Marketing Fundamentals Midterm Study Guide PDF

**Marketing Fundamentals Midterm Study Guide** **CHAPTER 1 QUESTIONS:** Q: The purpose of the introduction of 3M Post-it Flag Highlighters was to - stay ahead of trends and focus its marketing program on only one segment. - help college students with their studying. - preempt a compet...

**Marketing Fundamentals Midterm Study Guide** **CHAPTER 1 QUESTIONS:** Q: The purpose of the introduction of 3M Post-it Flag Highlighters was to - stay ahead of trends and focus its marketing program on only one segment. - help college students with their studying. - preempt a competitive move by Sanford's Sharpie to introduce a similar product. - increase production economies of scale by reducing manufacturing and marketing costs for Post-it Flags and Post-it Notes. Q: Environmental forces refer to the - internal strengths of a company that enable the firm to remain competitive. - marketing manager's uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. - marketing manager's uncontrollable factors---product, price, promotion, and place---that can be used to solve marketing problems. - unpredictable or uncontrollable availability of natural resources that can enhance or restrain a company's growth. - marketing manager's control forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. Q: Innovators at 3M developed Scotchbrite Greener Clean scrub sponges made from agave leaves. Customers appreciate this superior product (they don't rust or scratch) and like the fact that their purchase is environmentally responsible, making this an example - the social marketing concept. - capitalism. - target markets. - the marketing concept. - consumerism. Q: The place strategy in 3M's marketing program made it convenient for \_\_\_\_\_ to buy Post-it Flag Highlighters andPost it Flag Pens. - college students and office workers - office workers only - teachers only - college students only - external salespeople only Q: When a company uses advertising on Instagram, this tactic is part of the \_\_\_\_\_\_ element of the marketing mix. - promotion - product - place - process - price Q: A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade in his points for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. For Starwood, this scenario is best described as \_\_\_\_\_\_. - a supplier-consumer partnership. - relationship marketing. - customer segmentation. - customer valuation. - customer satisfaction promotion. Q: The founders of Bombas created the company based on a need for its initial product in - The visual arts - Homeless shelters - Recreational sports - Higher education - Industrial manufacturing Q: The five major environmental forces in a marketing decision are - Climate change, natural resources, pollution, natural disasters and global conflict - Ethics sustainability, cultural awareness, diversity, and values - Social, technological, economic, competitive, and regulatory - Corporate ownership, internal management, supplier partnerships, strategic alliances, and customer relationships - Product , price, promotion, and people Q: Marketing refers to the - Strategies used in the advertising and promotion and products and services to customers around the globe - Process of identifying target market segments for a product or service and using selling tactics to reach them - Activity involved in getting a product or service from the manufacturer to ultimate consumers and organizational buyers - Production of products or services that will generate the highest return on investment - Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Q: A need refers to a - Feeling of vague lacking but not fully understanding what may be required - Sense of personal inadequacy based upon observations by others around you - Feeling of deprivation of basic necessities such as food, clothing, and shelter - Sense of urgency which causes a person to take action - Feeling that is shaped by a person's knowledge, culture or personality Q: Utility refers to the - Variable costs associated with the production of a single unit of a product within a product line - Fixed costs associated with the production of a single unit of a product within a product line - Number of alternative uses or benefits that can be provided by a single product or service - Benefits or customer value received by users of the product - Adaptability of a marketing program to adjust to changes in the marketing environment Q: Which of these is not an environmental force? - Economic - Social - Technological - Commercial - Regulatory Q: According to the text, Target has been successful by offering consumers the best - Availability - Experience - Price - Products/services - Customer service Q: When a company uses advertising on Instagram, this tactic is part of the \_\_\_\_ element of the marketing mix. - Process - Place - Product - Price - Promotion Q: A skydiving experience cannot be touched like a physical object, but it is still considered a product. To a marketer, this is an example of a - Utility - Idea - Value - Service - Production Q: American Express cardholders have early access to early presales for Ariana Grande concert tickets in many cities. What utility does American Express offer in this instance? - Market utility - Place utility - Possession utility - Time utility - Form utility Q: Customer value refers to - The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time-delivery, and both before-sale and after-sale service at a specific price - The cluster of benefits that an organization promises customers to satisfy their needs - A statement that before product development begins, identifies (1) a will-defined target market, (2) specific customer needs, wants, and preferences, and (3) what the product will be and do to satisfy customers - The need of a customer to receive the highest quality product at the lowest possible price - The least expensive product that will provide most of the basic benefits Q: In addition to the give-back program, Bombas socks are attractive to consumers because they - Are among the least expensive products available - Have been engineered for superior comfort - Are made of entirely natural and vegan ingredients - Are conveniently sold in mass merchandise stores like Walmart and Target - Are considered the most fashion forward in the category Q: A want refers to a - Sense of a personal inadequacy based upon observations by others around you - Need that is shaped by a person's knowledge, culture, or personality - Feeling of being deprived of something but not fully understanding what it may be - Powerful desire that causes a person to take action - Feeling of deprivation of basic necessities such as food, clothing, and shelter Q: Trader Joes is consistently ranked as one of America's favorite supermarket chains for its outstanding \_\_\_\_\_\_, including personal attention from employees in the store. - Relationship marketing - Customer experience - Internal marketing - Customer profiling - Customer value proposition Q: A product - Is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange for money or something else of value - Is the cluster​​ of benefits that an organization promises customers to satisfy their needs - Consists of the benefits of customer value received by its sellers - Consists of items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. - Is the set of intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. Q: A target market refers to - One or more