QUESTION 32

Which of the following is an element of a competitive environment?

	a.	The degree of interdependence within the industry
	b.	Consumers' varied demographic characteristics
	c.	A consumer's income
	d.	Innovation and risk taking

QUESTION 33

Saraz Inc., a leading brand of apparels, has several branches all over the country. Upon research, the marketing managers identify that teenagers do not prefer their brand as much as other age groups do. Therefore, the firm modifies its existing designs to attract the youth. In this case, the teenage group can be referred to as a _____.

	a.	social class
	b.	reference group
	c.	popular culture
	d.	subculture

QUESTION 34

Marketing myopia means long-term thinking.

True

False

QUESTION 35

Caused by shifting birthrate trends, a demographic dividend often leads to rising labor costs.

True

False

QUESTION 36

Which of the following strategies can help companies make strategic planning effective?

	a.	Excluding top management from the strategic planning process
	b.	Avoiding cross-functional teams
	c.	Eliminating managerial intuitions
	d.	Making strategic planning an ongoing process rather than an annual exercise

QUESTION 37

List and discuss six approaches that are used by companies now to stimulate innovation.

QUESTION 38

The _____ is an orderly series of stages in which consumers' attitudes and behavioral tendencies evolve through maturity, experience, and changing income and status.

	a.	family life cycle
	b.	socialization process
	c.	consumer decision-making process
	d.	want-got gap

QUESTION 39

_____ occur when consumers feel that making the wrong decision might cause some concern or anxiety.

	a.	Social risks
	b.	Physiological risks
	c.	Psychological risks
	d.	Financial risks

QUESTION 40

In the context of purchasing profiles, _____ are business customers who consider numerous suppliers, solicit bids, and study all proposals carefully before selecting one.

	a.	laggards
	b.	satisficers
	c.	innovators
	d.	optimize

QUESTION 41

Marketing managers rely on customer databases for effective implementation of the market penetration strategy.

True

False

QUESTION 42

Jove Inc. is a chocolate manufacturer in the city of Lumberne. While most of the companies in the market produce not more than three basic varieties of chocolates, Jove Inc. sells over 50 different varieties of flavored chocolates. This gives it an edge over the other chocolate makers in Lumberne. This is an example of _____.

	a.	market penetration
	b.	diversification
	c.	a divestment
	d.	a sustainable competitive advantage

QUESTION 43

Which of the following statements is true of the social class system in the U.S.?

	a.	The working class spends more on vacation homes, jewelry, vacations and cruises.
	b.	The majority of Americans today define themselves as upper class.
	c.	Social class includes people belonging to the same age and gender.
	d.	Interest in organized labor is one of the most common attributes among the working class.

QUESTION 44

In the context of ethical decision making, the greater the degree of agreement among managerial peers that an action is harmful, _____.

	a.	the fewer the number of persons affected by the negative outcome
	b.	the lesser the likelihood that the action will result in a harmful outcome
	c.	the fewer the individuals in the organization are likely to get affected by the action
	d.	the more likely that marketers will recognize a problem as unethical

QUESTION 45

In the context of customer relationship management trends, which of the following statements is true of personalization?

	a.	It involves rewarding customers for their business to a firm
	b.	It treats customers as individuals who have their own unique sets of needs and wants
	c.	It increases the time taken by customers to make purchase decisions
	d.	It uses mass-media approaches to meet the expectations of customers

QUESTION 46

A mobile moment is the point in time at which a customer pulls out a mobile device to get immediate access to the information that he or she wants.

True

False

QUESTION 47

Which of the following practices can help businesses gain a cost competitive advantage?

	a.	Using simplified production techniques
	b.	Using expensive raw materials
	c.	Focusing on serving marginal customers
	d.	Customizing products with extra frills

QUESTION 48

Which of the following statements is true of today's consumers in the U.S.?

	a.	They tend to choose products that are expensive.
	b.	They emphasize more on a product's price than its quality.
	c.	They seldom give preference to brand names.
	d.	They are concerned about the nutrition in their food.

QUESTION 49

In the context of the marketing mix, promotion includes:

	a.	after-purchase service.
	b.	storage and transportation of finished products.
	c.	pricing strategies.
	d.	public relations activities.

QUESTION 50

Which of the following statements is true of American teenagers?

	a.	They prefer Tumblr and Instagram to Facebook.
	b.	They make the largest cohort group.
	c.	They prefer face-to-face communication to communicating electronically.
	d.	They spend about six hours per week tuned in to electronic media