Santa Clara University MKTG 181-4 Principle of Marketing Practice Exam PDF

SANTA CLARA UNIVERSITY Leavey College of Business Department of Marketing MKTG 181-4 Principle of Marketing Dr. Zijing Zhang Practice Exam Introduction Dear Students, Welcome to yo...

SANTA CLARA UNIVERSITY Leavey College of Business Department of Marketing MKTG 181-4 Principle of Marketing Dr. Zijing Zhang Practice Exam Introduction Dear Students, Welcome to your Principles of Marketing Practice Exam! This practice test is designed to help you review key concepts from Chapters 1, 2, 3, 4, 5, 7, and 8. Exam Format: Question Type: Multiple Choice Answer Options: Five choices per question Correct Answers: Marked with ">" (See the file “Practice Exam Questions and Answers”) Explanations: Provided after each question to reinforce learning How to Use This Practice Exam Effectively: Test Yourself First: Try answering the questions without looking at the correct answers. Review the Explanations: Each question includes a brief explanation to clarify key concepts. Identify Weak Areas: Take note of topics you find challenging and revisit them in your textbook or class notes. Simulate Exam Conditions: Set a timer and complete the exam in one sitting to get a feel for the real test. In the real exam, you have 60 minutes for 40 questions. This practice exam is meant to support your understanding and improve your confidence. If you have any questions or need clarification on any topic, feel free to reach out. Good luck, and happy studying! Zijing 1. Reverse auctions result in the bidder with the highest price getting the business. have an increasing number of buyers as the auction progresses. > result in a downward pressure on bid prices. are seller-initiated. do not allow prospective suppliers to see the bids of others. A reverse auction works in the opposite direction from a traditional auction. In a reverse auction, a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. As more would-be suppliers become involved, there is a downward pressure on bid prices for the buyer’s business. 2. Whole Foods uses its wholesome and organic selection of products, unique store design, and local ambience to avoid direct competition with large supermarket chains, which is an example of ________ positioning. competitive > differentiation niche holistic head-to-head Differentiation positioning involves seeking a less-competitive, smaller market niche in which to locate a brand. Whole Foods, for example, differentiates itself from large supermarket chains with its “wholesome” and organic selection of products, unique store design, local ambience, and promotion of a “greener” lifestyle. 3. Trader Joe’s doesn’t authorize or sell its products online. According to a company spokesperson, “Part of the ________ is the value we are committed to providing customers, each and every time they shop our stores—great products of the highest quality at great prices.”  societal marketing concept customer relationship management > customer experience consumer sustainability marketing strategy evolution marketing strategy Customer experience is the internal response that customers have to all aspects of an organization and its offering. The commitment to providing an exceptional customer experience is what gives Trader Joe’s its high rankings. It is also the reason why Trader Joe’s doesn’t authorize or sell its products online. 4. Which of these is an example of green marketing? Everyone who orders from Sephora receives 2 free samples of their choice. Bombas gives away a free pair of socks to homeless shelters for every pair it sells. > Patagonia encourages customers to repair or recycle their clothing to keep it out of landfills. 3M created a new petrochemical-based fertilizer for trees. Target issued a supplier requirement for cups made from polystyrene to save money. Green marketing includes marketing efforts to produce, promote, and reclaim environmentally sensitive products, such as Patagonia’s efforts here. 5. Divvy is a bike sharing system. Amet lives in Chicago and uses Divvy to get around the city. He is an annual member and can unlock a bike with a QR code as often as he likes at any of Divvy’s docks. Providing bikes throughout the city would constitute which element of the marketing mix for Amet? promotion process profit > place personalization  Within the marketing mix, place is defined as a means of getting the product to the consumer. 6. To serve both buyers and sellers, marketing seeks to ________ the needs and wants of prospective customers and to satisfy them. exchange create communicate >discover deliver To serve both buyers and sellers, marketing seeks 1. to discover the needs and wants of prospective customers and 2. to satisfy them. 7. Decisions about channels and transportation for a product are a part of ________ in a marketing program. promotion product profit > place price Place decisions include channels and transportation as well as outlets, coverage, and stock levels. See Figure 2-8 in the text. 8. Important variables in the family life cycle are age, marital status, and > presence of children. gender. level of resources. level of involvement. primary motivation for purchases. The family life cycle concept describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable  purchasing behaviors. Variables include age, marital status, and presence of children. See Figure 4-7 in the text. 9. The 4 Ps of the marketing mix include place, price, promotion, and process. profit. persuasion. > product. personalization. Key term definition—marketing mix. 10. Government restrictions that might impact the expansion or contraction of businesses are an example of the intangible environment. time value of money. > environmental forces. social responsibility. market effects. Forces that are mostly beyond marketers’ control are the environmental forces that affect a marketing decision, which consist of social, economic, technological, competitive, and regulatory forces. Examples are what consumers themselves want and need, changing technology, the state of the economy in terms of whether it is expanding or contracting, actions that competitors take, and government restrictions. 