specific groups of potential consumers toward which an organization directs its marketing program - Customers who have already purchased a firm's product at least once, have been satisfied, and are likely to be repeat purchasers - Existing or potential consumers who are seeking a product for which there are no current substitutes - A specific group of current consumers toward which an organization directs its advertising - Both existing and potential customers who have used a competitor's product, are dissatisfied, and who now seek a different product or service to satisfy their needs Q: A student wants to buy a smartphone so she can share pictures with her friends. An insurance claim adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate? - Both the adjuster and the student are prospective customers because, in their own ways, they both benefit from the smartphone - The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying a smartphone to business use - Only a person who has bought a smartphone previously is a prospective customer because only previous owners of smartphones benefit from buying new ones - The adjuster is the prospective customer because the smartphone will be used for work: the student is only a secondary user since the purpose of the smartphone is just for entertainment - Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster's smartphone and the student's parents will pay for hers Q: Social responsibility is the - Idea that individuals and organizations are accountable to a larger society - Fundamental, passionate, and enduring principles of an organization that guide its conduct over time - Recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth - View that organizations should satisfy the needs of consumers in a way that provides for society's well-being - Idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals Q: Shawn wants to eat a Cool Mint Chocolate Clif Bar because, based on his past experience, he knows it will satisfy his hunger - Expression - Perception - Preference - Need - Utility Q: Redbox places vending machines at local convenience and grocery stores that allow customers to rent and return popular movies and video games 24 hours a day. This creates both \_\_\_\_ and \_\_\_\_ utilities - Time, possession - Form, place - Form, time - Form, possession - Place, time **CHAPTER 2 QUESTIONS:** Q: The marketing program, step 3 in the strategic planning process, answers which question? - Why - How - Who - When - What Q: Netflix is a company that rents DVD movies and television programming either by mail or streaming over the internet. It faces many competitors but continues to grow both in the United States and abroad. Part of what has driven success in recent years is its original content, with shows like Ozark, and Space Force, popular programming that cannot be seen elsewhere. Its original content provides Netflix's - Competitive advantage - Tactical innovation - Viable mission - Sales orientation - Core benefit Q: Which of these statements about strategy is most accurate? - The American Marketing Association (AMA) recently has established the definition of strategy - Strategy is an organization's short-term course of action designed to deliver a specific customer experience which achieving its internal standards - An organization can be all things to all people because it has access to all the resources it needs to discover and satisfy the needs and wants of its target markets - Only start up organizations must develop strategies to help them raise capital as well as focus and direct their efforts to accomplish their goals. - The marketing department helps to both set an organization's directions and move it there. Q: The two major aspect of the evaluation phase of the strategic marketing process are - Segmenting the market and selecting target markets - Designing the marketing mix and setting the budget - Establishing a business mission and designing measurable goals and objectives - Comparing the results of the marketing program with the goals to identify deviations and acting on them - Executing the marketing plan and designing the marketing organization Q: A planning gap is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place. The ultimate purpose of the firm's marketing program is to \_\_\_\_ this planning gap. - Calculate the contribution margin of - Determine the sales differential of - Fill in - Calculate the marginal trend of - Create the break-even point for Q: Men's wearhouse caters to the man who doesn't necessarily enjoy shopping. Its stores are in free-standing locations (not inside the mall) so customers can get in and out quickly. Additionally, Men's Wearhouse targets the budget-conscious consumer with the suit prices ranging from \$150-\$850. The location of its stores and its pricing strategy both are part of Men's Wearhouse's - Core values - Competitive advantage - Core benefit proposition - Viable mission - Marketing edge Q: Based on the sales revenue date shown in figure 2-10, as a marketing manager for Apple, you would most likely conclude that - The actual sales results (line BE) underperformed the 2009 plan (line BD) - Sales have slowed significantly since 2009 (line BC) - The planning gap is narrowing - The actual sales results (line BE) tracked fairly well with the 2009 plan (line BD) - The 2009 plan (line BD) was far too aggressive and could not be achieved Q: A part of the key role of marketing is to - Operate at the corporate level - Manage executives - Support the board of directors - Deliver strategic business decisions - Look outward by listening to customers Q: LEGO has traditionally been successful selling its classic construction sets to boys. Recently, LEGO introduced a line of building toys especially for girls called LEGO Friends. It includes feminine characters, pink and purple theme colors, and allows girls to construct more story-related activities. Considering Figure 2-5, this is an example of a \_\_\_\_ strategy that would be found in quadrant \_\_\_\_\_\_\_  - Market penetration; A - Diversification; D - Product market expansion; D - Product development; B - Market development; C Q: Michelin's \_\_\_\_\_\_ can be summed up as providing safety-conscious parents greater security in tires at a premium price. - Marketing program - Mission statement - Customer value proposition - Protocol - Core-values Q: Volvo offers incentives of up to \$1,000 off a new vehicle to both current owners of a Volvo and active duty military and veterans. This is an example of a firm's - Product strategy - Promotion strategy - Market segmentation and targeting strategy - Place strategy - Price strategy Q: Recently, St. Joseph Hospital was named one of the "Best Places to Work in Indiana" for the sixth consecutive year. The hospital touts universal values to "keep health care human" and employees consistently put patients first, which unites them in a common goal. Hospital President Kathy Young believes that St. Joseph's\_\_\_\_\_\_\_ makes both her employees and patients happier in her hospital. - Behavioral protocol - Organizational culture - Pathos - Vision - Service offerings Q: At which step of the planning stage of the strategic marketing process does a firm develop its marketing mix? - Market segmentation - Situation analysis - Marketing program - Implementation - Customer-value proposition Q: A marketing plan is developed during which phase of the strategic marketing process? - Planning - Evaluation - Implementation - Control - Development Q: Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of which is - Ingredients that come exclusively from developed countries promoting fair trade practices - Supporting farmers who agree to use sustainable farming practices, implement fair-working standards, and invest in local communities. - A commitment to donating a percentage of profits to teach for America - The intent of making modest profits without sacrificing high product quality standards - Ingredients that are all completely organic and are available only in Vermont to ensure freshness and contribute to the local economy. Q: The goal of a SWOT analysis is to - Reorganize the firm's marketing department - Identify market research questions in order to develop new products for new market segments - Fairly allocate governmental resources and financial aid across the industry - Determine how raises, bonuses, and dividends will be paid - Identity the critical strategy-related factors that can impact the firm. Q: Which of these is not one of the four guiding principles that underlie the strategic marketing process? - Competitors change and react - Organizational resources are limited - Management changes - Customers are different - Customers change Q: Quadrant A in figure 2-5 represents the marketing strategy of - Diversification - Market penetration - Product penetration - Market development - Product development Q: Within the strategic marketing process, the \_\_\_\_\_ is the result of the planning phase that will be carried out in the implementation phase - Product protocol - Marketing strategy - Marketing plan - Business plan - Marketing tactics Q: To develop a successful marketing plan for a soft drink, the process of \_\_\_\_\_ would most likely be used to group consumers on the basis of whether they prefer sugar-free soda, caffeine-free sugary soda, or regular soda with sugar and caffeine. - Customer grouping - Market aggregation - Product alignment - Mass marketing - Market segmentation Q: Medtronic, a company that makes heart pacemakers, introduced a new product at medical conventions across Asia to demonstrate its many beneficial features. The convention presentations are an example of its \_\_\_\_\_. - Promotion strategy - Place strategy - Price strategy - Product strategy - Market segmentation and targeting strategy **CHAPTER 3 QUESTIONS:** Q: The internet of things refers to - The network of products with connectivity-enables electronics - An explosion in interest in advanced analytics - The belief in technology as a driver of success in the marketplace - Technological specifications that identify access to networks - Technological breakthroughs that allow major innovation to occur Q: In most countries, copyrights, trademarks, and patents are viewed as intellectual property, and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For example, copying a masterpiece may be historically considered an art form in its own right. The difference between these two groups of countries shows that \_\_\_\_\_ affect the view of ethical behavior held in each country. - Corporate cultures - Societal culture and norms - Business culture - Corporate expectations - Industry practices Q: The generation of children born between 1946-1964 is referred to as - Generation Y - Generation X - Millennials - The grey generation - Baby Boomers Q: Economic espionage refers to - The destruction of a competitors products or services through physical damage of property or damage to their reputation - The clandestine collection of trade secrets or proprietary information about a company's competitors - Persuading someone to act in one's favor, typically illegally or dishonestly, by a gift of money or other inducement - An illicit payment made to someone who had facilitated a transaction or appointment - The collection of trade secrets or other intellectual property from foreign countries or governments. Q: In \_\_\_\_\_ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases. - An expansionary - A recessionary - A depressive - An inflationary - A deflationary Q: The Federal Trade Commission investigated Google as potentially being a(n) \_\_\_\_\_\_ but found that despite its very large market share, it had not harmed competition. - Monopolistic competitor - Oligopoly - Pure-competitor - Monopoly - Megopoly Q: Baby Boomers can be defined as the generation born - Between 1981 and 1996 - Between 1918 and 1945 - Between 1946 and 1964 - Between 1965 and 1980 - Between 1997 and 2010 Q: Marketspace refers to - The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online - Websites that allow people to congregate online and exchange views on topics of common interest - Internet search engines used for the purpose of data mining - The two way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller - An information and communication-based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings Q: Which activity best describes the actions of a whistle-blower? - A former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire but did not tell anyone - A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use - The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold - Mattel employees were sorry that 150 of the 10 million Power Wheels cars and track the company sold had caught on fire so they issued a public apology Q: Gross income refers to the - Money deducted from a person's paycheck to pay for federal, state, and local taxes - Total amount of money made in one year by a person, household, or family unit - Money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation - Total amount of money made by a single individual during his or her lifetime - Money that remains after paying for taxes and necessities Q: Which statement regarding the Geek Squad is most accurate? - Men who need help from the Geek Squad do not want women "Geeks" to help them because it makes them feel inferior - The Geek Squad has exclusive rights to the home-help segment thanks to their relationship with Best Buy - The Geek Squad can only assist customers who purchase Dell Computers - The need for the Geek Squad was the result of many environmental factors, not simply a need for technological knowledge. Q: The use of coupons is a frequently used marketing tactic for which form of competition? - A monopoly - Monopolistic competition - Pure competition - Cross-market competition - An oligopoly Q: Any activity that uses electronic communication in the inventory, promotion, distribution, purchase and exchange of products and services is referred to as - Electronic commerce - Electronic exchange - Intranet exchange - Internet barter - Extranet trade Q: Electronic commerce refers to - Any activity that uses electronic communication in the inventory, promotion, distribution, purchase and exchange of products and services - Electronic storefronts that focus on converting an online browser into an online catalog or in-store buyer - An information and communication-based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings - The two way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller Q: Cloud computing such as Apple's ICloud enables businesses and consumers to share data or use software applications directly from a remote server over the Internet or wirelessly rather than having that data file or program reside on a personal computer. This is an example of a \_\_\_\_\_ change in the marketing environment. - Sociocultural - Technological - Regulatory - Marketing mix - Competitive Q: Competition refers to - The set of firms that operate in a given geographic region, regardless of product or service - Alternative firms that could provide a product to satisfy a specific market's needs - Any product or service that vies for a portion of a customer's discretionary income - Identical products that perform identical functions - Any for-profit organization that targets the customers of other organizations Q: Ethics refers to the - Social norms of a nation, community, or family - Universal laws of man that go beyond an individual or groups beliefs of nations or religions - Moral principles and values that govern the actions and decision of an individual or group - Religious tenets of a country or ethnic region that shape its culture - Values and standards of society that are enforceable in the courts Q: The Latin phrase caveat emptor is a legal-concept that means - Let's make a deal - Let the buyer beware - Cash on delivery - Be flexible - Get there first Q: The U.S. Supreme Court issued a landmark ruling in South Dakota v. Wayfair In. allowing states and local governments to force online retailers to collect sales even if they do not have a physical presence in the state. The rules is an example of which environmental force? - Social - Competitive - Regulatory - Economic - Technological Q: Because there are few sellers, price competition among firms is avoided in which form of competition? - An oligopoly - A monopoly - Pure competition - Monopolistic competition - Cross-market competition Q: A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as - Inflation - Deflation - Prosperity - A recession - A depression Q: Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands is pervasive in some countries because laws protecting intellectual property are unclear and sporadically enforced. A business introducing a product into such a country needs to know that its \_\_\_\_\_ may lead to trademark infringements - Moral idealism - Religious precepts - Societal culture and norms - Utilitarianism - Antecedent state Q: Boeing, Northrup Grumman, and Lockheed Martin control the vast majority of the U.S. defense contractor industry. In terms of the form of competition, this industry is an example of - Pure competition - Monopolistic competition - A pure monopoly - A conglomerate - An oligopoly Q: Culture refers to the - Learned behaviors of a specific racial, ethnic, or religious group based on commonly shared ethical principles and protected by laws - Set of values, ideas, and attitudes that are learned and shared among members of a group - Set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization - Combination of beliefs and behaviors accepted as correct regardless of a person's age, sex, race, or religion - Music, art, theater, etc, that reflects the values of an entire nation Q: Dell Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with which Consumer Bill of Rights principle? - Right to safety - Right to be informed - Right to satisfaction - Right to be heard - Right to choose Q: In the 1960s, President Kennedy outlined what is known as the Consumer Bill of Rights. This legislation represents limitations to the legal concept \_\_\_\_\_ that was pervasive before that. - Consumerism - Caveat emptor - Self-regulation - Utilitarianism - Economic espionage Q: In a(n) \_\_\_\_\_ economy, the cost to produce and buy products and services escalates as prices increase - Recessionary - Inflationary - Depressive - Deflationary - Expansionary Q: Corporate culture refers to - The fundamental, passionate, and enduring principles of an organization that guide its conduct over time - A formalized method for controlling the marketing environment - The set of accepted standards and practices within a given industry - The set of values, ideas, and attitudes that is learned and shared among the members of an organization - The formal statement of ethical principles and rules of conduct adopted by an organization Q: An employee of Coca-Cola attempted to share its marketing plan with an employee of PepsiCo for a modest price. What should the PepsiCo employee do? - Immediately contact Coca-Cola to advise it of the ploy to sell the marketing plan. - Buy the marketing plan if assured there would be no legal or ethical repercussions. - Ignore the offer to buy the marketing plan and hope the ethical dilemma will go away. - Advise the Coca-Cola employee that it would be ethical to accept the plan if it was offered for free. - Immediately report the offer to the Better Business Bureau Q: In business, the four forms of competition are - pure competition, cross-market competition, oligopoly, and pure monopoly. - pure competition, monopolistic competition, oligopoly, and pure monopoly. - pure competition, limited competition, oligopoly, and monopoly. - technological competition, market competition, governmental competition, and environmental competition. - dictatorship, monarchy, oligarchy, and democracy Q: A rival of a branded food product manufacturer was known to have asked a mutual supplier for certain ingredients, using secret codes known only to the manufacturer and the supplier. The competitor discovered an email password and was able to access the rival's codes on the supplier's network. This is an example of - industrial reconnaissance. - economic espionage. - clandestine trade secrets. - corporate intelligence. - competitive surveillance. Q: Technology is defined as - the inventions or innovations from applied science or engineering research. **CHAPTER 4 QUESTIONS:** Q: Consumer behavior includes the actions a person takes in purchasing services and using products and services, including the - Emotional processes that occur during these actions - Mental and social processes that come before and after these actions - Cognitive and attitudinal processes that must be learned to complete these actions - Financial limitations one must overcome to accomplish these actions - Physical effort spent on these actions Q: In which stage in the consumer purchase decision process would a consumer ask, "How much can I afford to spend on a new couch for my apartment? - Information search - Evaluation - Alternative evaluation - Purchase decision Q: According to Figure 4-6, E defines what level in the Maslow hierarchy of needs?  - Social - Safely - Personal - Physiological - Self-actualization Q: How would consumers who purchased a new and innovative Nike LeBron 18 basketball show for \$200 try to reduce any cognitive dissonance they feel? - Minimize problem-solving involvement - Conceal the product purchase from others - Limit their information search to an internal one - Read ads for the new basketball show even after the purchase has been made Q: Between classes, many college students stop at conveniently located vending machines for their favorite snack and drinks. Their choices are generally made quickly and with little or no effort to consider alternative product offerings. These students are most likely involved in \_\_\_\_\_ problem solving purchase situations - Intensive - Limited - Routine - Unlimited - Extensive Q: Which statement about family decision making is most accurate? - With autonomous decision making, the husband would make all the decisions about groceries, medicine, and car maintenance - The two types of family decisions making are joint and autonomous - Husbands make most of the purchase decisions about cars, vacations, and homes - Joint