montgomery (1999) call this process of identification of
competitors the supply-based approach because it considers those firms who supply the same
sorts of goods and services as your own firm. Hence it is imperative to constantly monitor
competitor's activities to ensure we have differential advantages in our operations.
Page reference: 55
Question 8
The phenomenon that customers are happy to work with companies and organizations to
solve problems is referred as:
Your answer:
c) customer co-creation.
Correct answer:
a) crowd-sourcing.
Feedback:
Whitla (2009) suggests that the role and process of crowd-sourcing is to identify a task, or
group of tasks, which are currently conducted in-house. These activities are then released to a
'crowd' of outsiders who are invited to perform the task on behalf of the company for a fee or
prize. This new approach can help marketers gain insights into both new product/service
development and marketing communications.
Page reference: 43-44
Question 9
New technology results in new goods and services, and it can also:
Your answer:
c) reduce prices through new production and distribution methods.
Feedback:
The emergence of new technologies can substantially affect not only high-technology
businesses but non-technology businesses. Examples include aspects of technology that
impact upon productivity and business efficiency (e.g. changes in energy, transportation,
information, and communication technologies). New technology is increasingly changing the
way that companies go to market through moves towards more email and web-based
marketing, and greater efficiency in direct and database marketing techniques (Sclater,
2005).
Page reference: 42
Question 10
Toyota's Prius and Honda's hybrid Civic are examples of technological products inspired by:
Your answer:
d) the realization that Japanese people didn't need large, high-speed cars.
Correct answer:
b) social pressure to develop more fuel-efficient vehicles with fewer dangerous emissions.
Feedback:
In the 1990s, companies became concerned with the concept of 'green' marketing, and later
in the 2000s with the concept of marketing sustainability. Increasingly, consumers are
worried about the impact of organizations on their ecological environments. They are
demanding products that are more ecologically friendly. They are also keen to ensure that
companies are not damaging the environment themselves or causing harm to consumers.
Page reference: 47
Question 11
_____ is the collection and interpretation of information about forces, events, and
relationships that may affect the organization.
Your answer:
c) Market sampling
Correct answer:
a) Environmental scanning
Feedback:
To understand how the external environment is changing, organizations need to put in place
methods and processes to inform them of developments. The process of doing this is known
as environmental scanning. Environmental scanning is the process of gathering information
about a company's external events and relationships, to assist top management in its decision
making, and so develop its future course of action (Aguilar, 1967).
Page reference: 49
Question 12
The differentiation of a firm's products or services is underlined to promote environmental
responsibility. One of the examples includes Marks and Spencer's Plan A initiative. This
strategy is referred to as:
Your answer:
d) Environmental cost leadership
Correct answer:
b) Eco-branding
Feedback:
Eco-branding-the differentiation of a firm's products or services to promote environmental
responsibility. Examples include Marks and Spencer's Plan A initiative, the Thai King
Bhumibol's Golden Place brand, or Renault's ZE electric car range.
Page reference: 49
Question 13
Marketing managers cannot control _____________ but they can at times influence it.
Your answer:
c) the external environment
Feedback:
The external environment is characterized in two main ways. In the first, the elements do not
have an immediate impact on the performance of an organization, although they might do in
the longer term. In the second, although the elements can influence an organization, it is not
possible to control them. The external environment is basically uncontrollable, but the other
three answers are part of the marketing mix.
Page reference: 37
Question 14
As technology continues to offer more different methods for shopping online, manufacturers
and traditional retailers are finding themselves in direct competition with each other. In this
case, unless marketing managers understand ________, retailers cannot intelligently plan for
the future.
Your answer:
d) their competitors' strategies, the economic conditions which influence the growth of
technology and changing social attitudes towards it
Feedback:
By understanding all elements of the marketing environment to considering the degree to
which an organization can influence the various forces acting on it. The external
environment, for example, consists of the political, social, and technological influences, and
organizations have relatively little influence on each of these. The performance environment
consists of the competitors, suppliers, and indirect service providers who shape the way an
organization achieves its objectives. Here, organizations have a much stronger level of
influence. The internal environment concerns the resources, processes, and policies that an
organization manages in order to achieve its goals.
Page reference: 51
Question 15
The external environment:
Your answer:
d) must be continually monitored by marketing managers.
Feedback:
To understand how the external environment is changing, organizations need to put in place
methods and processes to inform them of developments. The process of doing this is known
as environmental scanning. Environmental scanning is the process of gathering information
about a company's external events and relationships, to assist top management in its decision
making, and so develop its future course of action (Aguilar, 1967).
Page reference: 49
Question 16
The differentiation of a firm's products or services to promote environmental responsibility is
referred to as:
Your answer:
b) eco-branding.
Feedback:
This is eco-branding. This is the differentiation of a firm's products or services to promote
environmental responsibility. Examples include Duchy Originals, the British Prince of
Wales' food brand, the Thai King Bhumibol's Golden Place brand, or the Toyota Prius
labelled as 'mean but green'. Another example is BP (formerly British Petroleum) who
changed their logo to a green and yellow flower petal and sun synthesis called the Helios,
and changed their slogan to 'beyond petroleum'. This reflected their intended shift to meeting
the world's energy requirements using more sustainable sources.
Page reference: 49
Question 17
Which of the following elements is not part of Porter's Five Forces model for industry
competitiveness?
Your answer:
d) Threat from government.
Feedback:
Porter suggests that competition in an industry is a composite of five main competitive
forces. These are the level of threat that new competitors will enter the market, the threat
posed by substitute products, and the bargaining power of both buyers and suppliers. These
in turn affect the fifth force: the intensity of rivalry between the current competitors. Porter
called these variables the Five Forces of Competitive Industry Analysis.
Page reference: 52
Question 18
Which of the following characteristics would usually make a market less competitive?
Your answer:
a) High barriers to entry.
Feedback:
Porter suggests that competition in an industry is a composite of five main competitive
forces. These are the level of threat that new competitors will enter the market, the threat
posed by substitute products, and the bargaining power of both buyers and suppliers. These
in turn affect the fifth force: the intensity of rivalry between the current competitors. Porter
called these variables the Five Forces of Competitive Industry Analysis. An organization
needs to determine a competitive approach that will allow it to influence the industry's
competitive rules, protect it from competitive forces as much as possible, and give it a strong
position from which to compete.
Page reference: 52
Question 19
To evaluate an organization's Strategic Business Units (SBU), the Boston Consulting Group
developed a portfolio performance framework that characterizes some of the SBUs as:
Your answer:
a) question marks.
Feedback:
One of the popular methods for assessing the variety of businesses or products that an
organization has involves the creation of a two-dimensional graphical picture of the
comparative strategic positions. This technique is referred to as a product portfolio or
portfolio matrix. In the Boston Consulting Group (BCG) matrix, question marks (also known
as 'problem children') are products that exist in growing markets but have low market share.
As a result there is negative cash flow and they are unprofitable.
Page reference: 56-57
Question 20
The quadrant of the Boston Consulting Group (BCG) matrix that represents both a high
market share and a high rate of market growth includes the:
Your answer:
c) stars.
Feedback:
One of the popular methods for assessing the variety of businesses or products that an
organization has involves the creation of a two-dimensional graphical picture of the
comparative strategic positions. This technique is referred to as a product portfolio or
portfolio matrix. In the Boston Consulting Group (BCG) matrix, stars are most probably
market leaders but their high growth and market share has to be financed through fairly
heavy levels of investment.
Page reference: 56-57
Chapter 03
Instructions
Answer the following questions and then press 'Submit' to get your score.
Question 1
_________ is the simplest model of consumer buying behaviour to understand, stressing how
the consumer goes through six key stages in the acquisition process.
a) Memory
b) Theory of Planned Behaviour
c) Marslow Hierarchy of Need
d) Consumer Acquisition Model
Question 2
We are motivated to re-evaluate our beliefs, attitudes, opinions, or values if our position at
one point in time is not the same as the position we hold at an earlier period due to some
intervening event, circumstance, or action. This is referred to as:
a) Motivation
b) Ego
c) Evoke set
d) Cognitive dissonance
Question 3
Which is NOT classified in buyclasses?
a) new task.
b) information gathering
c) modified rebuy.
d) straight rebuy.
Question 4
With respect to consumer behaviour, one's friends and relatives could be considered a/an:
a) impersonal influence.
b) reference group influence.
c) perceptual influence.
d) institutional influences.
Question 5
Which of the following is not part of the consumer proposition acquisition process?
a) Motive development.
b) Information gathering.
c) Proposition evaluation.
d) Perception.
Question 6
The purchasing department reorders on a routine basis, very often working from an approved
list of suppliers. This is referred to as:
a) straight rebuy
b) new task
c) modified rebuy
d) routine buying
Question 7
The purchasing strategy is based on collaboration in research and development. This is
called:
a) bargainer
b) clockwiser
c) adaptator
d) updator
Question 8
Which of the following can be described as an affective mental state?
a) Attitudes.
b) Opinions.
c) Values.
d) Conative.
Question 9
_______________can be defined as the manner in which the individual copes and deals with
his/her psychological and physical environment on a day-to-day basis.
a) Perception
b) Lifestyle
c) Learning
d) Memory
Question 10
An imbalance between a consumer's actual and desired state in which recognition that a gap
or problem needs resolving is called:
a) motive development.
b) an attitude.
c) a self-concept.
d) Product Evaluation.
