Question 1

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises ""Quick, In-and-Out Service,"" and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter was more interested in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a _____.

Accepted Answer

A)  knowledge gap. 
B)  standards gap. 
C)  social expectations gap. 
D)  delivery gap. 
E)  communications gap.

Question 2

Rudolf Freer Inc., an automobiles manufacturer, decides to create an all-weather golf cart. The decision is stimulated by the increasing popularity of snow-golfing. The R&D team of Rudolf develop a working model of the golf cart and simulate different weather conditions in the lab to see how the golf cart holds up. The golf cart is currently in the stage of _____.

Accepted Answer

A)  alpha testing 
B)  beta testing 
C)  market testing 
D)  concept testing 
E)  idea generation

Question 3

Which of the following is true of the standardized marketing approach?

Accepted Answer

A)  It is losing its relevance in an increasingly globalized marketplace. 
B)  It is not profitable to maintain a standard product across increasingly diverse cultures. 
C)  It can work well for some, but not all products. 
D)  It is very expensive in terms of advertising and other marketing costs. 
E)  It does not work well for multi-functional products.

Question 4

Which of the following is true of price elasticity?

Accepted Answer

A)  The lower the number of substitute products, the higher the price elasticity of demand for a given product. 
B)  Rises in income can lead to drops in price elasticity even though product prices are constant. 
C)  Products for which demand is highly inelastic are susceptible to minor changes in price. 
D)  Generally, if demand for a product is inelastic, lowering the price will appreciably increase demand. 
E)  Consumers are generally more sensitive to price decreases than to price increases.

Question 5

_____ is/are also known as the Digital Natives, because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the Internet and social networks.

Accepted Answer

A)  Generation X 
B)  Generation Z 
C)  The Baby Boomers 
D)  Generation Y 
E)  Millenials

Question 6

Calculate the return on marketing investment of a campaign that costs $10,000 and delivers $45,000 in incremental net profit.

Accepted Answer

A)  1.5 
B)  2 
C)  2.5 
D)  3.5 
E)  4

Question 7

In Travnia, an industrial country, the government controls most of the utilities, including power and water supply. The bottled-water market, however, has four major players: Balk, Pentl, Valr, and Tidum. Each of the companies markets its product using a distinct branding strategy. In an attempt to gain a larger market share, Pentl reduces the price of its products by 10%. It expects to make up for the lost revenue from an increase in sales. Which of the following is true of this scenario?

Accepted Answer

A)  The government's control of most of the utilities including power and water supply represents monopolistic competition. 
B)  The power supply industry in Travnia is oligopolistic in nature. 
C)  The competition in the bottled-water industry represents pure competition. 
D)  Pentl's current pricing strategy can be termed as predatory pricing. 
E)  A price war would erupt if the other firms reduced prices, too, and forced Pentl to reduce prices further.

Question 8

Mars Corp. decides to buy new laptops for its managerial employees. Having made the decision, the top managers deliberated and decided that they required a 3GHZ processor and webcam in each laptop. In this scenario, Mars Corp. is currently in the _____ stage of the B2B buying process.

Accepted Answer

A)  need recognition 
B)  product specification 
C)  RFP process- Stage 5 
D)  proposal analysis 
E)  order specification

Question 9

Kate buys a new summer dress but is worried that the color may fade during the first wash. This perceived danger that Kate is experiencing is known as _____ risk.

Accepted Answer

A)  social 
B)  financial 
C)  physiological 
D)  performance 
E)  psychological

Question 10

Which of the following is likely to be true of passive customers?

Accepted Answer

A)  They are likely to complain about the product or service. 
B)  They are likely to seek negative information about products. 
C)  They are likely to remain from repurchasing a product. 
D)  They are likely to recommend the product to others. 
E)  They are likely to seek positive feedback from friends.

Question 11

Calculate the Category Development Index of a particular product that sells 5% of its product in a particular market that contains 1% of the country's population.

Accepted Answer

A)  500 
B)  400 
C)  300 
D)  200 
E)  100

Question 12

_____ needs pertain to the personal gratification consumers associate with a product and/or service.

Accepted Answer

A)  functional 
B)  social 
C)  safety 
D)  situational 
E)  psychological

Question 13

The three major phases of the marketing plan are _____.

Accepted Answer

A)  planning, implementation, and control 
B)  introduction, growth, and decline 
C)  leading, organizing, and controllling 
D)  recession, depression, and recovery 
E)  segmentation, targeting, and positioning

Question 14

Companies are legally required to

Accepted Answer

A)  conceal consumers' addresses and phone numbers when they share information. 
B)  share information only with the sales department for follow-up. 
C)  disclose their privacy practices to customers on an annual basis. 
D)  refer to the company's code of ethics to determine what information can be released. 
E)  obtain consumer information only through secondary sources.

Question 15

The service quality dimension of assurance refers to:

Accepted Answer

A)  the ability to perform the service dependably and accurately. 
B)  the willingness to help customers and provide prompt service. 
C)  the caring, individualized attention provided to customers. 
D)  the knowledge of and courtesy by employees and their ability to convey trust and confidence. 
E)  the appearance of physical facilities, equipment, personnel, and communication materials.

Question 16

CL Foods, a fast-food chain, considers the entire community to be a potential target market. Moreover, the chain has stores in business districts, near schools and colleges and next to ball-parks. CL Foods is using a _____ strategy.

Accepted Answer

A)  micromarketing 
B)  undifferentiated 
C)  concentrated 
D)  targeted 
E)  focused

Question 17

When a marketer conducts user generated content campaigns, it must:

Accepted Answer

A)  ensure that users confirm the rights to and authority over materials being submitted. 
B)  obtain parent or guardian permission to feature users who are below 21 years of age. 
C)  remember that it is not liable for information that is disparaging, defamatory, or otherwise offensive. 
D)  remember that carefully drafted submission guidelines are not particularly useful in regulating user generated content. 
E)  blur out or pixelate media that reveals the identity of the user.

Question 18

CL Inc. an American fast-food chain enters into an agreement with Mars Corp., a British firm. According to the terms of the contract, Mars Corp. can use CL's brand name, image, logo and business format for a specified fee. This type of market entry is known as _____.

Accepted Answer

A)  strategic alliance 
B)  franchising 
C)  joint venture 
D)  direct investment 
E)  exporting

Question 19

Which of the following is a key difference between B2B and B2C buying processes?

Accepted Answer

A)  Unlike B2B, B2C buying requires formal orders from the buyer. 
B)  Unlike B2C, B2B buying decisions are made by families or individuals. 
C)  Unlike B2B, B2C buying process starts with need recognition. 
D)  Unlike B2C, B2B decisions do not require a great deal of consideration. 
E)  Unlike B2B, B2C has a relatively less formal alternative evaluation step.

Question 20

Tim, a musician, was embroiled in an online dispute with an airline company. Tim alleged that his guitar was manhandled by the staff and therefore he set up a blog and released two videos in order to convince others not to use the airline. Which stage of the 4E framework is seen in this scenario?

Accepted Answer

A)  Educate the customer 
B)  Excite the customer 
C)  Experience the service 
D)  Experience the product 
E)  Engage the product

Exam 1: Professional Certified Marketer