Financial and strategic management mcq

Strategic Management Multiple Choice Questions

SET#1 QUESTIONS

1. (p. 3) Which of the following is an element of a firm's remote external environment?

A. Competition

B. Suppliers

C. Government agencies

D. Economic and social conditions

Difficulty: Easy

Learning Objective: 1

2. (p. 3) Which of the following is NOT a part of a firm's immediate external environment?

A. Technological development

B. Competitors

C. Suppliers

D. Government agencies

Difficulty: Easy

Learning Objective: 1

3. (p. 3) The immediate external environment includes:

A. Competitors

B. S. B. U. s

C. Divisions

D. Management

Difficulty: Easy

Learning Objective: 1

4. (p. 3) The _______ comprises economic and social conditions, political priorities and technological developments, all of which must be anticipated, monitored, assessed and incorporated into the executive's decision making.

A. Remote external environment

B. Task environment

C. Operating environment

D. Internal environment

Difficulty: Easy

Learning Objective: 1

5. (p. 3) The set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives is defined as:

A. Strategic policy

B. Business policy

C. Strategic management

D. Tactics

Difficulty: Medium

Learning Objective: 2

6. (p. 3) Strategic management compromises nine critical tasks. Which of the following is NOT one of the tasks?

A. Development of annual objectives compatible with grand strategies

B. Assessment of the company's external environment

C. Selection of a particular set of long-term objectives and grand strategies

D. Evaluate the success of the strategic process

Difficulty: Medium

Learning Objective: 2

7. (p. 4) Strategic management involves the _____, directing, _____ and controlling of a company's strategy-related decisions and actions.

A. Financing; marketing

B. Planning; financing

C. Marketing; planning

D. Planning; organizing

Difficulty: Medium

Learning Objective: 2

8. (p.4) Large-scale, future-oriented plans, for interacting with the competitive environment to achieve company objectives refers to its

A. Strategy

B. Goals

C. Competitive analysis

D. Dynamic policies

Difficulty: Easy

Learning Objective: 2

9. (p. 4) A strategy is a company's

A. Game plan

B. Pricing policy

C. Value statement

D. Long-term objective

Difficulty: Easy

Learning Objective: 2

10. (p. 4) A(n) _____ reflects a company's awareness of how, when and where is should compete, against whom it should compete and for what purpose it should compete.

A. Vision

B. Organizational structure

C. Strategy

D. Long-term objective

Difficulty: Medium

Learning Objective: 2

11. (p. 4) Strategic issues require which level of management decisions?

A. Operative

B. Top

C. Front-line

D. Middle

Difficulty: Easy

Learning Objective: 2

12. (p. 5) Strategic decisions ostensibly commit the firm for

A. 1-2 years

B. The short term

C. 3-4 years

D. A long time, typically five years

Difficulty: Medium

Learning Objective: 2

13. (p. 4-5) Some business decisions are strategic and therefore deserve strategic management attention. Which of the following is one of the six strategic issue dimensions?

A. Requires front-line employee decisions

B. Is not likely to have a significant impact on long-term prosperity of the firm

C. Necessitates considering factors in the firm's external environment

D. Is spontaneous

Difficulty: Medium

Learning Objective: 3

14. (p. 5) Which of the following applies to strategic issues?

A. Consider only the firm's internal environment

B. Are future oriented

C. Concern allocation of insignificant amounts of company resources

D. Do not have long-term impact on the firm's prosperity

Difficulty: Easy

Learning Objective: 3

15. (p. 5) Strategic decisions are based on what managers _____, rather than on what they _____.

A. Forecast; know

B. React to; anticipate

C. Know; forecast

D. Compromise with; analyze

Difficulty: Hard

Learning Objective: 3

16. (p. 5) In a turbulent and competitive free enterprise environment, a firm will succeed only if it takes a(n) ____ stance towards change.