11. Positioning a product or brand effectively involves taking four steps, one of which is deciding whether to keep or delete a product group or item. deciding which of your competitors would be the most effective partner in a corporate merger. developing a new marketing program that outperforms your leading competitor’s offering.  identifying market niches that were not previously discovered during the market segmentation process. > identifying the important attributes for the product or brand class. In determining its positioning in the minds of customers, companies take four steps: 1. identify the important attributes for the product or brand class; 2. discover how target customers rate competing products or brands with respect to these attributes; 3. discover where the company’s product or brand is on these attributes in the minds of potential customers; and 4. reposition the company’s product or brand in the minds of potential customers. 12. During which step of the five-step marketing research approach do you identify possible marketing actions? Develop findings. Evaluate marketing actions. Develop the research plan. > Define the problem. Investigate the competition. During the first step, define the problem, you set research objectives and identify possible marketing actions. 13. Organizational ________ describes why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work. dynamic strategy structure > purpose environment Text term definition—organizational purpose. 14. Sasha co-owns a coin-operated laundry downtown with her two brothers, but she does most of the day-to-day management. Which of these would most likely be a straight rebuy for Sasha? > reordering single-use detergent packets for her vending machine finding a repair person to fix the neon sign out front that hasn’t worked since they bought the place locating a vendor to increase the prices on the dryers by $0.25 switching to a newly available energy cooperative for electricity purchasing four professional grade high-capacity washers of a different brand For a straight rebuy, the buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers, probably without even checking with users or influencers from other areas (in this case, her siblings). 15. Mahatma totalled his car when someone ran a red light. He had hoped it could be repaired, but it was too damaged. Mahatma knew he’d need to get a new car; he had just begun the VALS typology. > purchase decision process. usage buying sequence. stages of consumption. consumer purchase procedure. The stages a buyer passes through in making a choice about which products and services to buy is the purchase decision process. Mahatma has just recognized a problem, which is the first step in this process. See Figure 4-1 in the text. 16. In the buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of the contract. influencers gatekeepers users deciders  > buyers Text term—buyers. 17. ________ buyers include all buyers in a nation except ultimate consumers. Corporate > Organizational Industrial Relationship Client Organizational buyers are those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale. Organizational buyers include all buyers in a nation except ultimate consumers. 18. There are five steps involved in segmenting and targeting a market. What should marketers do once they have developed a market-product grid and estimated the size of markets? group both potential buyers and products to be sold > select target markets execute marketing program actions position the product identify market needs The steps in segmenting and targeting markets that link customer needs to marketing actions are: 1. group potential buyers into segments; 2. group products to be sold into categories; 3. develop a market-product grid and estimate size of markets; 4. select target markets; and 5. take marketing actions to reach target markets. See Figure 8-3 in the text. 19. Rhonda is asked to complete a short survey after attending a free musical performance on campus. If the first question asked for an overall impression of the artist and had a five-point scale ranging from “exhilarating” on one end to “boring” on the other end, it would be what type of marketing research question? > semantic differential scale open-ended dichotomous Likert scale single response This an example of a question using a semantic differential scale, a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings. 20. Marketers can identify key trends such as the popularity of personalized marketing, the increasing emphasis on reuse rather than disposal of products and resources, and the importance of visual search, artificial intelligence, and blockchain technologies by conducting ________ of the marketplace. > an environmental scan primary research a threat assessment a trend analysis an organizational inquiry The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called environmental scanning. Key trends today include the growing popularity of personalized marketing, to the increasing emphasis on reuse rather than disposal of products and resources, to the importance of visual search, artificial intelligence, and blockchain technologies. 21. Martha Stewart began in business by showcasing her creative ideas as a caterer. She published her first book in 1982, followed by a monthly magazine and a television show.  She is now best known for her line of household furnishings and home decorating products, but she also has a wine called Martha Stewart Vintage. This demonstrates market development. market penetration. product penetration. > diversification. product innovation. Diversification is a marketing strategy of developing new products and selling them in new markets. Martha Stewart’s products are very diversified. 22. A manager is assessing whether a business decision is ethical. She learned that 100,000 people would likely benefit from the decision, but 50 people would suffer from it. She decides to go ahead with the decision. Which personal moral philosophy is being used here? moral idealism > utilitarianism green marketing social responsibility cause marketing Utilitarianism is a personal moral philosophy that focuses on “the greatest good for the greatest number” by assessing the costs and benefits of the consequences of ethical behavior. If the benefits exceed the costs, then the behavior is ethical. If not, then the behavior is unethical. 