Question 11
_________is the process by which we acquire new knowledge and skills, attitudes and
values, through study and experience, or by modelling others' behaviour (e.g. parents,
friends).
a) Learning
b) Memory
c) Evaluation
d) Motivation
Question 12
Needs are hidden, our subject is unaware of his or her need. This is referred to as:
a) passive.
b) esteem.
c) latent,
d) picking.
Question 13
Social grade is a means of classifying the population by _________
a) Needs
b) occupation
c) lifestyle
d) personality
Question 14
Opinions can be referred to as cognitive and:
a) are a measure of the emotional content of the opinion.
b) deal with the aesthetic content of the opinion.
c) are held with limited conviction since an underlying attitude on an issue is not
formed. .
d) measure the speed with which one learns about others' opinions.
Question 15
Providing free samples of perfumes (scent) in magazines is an example of which of the
following?
a) Classical conditioning.
b) Operant conditioning.
c) Social learning.
d) Behavioural learning.
Question 16
The process of deliberative selection of an offering from amongst a repertoire of acceptable
alternatives is called:
a) memorising
b) learning
c) picking
d) influencing
Question 17
Re-evaluation of the consumer product acquisition process attempts to measure the degree
of:
a) selling success experienced by the vendor.
b) consumer satisfaction with the purchase.
c) follow-up effectiveness of the firm.
d) advertising influence on the purchase.
Question 18
Which of the following consumer buying behaviours requires the least effort?
a) High involvement buying situation.
b) New buying situation.
c) Routine buying.
d) Impulsive buying.
Question 19
Companies often reinforce consumer loyalty by providing reward cards and points for
purchasing (e.g. the Nectar card in Britain) and stamps (e.g. as used by the Japanese retailer,
7-Eleven). These activities can be referred to as______.
a) classical conditioning
b) social learning
c) esteem
d) operant conditioning.
Question 20
The process that creates changes in behaviour is called:
a) selective adaptation.
b) learning.
c) involvement manipulation.
d) attitude adjustment.
Chapter 03
Results
You have answered 8 out of 20 questions correctly.
Your percentage score is 40%.
Question 1
_________ is the simplest model of consumer buying behaviour to understand, stressing how
the consumer goes through six key stages in the acquisition process.
Your answer:
b) Theory of Planned Behaviour
Correct answer:
d) Consumer Acquisition Model
Feedback:
Consumer buying behaviour has both rational and irrational components although rational
theories have dominated the marketing literature until now. Although there are a variety of
models of consumer buying behaviour, the consumer acquisition model is perhaps the
simplest to understand, stressing how the consumer goes through six key stages in the
acquisition process including motive development, information gathering, product
evaluation, product selection, acquisition, and re-evaluation.
Page reference: 90
Question 2
We are motivated to re-evaluate our beliefs, attitudes, opinions, or values if our position at
one point in time is not the same as the position we hold at an earlier period due to some
intervening event, circumstance, or action. This is referred to as:
Your answer:
d) Cognitive dissonance
Feedback:
The theory of cognitive dissonance (Festinger, 1957) suggests we are motivated to re-
evaluate our beliefs, attitudes, opinions, or values if our position at one point in time is not
the same as the position we hold at an earlier period due to some intervening event,
circumstance, or action. This difference in evaluations, termed cognitive dissonance, is
psychologically uncomfortable, causing anxiety.
Page reference: 69
Question 3
Which is NOT classified in buyclasses?
Your answer:
b) information gathering
Feedback:
Robinson, Faris, and Wind (1967) suggest that there are three main types of buying
situations, each of which possess specific characteristics. They term these 'buyclasses' and
they include the following, new task, modified rebuy, and straight rebuy.
Page reference: 85-86
Question 4
With respect to consumer behaviour, one's friends and relatives could be considered a/an:
Your answer:
b) reference group influence.
Feedback:
One's friends and relatives could be considered a reference group. Consumers learn through
imitation (i.e. social learning). We've learnt, for instance, by observing and copying our
parents and friends. As consumers we may consider our opinions, attitudes, values, and
behaviour patterns in relation to those of our reference groups. Reference groups are those
groups 'that the individual tends to use as an anchor point for evaluating his/her own beliefs
and attitudes. A reference group may be positive; i.e. the individual patterns his or her own
beliefs and behaviour to be congruent with those of the group, or it may be negative' (AMA,
2012).
Page reference: 78
Question 5
Which of the following is not part of the consumer proposition acquisition process?
Your answer:
a) Motive development.
Correct answer:
d) Perception.
Feedback:
Consumer buying behaviour has both rational and irrational components although rational
theories have dominated the marketing literature until now. Although there are a variety of
models of consumer buying behaviour, the consumer acquisition model is perhaps the
simplest to understand, stressing how the consumer goes through six key stages in the
acquisition process including motive development, information gathering, product
evaluation, product selection, acquisition, and re-evaluation.
Page reference: 90
Question 6
The purchasing department reorders on a routine basis, very often working from an approved
list of suppliers. This is referred to as:
Your answer:
d) routine buying
Correct answer:
a) straight rebuy
Feedback:
Straight rebuy - in this situation, the purchasing department reorders on a routine basis, very
often working from an approved list of suppliers. These may be products that an organization
consumes in order to keep operating (e.g. office stationery), or may be low-value materials
used within the operational, value-added part of the organization (e.g. manufacturing
processes). No other people are involved with the exercise until different suppliers attempt to
change the decision-making environment.
Page reference: 86
Question 7
The purchasing strategy is based on collaboration in research and development. This is
called:
Your answer:
c) adaptator
Correct answer:
d) updator
Feedback:
The 'updator' purchasing strategy is based on collaboration in research and development.
Here, collaboration between partners is continuous and the nature of the relationship is not a
dyad but a supply network.
Page reference: 89
Question 8
Which of the following can be described as an affective mental state?
Your answer:
d) Conative.
Correct answer:
a) Attitudes.
Feedback:
Attitudes, are what psychologists call affective, in that they are linked to our emotional states
by comparison, and they are held with a greater degree of conviction, over a longer duration,
and are more likely to influence behaviour.
Page reference: 78
Question 9
_______________can be defined as the manner in which the individual copes and deals with
his/her psychological and physical environment on a day-to-day basis.
Your answer:
a) Perception
Correct answer:
b) Lifestyle
Feedback:
The AMA defines lifestyle as 'the manner in which the individual copes and deals with
his/her psychological and physical environment on a day to day basis' (AMA, 2012).
Page reference: 81
Question 10
An imbalance between a consumer's actual and desired state in which recognition that a gap
or problem needs resolving is called:
Your answer:
b) an attitude.
Correct answer:
a) motive development.
Feedback:
The motive development is when consumers decide that they need to acquire an offering.
This involves the initial recognition that some sort of problem needs solving. To solve our
buying problem, we must first become aware of it.
Page reference: 68
Question 11
_________is the process by which we acquire new knowledge and skills, attitudes and
values, through study and experience, or by modelling others' behaviour (e.g. parents,
friends).
Your answer:
a) Learning
Feedback:
Learning is the process by which we acquire new knowledge and skills, attitudes and values,
through study and experience, or by modelling others' behaviour (e.g. parents, friends).
Page reference: 73
Question 12
Needs are hidden, our subject is unaware of his or her need. This is referred to as:
Your answer:
c) latent,
Feedback:
There is still debate about whether customers are primarily motivated by rational (Howard
and Sheth, 1969) or irrational motives. Holbrook, Lehman, and O'Shaughnessy (1986)
started to consider irrational motives when they suggested our wants could be latent, passive,
or active and were related to both intrinsic and extrinsic reasons. Latent is when needs are
hidden, our subject is unaware of his or her need.
Page reference: 75
Question 13
Social grade is a means of classifying the population by _________
Your answer:
c) lifestyle
Correct answer:
b) occupation
Feedback:
'Social grade' refers to a system of classification of consumers based on their socio-economic
grouping. 'Social grade' was originally developed for the National Readership Survey (NRS)
in the 1950s. Social grade is a means of classifying the population by the type of work they
do based on the occupation of the chief income earner (the member of the household with the
largest income).
Page reference: 80
Question 14
Opinions can be referred to as cognitive and:
Your answer:
d) measure the speed with which one learns about others' opinions.
Correct answer:
c) are held with limited conviction since an underlying attitude on an issue is not formed. .
Feedback:
Opinions are cognitive (i.e. based on thoughts) and can be described as quick responses
given to opinion poll questions about current issues or instant responses to questions from
friends. They are held with limited conviction because we have often not formed or fully
developed an underlying attitude on an issue.
Page reference: 78
Question 15
Providing free samples of perfumes (scent) in magazines is an example of which of the
following?
Your answer:
a) Classical conditioning.
Feedback:
Russian Nobel Laureate, Ivan Pavlov, carried out a series of experiments with dogs,
manipulating stimuli before the presentation of food. Using a bell, he realized that if he rang
it before serving food, the dogs would associate the sound of the bell with the presentation of
food and salivate. He called this phenomenon classical conditioning. It occurs when we learn
to associate one thing with another, in this case the sound of the bell with the arrival of food.
The classical conditioning approach to learning is frequently adopted in marketing: 1) the use
of jingles in advertising (e..g. 'ooh Danone!' or Intel's 'sonic' logo) 2) supermarkets locating
bakery sections in-store so customers smell warm bread and feel hungry causing them to buy
more 3) perfume manufacturers (e.g. Dior) place free samples of products in sachets in
magazines so readers see an advert and associate the image they see with the smell, making
them more likely to purchase the product in future.