A. Reactive

B. Anti-regulatory or anti-government

C. Proactive

D. Vision and not mission

Difficulty: Medium

Learning Objective: 3

17. (p. 6) Typically how many strategic decision levels are in the corporate decision-making hierarchy?

A. 5 or more

B. 4

C. 3

D. 2

Difficulty: Easy

Learning Objective: 4

18. (p. 6) To a large extent, attitudes at the corporate level reflect the concerns of

A. Stockholders and society at large

B. Top managers

C. The CEO

D. The federal government

Difficulty: Medium

Learning Objective: 4

19. (p. 6) The top of the decision-making hierarchy comprises all of these EXCEPT

A. Board of directors

B. Front-line managers

C. The CEO

D. Administrative officers

Difficulty: Easy

Learning Objective: 4

20. (p. 6) In a multi-business firm, ______ -level executives determine the businesses in which the firm should be involved.

A. Business

B. Functional

C. Corporate

D. Operative

Difficulty: Medium

Learning Objective: 4

21. (p. 6) At Office Supply, Inc., ____ -level managers would be responsible for determining whether the company should be involved in home furnishings or electronic appliance businesses, where as ____ -level managers would be responsible for determining how the firm will compete in the selected product-market arena.

A. Business; corporate

B. Corporate; functional

C. Functional; business

D. Corporate; business

Difficulty: Hard

Learning Objective: 4

22. (p. 6) In the middle of the decision-making hierarchy is the _____ level.

A. Corporate

B. Functional

C. Business

D. Strategic

Difficulty: Medium

Learning Objective: 4

23. (p. 6) Who determines the basis on which a company can compete in the selected product-market arena?

A. Functional-level strategic managers

B. Corporate-level strategic managers

C. Business-level strategic managers

D. Operational managers supervising operative

Difficulty: Medium

Learning Objective: 4

24. (p. 6) Which of these managers tries to identify and secure the most profitable and promising market segment?

A. Functional managers

B. Corporate managers

C. Business managers

D. Operative

Difficulty: Medium

Learning Objective: 4

25. (p. 6) The functional level of decision making is characterized by:

A. The board of directors deriving corporate goals

B. Managers of product, geographic and functional areas

C. The CEO developing a company profile

D. Business managers interpreting the mission into operational objectives

Difficulty: Medium

Learning Objective: 4

26. (p. 6) Which strategic level is typically responsible for developing annual objectives and short-term strategies?

A. Functional level

B. Corporate level

C. Business level

D. Board of Directors level

Difficulty: Medium

Learning Objective: 4

27. (p. 6) Which of the following is NOT a level in the decision-making hierarchy of a firm?

A. Business

B. Corporate

C. Operative

D. Functional

Difficulty: Medium

Learning Objective: 4

28. (p. 6) Functional managers are typically responsible for which of the following?

A. Annual objectives

B. Tactics

C. Corporate goals

D. Mission

Difficulty: Medium

Learning Objective: 4

29. (p. 6) Whereas corporate and business-level managers center their attention on _____, managers at functional-level center their attention on ____.

A. Operational issues; strategic issues

B. Doing things right; doing the right things

C. Entrepreneurial mode; adaptive mode

D. Doing the right things; doing things right

Difficulty: Hard

Learning Objective: 4

30. (p. 6) Decisions at which level of management tend to be more value-oriented and conceptual?

A. Functional

B. Corporate

C. Operative

D. Business

Difficulty: Medium

Learning Objective: 4

31. (p. 7) Dividend policies are decided at the

A. Corporate level

B. Business level

C. Functional level

D. Operational level

Difficulty: Medium

Learning Objective: 4

32. (p. 7) Which level of decisions encompasses greater risk, cost and profit potential?

