Question 1

PlayBall, a manufacturer of gaming consoles, announces the release of its new device. Karen, wanting to be one of the first to own the new gaming console, stands in a queue for over five hours on the day of its release. Even though disappointed that the product sold out before her turn arrived, Karen returned at 2 A.M the next day and was the first person in line. In this scenario, Karen is one among the _____.

Accepted Answer

A)  early adopters 
B)  innovators 
C)  early majority 
D)  late majority 
E)  laggards

Question 2

If an endorser is represented as an actual user of the marketer's product, the endorsement can only be used as long as:

Accepted Answer

A)  the endorser is given free samples to distribute to others. 
B)  the endorser does not use a rival's products. 
C)  the endorser is seen with the product in public. 
D)  the endorser continues to use the product. 
E)  the endorser purchases the product at least once in three months.

Question 3

Why do companies offer seasonal discounts to customers?

Accepted Answer

A)  To get customers to buy higher-margin products that team up nicely with the discounted product 
B)  To reduce the use of coupons and rebates during of-peak seasons 
C)  To encourage customers to try out new products that they would otherwise never purchase 
D)  To increase the sales of a product that was initially overpriced and rejected by customers 
E)  To increase the demand for a product at a time when consumers are less likely to buy or use the product

Question 4

Port, an OEM of computer hardware, accounts for 6% of the computer hardware sold in the U.S. Retailers uses hardware from OEMs like Port to assemble personal computers. Owing to the competitive nature of the industry, Port's pricing is uniform with offerings from other manufacturers. The rise and fall in pricing is dictated more by the rise and fall in prices of raw material, labor, and utilities across the industry. Port's pricing strategy is focused on _____.

Accepted Answer

A)  competitive parity 
B)  target profits 
C)  maximizing profits 
D)  target returns 
E)  market shares

Question 5

The process of dividing the market into groups of customers with different needs, wants, or characteristics-who therefore might appreciate products or services geared especially for them-is called _____.

Accepted Answer

A)  positioning 
B)  targeting 
C)  market penetration 
D)  market development 
E)  market segmentation

Question 6

Reference groups refer to

Accepted Answer

A)  the relatively permanent, homogeneous divisions in a society that consists of people who share similar values, interests, and behaviors. 
B)  individuals who exert direct or indirect social influence over others. 
C)  one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors. 
D)  those buyers who, through the size of their purchases, affect where marketing dollars will be spent. 
E)  those with whom a person does not wish to be a member of or identified with.

Question 7

LockIt, a manufacturer of electronic safes, accounts for 5% of the safes sold in the U.S. LockIt's current business strategy is aimed at selling better-quality products at higher prices than competitors. The higher prices make LockIt one of the leaders in terms of revenue earned. Having satisfied initial objectives of earning a certain ROI, LockIt sets a target of accounting for 25% of the units sold during the next financial year. To further this goal, LockIt introduces a line of lower-priced safes that are priced below similar competing products. LockIt's new pricing strategy is _____.

Accepted Answer

A)  sales oriented 
B)  profit oriented 
C)  customer oriented 
D)  supplier oriented 
E)  competitor oriented

Question 8

A toy manufacturer realizes that its latest product presents a choking hazard due to some of the components used in the toy. This occured despite the prior implementation of safety measures to prevent such an occurrence. The toy manufacturer is faced with a decision to recall over a million products or place a warning label on each product. This type of situation is representative of _____.

Accepted Answer

A)  an ethical dilemma 
B)  a law and order problem 
C)  unconscionable conduct 
D)  pyramid schemes 
E)  unfair contract terms

Question 9

Lilli visits her hair stylist to get a haircut. Lilli wants to know how she would look after the haircut. Unlike a dress, Lilli cannot try a haircut before she gets it. Lilli's inability to get a partial haircut or a preview of it illustrates the _____ of a haircut.

Accepted Answer

A)  intangibility 
B)  heterogeneity 
C)  perishability 
D)  inseparability 
E)  nonstorability

Question 10

Pluto Inc. runs a television and radio advertising campaign which involves several celebrities with the aim of creating a emotionally appealing to its customers. In this scenario, Pluto Inc. is using _____ media.