decision making typically increases with the education of the spouses Q: The crowded aisles in retail stores at holiday time may cause some shoppers to lose patience and decide on their purchases with far less thought than they otherwise would. This situation is most closely related to which situational influence? - Physical surroundings - Social surroundings - Purchase task - Temporal effects Q: Some automobile dealerships employ a non negotiable or no-haggle price strategy to sell their cars. A customer who wants to buy a new car or used car would pay the posted price. These dealers probably adopt this pricing policy because - A show-growing economy guarantees that negotiations would product negative profit per vehicle - Women has an intense dislike of price negotiation, yet still want to buy a car - Many recent immigrants into the United States are not accustomed to negotiation - Women distrust men in general and car salesmen in particular Q: Consumers accompanied by children - Are usually unable to complete nonessential shopping tasks - Purchase less than 50 percent of what they normally would buy if shopping with their spouses - Purchase about 40 percent more than when shopping alone - Purchase twice as much as they normally would if shopping with other adults Q: What are the Maslow hierarchy of needs in the correct order, beginning with the lowest level and moving up to the highest level need? - Safety, physiological, safety, self-actualization, and personal - Personal, social, physiological, psychological, and safety - Safety, personal, self-actualization, physiological, and social - Physiological, safety, social, personal, and self-actualization Q: Heather wants to purchase a fitness tracker. She is unsure about what type will best suit her needs and work best with other products she owns. As a result, she asks for advice from her friends and relatives. In addition, she talks to several salespeople at Apple and Best Buy and looks at some online reviews. Heather is engaging in - A purchase task - Problem recognition - The creation of an antecedent state - An internal search - An external search Q: In Figure 4-5, E represents the - Marketing program - Marketing research process - Consumer purchase decision process - Consumption strategy model Q: There are five stages in the consumer purchase decision process. The first stage is - Opportunity identification - Information search - Alternative evaluation - Purchase decision - Problem recognition Q: High-involvement purchases typically have which of these characteristics? - The item is inexpensive, new to the market, or is used for more than five years - The item is inexpensive, very safe to use, or purchased with great frequency - The item is inexpensive, widely available, or simple to use - The item is expensive, can have serious personal consequences, or could reflect on one's social image Q: A palindrome is a word or phrase that reads the same whether read from the right or from the left. Originally, Marcus had never recalled hearing the term, However, when he read about palindromes for his English class, he saw three examples of the term within a matter of days. This is most likely the result of - Selective intuition - Selective identification - Selective perception - Selective retention - Stimulus discrimination Q: According to Figure 4-1, the point at which you would exchange money for your sandwich of corned beef on rye would be found in stage  - D - E - B - C - A Q: Scanning memory for previous experiences and also exploring the external environment represent which stage of the consumer purchase decision process? - Purchase decision - Problem evaluation - Alternative evaluation - Information search - Opportunity identification Q: Which problem solving variation would typically be used for blenders, a restaurant for lunch, or professional ball game tickets? - Limited problem solving - Integrated problem solving - Simulated selection - Extended problem solving - Routine response behavior Q: While posting photos on Instagram one evening, your stomach growls. You see an add for Panera. You walk to Panera and buy a sandwich which tastes great. In terms of behavioral learning, walking to the restaurant and buying a sandwich is a - Drive - Prompt - Response - Cue - Reinforcement Q: Satisfaction of dissatisfaction during \_\_\_\_\_ most strongly influences consumer communications and repeat-purchase behavior. - The postpurchase stage - Evaluative criteria selection - Consideration set assessment - Pre Purchase behavior - Information search Q: When strolling through the grocery store, a toddler tells her mother, "Yuck, I dont like peas." Her mother puts down the peas and chooses green beans instead. The role of the little girl in this purchase was that of - Decision maker - Purchaser - Influencer - Information gatherer - User Q: Which of these is strategy for a market leader (rather than a market challenger) when marketing a low-involvement product? - Use advertising messages that focus on getting the brand into a consumer's consideration set - Use repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice - Link the brand attributes with high-involvement issues - Use Internet search engines such as Google to assist buyers - Use sales promotion such as free samples, coupons, and rebates to encourage trial of the brand Q: Some automobile dealerships employ a nonnegotiable or no-haggle price strategy to sell their cars. A customer who wants to buy a new or used car would pay the posted price. These dealers probably adopt this pricing policy because - Women distrust men in general and care salesmen in particular - A slow-growing economy guarantees that negotiations would produce negative profit per vehicle - Women have an intense dislike of price negotiation, yet still want to buy a car - Many recent immigrants into the United States are not accustomed to negotiation - The industry is discussing the abandonment of self-regulation practices Q: There are five stages in the consumer purchase decision process. Immediately following the information search stage is - Purchase decision - Information search - Problem recognition - Opportunity testing - Alternative evaluation Q: Figure 4-2 shows the recent ratings from an independent rating agency for selected smartphone brands and models. Each column shows a brand like Apple, OnePlus, LG, Motorola, and Samsung. These brands are referred to as the \_\_\_\_\_\_\_\_ when consumers use these smartphone ratings to evaluate the products. - Points of difference - Evaluative criteria - Consideration set - Value brands - Core benefits Q: Which product or service is an example of a low-involvement purchase? - A Trek bicycle - A vacation to the Poconos - Knee surgery - Membership into a local country club - Bounty paper towels **CHAPTER 7 QUESTIONS:** Q: What are the two most common constraints in marketing problem solving? - Limitations on access to primary and secondary research - Limitations of personnel and office space - Limitations on the time and money available - Government regulation and right to privacy - Limitations of the strategic thinking and creativity of the firm's advertising agency Q: The Internet sites for The Wall Street Journal, CNBC and Bloomberg - Provide information in online databases as an index of blogs by primary topic - Sell information on trade activity collected by the U.S. government - Are portals to all government websites that can be found by topic keyword - Are the