A. Business

B. Lower echelon

C. Corporate

D. Functional

Difficulty: Medium

Learning Objective: 4

33. (p. 8) Corporate-level decisions are characterized by:

A. Decreased risk

B. Doing things right

C. Short-time horizons

D. Greater profit

Difficulty: Hard

Learning Objective: 4

34. (p. 7) Decisions concerning plant location, distribution channels, geographic coverage and market segmentation are typically made at:

A. The corporate level

B. The business level

C. The functional level

D. The front-line operational level

Difficulty: Medium

Learning Objective: 4

35. (p. 8) The degree to which participation, responsibility, authority and discretion in decision-making are specified is called:

A. Informality

B. Formality

C. Functional tactic

D. Dynamic mode

Difficulty: Medium

Learning Objective: 4

36. (p. 8) Which of these is usually positively correlated with the cost, comprehensiveness, accuracy and success of planning?

A. Greater formality

B. Functional structure

C. Organizational matrix

D. Functional tactics

Difficulty: Medium

Learning Objective: 4

37. (p. 8) According to Henry Mintzberg, very large firms typically use the _____ mode of strategic management.

A. Adaptive

B. Entrepreneurial

C. Informal

D. Planning

Difficulty: Medium

Learning Objective: 4

38. (p. 8) Henry Mintzberg identified a mode which he associates with medium-sized firms in relatively stable environments. This is referred to as a(n) ____ mode.

A. Entrepreneurial

B. Adaptive

C. Business

D. Planning

Difficulty: Medium

Learning Objective: 4

39. (p. 8) Firms that are basically under the control of a single individual and produce a limited number of products/services are referred to as following ______ mode.

A. Entrepreneurial

B. Intrapreneurial

C. Managerial

D. Corporate

Difficulty: Medium

Learning Objective: 4

40. (p. 8) The informal, intuitive and limited approach to strategic management associated with owner-managers of smaller firm refers to the ____ mode of formality, according to Mintzberg.

A. Entrepreneurial

B. Functional

C. Planning

D. Adaptive

Difficulty: Easy

Learning Objective: 4

41. (p. 8) The planning mode refers to the

A. Strategic formality associated with the large firms that operate under a comprehensive, formal planning system

B. Strategic formality associated with medium-sized firms that emphasize the incremental modification of existing competitive approaches

C. Strategic formality associated with global firms that emphasize cultural value systems

D. Informal, intuitive and limited approach to strategic management with owner-manager of smaller firms

Difficulty: Medium

Learning Objective: 4

42. (p. 8) According to Mintzberg, the adaptive mode refers to

A. Strategic formality associated with the large firms that operate under a comprehensive, formal planning system

B. Strategic formality associated with medium-sized firms that emphasize the incremental modification of existing competitive approaches

C. Strategic formality associated with global firms that emphasize cultural value systems

D. Informal, intuitive and limited approach to strategic management with owner-manager of smaller firms

Difficulty: Medium

Learning Objective: 4

43. (p. 8) Which of these is NOT a mode of formality identified by Mintzberg?

A. Adaptive

B. Planning

C. Functional

D. Entrepreneurial

Difficulty: Easy

Learning Objective: 4

44. (p. 9) The ideal strategic management team includes decision makers from

A. All three company levels (corporate, business and functional)

B. Just the functional level since they are closest to the customers

C. Just the corporate and business levels given that they focus on doing the right thing

D. Just the top management since they understand the big picture

Difficulty: Medium

Learning Objective: 4

45. (p. 8) Managers at the _____ level typically have principal responsibilities for developing environmental analysis and forecasting, establishing business objectives and developing business plans prepared by staff groups.

A. Corporate

B. Functional

C. Operational

D. Business

Difficulty: Medium

Learning Objective: 4

46. (p. 9) When the dominance of the CEO approaches autocracy, the effectiveness of the form's strategic planning and management processes are likely to:

A. Enhance strategic planning but diminish its processes

B. Be greatly enhanced

C. Have no effect

D. Be diminished

Difficulty: Medium

Learning Objective: 5

47. (p. 11) Which of these is NOT true about the behavioral effect of strategic management?