23. A market ________ consists of people who are relatively similar to each other in terms of their consumption behavior. pool > segment identity profile grouping  Key term definition—market segment. 24. Mr. Clean Magic Eraser is formulated to remove two times the dirt as the leading all- purpose bleach spray with water alone, and this attribute sets it apart from competitors. The Magic Eraser’s advertising promotes this product benefit and is an example of > product differentiation. segments of one and mass customization. mass customization. product integration. repositioning. Product differentiation involves a firm’s using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. 25. The ________ phase of the strategic marketing process usually results in a(n) ________ that sets the direction for the marketing activities of an organization. > planning; marketing plan implementation; target market planning; competitor analysis evaluation; annual report evaluation; financial statement A marketing plan is a road map for the marketing activities of an organization for a specified future time period. The planning phase of the strategic marketing process usually results in a marketing plan that sets the direction for the marketing activities of an organization. 26. Harry sees an ad on television from the CDC reminding everyone to get a flu shot, and he goes to the student health center to get one. According to the Maslow hierarchy, the CDC is attempting to appeal to consumers’ ________ needs. physiological  social self-actualization personal > safety The CDC ad seeks to appeal to safety needs. Safety needs involve self-preservation as well as physical and financial well-being. See Figure 4-6 in the text. 27. Why is online buying so prominent in organizational markets? It is legally required in most states. It is required by most of the largest buyers and sellers in the United States. Online transactions lead to more stable buyer–seller relationships. > It can broaden a firm’s potential customer base for many types of products and services. Using online technologies ensures contact with other technologically savvy organizations that are likely to have impressive financial statements. Online buying in organizational markets is prominent for three major reasons. First, organizational buyers depend heavily on timely supplier information that describes product availability, technical specifications, application uses, price, and delivery schedules. This information can be conveyed quickly via Internet technology. Second, this technology has been shown to substantially reduce buyer order processing costs. Third, business marketers have found that Internet technology can reduce marketing costs, particularly sales and advertising expense, and broaden their potential customer base for many types of products and services. 28. ________ are a marketer’s product, service, or brand points of contact with a consumer from start to finish in the purchase decision process. > Consumer touchpoints Pain points Consumer journey maps Buying centers Social networks  Key term definition—consumer touchpoints. 29. The raw information obtained by Pandora about what songs are streamed by its users would be considered ________ data. > observational questionnaire inferential categorical experimental Facts and figures obtained by watching how people actually behave is the way marketing researchers collect observational data. Observational data can be collected by mechanical (including electronic as in this case), personal, or neuromarketing methods. See Figure 7-2 in the text. 30. Whirlpool Corporation owns Jenn-Air, Maytag, Kitchen Aid, and Whirlpool appliances. With this many products for kitchen appliances, it runs the risk of > cannibalization. differentiation. segmentation. aggregation. positioning. When products are not creating new markets, but simply stealing customers and sales from other products, it is called cannibalization. 31. Brick-and-mortar retailers are noticing a change in how many consumers shop. Sometimes they visit a store and scan an item on their smartphones, only to find the same product at a less expensive online retailer like Amazon.com. This turns the store into nothing more than a showroom for products. A SWOT analysis of a company’s marketing environment should consider this change in consumer shopping behavior a(n) > threat.  strength. weakness. risk. opportunity. A threat is an external factor that is negative. This is a negative change in shopping behavior that is causing problems for companies. 32. Supermarkets may use ________ on information collected at checkout to determine that beer and diapers are often purchased together, and they may act on this information to place those items near one another in stores. situational analysis action analysis > data mining an environmental scan problem definition Data mining, the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions, may help you discover something that is not intuitive, as in this example. 33. Which of these is a commonly used organizational buying criterion? promotional incentives > ability to meet schedules senior management stability order size breadth of product selection Organizational buying criteria include: 1. price; 2. ability to meet the quality specifications required for the item; 3. ability to meet required delivery schedules; 4. technical capability;  5. warranties and claim policies in the event of poor performance; 6. past performance on previous contracts; and 7. production facilities and capacity. 34. A company is interested in producing a math game for smartphones and tablets. It selects a representative sample of boys and girls ages 4 to 8 who currently have access to a mobile device and are learning math. After interviewing the children and collecting other relevant data, the firm then makes generalizations about what all young children want in their math apps. The method used is > statistical inference. sensitivity analysis. extrapolation. new product concept assessment. secondary data collection. Statistical inference is used to draw conclusions about a population (the universe of all people, stores, or salespeople about which they wish to generalize—in this case, young girls and boys who use mobile devices) from a sample taken from that population. 