popular online portals in which to enter keywords or topics for specific searches - Provide up-to-the-minute business news and video clips about companies, industries, and trends Q: Jeff Gerst, who manages the Carmex social media properties, says, "For Carmex, Facebook isn\'t just a way to share coupons or the latest product news, but it is also a marketing research resource." One objective in the marketing research he undertook using Facebook involved - Assessing the market for its new hand cream product - Assessing the market for Carmex products outside the United States in countries where Facebook is active - Projecting the market size for the Carmex Moisture Plus line of premium lip balms for women - Narrowing the number of flavors going into quantitative testing form three to two Q: LEGO Group designers created MINDSTORM kits to appeal to middle-school students, among others. When attempting to choose between potential designs, what was the measure of success for use by LEGO Group in this instance. - Assembly time - Gender - Advertising - Cost - Age Q: Considering the five-stop marketing research approach leading to marketing actions, the feedback loop - Is useful only to help a researcher better define the problem next time - Is used to develop a research plan - Consists of lessons learned that can improve each of the steps - Is used to develop findings - Is a form of primary research Q: By \_\_\_\_\_, IKEA noticed that customers often stopped shopping when their baskets or carts were full, so additional shopping bags are now placed throughout IKEA stores - Using survey data - Employing mystery shoppers - Interviewing shoppers - Using neuromarketing - Watching consumers in person Q: The Internet website USA.gov - Accesses information in online databases and an index of blogs by primary topic - Is a depository of information on U.S. business, economic, and trade activity collected by the federal government - Provide up-to-the-minute business news and video clips about companies, industries, and trends - Is the most popular Internet portal to enter keywords or topics for specific searches - Is a portal to all government websites that can be found by topic or keyword Q: The primary purpose of a sneak preview of a film before its release is to - Rate the performances of the individual actors and actresses for possible Oscar nominations - Rate the work of the director and producer for possible Oscar nominations - Compare the final film to the original screenplay - Evaluate the effectiveness of products placements within the film - Identity necessary changes before final editing Q: Lina, who manages a local store for a national drugstore chain, had received complaints from several customers about rude employees. To check on her customer service, Lina hired a team of researchers who posed as customers shopping in the store. Occasionally, they bought something, but their primary purpose was to take notes and record the actions of the service staff. The research information Lina received was a form of \_\_\_\_\_\_ data. - Questionnaire - Observational - National - Secondary - Developmental Q: The last step of the marketing research approach is to - Take marketing actions - Develop finding - Develop the research plan - Collect relevant information - Define the problem Q: When customers have their groceries scanned at the supermarket checkout counter, data regarding product sales and coupon redemptions are collect and processed by tracking services such as IRI's InfoScan, Consumer product firms such as Procter & Gamble use data collected by IRI to allocate scarce marketing resources. For P&G, such data should be considered - Probability data - Internal secondary data - Primary data - Sensitivity analysis - External secondary data Q: J.D. Power and Associates and other market research firms recruit groups of consumers for \_\_\_\_\_, each of whom are paid to record all of their purchases on a regular basis. Businesses pays firms such as J.D. Power for their reports that answer the question "How many times did our customers buy our products this year compared to last year?" - Syndicated panels - Mail intercept interviews - Experiments - Focus groups - Curated data mining Q: According to Figure 7-1, what does D represent in the marketing research process?  - Develop findings - Define the problem - Collect relevant information - Take marketing actions - Develop the research plan Q: Secondary data can be divided into two parts: - Primary data and empirical data - Empirical data and observational data - Psychographic data and demographic data - Internal secondary data and external secondary data - Demographic data and observational data Q: Two important advantages of secondary data are that they are - Highly credible and up-to-date - Inexpensive and up-to-date - Inexpensive or free and save time - Up-to date and supply all relevant categories of information - Tailor-made to specifications and relatively inexpensive Q: Nielsen collects national TV ratings by using a "people meter." This is a box that is attached to televisions, DVRs, cable boxes, and satellite dishes in about 30,000 households across the country; has a remote control that is used to indicate when a viewer begins and finishes watching a TV program; and stores and then transmits the viewing information to Nielsen each night. The information Neilsen is collecting is referred to as - External secondary data - Internal secondary data - Interactive industry data - Observational data - Sensitivity data Q: Fisher-Price watches young children play with its toys to determine if and how various products should be changed or improved. Fisher-Price is collecting \_\_\_\_\_data. - Observational - Interview - Focus group - Questionnaire - On-site Q: Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct text screening and tracking studies. Often 300 to 400 prospective moviegoers are recruited to attend a sneak preview of a film before its release. After viewing the movie, the audience completes a survey to - Critique the title, plot, and characters - Rate the performance of the individual actors and actresses - Recall specific details of the plot and dialogue - Evaluate the quality of directing and producing - Compare the final film with the original script Q: Figure 7-2 shows that primary data may be divided into three related parts. If C represents data collected from mechanical, personal, or neuromarketing methods, which type of data is C? - Internal secondary data - External secondary data - Observational data - Sensitivity data Q: After defining the problem and developing the research plan, the next step in the five-step marketing research approach is to - Collect relevant information - Identify the constraints on the process - Take marketing actions - Develop findings and recommendations - Plan the research budget Q: There are three key elements when developing the research plan. One of these is - Set the research objectives - Specify the measures of success - Determine how to report the findings - Evaluate previous research results - Specify the constraints Q: Making recommendations, implementing those recommendations, and evaluating the results would take place during which step of the five-step marketing research approach? - Take marketing actions - Define the problem - Collect relevant information - Develop findings - Develop the research plan Q: Observing people and asking them questions are the two principal ways to obtain - Internal