A. Strategy formulation activities enhance the firm's ability to prevent problems

B. Resistance to change is reduced

C. Gaps and overlaps in activities among individuals and groups are increased to ensure the checks and balance

D. The employee involvement is strategy formulation improves their understanding of the productivity reward relationship in every strategy plan

Difficulty: Hard

Learning Objective: 5

48. (p. 11) Managers must be trained to guard against all of the following types of unintended negative consequences of involvement in strategy formulation EXCEPT

A. Managers must be trained to minimize the negative impact on operational responsibilities by scheduling their duties to allow the necessary time for strategic activities

B. Managers must be trained to limit their promises to performance that the decision makers and their subordinates can deliver

C. Managers must be trained to anticipate and respond to the disappointment of participating subordinates over unattained expectations

D. Managers must be trained to disregard the productivity-reward relationship since strategy implementation makes it invalid

Difficulty: Hard

Learning Objective: 5

49. (p. 11) Which of the following is a major function of the strategic management model?

A. It helps make profits for the firm

B. It helps in identifying key issues faced by the firm

C. It helps in deciding which products to sell

D. It depicts the sequence and relationships of the major components of the strategic management process

Difficulty: Medium

Learning Objective: 5

50. (p. 13) Social responsibility is a critical consideration for a company's strategic decision makers since

A. Stockholders demand it

B. The mission statement must express how the company intends to contribute to the societies that sustain it

C. It increases a company's profits

D. It helps make decisions

Difficulty: Medium

Learning Objective: 5

51. (p. 13) Analysis of the quantity and quality of the company's financial, human and physical resources is a part of

A. Internal analysis

B. Mission statement

C. External environment analysis

D. Corporate goals

Difficulty: Easy

Learning Objective: 5

52. (p. 13) The external environment consists of:

A. The operating environment

B. Managers

C. Employees

D. Owners

Difficulty: Easy

Learning Objective: 5

53. (p. 13) Which one of the following is NOT an interactive segment of a firm's external environment?

A. Functional

B. Remote

C. Industry

D. Operating

Difficulty: Medium

Learning Objective: 5

54. (p. 12) Description of the company's product, market and technological areas of emphasis is contained in the

A. Assessment of the external environment

B. Company profile

C. Company mission

D. Interactive opportunity analysis

Difficulty: Easy

Learning Objective: 5

55. (p. 13) The results that an organization seeks over a multiyear period are its

A. Generic strategies

B. Grand strategies

C. Mission statements

D. Long-term objectives

Difficulty: Easy

Learning Objective: 5

56. (p. 13) The doubling of EPS within 5 years with increases in each intervening year is called a(n):

A. Long-term goal

B. Long-term objective

C. Short-term goal

D. Short-term objective

Difficulty: Hard

Learning Objective: 5

57. (p. 13-14) The difference between long-term and short-term objectives is principally:

A. Greater attainability

B. Greater flexibility

C. Greater measurability

D. Greater specificity

Difficulty: Hard

Learning Objective: 5

58. (p. 14) Grand strategies include:

A. Market turnaround

B. Vertical diversification

C. Conglomerate integration

D. Concentric diversification

Difficulty: Medium

Learning Objective: 5

59. (p. 14) Which of the following is an example of a grand strategy?

A. Decentralization

B. Policy making

C. Conglomerate integration

D. Innovation

Difficulty: Hard

Learning Objective: 5

60. (p. 14) Long-term objectives are principally attained through:

A. Annual goals

B. Functional strategies

C. Short-term goals

D. Grand strategy

Difficulty: Hard

Learning Objective: 5

61. (p. 14) The minimum equity position required for all new McDonald's franchises is an example of:

A. A goal

B. A procedure

C. A policy

D. An objective

Difficulty: Medium

Learning Objective: 5

62. (p. 14) The general plan of major actions through which a firm intends to achieve is long-term objectives is called its:

A. Corporate plan

B. Long-term goal

C. Grand strategy

D. Mission

Difficulty: Easy

Learning Objective: 5

63. (p. 14) Broad, precedent-setting decisions that guide or substitute for repetitive or time-sensitive managerial decision making are called

A. Goals

B. Strategies

C. Objectives

D. Policies

Difficulty: Easy

Learning Objective: 5

64. (p. 13) Which of the following is a generic strategy option?