35. Now that the key selling season is over, Mai is comparing the results of the marketing program with the goals in the written plans to identify and act on deviations. This occurs during the ________ phase. launch planning implementation analysis > evaluation The evaluation phase of the strategic marketing process seeks to keep the marketing program moving in the direction set for it (see Figure 2-11 in the text). Accomplishing this requires the marketing manager to 1. compare the results of the marketing program with the goals in the written plans to identify deviations and  2. act on these deviations—correcting negative deviations and exploiting positive ones. 36. One benefit associated with selling to organizations is that there are often millions of buyers. there is a short sales cycle. > purchases in a single transaction are typically much larger than in consumer buying. profit margins are highly unpredictable. they often get competing bids. The size of the purchase involved in organizational buying is typically much larger than in consumer buying. The dollar value of a single purchase made by an organization can amount to millions or billions of dollars. 37. The final phase of the strategic marketing process is known as financial analysis. > evaluation. the marketing program. implementation. adaptation. The strategic marketing process is comprised of three phases: planning, implementation, and evaluation. See Figure 2-12. 38. For the purchase of which item would limited problem solving most likely be used? > a restaurant for dinner a dozen eggs a new car ankle socks a vacation In limited problem solving, consumers typically seek some information or rely on a friend to help them evaluate alternatives. Several brands might be evaluated using a  moderate number of attributes. Limited problem solving is appropriate for purchase situations that do not merit a great deal of time or effort, such as choosing a toaster or a restaurant for dinner. See Figure 4-3 in the text. 39. What is most likely to occur during the post-purchase behavior stage of the organizational buying process? The buyer experiences secondary problem recognition. The buyer and seller renegotiate the terms of the contract. The buyer experiences cognitive dissonance. Individuals outside the purchasing department are initially consulted. > A supplier’s performance is formally evaluated. The organizational buying process itself is more formalized, more individuals are involved, supplier capability is more important, and the post-purchase evaluation behavior often includes performance of the supplier and the item purchased. See Figure 5-3 in the text. 40. Which of these is a psychological influence on the consumer behavior decision process? temporal effects promotion reference groups > personality culture Motivation and personality are two familiar psychological concepts that have specific meanings and marketing implications. These concepts are closely related and are used to explain why people do some things and not others. 41. Domino’s Pizza used to promise “to deliver your pizza in 20 minutes or you get it free,” a tactic that is most effective at > decreasing perceived risk. speeding up cognitive learning. increasing experiential learning.  increasing cognitive dissonance. increasing stimulus generalization. Perceived risk represents the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences. Companies develop strategies to reduce the consumer’s perceived risk and encourage purchases. 42. Maria volunteers at the local dog shelter. She spends each Saturday afternoon helping out, and she usually feels great about it because she contributes to her community. Is this an exchange? No, because Maria did not receive a tangible product, such as a “thank you” gift. > Yes, because volunteering is exchanged for something of value—a good feeling. Yes, because the shelter is a free service. No, because the shelter is a nonprofit organization. No, because no money was exchanged. Exchange is the trade of things of value between buyer and seller so that each benefits from the exchange. An exchange did occur: Maria exchanged her time for a feeling of satisfaction. 43. Customer ________ is 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. orientation behavior > value awareness satisfaction Key term definition—customer value 44. For-profit organizations pursue several different types of goals such as profit, sales, market share, and quality, among others. Which statement is most accurate? Selecting a market share goal is only meaningful if you first make profit a goal. > If profits are acceptable, a company may elect to maintain or increase its sales even though profits may not be maximized. Social responsibility and employee welfare goals are reserved for nonprofit organizations. Customer satisfaction goals are known to increase costs and reduce profits. A business firm should select only one business goal so it can maintain focus. For-profit organizations can pursue several different types of goals: profit, sales, market share, quality, customer satisfaction, employee welfare, and social responsibility. When choosing a sales goal, if profits are acceptable, a firm may elect to maintain or increase its sales even though profits may not be maximized. 45. Patagonia’s Worn Wear program, which encourages its customers to repair, trade, and eventually recycle all of its products, is an application of environmental forces. profit maximization. organizational buying. > the societal marketing concept. market segmentation. The well-being of society at large should also be recognized in an organization’s marketing decisions. In fact, some marketing experts stress the societal marketing concept, the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being. For example, Patagonia’s Worn Wear program encourages its customers to repair, trade, and eventually recycle all of its products. 