Mid-term exam practice questions

1 MID-TERM EXAM PRACTICE QUESTIONS Winter 2023 1. The best description of Walmart's customer value proposition, is: a) "Everyday low prices for a broad range of products that are always in stock in convenient locations." b) "Everyday low prices." c) "fair prices" for a broad range of products." d) "a broad range of products that are always in stock in convenient locations." 2. Chang, the marketing manager of Urban Companies, has identified a specific group of existing and potential customers for a new product launch. The population Chang identified is, a: a) marketing mix. b) promotional program. c) target market. d) marketing process. 3. Which of the following is not an element of the marketing mix? a) Product b) Price c) Politics d) Promotion 4. Elements such as technological forces, regulatory forces, and demographic forces constitute _____. a) Organizational strengths b) Microeconomic environment c) Marketing intermediaries d) Marketing environment 5. The goal of a marketing environmental scan is to _____. a) Use internal information to identify trends, strengths, and weaknesses of a business b) Regularly acquire information about events occurring outside an organization c) Evaluate the performance variables of an organization d) Use internal information to identify trends, opportunities, and threats to a business 6. A core element of a SWOT analysis, is/are: a) Internal factors b) External factors

2 c) Both internal and external factors d) An assessment of corporate performance 7. A marketing environmental scan examines a business in relation to _____. a) Its competition and related industry trends b) The psychological factors relevant to its target markets c) Its socio-cultural forces d) Six key areas that affect the business 8. Generation X refers to the group of people born _____. a) between 1946 and 1965 b) after generation Y consumers c) between 1981 and 2000 d) between 1966 and 1980 9. Which group was born into technology and has not experienced life without it? a) Generation Z b) Baby boomer generation c) Generation X d) Generation Y 10. Which of the following is an example of a macroeconomic force? a) disposable income b) fixed cost c) inflation d) variable cost 11. The stages a buyer passes through in making choices about which products and services to buy are referred to as the: a) situational analysis sequence. b) limited problem solving. c) purchase decision process. d) hierarchy of learning. 12. During the purchase decision process, Stewart realizes that the difference between what he has and what he would like to have, is big enough to actually do something about it. Stewart is most likely in the _____ stage. a) problem recognition b) alternative evaluation c) cognitive dissonance d) routine response behaviour

4 b) Marketing research c) Strategic planning d) Quantitative research 19. In which step of the market research process is secondary and primary data collected? a) Step 2 b) Step 3 c) Step 4 d) Step 5 20. What are two types of primary data? a) Qualitative and secondary b) Observational and questionnaire c) Exploratory and abridged d) Focus groups and internal 21. Nike uses secondary data to update its "competitive marketplace report", a detailed review of competitive changes in the market that have resulted from Nike's own marketing activities. Where is Nike most likely to source the information about its competitors' activities? a) Internal sources of information like buyer transaction summaries. b) External sources such as quarterly reports from a large sports apparel manufacturers trade association. c) Internal information provided by competitive companies. d) External repositories like archives and historical collections housed by government and libraries. 22. Dairy Farmers of Canada discovered that milk consumption in the country was declining. They conducted research to understand the reasons for the declining consumption of milk. They discovered that the decline was due to the perception that milk was fattening and high in cholesterol. The association determined the demographic characteristics of milk consumers, their attitudes toward milk, and their usage patterns. The association carried out a television advertising campaign that portrayed that milk was an essential element in a healthy diet. Later, they discovered that the campaign helped change customer attitudes toward milk consumption, hence increasing sales. Which type of research would the Dairy Farmers most likely have used if the Association research budget was small and similar studies had occurred in several Canadian provinces? a) Secondary research b) Primary research c) Secondary research using a non-probability sample

5 d) Primary research followed by secondary research 23. A researcher is identifying which approach to take to complete a project. He identifies what information is needed, how it will be collected, and whether a sampling plan is needed. Which step of the marketing research approach is the researcher at? a) Defining the problem/issue b) Conducting exploratory research c) Collecting quantitative research information d) Designing a research plan 24. Which of the following is true of non-probability sampling? a) It is a set of procedures and processes for collecting, sorting, analyzing, and summarizing information on an ongoing basis. b) It involves the use of arbitrary judgment by the market researcher to select a sample so that the chance of selecting an element of the population is either unknown or zero. c) It is a hybrid of primary and secondary research conducted by a research company, spreading the cost across many clients to reduce the price. d) It involves precise rules to select the sample so that each element of the population has a specific known chance of being selected. 25. Market segmentation: a) refers to the positioning of a product apart from the competition in the eyes of the consumers. b) refers to aggregating buyers who respond differently to a marketing program. c) creates two markets—the market for elastic goods and that for inelastic goods. d) involves groups that are relatively homogeneous in terms of consumption, attitudes, and buying behaviour. 26. Bubbles Bubble Gum uses brightly-coloured and scented packaging to match the gum flavour that is inside. These elements are part of the company's ________ strategy to position its gum products apart from competitive products. a) niche marketing b) product differentiation c) segment marketing d) repositioning 27. Segment marketing: a) involves designing specific products and services to meet the needs of different target groups. b) involves focusing efforts on a limited segment in the market.