secondary data - Experimental independent variables - External secondary data - Primary data - Nonprobability data Q: Sampling and statistical inference are special \_\_\_\_, which are vital in marketing research to solve all or part of a problem. - Constraints - Modes - Methods - Styles - Systems Q: Two key elements in deciding how to collect marketing data are - Concepts and values - Terms and constraints - Terms and hypotheses - Constraints and hypotheses - Concepts and methods Q: The primary purpose of a sneak preview of a film before its release is to - Rate the work of the director and producer for possible Oscar nominations - Evaluate the effectiveness of product placements within the film - Rate the performances of the individual actors and actresses for possible Oscar nominations - Compare the final film to the original screenplay - Identify necessary changes before final editing **CHAPTER 8 QUESTIONS:** Q: The first step in segmenting and targeting markets that links customer needs to marketing actions is to - Group potential buyers into segments - Develop a market-product grid and estimate the size of each market - Select target markets - Group products to be sold into categories - Take marketing actions to reach target markets Q: The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on find china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of - A Tiffany/Walmart strategy - One product and multiple market segments - Psychographic market segmentation - Price discrimination - Mass customization Q: Two key types of synergies related to segmentation and targeting are - Product and production synergies - Marketing and product synergies - Consumer and market synergies - Industry-dominated and consumer-dominated - Supplier and distributor synergies Q: All of these are criteria used for selecting target market segments except which? - Simplicity and cost of assigning potential buyers to segments - Market size - Cost of reaching the segment - Compatibility with the organization\'s objectives and resources - Competitive position Q: Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing this different cereals is clearly more expensive that producing only one but worthwhile if it adds to the manufacturer's profits and - Uses the same promotion and packaging for all segments - Cannibalizes the earlier products - Meets standards for new product testing - Better serves customer's needs - Stabilizes competition Q: Figure 8-6 shows the market product grid for a Wendy's restaurant next to a large urban university campus, Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The meal occasion (product grouping) that comprises the largest product grouping is  - After-dinner snack - Dinner - Lunch - Breakfast - Between-meal snack Q: The 80/20 rule is most closely related to which basis of segmentation? - Psychographic - Opportunistic - Behavioral - Geographic - Demographic Q: Land's End will custom-fit a Mariac Jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of - Mass customization - Market melding - Specialty customization - Tiffany/Walmart marketing Q: Samsung sells a variety of TV's from simple and small ones to large smart TV's with Internet connectivity and 3D technology. Customers prefer different options so Samsung uses which type of segmentation variable based on their viewing preferences? - Psychographic segmentation - Geographic segmentation - Behavioral segmentation - Socioeconomic segmentation - Demographic segmentation Q: Differentiation positioning requires a product to - Develop marketing actions to move a product or brand to an ideal position - Seek a less-competitive, smaller market niche in which to locate a brand - Compete directly with competitors on similar product attributes in the same target market - Compete with competitors on similar product attributes but in a different target market - Emphasize unique product attributes to compete directly with competitors Q: Carmaker Kia has used its 10-year/100,000 mile warranty program to improve consumer perceptions of the reliability of its vehicles. This would be considered a \_\_\_\_\_ strategy - Perceptual mapping - Psychographic - Product repositioning - Product positioning - Product differentiation Q: Small athletic shoe manufacturers such as Vans target niche markets like street culture or action sports enthusiasts making shoes designed to satisfy the needs of these different specific groups of customers. This strategy is an example of - Market specific selection - Market segmentation - Single chain marketing - Mass customization - Customized manufacturing Q: Jeni owns a company that makes Triangle BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina BBQ Sauce. In developing a marketing strategy to sell the sauce, Jeni decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Jeni has just - Formed prospective buyers into segments - Taken a marketing action to reach a target market segment - Developed a market-product grid and estimated the size of markets - Formed a market segment using critical product features - Formed product to be sold into groups Q: The annual Street & Smith's Baseball magazine uses 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which of these segmentation strategies? - Multiple products with one segment - One product with multiple marketing segments - One product with one channel of distribution - Multiple products with multiple segments - One product with changes based on customer behavior Q: Head-to-head positioning requires a product to compete - Against a single competitor with an identical offering - Against very similar products from its own company - With competitors on a similar product attributes in the same market - With products from competitors of the same size and country or origin - With competitors on similar product attributes but in a different market Q: Which of these is included in an ideal positioning statement? - The competitors with similar offerings - The identification of the target market - The anticipated or actual retail price of the product - The retail location of distribution - The promotional efforts used to persuade potential buyers Q: \_\_\_\_\_ links market needs to an organization's marketing program. - Product design - Marketing mix development - Market segmentation - Marketing protocol - Product selection Q: Each cell of the complete market-product-grid shows the - Estimated market size - Estimated profit - Relative market share - Market growth rate - Investment required to reach the market Q: In the athletic shoe market, Adidas AG and Nike, Inc. practice \_\_\_\_\_ positioning since both companies vie for the same customers with technologically advanced products. - Psychological - Perceptual - Head-to-head - Market - Differentiation Q: In its early years, Apple was often called "Camp Runamok" because - There were no coherent product lines targetic at identifiable market segments - Every employee was encouraged to do his or her own thing - It was concentrating on laptops while everyone else was concentrating on personal computers - All of the employees were so young, so they often played more than they worked - Its personal computers were running amok with viruses, spyware, and other problems Q: All of these are market segmentation strategies except which? - Build-to-order - Multiple products, one segment - Multiple products, multiple market segments - Mass customization - One product, multiple market segments Q: Cannibalization would