Page reference: 74
Question 16
The process of deliberative selection of an offering from amongst a repertoire of acceptable
alternatives is called:
Your answer:
d) influencing
Correct answer:
c) picking
Feedback:
Picking is the process of deliberative selection of an offering from amongst a repertoire of
acceptable alternatives even though the consumer believes the alternatives to be essentially
identical in their ability to satisfy his/her need.
Page reference: 75
Question 17
Re-evaluation of the consumer product acquisition process attempts to measure the degree
of:
Your answer:
b) consumer satisfaction with the purchase.
Feedback:
The theory of cognitive dissonance (Festinger, 1957) suggests we are motivated to re-
evaluate our beliefs, attitudes, opinions, or values if our position at one point in time is not
the same as the position we hold at an earlier period due to some intervening event,
circumstance, or action. This difference in evaluations, termed cognitive dissonance, is
psychologically uncomfortable, causing anxiety.
Page reference: 69-70
Question 18
Which of the following consumer buying behaviours requires the least effort?
Your answer:
d) Impulsive buying.
Correct answer:
c) Routine buying.
Feedback:
A routine purchase is a purchase which we make regularly. Because the purchase is regular
we do not become particularly involved in the decision-making process. We simply buy the
proposition again that we bought previously unless new circumstances arise. For example,
the swimwear buyer might make a routine purchase, a bikini from a shop she's always
shopped at regularly.
Page reference: 69
Question 19
Companies often reinforce consumer loyalty by providing reward cards and points for
purchasing (e.g. the Nectar card in Britain) and stamps (e.g. as used by the Japanese retailer,
7-Eleven). These activities can be referred to as______.
Your answer:
d) operant conditioning.
Feedback:
Skinner (1954) pioneered the behaviourist school of learning, stating that learning is the
result of operant conditioning whereby subjects act on an environmental stimulus. The
resulting behaviour is more likely to occur if this behaviour is reinforced. In other words,
operant conditioning suggests learning through behavioural reinforcement (i.e. by
punishment or reward).
Page reference: 69
Question 20
The process that creates changes in behaviour is called:
Your answer:
d) attitude adjustment.
Correct answer:
b) learning.
Feedback:
In marketing terms, consumers are continually learning about new product and service
characteristics, their performance, and new trends. But what is learning? Learning is the
process by which we acquire new knowledge and skills, attitudes and values, through the
mediums of study, experience, or modelling others' behaviour. There are numerous theories
of human learning, including classical conditioning, operant conditioning, and social
learning.
Page reference: 73
Chapter 04
Instructions
Answer the following questions and then press 'Submit' to get your score.
Question 1
Marketing research:
a) is used to obtain information for management to make more informed decision
making.
b) is the collection and analysis of data from a sample or census of individuals or
organizations.
c) includes all forms of market, opinion and social research such as consumer and
industrial surveys.
d) is work undertaken to determine either structural characteristics of the industry
of concern.
Question 2
Marketing research, by presenting pertinent information in a useful format:
a) provides managers with a means to judge worker performance.
b) aids marketing decision makers in analyzing data and in suggesting possible
actions for strategic marketing direction.
c) provides sufficient information about a situation after it occurs to be able follow
its path of occurrence.
d) provides consumers with information concerning why the product or service is
useful to them.
Question 3
A marketing research firm contracts with clients to conduct a complete marketing research
project from data collection, analysis and reporting. It is a__________ firm.
a) consultant
b) field agency
c) full-service agency
d) tabulation agency
Question 4
Marketers usually decide whether to conduct marketing research study internally or through
an outside organization based on certain criteria. Which of the following criterion
is not used?
a) Whether the study offers value for money.
b) The agency's reputation.
c) The likelihood that the research design will provide insights into the
management problem.
d) The size of the agency.
Question 5
___________ usually alpha-numeric, i.e. words and numbers, are often entered into word-
processed documents as interview transcripts from audio or videotape or entered directly into
computer software applications (e.g. NVivo) as video or sound files for content analysis.
a) Qualitative data.
b) Quantitative data
c) Secondary data.
d) Data mining
Question 6
Once the agency has discussed the brief with the client, the agency provides a detailed
outline of how they intend to investigate the problem. This document is called the
____________:
a) research brief.
b) research proposal.
c) research question.
d) research programme.
Question 7
Second-hand data, collected for someone else's purposes, is known as____________:
a) primary research.
b) descriptive research.
c) causal research.
d) secondary research.
Question 8
When little is known about the problem, research seeking to discover the cause of a problem
by discussing the problem with informed sources and examining pre-existing data is
undertaken. This type of research is:
a) situation analysis.
b) information investigation.
c) exploratory research.
d) bottom-line analysis.
Question 9
Which of the following is not one of the categories of research design?
a) Exploratory research.
b) Descriptive research.
c) Causal research.
d) Desk research.
Question 10
Which technique is used to collect data that has been previously collected for a purpose other
than the current research situation?
a) Secondary research.
b) Primary research.
c) Desk research.
d) Secondary research and desk research.
Question 11
A common research technique, used particularly in retailing (on- and off-line) where
consumers are recruited by researchers to act as anonymous buyers in order to evaluate
customer satisfaction is referred to as:
a) qualitative research.
b) mystery shopping.
c) quantitative research.
d) Ethnography.
Question 12
Information collected for the first time specifically for a marketing research study is called:
a) secondary research.
b) primary research.
c) soft research.
d) experimental research.
Question 13
Secondary data has two important advantages over primary data. It is:
a) capable of compensating for rapid environmental changes and technical
improvements.
b) always available and complete.
c) seldom obsolete and usually fits the dimensions of your problem.
d) generally cheaper to gather than primary data and takes less time to find.
Question 14
________________ systems are used to mine customer data, particularly when undertaking
research into characterizing customer groups and their product/service usage.
a) Customer relationship management (CRM)
b) Marketing information system (MkIS)
c) Computer-assisted web interviewing (CAWI)
d) NVivo
Question 15
Criteria like gender, ethnicity, or some other customer characteristic are used to restrict the
sample, but the selection of the sample unit is left to the judgment of the researcher. This is
called:
a) random sampling
b) stratified random sampling
c) quota sampling.
d) convenience sampling
Question 16
A probability sample constructed where the population elements are accorded a number and
a sample is selected by generating random numbers, which correspond to the individual
population elements. This is called:
a) simple random sample.
b) convenience sample.
c) quota sample.
d) cluster sample.
Question 17
Which sampling techniques are often selected in qualitative research?
a) non-probability sampling.
b) probability sampling
c) stratified sampling.
d) random sampling.
Question 18
What is the term used to describe the degree to which the data elicited in a study is replicated
in a repeat study?
a) Replication.
b) Pre-code.
c) Reliability.
d) Convenience.
Question 19
One thing that is usually true of focus groups is that:
a) most groups involve a small number of participants.
b) they usually average 5 to 10 minutes in length.
c) the moderator's job is to keep the group busy for the entire time and not let
anyone leave.
d) the questions used are highly structured and response-driven.
Question 20
Which type of research methods are designed to elicit responses to predetermined,
standardized questions from a large number of respondents?
a) Quantitative.
b) Qualitative.
c) Non-probability.
d) Probability.
Chapter 04
Results
You have answered 13 out of 20 questions correctly.
Your percentage score is 65%.
Question 1
Marketing research:
Your answer:
c) includes all forms of market, opinion and social research such as consumer and industrial
surveys.
Correct answer:
a) is used to obtain information for management to make more informed decision making.
Feedback:
Market research is work undertaken to determine either structural characteristics of the
industry of concern (e.g. demand, market share, market volumes, customer characteristics
and segmentation and so on). Marketing research is work undertaken to understand how to
make specific marketing strategy decisions such as for pricing, sales forecasting, product
testing, and promotion research (Chisnall, 1992). It could also be argued that marketing
research encompasses market research.
Page reference: 97
Question 2
Marketing research, by presenting pertinent information in a useful format:
Your answer:
b) aids marketing decision makers in analyzing data and in suggesting possible actions for
strategic marketing direction.
Feedback:
Marketing research is used to obtain information that provides the management of a
company or organization with sufficient insight to make more informed decisions on future
activities. It follows the philosophical premise of marketing that, for a business or
organisation to be successful, an organisation must understand the motivations, desires and
behaviour of its customers and consumers.
Page reference: 97
Question 3
A marketing research firm contracts with clients to conduct a complete marketing research
project from data collection, analysis and reporting. It is a__________ firm.
Your answer:
c) full-service agency
Feedback:
In order to commission market research, the client must determine whether or not he or she
wants to commission an agency, a consultant, a field and tabulation agency, or a data
preparation and analysis agency (who, unlike field and tab, do not undertake the fieldwork).
Typically, a consultant might be used for a small job which does not require extensive
fieldwork, a field and tab agency when the organization can design its own research but not
undertake the data collection, a data preparation and analysis agency when it can both design
and collect the data but does not have the expertise to analyse it, and a full-service agency
when it does not have the expertise to design the research, and collect or analyse the data.
Page reference: 99
Question 4
Marketers usually decide whether to conduct marketing research study internally or through
an outside organization based on certain criteria. Which of the following criterion
is not used?
Your answer:
d) The size of the agency.
