Question 1

In which of the following cases is a company changing its business strategy in response to a strength identified in a SWOT analysis?

Accepted Answer

A)   When it realized that its products were inferior in quality to competitors' products, KPR Inc. instituted a revamp of its production processes.
B)   YellowBerry Inc. identified market demand for powdered energy drinks, and began producing powdered drinks to cater to this demand.
C)   When a survey revealed that customers thought its products were safe and durable, Masada Motors began stressing that aspect in its advertisements.
D)   Chocobella Inc. introduced a line of unsweetened chocolates when a competitor's unsweetened chocolate saw increasing demand.
E)   When new competitors entered its market, Widdershins Inc. had to increase its advertising and marketing efforts to maintain its market share. C

Question 2

Which of the following is true of distribution centers?

Accepted Answer

A)   Distribution centers rely on pull, rather than push strategies to determine their inventory levels.
B)   Greater backup inventory is needed to prevent stockouts.
C)   Space in a distribution center is usually more expensive than space in retail stores.
D)   Distribution centers work best when retailers have only a few outlets that are far apart geographically.
E)   Distribution centers enable the retailer to carry less merchandise in the individual stores, which results in lower inventory investments systemwide. E

Question 3

In _____ companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.

Accepted Answer

A)   glocalization
B)   reverse innovation
C)   homogenization
D)   localization
E)   inverse creation B

Question 4

Power in a marketing channel exists when:

Accepted Answer

A)   all the firms in the channel have contractual relationships with the others.
B)   each channel member is independent; there is no parent company that owns channel members.
C)   one firm has the means or ability to dictate the actions of another member at a different level of distribution.
D)   all the members of the channel are at the same level of distribution.
E)   the channel is a direct channel.

Question 5

Goldwyn, a market researcher at Horpine Analytics, is creating a survey to measure the value of his company's brand as perceived by customers. Which of the following questions will help Goldwyn measure the top-of-mind awareness of Horpine Analytics?

Accepted Answer

A)   Have you used the services of Horpine Analytics?
B)   What are companies that you depend on for your business needs?
C)   What companies do you think of first when you hear the phrase market analysis?
D)   When was the last time you used an analytics tool?
E)   What is the likelihood of recommending Horpine Analytics to others?

Question 6

Which of the following aspects is directly responsible for determining the zone of tolerance of customers?

Accepted Answer

A)   The brand awareness of a product
B)   The breadth of the product mix
C)   The importance of each service quality dimension
D)   The complexity of the product or service
E)   The type of labeling used

Question 7

The major disadvantages of primary data collection are that:

Accepted Answer

A)   it can only be accessed through syndicated databases or unstructured data mines.
B)   it cannot be tailored to meet specific research needs.
C)   it takes more time to collect than secondary data and is more costly.
D)   it is too general to meet researcher's and manager's needs.
E)   all of these are disadvantages of primary research data.

Question 8

X-Pert Bikes sells bikes for people of all ages. The company is creating a new advertising campaign targeted only at existing customers, encouraging them to buy an X-Pert Bike the next time they want a bike. The company also begins an X-Pert Club for existing users of X-Pert Bikes, as research has shown that familiarity with a brand increases the chances of repeat purchases. In this case, X-Pert's campaign is aiming to build ______.

Accepted Answer

A)   brand awareness
B)   brand dilution
C)   brand parity
D)   brand extension
E)   brand loyalty

Question 9

At which stage in the customer relationship management process would an organization seek to identify new customers and look for ways to sell more products to existing customers?

Accepted Answer

A)   Qualification
B)   Prospecting
C)   Retention
D)   Conversion
E)   Reacquisition

Question 10

_____ appeal aims to satisfy consumers' sensitive desires rather than their utilitarian needs.

Accepted Answer

A)   Emotional
B)   Ethical
C)   Informational
D)   Egoistic
E)   Logos

Question 11

Raymond is driving across town when he spots a billboard that reads, "When life begins…" He instantly recognizes this as the tagline for Voch Spa and expects to find a spa nearby. Which of the following aspects of a brand is exemplified in this scenario?

Accepted Answer

A)   Brand licensing
B)   Brand dilution
C)   Brand association
D)   Brand loyalty
E)   Brand extension

Question 12

Which of the following is a feature of using an Internet marketing channel?

Accepted Answer

A)   It reduces a company's ability to personalize products.
B)   It limits a firm's market presence.
C)   It removes the need for other channels of distribution.
D)   It reduces the need to spend money on marketing.
E)   It enables companies to offer individualized offerings.

Question 13

A firm sells 20,000 units of a particular product at a price of $50 per unit. The company spends $30 per unit in raw materials and labor charges. What are company's fixed costs if it made a profit of $100,000?

Accepted Answer

A)   $100,000
B)   $200,000
C)   $300,000
D)   $400,000
E)   $500,000

Question 14

Ryan, an insurance salesperson, sells an insurance policy covering hurricane damage to Sean. However, as instructed by his company, Ryan fails to tell Sean that the policy does not include water damage caused by hurricane flooding. In this scenario,

Accepted Answer

A)   only the insurance company can be held accountable for fraudulent sales.
B)   only Ryan can be held accountable for fraudulent sale.
C)   no one can be held accountable as the buyer must read the document carefully before buying.
D)   both the insurance company and the salesman can be held accountable.
E)   Ryan can be held accountable only if water damage actually happens.

Question 15

_____ retailers offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer's suggested retail price (MSRP).

Accepted Answer

A)   Limited-line
B)   Off-price
C)   Hypermarket
D)   Convenience
E)   Extreme value

Question 16

Which of the following is true of an administrative marketing channel?

Accepted Answer

A)   The parent company has complete control over the marketing channel because it owns multiple segments of the channel.
B)   The channel is held together by contractual relationships between the members of the channel.
C)   There is no common ownership, but the dominant channel member controls or holds the balance of power.
D)   Several independent members-a manufacturer, a wholesaler, and a retailer-each attempts to satisfy its own objectives and maximize its profits.
E)   None of the participants has any control over the others.

Question 17

Which of the following is a typical feature of large and sophisticated channel members?

Accepted Answer

A)   They require several channels below them for distribution.
B)   They do not have many supply chain intermediaries.
C)   They prefer to delegate channel functions.
D)   They do not use independent sales people.
E)   They have a lower profit markup than smaller firms.

Question 18

As compared to a value, a norm is:

Accepted Answer

A)   an established standard of conduct maintained by an organization.
B)   a commonly-held perception of ethical conduct within a particular society.
C)   a subjective standard of behavior that differs from person to person.
D)   an inherent character trait that cannot be taught or imposed externally.
E)   the collective conception of what a community or culture finds desirable or morally proper.

Question 19

Which of the following is most likely to be considered a convenience product?

Accepted Answer

A)   A lamp
B)   A haircut
C)   Running shoes
D)   A can of soda
E)   Concert tickets purchased online

Question 20

The Better Business Bureau suggests that at least _____ of the sales should occur at a price for it to be used as a reference price.

Accepted Answer

A)   20 percent
B)   30 percent
C)   40 percent
D)   50 percent
E)   60 percent

Exam 1: Professional Certified Marketer