most likely occur if - General Mills launches Caramel Crunch Cheerios - Dell adds high-end speaker systems to its line - Procter & Gamble adds a new line of baby clothing to its Pampers stable of products - General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike - Pillsbury adds boxed sugar to its product mix Q: One advantage of a market-product grid is that it can be used to - Determine which target market segments to select and which product groupings to offer - Make cost-cutting decisions under conditions of uncertainty - Relate the product life cycle to consumer demand - Screen many new-product ideas in order to select the one with the best long-run market potential - Select representative samples of consumers for marketing research studies Q: Figure 8-8 shows is a deception of a \_\_\_\_\_ for beverages in the minds of adults. - Growth-share matrix - Hierarchy of needs - Perception matrix - Perceptual map - Marketing matrix **CHAPTER 9 QUESTIONS:** Q: Fifty percent or more of American adults have not had their teeth checked by a dentist within the past five years. For these people, dental services would most likely be classified as a(n) - Shopping product - Convenience Product - Specialty Product - Unsought Product Q: During a recent shopping trip to Target, Carson noticed that the store offered many Glad products, including many different types of trash bags and a variety of food storage containers. For Glad, each of these two product groupings is an example of a - Product line - Product item - Product industry - Product mix - Product class Q: You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test-drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall? - Shopping product - Specialty product - Unsought product - Convenience product Q: There are seven stages of the new-product development process. The stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives is the \_\_\_\_\_ stage - New-product strategy development - Idea generation - Product development - Business analysis Q: The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give on Valentine's Day. The unique identification number that the Vermont Teddy Bear Co. uses to distinguish this teddy bear from the others in order to track it in the warehouse is called a(n) - NAICS stock code - QR code - Stock keeping unit - Stock ID Code Q: According to Figure 9-1, column C would represent which type of product? - Shopping - Convenience - Unsought - Specialty Q: One reason new products fail is that although most major corporations use a formal decision-making process, sometimes they fail to critically evaluate the progress along the way. This is why many firms have a \_\_\_\_\_ to ensure that problems are corrected before proceeding to the next stage - Stage-Gate process - Written protocol - Prototype test - Cross-functional team - Test market Q: The intangibility element of a service refers to the fact that it - Can maintain or accumulate goodwill with customers - Has value that can only be determined by using subjective criteria - Can be objectively evaluated - Can\'t be held, touched, or even seen before the purchase Q: Delta Airlines operates a daily flight between Houston Portland using a Boeing 737, which has a capacity of 120 passengers. During the past month, the flight has averaged 112 passengers. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe? - Intangibility - Inconsistency - Idle production capacity - Inseparability - Incongruity Q: GoPro uses all of these sources to generate new-product ideas except which? - R&D lab IDEO - A team of professional and amateur athletes - Employees - Consumer shared content - Retailers Q: The Federal Trade Commission (FTC) advises that products should be labeled as "new" only - For a period of 17 years at which time patent rights are returned to the public domain - For a period of six months after it enters regular distribution - If it is functionally different from a competitor\'s product - For a period of one year after it enters widespread distribution - Until ann improved version of the same product is produced Q: As Apple's CEO, the late Steve Jobs orchestrated innovations that revolutionized all of these industries except which? - Music - Digital publishing - Tablet computing - Smartphones - Cable television Q: The Macintosh, iPod, iPhone, AirPods, and AirTags are all examples of Apple's commitment to - New product development - Sustainable procurement - Social responsibility - Respecting its workforce - Using renewable resources Q: It is common now for new laptops and tablets to utilize multitouch functions, such as "pinch to zoom," either on the screen interface or with the tracking mouse. When the multitouch interface was first introduced, it was an example of which type of innovation? - Discontinuous innovation - Continuous innovation - Evolutionary innovation - Dynamically continuous innovation Q: Procter & Gamble has a large \_\_\_\_\_ that includes product groupings such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener, Tide detergent, and Pampers diapers). - Product line - Product class - Product mix - Marketing mix Q: Betsy has 15 tax accountants on her staff. During the months of February, March, and April, her staff is overworked and she may even hire more employees to meet the tax preparation needs of her clients. Betsy is not currently experiencing\_\_\_\_\_. In fact, all of her employees and equipment are being fully used. - Capacity marketing - Off-peak pricing - Idle production capacity - Capacity inventory - Static demand Q: Wrigley's new Alert Caffeine Gum "offers a portable solution that lets adults control their caffeine intake." This new gum is most likely which type of innovation? - Discontinuous innovation - Dynamically continuous innovation - Continuous innovation - Insignificant innovation Q: An American Airlines ad shows the airline's new seats and emphasizes their comfort and ability to recline to overcome the \_\_\_\_\_ of it service. - Incongruity - Inventory costs - Inconsistency - Inseparability - Intangibility Q: There are seven stages of the new-product development process. Following the new-product strategy development stage is the second step, known as - Idea generation - Product assessment - Screening and evaluation - Screening and analysis Q: GoPro did an environmental scan that uncovered a social trend toward sharing experiences during which stage of the new product development process? - Idea generation - New-product strategy development - Commercialization - Screening and evaluation - Business analysis Q: According to Figure 9-1, column C would represent which type of product?  - Shopping - Convenience - Specialty - Unsought - Prestige Q: Google's driverless cars had completed over three million miles of autonomous driving with a Google engineer in the passenger seat. The Google driverless car initiative is at which stage of the new-product process? - Development - Screening and evaluation - Market testing - Idea generation - Business analysis Q: The inventory costs of services include - Salary of service provider and equipment costs - Management and material costs - Service delivery and spoilage costs - Equipment and training costs - Service provider wages and training costs Q: Which firm uses crowdfunding to raise capital for products that are unlikely to get resources from traditional sources? - Kickstarter.com - Unfundable.com - IDEO - The Industrial Design Group - Warren Buffet's Berkshire Hathaway