Feedback:
The criteria used to evaluate the agencies' suitability, once they had submitted a proposal,
might include the following:
- The agency's reputation
- The agency's perceived expertise
- Whether the study offers value for money
- The time taken to complete the study
- The likelihood that the research design will provide insights into the management problem.
Page reference: 99
Question 5
___________ usually alpha-numeric, i.e. words and numbers, are often entered into word-
processed documents as interview transcripts from audio or videotape or entered directly into
computer software applications (e.g. NVivo) as video or sound files for content analysis.
Your answer:
a) Qualitative data.
Feedback:
Qualitative data, usually alpha-numeric, i.e. words and numbers, are often entered into word-
processed documents as interview transcripts from audio or videotape or entered directly into
computer software applications (e.g. NVivo) as video or sound files for content analysis.
Page reference: 113
Question 6
Once the agency has discussed the brief with the client, the agency provides a detailed
outline of how they intend to investigate the problem. This document is called the
____________:
Your answer:
a) research brief.
Correct answer:
b) research proposal.
Feedback:
Once the agency has discussed the brief with the client, the agency provides a detailed
outline of how they intend to investigate the problem. This document is called the research
proposal.
Page reference: 103
Question 7
Second-hand data, collected for someone else's purposes, is known as____________:
Your answer:
d) secondary research.
Feedback:
Secondary data is second-hand data, collected for someone else's purposes.Secondary
research, known also as desk research, involves gaining access to the results or outcomes
of previous research projects. This is useful if someone else has carried out a project which
already provides answers to the client's management problem.
Page reference: 103-104
Question 8
When little is known about the problem, research seeking to discover the cause of a problem
by discussing the problem with informed sources and examining pre-existing data is
undertaken. This type of research is:
Your answer:
b) information investigation.
Correct answer:
c) exploratory research.
Feedback:
Exploratory research is used when little is known about a particular management problem. It
also discovers the general nature of the questions that might relate to it.
Page reference: 105
Question 9
Which of the following is not one of the categories of research design?
Your answer:
d) Desk research.
Feedback:
There are three categories of research design: (1) exploratory, (2) descriptive, and (3) causal.
These categories specify the procedure adopted for collection and analysis of the data
necessary to identify a management problem. Therefore, desk research is not one of the
categories of research design.
Page reference: 105
Question 10
Which technique is used to collect data that has been previously collected for a purpose other
than the current research situation?
Your answer:
a) Secondary research.
Feedback:
Secondary research, also called desk research, is a technique used to collect data that has
been previously collected for a purpose other than the current research situation.
Page reference: 103-104
Question 11
A common research technique, used particularly in retailing (on- and off-line) where
consumers are recruited by researchers to act as anonymous buyers in order to evaluate
customer satisfaction is referred to as:
Your answer:
c) quantitative research.
Correct answer:
b) mystery shopping.
Feedback:
Mystery shopping is a common research technique, used particularly in retailing (on- and
off-line) where consumers are recruited by researchers to act as anonymous buyers in order
to evaluate customer satisfaction, service quality and the customer's evaluation of their
experiences.
Page reference: 106
Question 12
Information collected for the first time specifically for a marketing research study is called:
Your answer:
b) primary research.
Feedback:
Primary research is research conducted for the first time, involving the collection of data for
the purpose of a particular project..
Page reference: 103
Question 13
Secondary data has two important advantages over primary data. It is:
Your answer:
b) always available and complete.
Correct answer:
d) generally cheaper to gather than primary data and takes less time to find.
Feedback:
Secondary data is second-hand data, collected for someone else's purposes. Secondary
research, sometimes referred to as desk research, involves gaining access to the results or
outcomes of previous research projects. This is a useful method of research when someone
else has carried out a project that provides some of the answers to a client's own management
problem since it may be a cheaper and more efficient process of data collection. We can do a
large amount of secondary research free-of-charge simply by visiting a business library or by
searching the internet.
Page reference: 103-104
Question 14
________________ systems are used to mine customer data, particularly when undertaking
research into characterizing customer groups and their product/service usage.
Your answer:
a) Customer relationship management (CRM)
Feedback:
There has been a strong trend towards using customer relationship management (CRM)
systems, to mine customer data, particularly when undertaking research into characterizing
customer groups and their product/service usage.
Page reference: 99
Question 15
Criteria like gender, ethnicity, or some other customer characteristic are used to restrict the
sample, but the selection of the sample unit is left to the judgment of the researcher. This is
called:
Your answer:
a) random sampling
Correct answer:
c) quota sampling.
Feedback:
Quota sampling, where criteria like gender, ethnicity, or some other customer characteristic
are used to restrict the sample, but the selection of the sample unit is left to the judgment of
the researcher.
Page reference: 111
Question 16
A probability sample constructed where the population elements are accorded a number and
a sample is selected by generating random numbers, which correspond to the individual
population elements. This is called:
Your answer:
a) simple random sample.
Feedback:
Simple random sampling, where the population elements are accorded a number and a
sample is selected by generating random numbers, which correspond to the individual
population elements.
Page reference: 110
Question 17
Which sampling techniques are often selected in qualitative research?
Your answer:
a) non-probability sampling.
Feedback:
In qualitative research, samples are often selected through non-probability sampling methods
such as convenience or judgment.
Page reference: 110
Question 18
What is the term used to describe the degree to which the data elicited in a study is replicated
in a repeat study?
Your answer:
a) Replication.
Correct answer:
c) Reliability.
Feedback:
Validity and reliability are important concepts in quantitative market research. They aid
researchers in understanding the extent to which the data obtained from the study represent
reality and 'truth'. Quantitative research methods rely on the degree to which the data elicited
might be reproduced in a later study (i.e. reliability) and the extent to which the data
generated is bias free (i.e. valid).
Page reference: 113
Question 19
One thing that is usually true of focus groups is that:
Your answer:
a) most groups involve a small number of participants.
Feedback:
The objective is to uncover feelings, attitudes, memories, and interpretations. They can range
in form from an informal conversation to highly structured interviews. They might be used to
seek an interviewee's perspective on a new campaign or to develop customer profiles
covering a wide range of needs and preferences. Focus groups, or group discussions as they
are more commonly referred to, have been used extensively in the marketing
communications industry for many years. They normally consist of a small number of target
consumers brought together to discuss elements from the initial concept stage to post-
production stage.
Page reference: 106
Question 20
Which type of research methods are designed to elicit responses to predetermined,
standardized questions from a large number of respondents?
Your answer:
a) Quantitative.
Feedback:
Quantitative research methods, e.g. the survey questionnaire, are designed to elicit responses
to predetermined, standardized questions from a large number of respondents.
Page reference: 105
Chapter 05
Instructions
Answer the following questions and then press 'Submit' to get your score.
Question 1
The _________________ process commences at corporate level. Here the organization sets
out its overall mission, purpose, and values.
a) researching
b) strategic planning
c) controlling
d) managing
Question 2
A statement about what an organization wants to become, which sets out an organization's
future, is referred to as:
a) mission.
b) values.
c) organisational goals.
d) vision.
Question 3
A statement that sets out what the organization wishes to achieve in the long term is referred
to as:
a) mission.
b) vision.
c) values.
d) strategic context.
Question 4
Organizational values are important because they:
a) help shape mission statements.
b) help increase sales.
c) help guide behaviour and the recruitment and selection decisions.
d) help define market research.
Question 5
Large organizations create ______________, which assume the role of a separate company
and create their own strategies and plans in order to achieve their corporate goals and
contribution to the overall organization.
a) marketing objectives
b) strategic business units
c) marketing activities
d) business development units
Question 6
The Strategic Marketing Planning process consists of a series of logical steps and these steps
can be aggregated into four phases. Which of the following is not included in the phases of
the strategic marketing planning?
a) Defining marketing strategy.
b) Setting the right mission and corporate goals.
c) Reviewing the current situation.
d) Formulating strategy.
Question 7
Which of the following firms has often followed a market challenger (second-mover)
strategy?
a) Apple Computer.
b) eBay.
c) Sainsbury's.
d) Amazon.com.
Question 8
SWOT is an acronym for:
a) strategy, working, opinion, tactical.
b) strengths, weaknesses, opportunities, threats.
c) strategy, work, openness, toughness.
d) strategy, weakness, opinions, tactics.
Question 9
In SWOT analysis, situations where organizations are able to convert weaknesses into
strengths and threats into opportunities, are called:
a) strategic windows.
b) strategic leverage.
c) conversion strategies.
d) Vulnerability.
Question 10
This is something that at some time in the future may destabilize and/or reduce the potential
performance of the organization.
a) Threat.
b) Strength.
c) Weakness.
d) Opportunities.
Question 11
________________ is the process that helps managers understand the nature of the industry,
the way firms behave competitively within the industry, and how competition is generally
undertaken.
a) Market needs analysis
b) Portfolio analysis
c) Strategic market analysis
d) Organizational analysis
Question 12
These objectives are often employed in mature markets as firms/products enter a decline
phase. The goal is to maximize short-term profits and stimulate a positive cash flow.
a) Harvest objectives.
b) Divest objectives.
c) Hold objectives.
d) Growth objectives.
Question 13
Which of the following is not the condition necessary for the achievement of sustainable
competitive advantage (SCA)?
a) The perceived difference results from cheaper price.
b) The customer consistently perceives a positive difference between the products
and services offered by a company and its competitors.
c) The perceived difference results from the company's relatively greater
capability.
d) The perceived difference persists for a reasonable period of time.
