STR 581 Capstone Exam Part 3

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1. A company that attempts to lead its industry in price and convenience by pursuing a focus on lean and efficient operations is pursuing what strategy?  

  • Operational excellence      
  • Low-cost leadership           
  • Customer intimacy  
  • Product leadership


2. One of the ways to change the course of a brand is to modify the product. Under product modification, ________ adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility, safety, or convenience.         

  • technological improvement           
  • feature improvement          
  • style improvement   
  • quality improvement


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3. Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed. This process of identifying the hierarchy is called ________.   

  • market estimation    
  • brand association   
  • market partitioning  
  • market valuation


4. This is designed to check systematically and continuously whether the premises on which the strategy is based are still valid  

  • Special alert control
  • Strategic surveillance        
  • Implementation control      
  • Premise control


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5. A firm must know where to position its product based on price and  

  • promotional efforts  
  • quality           
  • communication       
  • region


6. When performing this analysis, it is good for strategic planners to consider similarities between the benefits the customers derive from the products and services that other firms offer.   

  • Competitive analysis          
  • Business analysis  
  • Customer analysis  
  • Company analysis


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7. What is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image? 

  • Ultimate service benefit     
  • Complete marketing benefit          
  • Total customer benefit       
  • Total management benefit


8. A valuable result of task environment analysis with respect to geographic, demographic, psychographic and buyer-behavior factors is called         

  • competitor profile    
  • financial position    
  • vendor profile          
  • customer profile


9. The ability to meet humanity’s needs without harming future generations is now a top priority in most corporate agenda   

  • ethics
  • sustainability           
  • rules  
  • righteousness


10. Large-scale, future-oriented plans for interacting with the competitive environment to achieve the company objective refers to its      

  • strategy         
  • dynamic policies     
  • competitive analysis           
  • goals


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

  • single-segment concentration      
  • product specialization        
  • market specialization         
  • selective specialization


12. Company X's principal strength is its inbound and outbound logistics system; its relative weakness, however, is after-sales service. Its competitor, Company Y, however is often plagued with lagging shipments and an inflexible distribution setup. Company Y remains successful because it maintains a fully staffed service department and, as a result, the company is known for its dependable service. This type of analysis allows them to identify ways to build on relative strengths and avoid dependence on capabilities at which the other firm excels.      

  • Disaggregating        
  • Benchmarking         
  • Past performance comparison     
  • Industry comparison


13. The strategic factor that involves the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment, as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning.      

  • Political factor          
  • Stakeholder factor  
  • Economic factor      
  • Social factor


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14. Leaders galvanize commitment to embrace change through clarifying strategic intent, building an organization, and        

  • shaping organizational culture    
  • developing a vision
  • developing a mission         
  • planning strategy


15. How do functional tactics compare to business strategies? 

  • Functional tactics are more focused on the general direction of the firm than business strategies.           
  • Functional tactics are more focused on a commitment to corporate strategy than business strategies.     
  • Functional tactics are more specific than business strategies.          
  • Functional tactics are more long-term than business strategies.


16. Under which of the following conditions is the frequency the most important factor in media selection?   

  • When introducing flanker brands
  • When going into undefined target markets       
  • When launching infrequently purchased brands        
  • When there is high consumer resistance to the product


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17. New-to-the-world products are ________.           

  • new product enhancements that supplement established products
  • low-cost products designed to obtain an edge in highly competitive markets         
  • new products that create an entirely new market         
  • existing products that are targeted to new geographical markets


18. BMW’s "The ultimate driving machine," American Express' "Don't leave home without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of ________.    

  • brand mission          
  • brand vision 
  • brand slogan           
  • brand personality


19. Which component of a marketing audit includes major developments in income, prices, savings, and credit that affect the company?           

  • Economic     
  • Political         
  • Cultural         
  • Technological


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20. Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program's chances of being successful?

  • Explain the rules and regulations laid out by governmental agencies to protect the environment.           
  • Focus on the efforts and costs incurred by the company to bring these "green" products to consumers.  
  • Emphasize benefits to the consumer rather than environmental benefits. 
  • Demonstrate that the products will benefit both customers and the society in the long-term.