46. The behavioral sciences inform the study of consumer ________, helping marketers understand customer choices and how to provide value to them. search patterns efficiency  life cycles > behavior routines The behavioral sciences help answer consumer behavior questions such as why people choose one product or brand over another, how they make these choices, and how companies use this knowledge to provide value to consumers. 47. The mission of the U.S. Department of Energy is to ensure America's security and prosperity by addressing its energy, environmental, and nuclear challenges through transformative science and technology solutions. It is an example of which type of organizational buyer? ultimate consumer manufacturer > government agency business firm reseller Government units are the federal, state, and local agencies that buy goods and services for the constituents they serve. The Department of Energy is a federal agency. 48. In routine problem solving, the number of external information sources used is typically There is wide variation. Many A few One > none. For products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. The purchase process for such items is virtually a habit and typifies low- involvement decision making. See Figure 4-3 in the text. 49. Web.com is a company that helps other businesses develop their ecommerce websites. Because Web.com relies indirectly on consumers wishing to make purchases online, demand for its website design services is considered ________ demand. selective industrial > derived seasonal primary Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services. The demand for ecommerce websites depends on consumer demand for products sold online. 50. An important part of creating a market-product grid is to compare, in two dimensions, a firm’s position relative to its competitors. identify company strengths and weaknesses. develop marketing actions for each market segment. plot the market growth rate and relative market share of a firm’s offering. > estimate the size of the markets. The purpose of developing a market-product grid is to trigger marketing actions to increase sales and profits. The estimated size of the market in the segment is an important factor in deciding whether it’s worth going after. 51. Choosing which ________ to display on a marketing dashboard is critical for a busy manager, who can be overwhelmed with irrelevant data. planning gaps Gantt charts > marketing metrics marketing plans target markets With a marketing dashboard, a marketing manager glances at a graph or table to monitor key metrics and makes a decision to take action or analyze the problem  further. Choosing which marketing metrics to display is critical for a busy manager, who can be overwhelmed with irrelevant data. 52. When Jeremy was looking to purchase a used Kia in the fall, he saw one with a “for sale” sign in the window near his school. Though he tried the number on the sign repeatedly, no one answered the phone and there was no way to leave a message. Marketing did not occur because there is a lot of competition in the used car market. whoever was selling the car had poor customer service. Jeremy probably did not have a true need for this car. the car was too expensive for Jeremy to afford. > there was no way for the parties to communicate. Four factors are required for marketing to occur: 1. two or more parties (individuals or organizations) with unsatisfied needs; 2. a desire and ability on their part to be satisfied; 3. a way for the parties to communicate; and 4. something to exchange. 53. An office furniture manufacturer is expanding its product line and is purchasing fabric and steel for its new line of desks and chairs. This company is considered a(n) entrepreneur. > organizational buyer. ultimate consumer. reseller. marketing channel. Organizational buyers are those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale. 54. Habitat for Humanity helps families build and improve places to live, providing affordable housing to those who need it the most, is an example of a(n)  board of directors. business firm. industry. > nonprofit organization. government agency. A nonprofit organization is a nongovernmental organization that serves its customers but does not have profit as an organizational goal. Instead, its goals may be operational efficiency or client satisfaction. Organizations like Habitat for Humanity seek to solve the practical needs of society and are often structured as nonprofit organizations. 55. Samsung sells a Smart Door Refrigerator that can share pictures, stream music, mirror content from your TV, and access recipes. Wi-Fi appliances like this are examples of how some companies can actually influence environmental forces through > technological or competitive breakthroughs. injunctions and lawsuits. restructuring its organization for greater efficiency. lowering its prices. world-class marketing research. Traditionally, many marketing executives have treated environmental forces as rigid, absolute constraints that are entirely outside their influence. However, recent studies and marketing successes have shown that a forward-looking, action-oriented firm can often affect some environmental forces by achieving technological or competitive breakthroughs, such as Wi-Fi-enabled refrigerators. 56. Construction companies and farms are examples of reseller markets. global markets. > industrial markets. government markets. consumer markets.  Industrial (business) markets include mining companies, construction, farms, legal services, and real estate businesses, among others. 