Question 14
These objectives are often the most suitable when firms operate in a market dominated by a
major competitor and where their financial resources are limited.
a) Niche objectives.
b) Hold objectives.
c) Harvest objectives.
d) Divest objectives.
Question 15
This type of growth refers to concentrating activities on markets and/or products that are
familiar.
a) Diversification.
b) Condensive.
c) Integrative.
d) Intensive.
Question 16
An organization can offer standard products at acceptable levels of quality, yet still generate
above-average profit margin by adopting _____________
a) differentiation.
b) focus strategy.
c) cost leadership.
d) market follower strategy.
Question 17
___________ are about organizations seeking gaps in broad market segments or finding gaps
in competitors' product ranges.
a) Market niche strategies
b) Differentiation
c) Cost leadership
d) Focus strategies
Question 18
These products and brands can shape the nature of competition in the market, set out
standards relating to price, quality, speed of innovation, communications, as well as
influencing the key distribution channels. This market positioning is called:.
a) market challenger
b) market leader
c) market follower
d) market nicher
Question 19
Diversification is best described as which of the following?
a) Existing products in new markets.
b) Existing products in existing markets.
c) New products for new markets.
d) New products for existing markets.
Question 20
Key performance indicators, which companies set and measure their progress towards in
order to determine whether or not they have improved or maintained their performance over
a given period of time, are referred to as:
a) marketing implementation.
b) marketing programmes.
c) budgetting.
d) marketing metrics.
Chapter 05
Results
You have answered 9 out of 20 questions correctly.
Your percentage score is 45%.
Question 1
The _________________ process commences at corporate level. Here the organization sets
out its overall mission, purpose, and values.
Your answer:
b) strategic planning
Feedback:
The strategic planning process commences at corporate level. Here the organization sets out
its overall mission, purpose, and values. These are then converted into measurable goals that
apply to the whole organization. Then, depending upon the size of the organization, the range
of businesses (SBUs) and/or products, the resources allocated to help and support each one
are determined. Each business and/or product develops detailed functional and competitive
strategies and plans, such as a marketing strategy and plan.
Page reference: 159
Question 2
A statement about what an organization wants to become, which sets out an organization's
future, is referred to as:
Your answer:
d) vision.
Feedback:
The vision sets out an organization's future. A vision is a statement about what an
organization wants to become. It should give shape and direction to an organization's future.
A vision should stretch an organization in terms of its current position and performance yet
at the same time it should help employees feel involved and motivated to be part of the
organization's future.
Page reference: 129
Question 3
A statement that sets out what the organization wishes to achieve in the long term is referred
to as:
Your answer:
a) mission.
Feedback:
The mission represents what the organization wishes to achieve in the long term. It should be
a broad statement of intention as it sets out an organization's purpose and direction. It should
be oriented to particular markets and customers served. A mission applies to all parts of an
organization and in that sense serves to bind the many parts of an organization together.
Page reference: 130
Question 4
Organizational values are important because they:
Your answer:
a) help shape mission statements.
Correct answer:
c) help guide behaviour and the recruitment and selection decisions.
Feedback:
Organizational values are important because they can help to guide and constrain not only
behaviour but also the recruitment and selection decisions. Without them individuals tend to
pursue behaviours that are in line with their own individual value systems, which may lead to
inappropriate behaviours and a failure to achieve the overall goals.
Page reference: 131
Question 5
Large organizations create ______________, which assume the role of a separate company
and create their own strategies and plans in order to achieve their corporate goals and
contribution to the overall organization.
Your answer:
a) marketing objectives
Correct answer:
b) strategic business units
Feedback:
In some very large organizations the planning process is made complicated and difficult
because the organization operates in a number of significantly different markets. In these
cases the organization creates strategic business units or SBUs. Each SBU assumes the role
of a separate company and creates its own strategies and plans in order to achieve its
corporate goals and contribution to the overall organization.
Page reference: 133
Question 6
The Strategic Marketing Planning process consists of a series of logical steps and these steps
can be aggregated into four phases. Which of the following is not included in the phases of
the strategic marketing planning?
Your answer:
c) Reviewing the current situation.
Correct answer:
a) Defining marketing strategy.
Feedback:
The Strategic Marketing Planning process consists of a series of logical steps that have to be
worked through in order to arrive at a marketing plan. These steps can be aggregated into
four phases. The first phase is concerned with setting the right mission and corporate goals.
The second involves reviewing the current situation or context in which the organisation is
operating. The third phase is used to formulate strategy and the final phase considers the
allocation of resources necessary to implement and monitor the plan.
Page reference: 133
Question 7
Which of the following firms has often followed a market challenger (second-mover)
strategy?
Your answer:
a) Apple Computer.
Correct answer:
c) Sainsbury's.
Feedback:
Products that aspire to the leadership position are referred to as market challengers. These
may be positioned as number two, three, or even four in the market. They actively seek
market share and use aggressive strategies to take share from all of their rivals. For example,
Sainsbury's and ASDA are the two main market challengers in the UK supermarket sector.
Page reference: 149
Question 8
SWOT is an acronym for:
Your answer:
b) strengths, weaknesses, opportunities, threats.
Feedback:
The most common analytical tool is SWOT analysis. SWOT stands for Strengths,
Weaknesses, Opportunities, and Threats. Essentially it is a series of checklists derived from
the marketing audit and the PESTLE analysis, and is presented as internal strengths and
weaknesses, and external opportunities or threats.
Page reference: 139
Question 9
In SWOT analysis, situations where organizations are able to convert weaknesses into
strengths and threats into opportunities, are called:
Your answer:
b) strategic leverage.
Correct answer:
c) conversion strategies.
Feedback:
SWOT analysis is a tool used to determine an overall view of an organization's strategic
position. It highlights the need for a strategy to produce a strong fit between the internal
capability (strengths and weaknesses) and the external situation (opportunities and threats).
SWOT helps to sort through the information generated in the audit, it serves to identify the
key issues, and then prompts thought about converting weaknesses into strengths and threats
into opportunities, in other words generating conversion strategies.
Page reference: 140
Question 10
This is something that at some time in the future may destabilize and/or reduce the potential
performance of the organization.
Your answer:
a) Threat.
Feedback:
A threat is something that at some time in the future may destabilize and/or reduce the
potential performance of the organization.
Page reference: 140
Question 11
________________ is the process that helps managers understand the nature of the industry,
the way firms behave competitively within the industry, and how competition is generally
undertaken.
Your answer:
b) Portfolio analysis
Correct answer:
c) Strategic market analysis
Feedback:
The purpose of strategic market analysis is to help managers understand the nature of the
industry, the way firms behave competitively within the industry, and how competition is
generally undertaken. From this information it becomes easier to determine exactly what the
marketing strategy should actually achieve; in other words, what the strategic marketing
goals should be.
Page reference: 141
Question 12
These objectives are often employed in mature markets as firms/products enter a decline
phase. The goal is to maximize short-term profits and stimulate a positive cash flow.
Your answer:
a) Harvest objectives.
Feedback:
Harvesting objectives are often employed in mature markets as firms/products enter a decline
phase. The goal is to maximize short-term profits and stimulate a positive cash flow.
Page reference: 143
Question 13
Which of the following is not the condition necessary for the achievement of sustainable
competitive advantage (SCA)?
Your answer:
d) The perceived difference persists for a reasonable period of time.
Correct answer:
a) The perceived difference results from cheaper price.
Feedback:
The conditions necessary for the achievement of sustainable competitive advantage (SCA)
are, according to Porter, as follows:
1. The customer consistently perceives a positive difference between the products and
services offered by a company and its competitors.
2. The perceived difference results from the company's relatively greater capability.
3. The perceived difference persists for a reasonable period of time.
SCA is only durable as long as it is not easily imitated.
Page reference: 146-147
Question 14
These objectives are often the most suitable when firms operate in a market dominated by a
major competitor and where their financial resources are limited.
Your answer:
a) Niche objectives.
Feedback:
Niche objectives are often the most suitable when firms operate in a market dominated by a
major competitor and where their financial resources are limited. A niche can either be a
small segment or even a small part of a segment. Niche markets often arise because it is not
economic for the leading competitors to enter this segment simply because these customers
have special needs and the leading firm does not want to devote resources in this way.
Page reference: 141
Question 15
This type of growth refers to concentrating activities on markets and/or products that are
familiar.
Your answer:
d) Intensive.
Feedback:
Growth can be intensive, by concentrating activities on markets and/or products that are
familiar.
Page reference: 143
Question 16
An organization can offer standard products at acceptable levels of quality, yet still generate
above-average profit margin by adopting _____________
Your answer:
d) market follower strategy.
Correct answer:
c) cost leadership.
Feedback:
By having the lowest cost structure, an organization can offer standard products at acceptable
levels of quality, yet still generate above-average profit margins. If attacked by a competitor
using lower prices, the low-cost leader has a far bigger cushion than its competitors. It should
be appreciated that charging a lower price than its rivals is not the critical point. The
competitive advantage is derived from how the organization exploits its cost/price ratio.
Page reference: 147
Question 17
___________ are about organizations seeking gaps in broad market segments or finding gaps
in competitors' product ranges.
Your answer:
c) Cost leadership
Correct answer:
d) Focus strategies
Feedback:
Focus strategies are about organizations seeking gaps in broad market segments or finding
gaps in competitors' product ranges. In other words, focus strategies are about seeking out
unfulfilled market needs. The focused operator then concentrates all value chain activities on
a narrow range of products and services in order that they are generated in an effective way.
