SEVI 2053 Final Exam Review UPDATED
Exam Questions and CORRECT Answers
Diego's is a Mexican restaurant that has a booth at the local farmer's market each Saturday
selling Mexican food to customers. The owner runs the booth because he enjoys interacting
with customers. When a customer asks for items not on the menu and he does not have them
in his booth, the owner takes the order for the following Saturday and has it available for the
customer at that time. Diego's is creating a model for _____. - Correct Answer- relationship
marketing
Marketers at Pampers are calculating the average customer lifetime value (CLV). Which of
the following equations should they use? - Correct Answer- Sales-Costs=CLV
Wegmans Food Markets sells turkeys from November through December. By doing this,
Wegmans is providing _____ utility. - Correct Answer- time
When Tilly buys flowers at the farmer's market, the flower business transfers ownership of
the flowers to her, which is called _____ utility. - Correct Answer- possession
One of the first steps to implementing the marketing concept is to ____. - Correct Answer-
obtain information about its customers' needs
A company that is concerned about what its customers' needs are and develops products to fill
those needs likely has a _____. - Correct Answer- customer orientation
Pip's Produce, a food distributor, distributes organic produce to restaurants. Pip's Produce is
part of a(n) _____ market. - Correct Answer- reseller
Quinn's Lighting, a home lighting manufacturer, purchases electrical wires needed to make
light fixtures from various wire manufacturers. Of which type of market is Quinn's Lighting?
- Correct Answer- Producer
Bean to Brew, a retail coffee bean business, designs a single marketing mix and directs it at
the entire market. The company is using a(n) _____ approach. - Correct Answer-
undifferentiated approach
,The owners of Toki's Bicycle shop are trying to decide what types of bicycles to carry in their
shop. They have noted that there are many older individuals in their area who would benefit
from beach cruisers, there are many road riders who would most likely select high-end street
bicycles, and the mountain bike riders should be provided for, as there are many dirt roads to
ride them. Toki's owners are in the process of _____. - Correct Answer- market segmentation
As Americans start to eat healthier, fast-food restaurants need to consider adding items to
their menus like salads and grilled items. This is an example of changes in the _____
environment. - Correct Answer- sociocultural
Longwei lives in China and would like to export wool to the United States. However, there
are import tariffs on wool items from China that his products would be subject to. This is an
example of ______ factors in the marketing environment. - Correct Answer- legal and
regulatory
Billie is a vice president at Collins and Co. She has been examining data from her company
and discussing its successes and failures with the different division heads and managers. As
part of her analysis, she has reviewed the company's strengths and found that it is very good
at promotion and meeting clients' specific needs. She has discovered that the company is very
slow with delivery and with prompt collection of its receivables. She also found out that
another company is producing goods similar to those produced by Collins and Co., and is
selling them for less money and with a longer warranty. Finally, she has discovered that there
is a great need for her company's product in the medical field and that this market is virtually
untapped. Which of the following best describes Billie's activities? - Correct Answer- She is
doing a SWOT analysis.
Key highlights of the _____ section of the marketing plan include information on the target
market and the marketing mix. - Correct Answer- marketing strategies
Willow opens a lemonade stand at the corner of her street. She expects to sell three pitchers
of lemonade during the afternoon by putting signs up at each end of the street directing
motorists to her stand. Willow's estimate of expected sales during the afternoon based on this
level of marketing effort is called a ____. - Correct Answer- sales forecast
Lowe's is estimating how much lumber it will sell during the coming calendar year based on
a specified level of marketing effort. The method Lowe's will use to forecast sales includes all
of the following except _____. - Correct Answer- financial ratios
,In the planning step of marketing research, the researcher ____. - Correct Answer- makes
plans on how to gather needed but missing data
Imani is conducting market research for their company. They will utilize both internal and
external sources. Internal sources would include all of the following except ____. - Correct
Answer- information from suppliers
When considering how to price products, marketers must consider the amount of money that
consumers have after they pay for food, clothing, and housing. This is known as _____. -
Correct Answer- discretionary income
Simon needs to purchase a new car. He hasn't had to buy a car in over ten years and knows
this purchase will require a lot of research. Simon is likely going to be using _____ for this
purchase. - Correct Answer- extended decision making
marketing - Correct Answer- the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large
Value - Correct Answer- a customer's estimation of the worth of a product based on a
comparison of its costs and benefits, including quality, relative to other products
relationship marketing - Correct Answer- establishing long-term, mutually satisfying buyer-
seller relationships
Customer relationship management (CRM) - Correct Answer- using information about
customers to create marketing strategies that develop and sustain desirable customer
relationships
customer lifetime value (CLV) - Correct Answer- a measure of a customer's worth (sales
minus costs) to a business over one's lifetime
Utility - Correct Answer- the ability of a good or service to satisfy a human need
Form utility - Correct Answer- utility created by converting production inputs into finished
products
, Place utility - Correct Answer- utility created by making a product available at a location
where customers wish to purchase it
Time utility - Correct Answer- utility created by making a product available when customers
wish to purchase it
Possession utility - Correct Answer- utility created by transferring title (or ownership) of a
product to a buyer
marketing concept - Correct Answer- a business philosophy that a firm should provide goods
and services that satisfy customers' needs through a coordinated set of activities that allow the
firm to achieve its objectives.
market - Correct Answer- a group of individuals or organizations, or both, that need products
in a given category and that have the ability, willingness, and authority to purchase them
marketing strategy - Correct Answer- a plan that will enable an organization to make the best
use of its resources and advantages to meet its objectives
marketing mix - Correct Answer- a combination of product, price, distribution, and
promotion developed to satisfy a particular target market
target market - Correct Answer- a group of individuals or organizations, or both, for which a
firm develops and maintains a marketing mix suitable for the specific needs and preferences
of that group
undifferentiated approach - Correct Answer- directing a single marketing mix at the entire
market for a particular product
market segment - Correct Answer- a group of individuals or organizations within a market
that shares one or more common characteristics
market segmentation - Correct Answer- the process of dividing a market into segments and
directing a marketing mix at a particular segment or segments rather than at the total market