21. When diversification involves additions of a business related to the firm in terms of technology, markets or products, it involves           

  • vertical diversification        
  • concentric diversification  
  • horizontal integration         
  • concentrated growth


22. These social responsibilities are those that are voluntarily assumed by a business or organization. They include public relations activities, good citizenship, and full corporate social responsibility.        

  • Economic responsibility    
  • Legal responsibility
  • Employee responsibility    
  • Discretionary responsibility


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23. Which control should periodically reassess its approach to the marketplace with a good marketing audit?   

  • Strategic control      
  • Marketing control    
  • Ethical control         
  • Performance control


24. What type of strategy consists of geographical pricing, price discounts and allowances, promotional pricing, and differentiated pricing?      

  • Regular prices         
  • Fixed pricing
  • Price adaptation      
  • Altered pricing


25. A set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored refers to  

  • agency theory          
  • the moral hazard problem 
  • Adam’s theory         
  • ethical responsibilities


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26. Firms using this generic strategy attempt to build customer loyalty by stressing a specific product attribute above other product qualities.      

  • Cost leadership       
  • Concentrated growth         
  • Focus
  • Differentiation


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

  • switchers      
  • hard-core loyals      
  • shifting loyals          
  • split loyals


28. This is an important structural decision and resultant separate activities need to be coordinated and integrated back together as a whole so the business functions effectively.        

  • Broadening  
  • Differentiation         
  • Diversification         
  • Preferencing


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29. This is a historically popular technique through which managers create a quick overview of a company's strategic situation—it is based on achieving a sound fit between internal resources and the external situation.      

  • Internal analysis     
  • Value chain analysis         
  • External analysis    
  • SWOT analysis


30. The marketing manager needs to know the cost of the research project before approving it. During which stage of the marketing research process would such a consideration most likely take place?          

  • Step 4 – analyzing the information         
  • Step 5 – drafting the report
  • Step 1 – defining the problem
  • Step 2 – developing the research plan


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STR 581 Week 6 Capstone Final Exam Part 3

STR 581 Week 6 Capstone Final Exam Part 3

  1. A(n) ________ market share of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company is gaining on its leading competitor.
  • potential
  • relative
  • served
  • overall


  1. The typical risks of a cost leadership strategy include___________.
  • loss of customer loyalty
  • excessive differentiation to the point where the customer base is too small
  • the inability to balance high differentiation and low price
  • production and distribution processes becoming obsolete


  1. The likelihood of entry of new competitors is affected by  and ___________.
  • the power of existing suppliers; buyers
  • the profitability of the industry; the market share of its leading firm
  • barriers to entry; expected retaliation of current industry organizations
  • the demand for the product; the profitability of the competitors


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  1. In general, compared with firms which compete in only one market, among firms which face one another in multiple markets there is__________.
  • similar competitive rivalry
  • more competitive rivalry
  • less competitive rivalry
  • no competitive rivalry


  1. The three parts of the external environment which affect a firm's strategic actions are__________.
  • economic, political, and legal
  • industry, business, and product
  • local, national, and global
  • general, industry, and competitor


  1. The proper matching of what a firm can do with what a firm might do__________.
  • balances the internal characteristics of the firm with the characteristics of the external environment
  • overcomes the rigidity and inertia resulting from a history of success
  • develops core competencies based on human knowledge
  • yields insights the firm requires to select its strategy


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  1. Gordon Jones is considering purchasing a computer from Best Buy. He has created a scale for rating eight different computers on three different characteristics. He plans to make a short list of only those computers that score at least a 7 on his scale on all three characteristics. Which of the following choice heuristics has he chosen?
  • anchoring and adjustment heuristic
  • elimination-by-aspects heuristic
  • conjunctive heuristic
  • lexicographic heuristic


  1. The term "conglomerates" refers to firms using the diversification strategy.
  • related constrained
  • related linked
  • global
  • unrelated