Page reference: 147
Question 18
These products and brands can shape the nature of competition in the market, set out
standards relating to price, quality, speed of innovation, communications, as well as
influencing the key distribution channels. This market positioning is called:.
Your answer:
b) market leader
Feedback:
The market leader has the single largest share of the market. Market leadership is important
as it is these products and brands that can shape the nature of competition in the market, set
out standards relating to price, quality, speed of innovation, communications, as well as
influencing the key distribution channels. For example, Tesco was an ordinary mid-ranking
supermarket in the 1980s but has since grown to become the leading UK supermarket.
Page reference: 149
Question 19
Diversification is best described as which of the following?
Your answer:
a) Existing products in new markets.
Correct answer:
c) New products for new markets.
Feedback:
Growth by diversification refers to developments outside the current chain of value-adding
activities. This type of growth brings new value chain activities because the firm is operating
with new products and in new markets.
Page reference: 143
Question 20
Key performance indicators, which companies set and measure their progress towards in
order to determine whether or not they have improved or maintained their performance over
a given period of time, are referred to as:
Your answer:
c) budgetting.
Correct answer:
d) marketing metrics.
Feedback:
There is increasing recognition of the importance of using marketing metrics in the control
mechanism of the implementation phase of a marketing programme. Many companies now
use some variant of the balanced scorecard (Kaplan and Norton, 1992). Recent research has
highlighted widespread use of marketing metrics in firms including metrics in the following
areas: profit/profitability; sales, value, and volume; gross margin; awareness; market share;
number of new products; relative price; number of customer complaints; consumer
satisfaction; distribution/availability; total number of customers; marketing spend; perceived
quality/esteem; loyalty/retention; and relative perceived quality (Ambler, et al. 2004).
Page reference: 160
Chapter 06
Instructions
Answer the following questions and then press 'Submit' to get your score.
Question 1
Why is market segmentation carried out?
a) To break down large markets into smaller markets.
b) Provides an opportunity to surpass competitors.
c) By grouping together customers with similar needs, it provides a commercially
viable method of serving these customers.
d) Allows the achievement of greater market share.
Question 2
The ________________method is one of the main approaches to segmenting markets by
adopting the view that the market consists of customers that are essentially the same, so the
task is to identify groups which share particular differences.
a) sample design
b) breakdown
c) build up
d) profile identification
Question 3
An example of a segmented market would be:
a) Phillips marketing its product to all residents of the European Union with one
marketing mix based on the concept 'Sense and Sensibility'.
b) high-income and low-income consumers being treated the same at Marks and
Spencer (M&S).
c) a garden nursery seeing residents of urban areas and rural areas as one market
needing trees.
d) Honda separating its potential customers into economy car buyers and luxury
car buyers.
Question 4
To be effective, the process of market segmentation must meet which of the following basic
requirements?
a) The firm must avoid focusing on non-variables such as profitability and
volume.
b) The market segment must have measurable purchasing power and size.
c) The company must expand beyond its marketing capabilities to capture growing
markets.
d) The market segment must reflect the population's changing attitudes and
lifestyles.
Question 5
Which of the following are the three broad groups of consumer segmentation criteria?
a) Behavioural, psychological and profile criteria.
b) Behavioural-, gender- and industry- type variables.
c) Organisational size, demographic and behavioural variables.
d) Psychographic, sociological and price variables.
Question 6
A commonly used basis for segmenting consumer markets is:
a) organisational size.
b) demographics.
c) product type.
d) price.
Question 7
Which of the following is not an example of a behavioural variable?
a) Product usage.
b) Media usage.
c) Purchase occasion.
d) Personality.
Question 8
ACORN, a segmentation analysis technique, stands for which of the following?
a) A Corresponding Official Residential Notation.
b) A Classification of Reported Nationals.
c) A Classification of Residential Neighbourhoods.
d) A Countrywide Official Resources Navigation.
Question 9
The family life cycle:
a) is a way to apply psychographic segmentation.
b) refers to the process of family formation and dissolution.
c) provides insights into the relationships among age, occupation, income, and
housing.
d) is composed of the 11 stages of personal growth from infancy to retirement.
Question 10
Psychographic segmentation is based on:
a) the quantitative side of consumer demographic analysis.
b) the quantitative side of consumer geographic analysis.
c) individuals' residential patterns and life-cycle preferences.
d) grouping people according to their activities, interests, and opinions.
Question 11
Segmentation by benefits sought is a type of product-related segmentation:
a) to determine the marketer's effectiveness in satisfying the consumer.
b) used to create a psychographic profile of the benefit of having the product as a
common alternative.
c) as a post-consumption evaluation tool.
d) that focuses on the attributes that people seek in a product.
Question 12
To segment business-to-business markets, organizational characteristics, such as
organizational size and location, are taken into consideration. These sometimes are referred
to as ____________.
a) decision-making unit structure (DMU)
b) choice criteria
c) firmographics
d) purchase situation
Question 13
______________ are used to identify and categorize all types of industries and businesses.
a) Standard industrial classifications (SIC code)
b) Decision-making unit structure (DMU)
c) Choice criteria
d) Purchase situation
Question 14
Before beginning the market segmentation process, a firm should:
a) identify bases for segmenting markets.
b) forecast total market potential.
c) forecast market share.
d) select target market segments.
Question 15
The purpose of evaluating the attractiveness of the differing market segments identified in
the second stage of the market segmentation process is to:
a) identify the specific members of each segment to be able to contact each of
them directly.
b) determine the level of resources that must be committed to each segment.
c) evaluate the market potential within each segment.
d) design marketing strategy and tactics to reinforce the firm's image.
Question 16
A key benefit of the STP process is:
a) more effective and efficient matching of company resources to targeted market
segments promising the greatest ROMI.
b) enhancing a company's competitive position by providing direction and focus
for marketing strategies.
c) examining and identifying growth opportunities in the market through the
identification of new customers, growth segments, or new product uses.
d) all of the above.
Question 17
The process of market segmentation is strongly related to which other marketing concept?
a) Product differentiation.
b) PEST analysis.
c) ANSOFF matrix.
d) Brand management.
Question 18
Much segmentation theory has been developed during the period of which approach to
marketing?
a) Relational approach.
b) Transactional approach.
c) Informational approach.
d) Service approach.
Question 19
_______________ are used in the positioning process to illustrate differing attributes of a
selection of brands.
a) Product features.
b) SIC code.
c) Perceptual maps.
d) Organizational characteristics.
Question 20
Which of the following is the investigation of the hedonic consumption of products?
a) Social interaction perspective.
b) Functional utilization perspective.
c) Experiential consumption.
d) Brand management perspective.
Chapter 06
Results
You have answered 9 out of 20 questions correctly.
Your percentage score is 45%.
Question 1
Why is market segmentation carried out?
Your answer:
c) By grouping together customers with similar needs, it provides a commercially viable
method of serving these customers.
Feedback:
The purpose of market segmentation is to ensure that the elements of marketing activities are
designed to meet particular needs of different customer groups. As companies have finite
resources it is not feasible to produce all possible products, for all the people, all of the time.
Page reference: 166-167
Question 2
The ________________method is one of the main approaches to segmenting markets by
adopting the view that the market consists of customers that are essentially the same, so the
task is to identify groups which share particular differences.
Your answer:
a) sample design
Correct answer:
b) breakdown
Feedback:
There are two main approaches to segmenting markets. The first adopts the view that the
market consists of customers that are essentially the same, so the task is to identify groups
which share particular differences. This is the breakdown method.
Page reference: 168-169
Question 3
An example of a segmented market would be:
Your answer:
d) Honda separating its potential customers into economy car buyers and luxury car buyers.
Feedback:
The aim of segmentation is to identify segments in the market where identifiable differences
exist between segments (segment heterogeneity) and similarities exist between members
within each segment (member homogeneity).
Page reference: 169
Question 4
To be effective, the process of market segmentation must meet which of the following basic
requirements?
Your answer:
d) The market segment must reflect the population's changing attitudes and lifestyles.
Correct answer:
b) The market segment must have measurable purchasing power and size.
Feedback:
Another approach to evaluating market segments uses a rating approach for different
segment attractiveness factors, such as market growth, segment profitability, segment size,
competitive intensity within the segment, and the cyclical nature of the industry (e.g. whether
or not the business is seasonal, such as retailing, or dependent on government political cycles
as are some large-scale defense contracts).
Page reference: 187
Question 5
Which of the following are the three broad groups of consumer segmentation criteria?
Your answer:
d) Psychographic, sociological and price variables.
Correct answer:
a) Behavioural, psychological and profile criteria.
Feedback:
To segment consumer goods and service markets, market information based on certain key
customer-, product-, or situation-related criteria (variables) is used. These are classified as
segmentation bases and include profile, behavioural, and psychological criteria. To segment
business markets two main groups of interrelated variables are used, organizational
characteristics and buyer characteristics.
Page reference: 195
Question 6
A commonly used basis for segmenting consumer markets is:
Your answer:
b) demographics.
Feedback:
Demographic variables relate to age, gender, family size and lifecycle, generation (e.g. baby
boomers, Generation Y, Millenials), income, occupation, education, ethnicity, nationality,
religion, and social class. They indicate the profile of a consumer and are particularly useful
in assisting marketing communications and media planning, not least because media
selection criteria are developed around these variables.
Page reference: 173-174
Question 7
Which of the following is not an example of a behavioural variable?
Your answer:
a) Product usage.
