Marketing Strategies and Consumer Behavior Quiz

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Questions and Answers

What is the primary objective of a firm pursuing a 'harvest' strategy?

To increase long-term market share by aggressive investment.
To prioritize environmental sustainability over profit margins.
To strategically diversify into new, unrelated markets.
To generate short-term profits, even if it negatively impacts long-term survival. (correct)

In the General Electric approach to portfolio planning, what does the evaluation of a business's 'strengths' and 'industry attractiveness' determine?

The public relations approach for marketing campaigns.
The ethical implications of the business's operations.
The company's eligibility for government subsidies.
The investment strategies the firm should employ. (correct)

Within the General Electric approach, what does a 'yellow' rating typically signify?

Aggressive expansion
Guaranteed success
Caution (correct)
Immediate divestment

What is the primary purpose of a marketing plan?

To communicate the marketing strategy and secure stakeholder investment. (A) Signup and view all the answers

A well-designed marketing plan should achieve which of the goals?

Communicate realistic expectations to the firm’s CEO and other stakeholders. (C) Signup and view all the answers

Who is typically responsible for creating marketing plans at the divisional level?

Each division's Chief Marketing Officer (CMO). (A) Signup and view all the answers

Which of the following is a key function of a marketing plan?

Identifying customer needs and wants. (D) Signup and view all the answers

What is the role of market research in the context of a marketing plan?

To create offerings that satisfy customer needs. (D) Signup and view all the answers

Which of the following is NOT a characteristic typically associated with Innovators?

Their image is used as evidence of their status and power. (A) Signup and view all the answers

What is the primary motivation that drives Thinkers?

Ideals (C) Signup and view all the answers

Which characteristic distinguishes Achievers from Thinkers?

A deep commitment to career and family. (C) Signup and view all the answers

Which consumer behavior is most typical of Thinkers, despite having sufficient income?

Prioritizing durability, functionality, and value in their purchases. (C) Signup and view all the answers

What aspect of life do Achievers prioritize when structuring their social interactions?

Family, place of worship, and work. (A) Signup and view all the answers

What makes Innovators different from Achievers and Thinkers, when purchasing a product?

Innovators are more likely to be motivated by image, not as evidence of status or power but as an expression of their taste, independence, and personality. (B) Signup and view all the answers

What lifestyle component do achievers value, when it comes to their own predictability?

Stability. (B) Signup and view all the answers

Which of the following is a core trait of achievers?

Respect authority. (C) Signup and view all the answers

What does CLV segmenting primarily take into account?

The total amount a customer spends in a specific category or with a firm. (B) Signup and view all the answers

Which of the following best describes demographic segmentation?

Dividing the market based on personal attributes such as age, income, or ethnicity. (B) Signup and view all the answers

How does the family life cycle influence marketing strategies?

It tracks changes in lifestyle and purchasing, such as increased demand for pediatric services with children. (C) Signup and view all the answers

What is the primary purpose of sales forecasting?

To estimate the quantity of products a company expects to sell, which aids various business decisions. (A) Signup and view all the answers

When forecasting sales, what is 'market potential'?

The total industry-wide sales anticipated for a product category over a defined period. (B) Signup and view all the answers

Why do stores ask for your zip code at checkout?

To implement geocoding and understand where customers are located for targeted advertising. (B) Signup and view all the answers

What is the 'company’s sales potential'?

The maximum total revenue a company anticipates generating from a product or the number of units it can hope to sell. (B) Signup and view all the answers

What is the primary goal of geocoding?

To plot customer data on a map to identify customer clusters for targeted ad campaigns. (C) Signup and view all the answers

Which of the following best exemplifies geodemographics?

Combining income data with geographic location to target affluent customers in specific neighborhoods. (C) Signup and view all the answers

Which of the following is the most accurate description of 'Judgment techniques' in forecasting?

Forecasting methods that rely on someone’s estimates. (A) Signup and view all the answers

What is the primary benefit of using customer surveys for sales forecasting?

They can provide insight into customers' purchasing intentions and market potential. (B) Signup and view all the answers

What does population density typically influence in business strategy?

The decision regarding where to locate businesses; for example, McDonald's avoids towns with fewer than 5000 people. (C) Signup and view all the answers

Which factor is LEAST likely to be considered in psychographic segmentation?

Income (D) Signup and view all the answers

What is a key limitation of customer and channel surveys in forecasting?

Potential buyers are far more likely to know if they will buy something. (A) Signup and view all the answers

In what areas are surveys most effective?

Estimating market potential rather than specific sales potential. (C) Signup and view all the answers

In which market types are customer surveys primarily used?

Business-to-business markets where understanding future spending is critical. (C) Signup and view all the answers

What psychological phenomenon describes people's tendency to rush to buy a product when others are also interested?

Herd Behavior (A) Signup and view all the answers

How does social situation influence purchase behavior, as demonstrated by the example of Girl Scouts selling cookies?

People are less likely to buy from strangers compared to acquaintances. (B) Signup and view all the answers

Which factor is NOT mentioned as influencing shopping behavior based on time?

Time spent on social media (C) Signup and view all the answers

What might encourage a consumer to spend more at the grocery store?

Shopping while hungry (C) Signup and view all the answers

Which scenario best illustrates an emergency purchase?

Visiting a clinic after a serious injury (C) Signup and view all the answers

What effect does being a 'morning person' or 'evening person' have on consumers?

It affects the timing of their shopping. (A) Signup and view all the answers

What can be a reason for preferring gift certificates over physical gifts?

They require less time to acquire. (B) Signup and view all the answers

How does necessity generally affect time spent shopping?

It often results in a quick purchasing decision. (A) Signup and view all the answers

Which of the following illustrates a shift in marketing budget allocation?

Greater emphasis on digital technologies such as social media platforms, online ads, and mobile marketing. (D) Signup and view all the answers

What is the primary focus of green marketing?

Marketing environmentally safe products and services in a way that benefits the environment. (D) Signup and view all the answers

What is the purpose of a company's mission statement?

To define the purpose of the organization and explain how the company defines its business. (C) Signup and view all the answers

What is the definition of Strategic Business Units (SBUs)?

Businesses or product lines within an organization that have their own competitors, customers, and profit centers. (C) Signup and view all the answers

What are 'objectives' in the context of organizational planning?

What organizations want to accomplish (the end results) in a given time frame. (B) Signup and view all the answers

Which statement is most accurate regarding the publication of organizational objectives?

Although many organizations publish their mission statements, most for-profit companies typically do not publish their objectives. (A) Signup and view all the answers

In business strategy, what are 'strategies' primarily concerned with?

Means to an end, or what the firm will do to achieve its objectives. (A) Signup and view all the answers

Which of the following would be considered a tactic in a marketing strategy?

Implementing a 'buy one-get one free' promotion. (D) Signup and view all the answers

Flashcards

Harvest

A strategy where a firm reduces investment in a product to generate short-term profits.

Divest

The action of selling or dropping a product or business from a firm.