Question STR 581/ CAPSTONE FINAL EXAM PART 3

27 Jun Question STR 581/ CAPSTONE FINAL EXAM PART 3

Question
STR 581/ CAPSTONE FINAL EXAM PART 3

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1. 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.

psychographic

geographic

behavioral

Demographic

2. The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because__________.

customers will seek out the lowest-cost product

the differentiation strategy benefits from rivalry because it forces the firm to innovate

customers of nondifferentiated products are sensitive to price increases

customers are loyal to brands that are differentiated in meaningful ways

3. Backward integration occurs when a company_________.

is concentrated in a single industry

owns its own source of distribution of outputs

is divesting unrelated businesses

produces its own inputs

4. Annual-plan control requires making sure the company isn’t overspending to achieve sales goals. The key ratio to watch is ___________.

gross margin

stock turnover

cash flow return on investment

marketing expense-to-sales

5. The first step in the social marketing planning process is ________.

selecting the target audience

setting objectives and goals

determining the focus of the program

designing the market offering

6. Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What kind of pricing is the company depending on?

target pricing

market-skimming pricing

image pricing

going-rate pricing

7. The Enron employee who reported the financial manipulations at the company to her superiors can be considered to have engaged in__________.

white-collar crime

managerial opportunism

vindictive disloyalty

an act of courage

8. AT&T’s business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray?

bringing the brand alive for employees

choosing the right moment to capture employees’ attention and imagination

furnishing energizing and informative internal communication

linking internal and external marketing

9. Southwest Airlines offers a Rapid Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n) ________.

value delivery system

activity-based costing program

club membership program

cross-selling program

10. A company that seeks to increase its sales and profits through backward, forward, or horizontal integration within the industry is said to be employing a(n) ________ growth strategy.

diversification

intensive

integrative

Target

11. The typical risks of a cost leadership strategy include___________.

loss of customer loyalty

production and distribution processes becoming obsolete

the inability to balance high differentiation and low price

excessive differentiation to the point where the customer base is too small

12. The three parts of the external environment which affect a firm’s strategic actions are__________.

general, industry, and competitor

local, national, and global

economic, political, and legal

industry, business, and product

13. Moving into international markets is a particularly attractive strategy to firms whose domestic markets__________.

are limited in opportunities for growth

have developed unfriendly business attitudes toward the industry

demand a differentiation strategy for success

have too much regulation

14. Aisha is a marketing manager with Injoos, a company that manufactures packaged fruit juices. Knowing that several other companies exist in the market that offer similar products, Aisha decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers?

public relations

personal selling

direct marketing

sales promotions

15. A group of college graduates decides to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet and start discussing everyone’s ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here?