Correct answer:
d) Personality.
Feedback:
Product-related methods of segmenting consumer product and service markets include using
behaviouristic methods (e.g. by product usage, purchase, and ownership) as bases for
segmentation. Observing consumers as they utilise products and media can be an important
source of new product ideas It can also lead to ideas for new product uses or product design
and development.
Page reference: 179
Question 8
ACORN, a segmentation analysis technique, stands for which of the following?
Your answer:
d) A Countrywide Official Resources Navigation.
Correct answer:
c) A Classification of Residential Neighbourhoods.
Feedback:
ACORN-A Classification of Residential Neighbourhoods-demonstrates how postcode areas
are broken down into five lifestyle categories, 17 groups, and 56 types.
Page reference: 177
Question 9
The family life cycle:
Your answer:
b) refers to the process of family formation and dissolution.
Feedback:
Lifestage analysis is based on the principle that people have varying amounts of disposable
income and different needs at different stages in their lives. Adolescents need different
products from a single 26-year-old person, who in turn needs different products from a 26-
year-old who is married with young children.
Page reference: 175
Question 10
Psychographic segmentation is based on:
Your answer:
d) grouping people according to their activities, interests, and opinions.
Feedback:
Psychographic approaches rely on the analysis of consumers' activities, interests, and
opinions to understand consumers' individual lifestyles and patterns of behaviour. A
traditional form of lifestyle segmentation is AIO, based on customer Activities, Interests, and
Opinions. These provide useful insight into what makes people tick.
Page reference: 177
Question 11
Segmentation by benefits sought is a type of product-related segmentation:
Your answer:
d) that focuses on the attributes that people seek in a product.
Feedback:
Rather than provide offerings based on design and style, the benefits sought approach is
based on the principle that we should provide customers with exactly what they want, and on
the benefits that they derive from use..
Page reference: 179
Question 12
To segment business-to-business markets, organizational characteristics, such as
organizational size and location, are taken into consideration. These sometimes are referred
to as ____________.
Your answer:
a) decision-making unit structure (DMU)
Correct answer:
c) firmographics
Feedback:
Organizational characteristics, such as organizational size and location, sometimes are
referred to as firmographics.
Page reference: 182
Question 13
______________ are used to identify and categorize all types of industries and businesses.
Your answer:
a) Standard industrial classifications (SIC code)
Feedback:
Standard industrial classifications (SIC code) are used to identify and categorize all types of
industries and businesses. Codes used to classify business establishments by the type of
economic activity that they conducted, are often used to get an indication of the size of a
particular market.
Page reference: 184
Question 14
Before beginning the market segmentation process, a firm should:
Your answer:
d) select target market segments.
Correct answer:
a) identify bases for segmenting markets.
Feedback:
To segment consumer goods and service markets, market information based on certain key
customer-, product-, or situation-related criteria (variables) is used. These are classified as
segmentation bases and include profile, behavioural, and psychological criteria. To segment
business markets two main groups of interrelated variables are used, organizational
characteristics and buyer characteristics.
Page reference: 195
Question 15
The purpose of evaluating the attractiveness of the differing market segments identified in
the second stage of the market segmentation process is to:
Your answer:
c) evaluate the market potential within each segment.
Feedback:
The second important part of the STP process is to determine which, if any, of the segments
uncovered should be targeted and made the focus of a comprehensive marketing programme.
Ultimately, managerial discretion and judgement determines which markets are selected and
exploited and which others are ignored.
Page reference: 186-187
Question 16
A key benefit of the STP process is:
Your answer:
c) examining and identifying growth opportunities in the market through the identification of
new customers, growth segments, or new product uses.
Correct answer:
d) all of the above.
Feedback:
All three are key benefits of the STP process:
1. Enhancing a company's competitive position, providing direction and focus for marketing
strategies, including targeted advertising, new product development, and brand
differentiation.
2. Examining and identifying market growth opportunities through identification of new
customers, growth segments, or product uses.
3. Effective and efficient matching of company resources to targeted market segments that
promise the greatest return on marketing investment (ROMI).
Page reference: 165-166
Question 17
The process of market segmentation is strongly related to which other marketing concept?
Your answer:
b) PEST analysis.
Correct answer:
a) Product differentiation.
Feedback:
Market segmentation is related to product differentiation. If you aim at different market
segments, you might adapt different variations of your offering to satisfy those segments.
Equally if you adapt different versions of your offering, this may appeal to different market
segments. The former is market segmentation (focus on market segments), the latter is
product differentiation (focus on product offering).
Page reference: 167
Question 18
Much segmentation theory has been developed during the period of which approach to
marketing?
Your answer:
d) Service approach.
Correct answer:
b) Transactional approach.
Feedback:
Much segmentation theory has been developed during the period when transactional
marketing was the principal approach to marketing, rather than the more relational
approaches adopted in today's service-dominated environment.
Page reference: 169
Question 19
_______________ are used in the positioning process to illustrate differing attributes of a
selection of brands.
Your answer:
a) Product features.
Correct answer:
c) Perceptual maps.
Feedback:
Perceptual maps are used in the positioning process to illustrate differing attributes of a
selection of brands. They also illustrate the existing level of differentiation between brands;
how our brand and competing brands are perceived in the marketplace; provide insight into
how a market operates; and reveal how to differentiate the attributes that matter to customers
in order to compete more effectively in the market.
Page reference: 196
Question 20
Which of the following is the investigation of the hedonic consumption of products?
Your answer:
c) Experiential consumption.
Feedback:
Experiential consumption perspective investigates emotional and sensory experiences as a
result of usage, especially emotions such as satisfaction, 'fantasies, feelings and fun'
(Holbrook and Hirschman, 1982).
Page reference: 180
Chapter 07
Instructions
Answer the following questions and then press 'Submit' to get your score.
Question 1
In marketing, the term product:
a) refers only to tangible items that can be seen, tasted, or touched.
b) is a broad concept that refers to anything that can be offered for use and
consumption, in exchange for money or some other form of value
c) is limited in meaning to goods, services, and ideas only.
d) never refers to such things as package design, brand name, or warranty.
Question 2
This gives added value to products in an attempt to augment their products with values and
associations that are recognized by and are meaningful to their customers:
a) Promotion.
b) Brand.
c) Product.
d) Price.
Question 3
The ___________ consists of the physical good or delivered service that provides the
expected benefit. It consists of many factors, for example the features and capabilities, the
durability, design, packaging, and brand name.
a) core products
b) embodied products
c) augmented products
d) premium products
Question 4
This is a term used to refer to the process when a successful brand is used to launch a new
product into a new market:
a) Brand leader.
b) Brand follower.
c) Brand equity.
d) Brand extension.
Question 5
Brands are capable of triggering associations in the minds of consumers. These associations
may sometimes enable consumers to construe _____________ meaning associated with a
particular brand.
a) physical
b) sociological
c) psychosocial
d) cognitive
Question 6
This is the process by which two established brands work together, either on one product or
service:
a) Brand awareness.
b) Co-branding.
c) Parent brand.
d) Child-brand.
Question 7
Once referred to as a multiproduct brand policy, ___________ requires that all the products
use the organization's name, either entirely or in part.
a) corporate branding
b) individual branding
c) family branding.
d) luxury branding
Question 8
The identities and images developed by the wholesalers, distributors, dealers, and retailers
who make up the marketing channel. This is referred to as:
a) own-label brand
b) generic brand
c) manufacturer brand
d) premium brand
Question 9
A process by which manufacturers and retailers help customers to differentiate between
various offerings in a market. This is called:
a) diffusion
b) innovation
c) market testing
d) branding
Question 10
This is a group of people in the process of diffusion who enjoy being at the leading edge of
innovation and buy into new products at an early stage:
a) Late majority.
b) Early adopter.
c) Early majority.
d) Laggards.
Question 11
These are brands sold without any promotional materials or any means of identifying the
company:
a) Distributor brands.
b) Generic brands.
c) Co-branding.
d) Manufacturer brands.
Question 12
This is a commercial process whereby the trademark of an established brand is used by
another organization over a defined period of time, in a defined area, in return for a fee, to
develop another brand:
a) Co-branding.
b) Licensing.
c) Generic branding.
d) Brand extension.
Question 13
These are brands created and sustained by producers who seek widespread awareness and
distribution because there is high demand for these brands:
a) Distributor brands.
b) Generic brands.
c) Co-branding.
d) Manufacturer brands.
Question 14
Offerings move through a sequential, pre-determined pattern of development similar to the
biological path that life forms follow. This is the concept of:
a) process of diffusion
b) new product development
c) product life cycle
d) brand management
Question 15
Which of the following is NOT a service innovation strategy?
a) branded service innovation
b) established service innovation
c) incremental service innovation
d) radical service innovation
Question 16
____________ is concerned with value creation generated through novel or unusual service
concepts.
a) Established service innovation
b) Radical service innovation.
c) Generic service innovation
d) Incremental service innovation
Question 17
At the highest end of innovation maturity, firms seek to integrate the services dimension as
part of their total offer. This is known as:
a) servitization
b) routinization
c) diffusion
d) productization
Question 18
Which of the following is a stage in the new product development process, undertaken when
a new product is tested with a sample of customers, or is launched in a specified
geographical area, to judge customers' reactions prior to a national launch?
a) Test marketing.
b) Focused marketing.
c) Live marketing.
d) Generic marketing.