57. Sur La Table organizes its offerings in store locations based upon the cooking activity— the way consumers prepare and present various meals. Everything for baking is in one spot, while food preparation utensils are in another, and table settings are in yet another. This strategy uses product clusters. segment groupings. > product groupings. lifestyle merchandising. psychographic merchandising. Finding a means of grouping the products a firm sells into meaningful categories is as important as forming customers into segments. If the firm has only one product or service, this isn’t a problem. But when it has dozens or hundreds, these must be grouped in a way that buyers can relate to them. 58. When a marketing researcher uses information from the company’s own sales call reports and customer communications to inform marketing decisions for that company, she is using > internal secondary data. external secondary data. sensitivity analysis. primary data. business data. Secondary data are facts and figures that have already been recorded prior to the project at hand. As shown in Figure 7-2 in the text, secondary data are divided into two parts, internal and external secondary data, depending on whether the data come from inside or outside the organization needing the research. 59. Corrine has a monthly income of $3,500. Her federal and state taxes are $1,000. She pays $600 in rent, has a $300 car payment, and spends $300 on food and $200 on clothes. The remaining $1,100 would be considered her disposable income. net income. > discretionary income. earned income after taxes. gross income. Discretionary income is the money that remains after paying for taxes and necessities and is used for luxury expenses such as vacations or other non-necessities. 60. Marketers conduct marketing research primarily to implement a marketing plan. choose a market-entry strategy. track the actions of competitors. > reduce risk and improve marketing decisions. create a new budget and financial plan. Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. Although imperfect, marketers conduct marketing research to reduce the risk of—and thereby improve—marketing decisions. 61. Vaping is growing in popularity among teens, and Congress raised the nationwide age to purchase tobacco and vaping devices from 18 to 21 to help curtail it. Which is the most important reason that vaping companies should not consider teens to be in the market for their products? Teens acquire these products through the black market. Vaping products do not satisfy any unmet needs for teens. Marketers should only target adults, regardless of the product. The teen market is already heavily targeted by companies with massive advertising budgets.  > Most teens already do not have the ability to buy because of legal restrictions. Potential consumers make up a market, which are people with both the desire and the ability to buy a specific offering. People who are aware of their unmet needs may have the desire to buy the product, but that alone isn’t sufficient. People must also have the ability to buy, such as the authority, time, and money. 62. Putting recommendations into effect and monitoring how the decisions turned out occurs in which stage of the marketing research process? Execute the marketing program. Evaluate data collection methods. Present the findings. > Take marketing actions. Examine the alternatives. The marketing research approach includes five steps, the last of which is taking marketing actions. At this point, a marketing researcher has to identify the marketing actions, put them into effect, and monitor how the decisions turn out, which is the essence of step 5. 63. People who live in urban areas are part of the target market for electric bicycles. This suggests that companies selling electric bicycles would most likely segment the market based on which consumer segmentation basis? attitudinal demographic behavioral psychographic > geographic Geographic segmentation is based on where prospective customers live or work (region, city size). 64. The marketing program part of the evaluation phase of the strategic marketing process includes which of these?  developing a mission statement analyzing the competitors developing the budget > exploiting positive deviations market segmentation The evaluation phase requires comparing the results of the marketing program with the goals and identifying deviations and acting on them. See Figure 2-11 in the text. 65. When Lorenz started his business, he was surprised by the number of restrictions state and federal laws placed on the business with regard to the conduct of its activities. Lorenz is experiencing how the ________ environment impacts business. litigation > regulatory lobbying global consumerism Key term definition—regulation. 66. When a consumer has evaluated alternatives in the purchase decision process and selected one, they still must determine when to buy and how he can create cognitive dissonance. > from whom he will buy. whether internal search will be sufficient for his process. to whom he can complain if he is not satisfied. whether to reveal his choice to others. Having examined the alternatives in the consideration set, you are almost ready to make a purchase decision. Two choices remain: 1. from whom to buy and 2. when to buy. 67. Members of which generational cohort are retiring at a rate of 10,000 every 24 hours and will all be 65 or older by 2030?  Generation X millennials gray generation >Baby boomers Generation Z The baby boomers—the 76 million children born between 1946 and 1964—are growing older. Baby boomers are retiring at a rate of 10,000 every 24 hours, and they will all be 65 or older by 2030. 68. A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a product differentiation chart. growth-share matrix. > perceptual map. research grid. market-product grid. Key term definition—perceptual map. 69. Which organizational level would contain the marketing department? Departments are not considered part of an organizational level, since their role is tactical. strategic business unit level > functional level board of directors corporate level Each strategic business unit has a functional level, where groups of specialists actually create value for the organization. The term department generally refers to these specialized functions such as marketing and finance. See Figure 2-1 in the text. 70. Market segments are homogeneous in two ways: prospective buyers will respond similarly to marketing action and they > have common needs. are in the same income bracket. can be convinced to purchase the product. use traditional forms of media on a regular basis. are likely to be open to brand-switching. Market segments are relatively homogeneous groups of prospective buyers that 1. have common needs and 2. will respond similarly to a marketing action. This action might be a product feature, a promotion, or a price. 