  1. The goal of the organization's ________ is to point the firm in the direction of where it would like to be in the years to come.
  • strategy
  • mission
  • culture
  • vision


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  1. 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.
  • target
  • diversification
  • intensive
  • integrative


  1. Annual-plan control requires making sure the company isn't overspending to achieve sales goals. The key ratio to watch is ___________.
  • stock turnover
  • marketing expense-to-sales
  • cash flow return on investment
  • gross margin


  1. The recent joint ventures formed by BP with Russian and Indian partners showed the importance of the ________ segment of the general environment that BP and other integrated oil firms have to manage when contending with scarce resources.
  • physical
  • demographic
  • global
  • political/legal


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  1. 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?
  • image pricing
  • market-skimming pricing
  • target pricing
  • going-rate pricing


  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
  • demographic
  • behavioral


  1. 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?
  • mind mapping
  • attribute listing
  • forced relationship analysis
  • reverse assumption analysis


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  1. The Enron employee who reported the financial manipulations at the company to her superiors can be considered to have engaged in__________.
  • managerial opportunism
  • an act of courage
  • vindictive disloyalty
  • white-collar crime


  1. The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because__________.
  • customers are loyal to brands that are differentiated in meaningful ways
  • 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


  1. A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment?
  • relying on the product descriptor
  • using channel differentiation
  • announcing category benefits
  • comparing to exemplars


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  1. 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
  • linking internal and external marketing
  • choosing the right moment to capture employees' attention and imagination
  • furnishing energizing and informative internal communication


  1. The strategic management process is__________.
  • the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness
  • a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment
  • a process directed by top-management with input from other stakeholders that seeks to achieve above- average returns for investors through effective use of the organization's resources
  • a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm


  1. The first step in the social marketing planning process is ________.
  • designing the market offering
  • determining the focus of the program
  • setting objectives and goals
  • selecting the target audience


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  1. Moving into international markets is a particularly attractive strategy to firms whose domestic markets__________.
  • have too much regulation
  • demand a differentiation strategy for success
  • are limited in opportunities for growth
  • have developed unfriendly business attitudes toward the industry


  1. 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?
  • direct marketing
  • sales promotions
  • personal selling
  • public relations


  1. Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances__________.
  • affiliation with the customer
  • the richness of the relationship with the customer
  • the ability to identify the customer
  • the reach of the company toward the customer


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  1. Backward integration occurs when a company_________.
  • produces its own inputs
  • is divesting unrelated businesses
  • is concentrated in a single industry
  • owns its own source of distribution of outputs


  1. Successful implementation of the differentiation strategy requires a structure that___________.
  • focuses on the finance function
  • is dominated by the operations function
  • has specialized jobs.
  • decentralizes decision making


  1. Which of the following can a company do to reduce defection
  • Distinguish the causes of customer attrition and identify those that can be managed better.
  • Increase customer lifetime value by increasing the non-monetary costs of products.
  • Enhance the growth potential of existing customers through cross-selling and upselling.
  • Attract new customers to try out the company's products.


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  1. 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) ________.
  • club membership program
  • cross-selling program
  • activity-based costing program
  • value delivery system


  1. Organizational structure__________.
  • specifies the firm's formal reporting relationships, procedures, controls, and authority and decision-making processes
  • specifies the firm's formal value proposition, the markets it will serve, and how the firm will provide value in those markets
  • specifies the firm's control mechanisms, grievance procedures, reporting relationships, procedures, and authority over decision-making processes
  • specifies the firm's informal reporting relationships, procedures, controls, and authority and decision-making processes


  1. ________ is a form of online word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video or written information to others online.
  • Viral marketing
  • Microsite marketing
  • Interstitial marketing
  • Guerrilla marketing



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STR 581 Week 2 Capstone Final Examination, Part One

STR 581 Week 4 Capstone Final Examination, Part Two

STR 581 Week 6 Capstone Final Examination, Part Three

STR 581 Week 6 Capstone Final Examination, Part Three (Newest)



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