Marketing Manageme nt MK323 MIDTERM PRACTICE QUESTIONS Part I Multiple Choice Questions Choose the best answer for each of the following questions 1 Assume that Cranberry Farms the GSU turkey stand wanted to engage in a market development strategy for organizational growth Which of the following best illustrates a market development strategy a Opening a new cafe at Harvard using the menu from BU b Running a scratch card promotion whereby customers can win prizes and food with each c Adding a line of pizzas to the existing menu of turkey sandwiches d Selling a line of Cranberry Farms cranberry dolls in Campus Convenience e All of the above represent a Market Development strategy purchase 2 The environment includes other firms that compete in the industry and rival the organization for resources while the environment includes all firms individuals and institutions that have a vested interest in protecting fair competition a cooperative competitive b political competitive c competitive social d competitive economic e competitive regulatory 3 When Dell Computer accepts orders for its computers it quickly tailors the computer to the specifications of the customer At the same time Dell is recognized as having some of the lowest costs in the computer industry From this information we know that Dell is engaged in a product orientation b relationship marketing c mass customization d product development e none of the above 4 Barnes and Noble at Boston University is working to set marketing goals and objectives which Increase textbook sales by 8 in the next academic year of the following is the best stated goal a b Sell more books than Star Market c Expand the home furnishings department to include furniture by next year d Become profitable at some point soon e Quit overcharging students for the textbooks that they buy Jo jo Case refuses to wear any clothing other than well recognized and popular names like Gap or Abercrombie and Fitch These brands meet his a Physiological needs b Social needs c Safety needs d Self Actualization needs e Personal Esteem needs 5 7 6 LG a well recognized major appliance brand also produces Neumann Special brand appliances for sale only by Target LG s strategy is an example of a A Multi Branding Strategy b A Multi Product Branding Strategy c A Mixed Branding Strategy d A Private Branding Strategy e A Generic Branding Strategy In the town of Faircity cola is sold at the Super Harvest Grocery at the two Mike s Market stores at the Grocery Heaven store and at the two Buttery s stores BU cola is sold only at Super Harvest and Buttery s In Brookline Super Harvest sells 25 of all cola sold Mike s sells 35 of all cola sold and Grocery Heaven sells 15 of all cola sold It can be determined that in Brookline BU cola has a An ACV of 25 b An ACV of 50 c An ACV of 60 d An ACV of 40 e Can t determine ACV without sales data for Grocery Heaven 8 What is the most valid criticism of the following question that appears on a questionnaire Don t you agree that quitting smoking is important for pregnant mothers a Question with non exhaustive answers b Leading Question c Unanswerable Question d Two Questions in one e There is nothing wrong with this question 9 On its flights from the United States to France Air France has different classes of service including First Class Business Class and Coach Class Air France has found that the travelers in each of these different classes are likely to respond to different marketing efforts Within each class the travelers share common interests and needs Air France has grouped these travelers together for the purposes of marketing strategies including frequent travelers in first class business travelers in business class and leisure travelers in coach class Air France has engaged in a Market segmentation b Market concentration c Market sectioning d Customer base definition e Mass Marketing 10 Skippy makes several types of peanut butter including chunky creamy and reduced fat Skippy plans to introduce a new peanut butter with raisins in it Skippy plans to break the market for its new product down into a more manageable group for the purpose of effectively and efficiently reaching potential new customers What is the logical order for the following tools that Skippy should follow in breaking down the large market a Segment target position b Position segment target c Target segment position d Segment position target e The order does not matter as long as Skippy considers each 11 For a stable product like butter which of the following forecasting techniques would be the most appropriate for estimating sales in the US next year a Trend extrapolation forecast b Survey of executive opinion c BASES model forecast d Sales force survey forecast e Build up forecast 12 Wal Mart is relying on secondary data to forecast store sales next year because of the high cost of gathering primary data Which of the following are sources of secondary data a Cash register scanner data b Government statistics from the Commerce Department c Articles in trade journals d All of the above e None of the above 13 Have you had a Wendy s Frosty in the past 12 months yes no is an example of what type of question a Likert scale b Dichotomous scale c Semantic scale d Demographic scale e Semantic differential scale a early adopters b early majority c late innovators d diffusion leaders e product leaders 15 Which of the following is a valid questionnaire design guideline 14 When the cellular phone was first invented a few young adventurous and educated consumers began buying them These consumers were labeled as innovators by marketers Soon the next group of consumers who were leaders in social settings and who were educated above the average began to adopt the use of cellular phones This second group of consumers to adopt the use of cellular phones were labeled by marketers 16 The marketing objective most commonly associated with the maturity phase of the product life cycle is to a Organize from specific to general b Use as many branching questions as possible c Ask demographics first d Avoid excessive open ended questions e All of the above f None of the above a Maintain brand loyalty b Increase awareness c Harvest the product while reducing marketing costs d Divest the product e Increase trial 17 In the video industry the 1990 s saw a rise in popularity of DVD movies They are being purchased at an increasing rate by movie lovers of all ages and backgrounds At the same time sales of