71. The mattress company delivered her new bed on Thursday and Julie slept on it all weekend. Although she generally liked the manufacturer, she didn’t think it was very comfortable. At which stage of the purchase decision process is Julie? alternative evaluation > postpurchase behavior information search problem recognition routine problem solving After buying a product, the consumer compares it with his or her expectations and is either satisfied or dissatisfied. If the consumer is dissatisfied, marketers must determine whether the product was deficient or consumer expectations were too high. This is part of postpurchase behavior. 72. An advantage of the North American Industry Classification System (NAICS) is that it lists the top ten firms in any particular industry. its valuable information is available only to business people in the United States. it provides financial analysis of all organizations with sales in excess of $1 million within the member nations. it makes it possible to determine how other firms are segmenting their customer markets.  > it groups economic activity to permit studies of market share, demand, and import competition. The NAICS provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three countries. The NAICS groups economic activity to permit studies of market share, demand for products and services, import competition in domestic markets, and similar studies. 73. In marketing research, the research objectives are the ________ goals of the decision maker. causal and actionable hypothetical and actionable > specific and measurable interdisciplinary and precise long-term and short-term Research objectives are specific, measurable goals the decision maker seeks to achieve in conducting the marketing research. 74. When the temperature outside drops below 20 degrees and you want to go for a run, marketers might say you have a(n) ________ to put on a coat. > need preference orientation mode desire A need occurs when a person feels deprived of basic necessities such as food, clothing, and shelter. 75. One way that marketing mix characteristics differ for organizational buying compared to consumer buying is that in organizational buying, > advertising and other promotions are technical in nature.  direct selling is avoided. distribution is of negligible importance. list price is considered firm. product quality is assumed among sellers and is rarely a buying criterion. Organizational buying is more likely than consumer buying to involve complex negotiations concerning delivery schedules, price, technical specifications, warranties, and claim policies. Advertising and other promotions are technical in nature. See Figure 5-1 in the text. 76. ________ serve as guidelines on how to act rightly and justly when faced with moral dilemmas. Safety officers Personal rights Norms CEOs > Ethics Ethics are the moral principles and values that govern the actions and decisions of an individual or group. They serve as guidelines for how to act properly and justly when faced with moral dilemmas. 77. ________ responsibility can be broken into three categories: profit, societal, and stakeholder. Altruistic > Social Moral Utilitarian Green There are three concepts of social responsibility: 1. profit responsibility; 2. stakeholder responsibility; and 3. societal responsibility. 78. In BCG’s business portfolio analysis, ________ require large injections of cash just to maintain their market share, much less increase it. Thus, managers must choose the right ones to invest in and phase out the rest. dogs stars > question marks lions cash cows Question marks are SBUs with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it. The name implies management’s dilemma for these SBUs: choosing the right ones to invest in and phasing out the rest. 79. A cranberry grower in Massachusetts operates in which form of competition? oligopoly monopolistic competition > pure competition monopoly cross-market competition In pure competition, there are many sellers and each has a similar product. Companies that deal in commodities common to agribusiness (for example, wheat, rice, and grain) often are in a pure competition position in which distribution (in the sense of shipping products) is important but other elements of marketing have little impact. 80. Analytical insights discovered and used by Netflix, Google, Amazon, Dell, and eBay may have fueled their growth in intranets. extranets. > the marketspace. the Internet of Things. electronic commerce webs.  Marketspace is an information- and communication-based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings. Some experts suggest that the use of analytics is associated with success in the marketplace. Firms that have grown their revenues through analytical insights include Netflix, Google, Amazon, Dell, and eBay. 81. A fitness center is conducting focus groups with its members to develop ideas about how to improve its pool, indoor track, basketball courts, and services. The club is collecting external secondary data. using observational data. > collecting primary data. performing a sensitivity analysis. collecting internal secondary data. Primary data are those facts and figures that are collected for the first time for the project at hand and have the advantage of being more specific to the problem being studied. 82. The outdoor brand The North Face intends to capture some of its competitors’ business in Europe in the next few years, even amid the stagnant economic conditions there. The firm cites the active lifestyles there and the relatively low cost of entry for its backpacking and hiking sports gear, which attracts those planning a low-budget “staycation.” The North Face most likely has a ________ goal. unit sales profit responsibility > market share sales revenue social responsibility Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. The North Face plans to increase its own market share at the expense of its competitors in Europe. 