A. Narrow margins

B. Diversification

C. Differentiation

D. Retrenchment

Difficulty: Medium

Learning Objective: 5

65. (p. 14) Horizontal integration is an example of a

A. Generic strategy

B. Grand strategy

C. Functional level strategy

D. SBU strategy

Difficulty: Hard

Learning Objective: 5

66. (p. 14) Specific actions that need to be undertaken to achieve short-term objectives, usually by functional areas, refers to

A. Policies

B. Formality

C. Tactics

D. Process

Difficulty: Easy

Learning Objective: 5

67. (p. 14) Which of these refers to short-term, narrow scoped plans that detail "means" or activities that a company will use to achieve short-term projects?

A. Policies

B. Formality

C. Vision

D. Functional tactics

Difficulty: Easy

Learning Objective: 5

68. (p. 15) _____ is a critical stage in strategy implementation wherein managers attempt to recast their organization.

A. Continuous improvement

B. Reengineering

C. Strategic control

D. Strategy formulation

Difficulty: Medium

Learning Objective: 5

69. (p. 15) _____ is concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises and making necessary adjustments.

A. Restructuring strategy

B. Strategic control

C. Internal analysis

D. Functional tactics

Difficulty: Easy

Learning Objective: 5

70. (p. 15) Which of these is a form of strategic control in which managers are encouraged to be proactive in improving all operations of the firm?

A. Continuous improvement

B. Adaptive mode

C. Functional tactics

D. Planning mode

Difficulty: Easy

Learning Objective: 5

71. (p. 16) A flow of information through interrelated stages of analysis toward achievement of an aim is:

A. A process

B. A procedure

C. A policy

D. A system

Difficulty: Easy

Learning Objective: 5

72. (p. 16) Influential individuals and groups that are vitally interested in the actions of the business are called

A. Stockholders

B. Stakeholders

C. Strategists

D. Customers

Difficulty: Easy

Learning Objective: 5

73. (p. 16) Strategic formulation and implementation of a plan are:

A. Sequential

B. Simultaneous

C. Random

D. Reversible

Difficulty: Medium

Learning Objective: 5

74. (p. 16) Strategic management processes need which of the following to enhance future decision making?

A. Testing

B. Feedback

C. Discontinuity

D. Projecting

Difficulty: Hard

Learning Objective: 5

75. (p. 17) The strategy management process is:

A. Stationary

B. Dynamic

C. Static

D. Radical

SET#2 MCQS

1.In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.

a.group

b.mass

c.general

d.segmented

e.differentiated

2.The argument for ________ marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins.

a.niche

b.micro

c.macro

d.differentiated

e.mass

3.A ________ consists of a group of customers who share a similar set of needs and wants.

a.market target

b.market group

c.market slice

d.market segment

e.market level

4.A ________ consists of two parts: a naked solution and discretionary options.

a.differentiated market offering

b.flexible market offering

c.rigid market offering

d.vertical market offering

e.horizontal market offering

5.If a marketing manager observes that his or her market shows no natural segments and consumers seem to have roughly the same preferences, the marketing manager will most likely be faced with a ________ preferences pattern.

a.homogeneous

b.heterogeneous

c.diffused

d.clustered

e.scattered

6.Procter & Gamble has many soap brands. One reason for this is that soap users tend to group together in terms of preferences such as bleaching action, softness, stain removal, et cetera. Which of the following preferences pattern would most likely apply to P&G’s method of response to market needs?

a.Homogeneous preferences

b.Diffused preferences

c.Clustered preferences

d.Psychological preferences

e.Cultural preferences

7.Marketers usually identify niches by ________.

a.dividing a segment into subsegments

b.conducting VALS tests

c.allowing consumers to gravitate toward product brands

d.examining the demographics section of The Handbook of Marketing

e.producing products that can be used in a variety of ways

8.A niche is characterized as being all of the following EXCEPT that ________.

a.the customers in the niche have a distinct set of needs

b.the customers will pay a premium to the firm that satisfies their needs

c.the niche is not likely to attract other competitors

d.the customers generally have smaller amounts of income

e.the nicher gains certain economies through specialization

9.Those who favor localized marketing see national advertising as wasteful because ________.

a.it gets too up close and personal with consumers

b.it drives up manufacturing and marketing costs by reducing economies of scale

c.it magnifies logistical problems

d.it fails to address local needs

e.all of the above

10.________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.

a.Consumptionization

b.Viral marketing

c.Virtual marketing

d.Regionalization

e.Customerization

11.All of the following are disadvantages of customerization EXCEPT that ________.

a.it requires more prior information about the customer than most customers are willing to share

b.it is difficult to implement for complex products

c.it can raise the cost of goods by more than the customer is willing to pay

d.some customers don’t know what they want until they see the actual product

e.the product may be hard to repair and have little sales value

12.Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________.

a.the level of disposable income earned by the target group

b.customer differences

c.the cost–benefit relationship of narrowing the target market

d.customer similarities

e.saturated markets

13.If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.

a.demographic

b.psychographic

c.geographic

d.cultural

e.social class

14.When segmenting on the basis of family life cycle, all of the following are segment categories EXCEPT ________.

a.young, single

b.male, female

c.young, married

d.older, married, no children under 18

e.young, married, youngest child 6 or over

15.If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoor-oriented groups, he or she is segmenting on the basis of ________.

a.personality

b.behavioral occasions

c.user status

d.psychographic lifestyle

e.readiness stage

16.If a market is segmented according to light, medium, and heavy product users, the marketer segmenting this market is using the ________ as the means to segment.

a.user status

b.usage rate

c.buyer-readiness stage

d.occasion

e.benefit

17.John and May have just divorced. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?

a.Life stage

b.Benefits

c.Age segment

d.User segment

e.Occasion segment

18.Men and women tend to have different attitudinal and behavioral orientations, based partly on genetic makeup and partly on ________.

a.income

b.occupation

c.socialization

d.heredity

e.globalization

19.________ is the science of using psychology and demographics to better understand consumers.

a.Psychographics

b.Segmentation

c.Clustering

d.Demographics

e.Social psychology

20.According to the VALS segmentation system, ________ are successful, sophisticated, active, “take-charge” people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.

a.innovators

b.thinkers

c.achievers

d.experiencers

e.believers

21.Kim is a young professional who enjoys snowboarding and going to rock concerts with her friends. According to the VALS eight-part typology segmentation system, Kim is best described as a(n) ________.

a.thinker

b.achiever

c.experiencer

d.striver

e.survivor

22.According to the VALS segmentation system, ________ are considered to be elderly, passive people who are concerned about change and are loyal to their favorite brands.

a.believers

b.strivers

c.makers

d.survivors

e.experiencers

23.A housewife requests a new treadmill for her birthday. With respect to consumer decision roles, which role is the housewife currently playing?

a.Initiator

b.Influencer

c.Decider

d.Buyer

e.Gatekeeper

24.The sale of turkeys in Asian countries like Hongkong, Singapore and The Philippines is highest in December, as people buy turkeys to serve at Christmas. Supermarkets that specifically advertise turkeys at this time of year are segmenting on the basis of ________.

a.benefits

b.user status

c.psychographics

d.demographics

e.occasion

25.Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________.

a.usage rate

b.buyer-readiness stage

c.loyalty status

d.user status

e.benefits

26.If a buyer is loyal to two or three different brands of soap, this buyer’s loyalty status can be described as being among the ________.