7 33. Ease and Relax Centre, a specialty unit providing high-end massaging services, displays training certificates on its walls, and its brochures contain customer testimonials of satisfied customers. By doing this, Ease and Relax Centre is dealing with the service characteristic of: a) incongruity b) inconsistency c) intangibility d) inseparability 34. Delivering services are challenging because the quality of a service is dependent on the people who provide it. Thus, service provision may be: a) intangible b) invisible c) inconsistent d) inseparable 35. Inseparability in services means that consumers: a) see little variation from one service provider in an industry to another. b) are unable to differentiate price from quality. c) cannot evaluate a service until it is utilized. d) cannot and do not distinguish the deliverer of the service from the service itself. CASE STUDY Beautifying young market Nivea is an established name in high quality skin and beauty care products. It is part of a range of brands produced and sold by Beiersdorf. Beiersdorf, founded in 1882, has grown to be a global company specialising in skin and beauty care. Beiersdorf’s continuing programme of market research showed a gap in the market. This led to the launch of Nivea Beauty App in 2015 in the UK market. This app helps teenage girls to learn to develop a proper skin care routine, including skin diagnosis and product recommendations to help keep their skin looking healthy and beautiful. The app was successfully launched in the UK market and many European countries and helped the company to boost their sales of skin care and make-up products. Beiersdorf plans to launch their app in North America and chooses Canada as the first destination. The first stage is to understand the market. Nivea would like to discover its potential market segments and identifies groups of consumers with similar characteristics such as age, gender, needs, attitude, and lifestyle. Research shows that young consumers want more specialised skin care app aimed at their own age group that offers benefits of a mini skin care clinic. Nivea Beauty App is a skin care app that can create a personalized routine for customers’ skin care, beauty and makeup products. The app can also help customers learn which order to use skin care

8 and make-up products and keep track of their usage. It offers product recommendations which suit customers’ skin types and budgets. Nivea is planning to launch this app in Canada next year. With the app launch, they hope to expand their skin care and make-up market in North America. They now need your marketing advice with the app launch. Questions: 1. Do an environmental scan for Nivea to understand Canada market. What are the environmental forces of the marketing environment to examine? Identify the trends for each force and decide if they are opportunities or threats to Nivea. (Chapter 2) Competitive: Regulatory: Economic: Sociocultural: Technological: Demographic: 2. Nivea should also understand how a customer make purchase decisions in Canada. Describe the steps of the consumer decision-making process. What situational factors would influence consumer behaviour? Choose to discuss any three situational factors (Chapter 3) STEP 1: problem recognition STEP 2: information search STEP 3: evaluation of alternatives STEP 4: purchase decision STEP 5: post-purchase behaviour - Situational factors that may influence: o Purchase task: the reason for purchasing the product in the first place  downloading the app o Social surroundings: who is there to influence you to download the app o Antecedent state: the mood that the consumer is in 3. Nivea wants to do research to understand the market of Canada. If they decide to do primary research, what are the steps they should follow? Describe and give examples where relevant. (Chapter 4) Nivea should start with secondary research, as it is the cheaper and easier alternative. If that type of research does not suffice, then primary research would be relevant. 4. Recommend a target segment in Canada that is potential for Nivea Beauty App. Describe it, using segmentation bases/variables. (Chapter 6) Demographic: teenage girls (gen z) Geographic: in Canada Psychographic: lifestyle: those who are involved in skin care

10 Key to MC questions 1. a 8. d 15. d 22. a 29. c 2. c 9. a 16. b 23. d 30. d 3. c 10. c 17. b 24. b 31. a 4. d 11. c 18. b 25. d 32. b 5. b 12. a 19. b 26. b 33. c 6. c 13. c 20. b 27. a 34. c 7. d 14. a 21. b 28. c 35. d