Accepted Answer

A)  niche 
B)  mass 
C)  speciality 
D)  micro 
E)  push

Question 11

Hanna is buying a wedding dress and chooses one that is beyond her budget. However, she notices that the dress fits her well and comes with a money-back guarantee. Despite the higher cost, she decides to purchase the dress due to the trade-off between cost and perceived value. In this scenario Hanna is exhibiting the _____ rule.

Accepted Answer

A)  compensatory decision 
B)  multi-attribute 
C)  noncompensatory 
D)  conversion 
E)  weightage

Question 12

Spark, a manufacturer of consumer electronics, makes TVs, home theater systems, refrigerators, ACs, and microwave ovens. Spark's surround-sound system, Quadro, was a market leader a few years ago, before the market for large sound systems began to shrink. Despite its dip in market share and minimal profitability, Spark continues to produce Quadro. Spark offers Quadro for a highly discounted price when customers purchase its high-end LCD, LED, plasma, and 3D TV sets. Although the customers would not purchase Quadro as a standalone product at the same price, the combined offer increases the sales of both Quadro, and the other TV sets. In this scenario, Quadro is a _____.

Accepted Answer

A)  dog 
B)  cash cow 
C)  star 
D)  question mark 
E)  market leader

Question 13

_____ is a method of prospecting in which salespeople telephone or go to see potential customers without appointments.

Accepted Answer

A)  E-selling 
B)  Direct selling 
C)  Macro selling 
D)  Relationship selling 
E)  Cold calling

Question 14

Which of the following firms is using a product development strategy?

Accepted Answer

A)  New York-based Karma Coffees opens an outlet in Los Angeles. 
B)  Rygel Clothing entered a new market in Hibernia to introduce its newest product line-footwear and accessories. 
C)  Helios International expanded its traditional hotel business and opened state-of-the-art fitness centers in its current markets. 
D)  RK International is expanding from the Japanese market to enter the Indian and Sri Lankan markets. 
E)  Icicle Media creates websites and branding campaigns for the UK market.

Question 15

Which of the following is a key similarity between selective distribution and exclusive distribution?

Accepted Answer

A)  Like exclusive distribution, selective distribution involves placing products in as many stores as possible. 
B)  Like selective distribution, exclusive distribution eliminates the retail mark-up. 
C)  Like exclusive distribution, selective distribution helps a seller maintain a particular image and control the flow of merchandise into an area. 
D)  Like selective distribution, exclusive distribution always eliminates agency mark-up. 
E)  Like exclusive distribution, selective distribution cannot be used for luxury goods.

Question 16

Patisserrita is a family-owned chain of bakeries in the Northtown region. The chain sells luxury desserts and pastries that are priced at a permium. Bianca, one of the owners of the business, is considering expanding the business using a market penetration strategy. Which of the following will she do?

Accepted Answer

A)  Bianca opens a franchise in a neighboring city. 
B)  Bianca introduces strategies to target her competitors' customers. 
C)  Bianca creates sugar-free and gluten-free products to cater to health-conscious consumers. 
D)  Bianca begins developing a line of kitchenware for pastry chefs. 
E)  Bianca opens a fast-food outlet in a neighboring city.

Question 17

Reso, a manufacturer of mp3 players or portable media players (PMPs), accounts for 157,500 of the 700,000 PMPs sold annually in the United States. What is the Reso's market share of the PMP market?

Accepted Answer

A)  17.20% 
B)  22.50% 
C)  26.10% 
D)  29.80% 
E)  34.40%

Question 18

_____ is a communication used to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.

Accepted Answer

A)  Reminder advertising 
B)  Persuasive advertising 
C)  Informative advertising 
D)  Product advertising 
E)  Institutional advertising

Question 19

Which of the following statements is most characteristic of a firm that has a relational orientation?

Accepted Answer

A)  Improving sales techniques is the key to marketing success. 
B)  A firm's success depends on producing goods as quickly as possible. 
C)  Firms should focus on the value of each customer transaction rather than long-term sales. 
D)  Marketers should focus on producing products and then creating customer needs for the products. 
E)  Marketing success depends on building lifetime profitability from customers.

Question 20

Pluto Inc., a market research company, collects data relating to its clients from sources such as Facebook, Twitter, blogs and review websites and assesses customers' feelings toward particular products. Which of the following methods is Pluto Inc., likely to use to achieve desired results?

Accepted Answer

A)  Sentiment analysis 
B)  Distribution analysis 
C)  App analysis 
D)  Network analysis

Exam 1: Professional Certified Marketer