83. Two major types of product positioning are behavioral and psychological. holistic and segmentation. > head-to-head and differentiation. niche and perceptual. competitive and consumer. Two main approaches to positioning a new product in the market are head-to-head and differentiation. 84. What is an example of a single product with multiple market segments? Reach Toothbrush is available in a soft, medium, and hard bristle for adults and kids. Reebok makes tennis shoes, running shoes, walking shoes, and Weeboks. Quaker Oats oatmeal sells both its hot cereals and cold cereals to people of all ages. > Botox is a drug marketed to some groups as a way to reduce signs of aging on the face, and to others as a treatment for migraines. Twinings and Bigelow both market their own brands of Earl Grey tea. A one product and multiple market segment strategy simply involves producing a single product and selling it to two or more market segments, as is the case with Botox that can be used by different segments. 85. Marketing is defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have ________ for customers, clients, partners, and society at large. Potential Profit Experience Satisfaction > Value Key term definition—marketing. 86. Purchasing and engineering personnel visit suppliers to assess their facilities, capacity, and quality control during which stage in the organizational buying process? postpurchase behavior information search > alternative evaluation problem recognition purchase decision In the alternative evaluation stage of the organizational buying process, purchasing and engineering personnel visit suppliers to assess their facilities, capacity, quality control, and financial status. See Figure 5-3 in the text. 87. Identifying a target market and a program to reach it would be considered a(n) marketing plan. marketing tactic. business plan. objective. > marketing strategy. A marketing strategy is the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. The term implies both the end sought (target market) and the means or actions to achieve it (marketing program). 88. A local political party made phone calls to assess its party platform. One question asked respondents to state in their own words what kinds of changes in firearms access and tracking would be desirable. This question is dichotomous. > open-ended. a single response. a Likert scale. a semantic differential scale.  An open-ended question allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher, as in this case. 89. The Orca is a carbon removal plant in Iceland. It takes the carbon dioxide from the atmosphere and pumps it into the ground where it is eventually transformed into rock. It is powered by geothermal energy, which is carbon neutral. The plant uses a modular design that can be simply and cheaply replicated. These innovations are an example of a(n) ________ force that could impact other industries. economic > technological competitive regulatory social Technology refers to inventions or innovations from applied science or engineering research such as the Orca plant. 90. Potential buyers within a market segment should be able to provide significant product synergies. familiar with the product but not yet brand loyal customers. previous customers of at least one of the company’s products. > similar to one another in terms of common needs. cannibalized from competitors’ customers. One of the five criteria to use in forming segments is that potential buyers within a segment should be similar in terms of common needs that, in turn, lead to a common marketing action, such as product features sought or advertising media used. 91. A ________ is a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. point of distinction core competency  product differentiation > competitive advantage business portfolio Text term definition—competitive advantage. 92. Samantha used the Consumer Reports website to research an economical choice for a new refrigerator and range for her home, and she trusted the information because the website was not affiliated with the sellers of these products. This is an example of which type of information source in the purchase decision process? family source personal source marketer-dominated source > public source consumer-controlled source One of the primary sources of external information is public sources, including various product-rating organizations such as Consumer Reports, government agencies, and TV “consumer programs.” 93. The National Institute of Cancer used brain imaging to decide which potential anti- smoking advertising campaign elicited the largest amount of brain activity. This is an example of which type of marketing research? > neuromarketing focus group ethnographic experiential panel Neuromarketing is a relatively new field of study that merges technologies used to study the brain with marketing’s interest in understanding consumers. 94. Which of these is a variable that could be used for demographic segmentation of consumer markets? personality  usage rate NAICS code > race or ethnicity city size Consumer demographic variables are based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers. 95. Ariana Grande, a pop music star, has a perfume named Ariana Grande Cloud Eau De Perfume. It has a sweet floral scent and has been popular among some teenage girls who like Ariana’s music. Teen girls could be described as the ________ for the perfume. market aggregation penetration market mass market tangential market > target market A target market is a specific group of potential consumers toward which an organization directs its marketing program; in this case, the teen girls. 96. ________ often assist companies and their employees with ethical issues by formally addressing contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping. Self-regulations Mission statements Legal handbooks State and local laws > Codes of ethics A code of ethics is a formal statement of ethical principles and rules of conduct. It is estimated that 85 to 90 percent of U.S. companies have some sort of ethics code. Ethics codes typically address contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping.