Question 1

If a company claims to be fair toward its customers, it would imply that:

Accepted Answer

A)  the company gives back to the community through volunteerism. 
B)  the company offers discounts to its regular customers. 
C)  the company does not engage in price fixing or ""bait and switch"" tactics. 
D)  the company makes an effort to improve the satisfaction of customers. 
E)  the company does not accept criticism from its stakeholders other than customers.

Question 2

_____ are consumers who like to avoid change and rely on traditional products until they are no longer available.

Accepted Answer

A)  Early adopters 
B)  Innovators 
C)  Early majority 
D)  Late majority 
E)  Laggards

Question 3

_____ is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

Accepted Answer

A)  Advertising 
B)  Direct marketing 
C)  Public relation 
D)  Sales promotion 
E)  Personal selling

Question 4

Which of the following is an advantage of secondary data collection?

Accepted Answer

A)  It always provides data that is specific to immediate needs. 
B)  It requires sophisticated training and hence is always accurate. 
C)  It offers in-depth consumer behavioral insights. 
D)  It guarantees information without bias. 
E)  It saves time and effort in collecting and analyzing.

Question 5

A group of firms that make and deliver a given set of goods and services is known as a _____.

Accepted Answer

A)  market segment 
B)  line extension 
C)  focus group 
D)  supply chain 
E)  marketing mix

Question 6

Pluto, a footwear company, designs and creates sports shoes for children. Since most of Pluto's target market consists of children who are in school, Pluto's retailers agree to sell its shoes for a certain amount below the actual price on the products. The price that Pluto and its retailer agree to sell the sports shoes for is known as _____.

Accepted Answer

A)  the value-based price 
B)  the loss leader price 
C)  the everyday low price 
D)  the manufacturer's suggested retail price 
E)  the reference price

Question 7

Which of the following is true of postpurchase cognitive dissonance?

Accepted Answer

A)  It is likely for products that work as intended. 
B)  It is not likely for products that are widely available. 
C)  It is likely for products that are associated with low levels of risk. 
D)  It is likely for products that are frequently purchased. 
E)  It is likely for expensive products.

Question 8

Dento Inc., a manufacturer of dental care products, faced a social media uproar when rumors spread that it was using ingredients from animal sources to create its products. The labels as such carried no evidence of this and this discovery was brought about by an independent researcher. The company's CEO and senior management did not know about these ingredients. Internal research revealed that containers used to hold Dento's products, produced by a vendor, used products derived from animal fat in the manufacturing process, but the product itself did not contain any fat. What should Dento do to prove that it is ethical?

Accepted Answer

A)  Release a statement to the press explaining that it is not responsible for the manufacturing processes of its suppliers. 
B)  Refute the independent researcher's claims by filing a defamation suit. 
C)  Invest in a program that aims to spread dental hygiene awareness. 
D)  Inform its consumers of the situation and implement measures to ensure animal-fat-free packaging and products. 
E)  Penalize the vendor by not paying for the next order of packaging materials.

Question 9

When should a company use individual brands over family brands?

Accepted Answer

A)  When the manufacturer has to bear the costs of advertisement 
B)  When the product is designed by a retailer and developed by a manufacturer 
C)  When the products vary in their usage and performance 
D)  When the manufacturer wants greater control over positioning the brand 
E)  When the manufacturer wants the individual products to feed off each others' success

Question 10

In an administered vertical marketing system,:

Accepted Answer

A)  there are contractual relationships between all parties. 
B)  there is common ownership of goods. 
C)  one member can directs the actions of another member. 
D)  there are franchise relationships between channel members. 
E)  there is no dominant member; all members have equal power.

Question 11

Lumos Lighting, a company that offers lighting solutions for office spaces, has adopted the AMA Statement of Ethics, although not in its entirety. It does not recognize the value of citizenship as an ethical requirement. Which of the following is Lumos Lighting least likely to do?

Accepted Answer

A)  Apologize to a customer for a faulty product. 
B)  Invest in a new manufacturing facility to generate more jobs. 
C)  Institute an employee rewards program. 
D)  Donate money to a nonprofit involved in developing sustainable living methods. 
E)  Create a communication channel for customers to lodge complaints.

Question 12

Jim's book store sold management textbooks online to university students. The store wanted to open a brick and motor store in a small town. However, a study showed that there was only small community college in the area and the number of prospective customers was likely to be low. In this scenario, the store is considering the _____ criterion.

Accepted Answer

A)  identifiability 
B)  substantialness 
C)  reachability 
D)  profitability 
E)  responsiveness

Question 13

In Ravonia, the telecom sector is dominated by four major service providers: Flank, Zelno, Tuhaz, and Klock. The service providers determine call rates and broadband rates using a collective strategy. They maintain uniform pricing and compete mainly on quality and service. Flank, Zelno, Tuhaz, and Klock are using a _____ strategy.

Accepted Answer

A)  deceptive reference pricing 
B)  bait-and-switch 
C)  horizontal price fixing 
D)  manufacturer 's suggested retail pricing 
E)  price discrimination

Question 14

_____ is defined as the market value of the goods and services produced by a country in a year.

Accepted Answer

A)  Gross national income 
B)  Gross domestic expenditure 
C)  Gross domestic export 
D)  Gross domestic valuation 
E)  Gross domestic product

Question 15

Churches, educational organizations, and hospitals are considered _____ buyers.

Accepted Answer

A)  corporate 
B)  government 
C)  institutional 
D)  public 
E)  discounted

Question 16

In a franchise system,:

Accepted Answer

A)  the franchisor operates a retail outlet using a name and format developed and supported by the franchisee. 
B)  the franchisee pays a lump sum plus a royalty on all sales in return for the right to operate a business in a specific location. 
C)  the franschisee has complete control over the store design, products or services sold, management training, and advertising. 
D)  franchisors receive all profits that the franchisees generate, and pay franchisees a fixed sum. 
E)  franchisees are responsible for advertising, product development, and system development.

Question 17

In conducting a SWOT analysis, Blue Sun Corp. notes that its production process is much more advanced than those of competitors. This will be considered one of the company's _____ in the SWOT analysis.

Accepted Answer

A)  weaknesses 
B)  opportunities 
C)  strengths 
D)  threats 
E)  selling points

Question 18

Which of the following commodities is most likely to be bought through habitual decision making?

Accepted Answer

A)  Motorcycles 
B)  Cheeseburgers 
C)  Coffee machines 
D)  Kitchen chimneys 
E)  Dresses

Question 19

Quano Inc. decides to produce a 3D-display phone, Chel, which is a much-anticipated release. Raymond and Jenny are among thousands of buyers who queue up outside a retail store to buy Chel on the day of its release. Most buyers are disappointed within a week because of heating issues. Quano announces immediately that it would replace the defective phones with a rectified model. Raymond and Jenny's replacement phones arrive after three months. The new Chel has a few issues that are taken care of by a software upgrade. This prompts a flood of sales. Trevor is one of Quano's regular customers who buys Chel after the software upgrade. In this scenario, Trevor is one among the _____.

Accepted Answer

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

Question 20

Which list below presents the hierarchy of needs in its correct order, beginning with the lowest level need to the highest level need?

Accepted Answer

A)  personal, social, physiological, psychological, and safety 
B)  physiological, safety, love, esteem, and self-actualization 
C)  safety, physiological, safety, and self-actualization, and personal 
D)  self-actualization, personal, social, safety, and physiological 
E)  safety, personal, self-actualization, physiological, and social

Exam 1: Professional Certified Marketer