a.switchers

b.shifting loyals

c.split loyals

d.hard-core loyals

e.antiloyals

27.Pete always buys Purina dog food for his dog because he believes that it is the best value for the nutritional content. Pete’s loyalty status is best described as ________.

a.split loyal

b.shifting loyal

c.consistent loyal

d.hard-core loyal

e.switcher

28.A company can learn a great deal by analyzing the degrees of brand loyalty. For example, by studying the ________ the company can pinpoint which brands are most competitive with its own.

a.hard-core loyals

b.split loyals

c.shifting loyals

d.switchers

e.antiloyals

29.All of the following are considered to be product attitude segments EXCEPT ________.

a.synergistic

b.enthusiastic

c.positive

d.indifferent

e.hostile

30.A potato chip manufacturer is concerned about consumers leaving its brand and going to competitive alternatives. Which of the following groups (based on strength of commitment) would be most likely to leave the company’s offering and go somewhere else for snack products?

a.Convertible

b.Shallow

c.Average

d.Entrenched

e.Hard rocks

31.If a consumer group is designated based on their “balance of disposition,” the ________ group can be described as one that is made up of nonusers who are as attracted to a competing brand as they are to their current brands.

a.strongly unavailable

b.weakly unavailable

c.ambivalent

d.available

e.desirable

32.If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important?

a.Personal characteristics

b.Demographic variables

c.Situational factors

d.Operating variables

e.Purchasing approaches

33.A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would most likely be used by the marketer to assist with the task?

a.Demographic variables

b.Purchasing approaches

c.Situational factors

d.Personal characteristics

e.Operating variables

34.A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk.

a.situational factors

b.purchasing approaches

c.personal characteristics

d.operating variables

e.demographic variables

35.A marketer interested in segmenting a business market based on ________ intends to eventually segment the market based on power structure and purchasing criteria.

a.situational factors

b.purchasing approaches

c.personal characteristics

d.operating variables

e.demographic variables

36.During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?

a.Step 2—segment identification

b.Step 3—segment attractiveness

c.Step 6—segment “acid test”

d.Step 1—needs-based segmentation

e.Step 7—marketing-mix strategy

37.If an organization’s marketing department wished to create “segment storyboards” to test the attractiveness of each segment’s positioning strategy, this action would most likely occur in the ________ step of the segmentation process.

a.needs-based segmentation

b.segment identification

c.segment profitability

d.segment “acid test”

e.marketing-mix strategy

38.In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access.

a.need-based segmentation

b.segment identification

c.segment attractiveness

d.segment profitability

e.segment “acid test”

39.To meet the ________ criterion of useful market segments, it must be possible to formulate effective programs for attracting and serving the segments.

a.measurable

b.substantial

c.accessible

d.differentiable

e.actionable

40.If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments.

a.measurable

b.substantial

c.accessible

d.differentiable

e.actionable

41.According to the ________ criterion for useful market segments, a segment should be the largest possible homogenous group worth going after with a tailored marketing program.

a.measurable

b.substantial

c.accessible

d.differentiable

e.actionable

42.In evaluating different market segments, the firm must look at two factors: the segment’s overall attractiveness and ________.

a.company’s objectives and resources

b.the product to be sold

c.the purchasing process

d.competition’s strategies

e.the global nature of the product

43.Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________.

a.single-segment concentration

b.selective specialization

c.product specialization

d.market specialization

e.full market coverage

44.All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment’s needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

a.single-segment concentration

b.selective specialization

c.product specialization

d.market specialization

e.full market coverage

45.When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting ________.

a.market mavens

b.strategic segments

c.supersegments

d.occasion segments

e.psychodemographic segments

46.The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________.

a.no synergy exists

b.logistics can become a nightmare

c.the product may be supplanted by an entirely new technology

d.competitors can easily copy any new product introductions

e.e-commerce becomes difficult for the company

47.With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.

a.single-segment concentration

b.selective specialization

c.product specialization

d.market specialization

e.full market coverage

48.In ________ marketing, the firm operates in several market segments and designs different products for each segment.