Question 19
This group, which forms 34% of the market, is more risk-averse and requires reassurance
that the offering works and has been proven in the market. This is referred to as:
a) innovators
b) laggards
c) late majority.
d) early majority
Question 20
Which of the following is the rate at which a market adopts an innovation?
a) Process of diffusion.
b) Process of differentiation.
c) Adoption process.
d) Adoption lifecycle.
Chapter 07
Results
You have answered 9 out of 20 questions correctly.
Your percentage score is 45%.
Question 1
In marketing, the term product:
Your answer:
a) refers only to tangible items that can be seen, tasted, or touched.
Correct answer:
b) is a broad concept that refers to anything that can be offered for use and consumption, in
exchange for money or some other form of value
Feedback:
The term product in this chapter includes the tangible and intangible attributes related not
just to physical goods but also to services, ideas, people, places, experiences, and even a mix
of these various elements. Anything that can be offered for use and consumption, in
exchange for money or some other form of value, is referred to as a product (also offering
and proposition).
Page reference: 203-204
Question 2
This gives added value to products in an attempt to augment their products with values and
associations that are recognized by and are meaningful to their customers:
Your answer:
d) Price.
Correct answer:
b) Brand.
Feedback:
Brands are products and services that have added value. This value has been deliberately
designed and presented by marketing managers in an attempt to augment their offerings with
values and associations that are recognized by and are meaningful to their customers.
Page reference: 219
Question 3
The ___________ consists of the physical good or delivered service that provides the
expected benefit. It consists of many factors, for example the features and capabilities, the
durability, design, packaging, and brand name.
Your answer:
d) premium products
Correct answer:
b) embodied products
Feedback:
The embodied product consists of the physical good or delivered service that provides the
expected benefit. It consists of many factors, for example the features and capabilities, the
durability, design, packaging, and brand name.
Page reference: 204
Question 4
This is a term used to refer to the process when a successful brand is used to launch a new
product into a new market:
Your answer:
d) Brand extension.
Feedback:
Brand extensions are a way of capitalizing on the recognition, goodwill, and any positive
associations of an established brand (Hem, Chernatony, and Iversen, 2003), and using the
name to lever itself into a new market.
Page reference: 229
Question 5
Brands are capable of triggering associations in the minds of consumers. These associations
may sometimes enable consumers to construe _____________ meaning associated with a
particular brand.
Your answer:
d) cognitive
Correct answer:
c) psychosocial
Feedback:
Brands are capable of triggering associations in the minds of consumers. These associations
may sometimes enable consumers to construe a psychosocial meaning associated with a
particular brand. This psychosocial element can be measured in terms of the associations
consumers make in terms of five key dimensions: sincerity, excitement, competence,
sophistication, and ruggedness.
Page reference: 231
Question 6
This is the process by which two established brands work together, either on one product or
service:
Your answer:
b) Co-branding.
Feedback:
Co-branding occurs when two established brands work together, on one product or service.
The principle behind co-branding is that the combined power of the two brands generates
increased consumer appeal and attraction.
Page reference: 230
Question 7
Once referred to as a multiproduct brand policy, ___________ requires that all the products
use the organization's name, either entirely or in part.
Your answer:
c) family branding.
Feedback:
Once referred to as a multiproduct brand policy, family branding requires that all the
products use the organization's name, either entirely or in part. Microsoft, Heinz, and
Kellogg's all incorporate the company name as it is hoped that customer trust will develop
across all brands. Therefore, promotional investment need not be as high. This is because
there will always be a halo effect across all the brands when one is communicated and brand
experience will stimulate word of mouth following usage.
Page reference: 228
Question 8
The identities and images developed by the wholesalers, distributors, dealers, and retailers
who make up the marketing channel. This is referred to as:
Your answer:
c) manufacturer brand
Correct answer:
a) own-label brand
Feedback:
The various organizations that make up the marketing channel often choose to create a
distinct identity for themselves. The term distributor or own-label brand refers to the
identities and images developed by the wholesalers, distributors, dealers, and retailers who
make up the marketing channel. Wholesalers, such as Nurdin & Peacock, Alibaba, and
Joosten & Bohm BV, and retailers, such as Argos, Harvey Nichols, Carrefour, Sainsbury's,
Ikea, and Monsoon, have all created strong own label brands.
Page reference: 225
Question 9
A process by which manufacturers and retailers help customers to differentiate between
various offerings in a market. This is called:
Your answer:
d) branding
Feedback:
Branding is a process by which manufacturers and retailers help customers to differentiate
between various offerings in a market. It enables customers to make associations between
certain attributes or feelings and a particular brand.
Page reference: 218
Question 10
This is a group of people in the process of diffusion who enjoy being at the leading edge of
innovation and buy into new products at an early stage:
Your answer:
b) Early adopter.
Feedback:
This group, 13.5 per cent are of the market, is characterized by the high percentage of
opinion leaders. These people are very important for speeding the adoption process.
Page reference: 217
Question 11
These are brands sold without any promotional materials or any means of identifying the
company:
Your answer:
a) Distributor brands.
Correct answer:
b) Generic brands.
Feedback:
Generic brands are brands sold without any promotional materials or any means of
identifying the company.
Page reference: 226
Question 12
This is a commercial process whereby the trademark of an established brand is used by
another organization over a defined period of time, in a defined area, in return for a fee, to
develop another brand:
Your answer:
b) Licensing.
Feedback:
Licensing the trademark of an established brand and using it to develop another brand is
proving to be another popular way of using brands. In return for a fee, one company permits
another to use its trademark to promote other products over a defined period of time, in a
defined area.
Page reference: 230
Question 13
These are brands created and sustained by producers who seek widespread awareness and
distribution because there is high demand for these brands:
Your answer:
d) Manufacturer brands.
Feedback:
In many markets, and especially the fast moving consumer goods sector (fmcg), retailers are
able to influence the way in which a product is displayed and presented to customers. As a
result, manufacturers try to create brand recognition and name recall through their direct
marketing communications activities with end users. The goal is to help customers identify
the producer of a particular brand at the point of purchase. For example, Persil, Cloetta (a
Nordic chocolate and confectionery producer), Heinz, Simplot (a large private US food
company), Cadbury, and Coca-Cola are strong manufacturers' brands, they are promoted
heavily, and customers develop preferences based on performance, experience,
communications, and availability.
Page reference: 225
Question 14
Offerings move through a sequential, pre-determined pattern of development similar to the
biological path that life forms follow. This is the concept of:
Your answer:
c) product life cycle
Feedback:
Underpinning the product lifecycle (PLC) concept is the belief that offerings move through a
sequential, pre-determined pattern of development similar to the biological path that life
forms follow. This pathway, known as the product lifecycle, consists of five distinct stages,
namely development, introduction, growth, maturity, and decline. Sales and profits rise and
fall across the various lifestages of the offering. .
Page reference: 206
Question 15
Which of the following is NOT a service innovation strategy?
Your answer:
c) incremental service innovation
Correct answer:
a) branded service innovation
Feedback:
Mller et al. (2008) developed ideas based on the logic that value creation is the key to the
development of innovative service offerings and concepts. They distinguish three service
innovation strategies. These are established services within competitive markets; incremental
service innovation targeting value-added offerings; and radical service innovation, which aim
to produce completely novel offerings.
Page reference: 214
Question 16
____________ is concerned with value creation generated through novel or unusual service
concepts.
Your answer:
c) Generic service innovation
Correct answer:
b) Radical service innovation.
Feedback:
Radical service innovation is concerned with value creation generated through novel or
unusual service concepts. This requires new technologies, offerings, or business concepts,
and involves radical system wide changes in existing value systems.
Page reference: 214
Question 17
At the highest end of innovation maturity, firms seek to integrate the services dimension as
part of their total offer. This is known as:
Your answer:
c) diffusion
Correct answer:
a) servitization
Feedback:
The highest end of innovation maturity, firms seek to integrate the services dimension as part
of their total offer. Known as 'servitization', this involves the provision of an integrated
bundle of product/service solutions for the entire lifecycle of their customers, 'from cradle to
grave'.
Page reference: 215
Question 18
Which of the following is a stage in the new product development process, undertaken when
a new product is tested with a sample of customers, or is launched in a specified
geographical area, to judge customers' reactions prior to a national launch?
Your answer:
a) Test marketing.
Feedback:
Test marketing is a stage in the new product development process. Before committing a new
product to a market, most organizations decide to test market the finished product. By
piloting and testing the product under controlled, real market conditions, many of the
genuine issues as perceived by customers can be raised and resolved whilst minimizing any
damage or risk to the organization and the brand. Test marketing can be undertaken using a
particular geographical region or specific number of customer locations.
Page reference: 212
Question 19
This group, which forms 34% of the market, is more risk-averse and requires reassurance
that the offering works and has been proven in the market. This is referred to as:
Your answer:
c) late majority.
Correct answer:
d) early majority
Feedback:
Early majority-this group, which forms 34% of the market, is more risk-averse than the
previous two groups. This group requires reassurance that the offering works and has been
proven in the market. They are above average in terms of age, education, social status, and
income.
Page reference: 218
Question 20
Which of the following is the rate at which a market adopts an innovation?
Your answer:
d) Adoption lifecycle.
Correct answer:
a) Process of diffusion.
Feedback:
The rate at which a market adopts an innovation is referred to as the process of
diffusion (Rogers, 1962). According to Rogers, there are five categories of adopters;
innovators, early adopters, early majority, late majority and laggards.
Page reference: 217