a.segmented

b.undifferentiated

c.differentiated

d.geodemographic

e.niche

49.Johnson & Johnson broadened its target market for its baby shampoo to include adults through ________.

a.countersegmentation

b.metamarketing

c.undifferentiated marketing

d.product specialization

e.single-segment concentration

50.________ is the strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market.

a.Metamarketing

b.Macromarketing

c.Micromarketing

d.Megamarketing

e.Modular marketing

51.When Coca-Cola sold only one kind of Coke in a 6.5-ounce bottle, it was practicing what is called ________.

a.primary marketing

b.micromarketing

c.macromarketing

d.segmented marketing

e.mass marketing

52.The marketer ________ the segments; the marketer’s task is to identify the segments and decide which one(s) to target.

a.plans

b.creates

c.does not create

d.rarely controls

e.controls

53.The recipe for Internet niching success is to ________.

a.find a need and fill it

b.choose a hard-to-find product that customers do not need to see and touch

c.choose a low-budget product that is heavily demanded by Gen Y

d.choose an exclusive product sold primarily to seniors

e.find a product that has some attraction to a health-conscious market

54.Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation.

a.demographic

b.behavioral

c.psychographic

d.geographic

e.user status

55.Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.

a.life stage

b.gender

c.age

d.income

e.social class

56.Newlyweds in the Asia buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment.

a.life stage

b.gender

c.behavior

d.user status

e.income

57.Which of the following statements accurately describes what demographers are calling the “boom-boom effect”?

a.Consumers are demanding more “bang for their buck.”

b.Baby boomers still rule the marketplace.

c.Generation X and its taste for violence will dominate the market in the future.

d.Products that appeal to 20-somethings also appeal to baby boomers.

e.Companies must have success quickly or go bust.

58.If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market.

a.pre-school

b.Generation X

c.Generation Y

d.Generation Z

e.latent baby boomers

59.Mature and reflective people who seek durability, functionality, and value in products are most likely to be categorized as ________ in the VALS system.

a.innovators

b.thinkers

c.achievers

d.experiencers

e.strivers

60.A hardware store is interested in reaching people who are characterized by the VALS system as being practical, down-to-earth, and self-sufficient who like to work with their hands, the ________ category.

a.believers

b.strivers

c.survivors

d.experiencers

e.makers

61.The key to attracting potential users, or even possibly nonusers, is ________.

a.understanding the reasons they are not using

b.offering financial incentives for first-time use

c.increasing the usage rate of existing users

d.developing a new product that better meets their needs

e.increasing advertising expenditures

62.________ are often a small percentage of the market but account for a high percentage of total consumption.

a.Light users

b.Medium users

c.Heavy users

d.Nonusers

e.None of the above

63.By analyzing the behaviors of ________, companies can learn about their marketing weaknesses and attempt to correct them.

a.hard-core loyals

b.split loyals

c.shifting loyals

d.switchers

e.ambivalents

64.Users of a brand can be segmented into several groups based on the strength of commitment to the brand. If a brand manager is seeking to identify those users who are actively considering alternative brands, he or she should look for users that are labeled as ________.

a.convertible

b.shallow

c.average

d.entrenched

e.latent

65.You have decided to take a purchasing approach to segmenting a proposed business market. All of the following would be potential means (subsegments) for segmenting under the “purchasing approach” EXCEPT ________.

a.purchasing-function organization

b.power structure

c.specific application

d.nature of existing relationships

e.purchasing criteria

66.If your assignment was (for each segment) to create a value proposition and product-price positioning strategy based on the segment’s unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?

a.Needs-based segmentation

b.Segment identification

c.Segment attractiveness

d.Segment positioning

e.Segment “acid-test”

67.As a brand manager you have decided to use the ________ full market coverage approach in marketing to your customers, whereby your firm will operate in several market segments and design different products for each segment.

a.undifferentiated

b.differentiated

c.concentrated

d.introverted

e.parallel