370 Midterm 2
For products like sugar or pepper, marketers should probably use an undifferentiated targeting strategy. True False
True
Brands enable customers to quickly differentiate one firm or product from another. True False
true
Which of the following is a potential negative factor for foreign investment in China? China's population is aging and is likely to continue to do so for many years. China drastically restricts the goods it allows U.S. companies to export to China. China's standard of living has dropped over the past 30 years. China has imported fewer goods from the United States each year for the past decade. Chinese consumers are not interested in purchasing products from the United States.
China's population is aging and is likely to continue to do so for many years.
Which of these trade agreements represents the highest level of integration among participating nations? USMCA EU GNI ASEAN CAFTA
EU
A publishing company plans to outsource its production-related tasks to a BRIC country. They are assessing opportunities and are attracted to this country due to its population of young, well-educated, technically-skilled workers who are fluent in English. Russia China Brazil India Chile
India
_______ provides the equipment or systems needed to perform a task in a job setting. Service infrastructure Quality mechanics Instrumental support Dynamic support Customer interface architecture
Instrumental support
________ fairness refers to the perceived fairness of the process with which a firm handles customer complaints Procedural Intangible Distributive Service Empowerment
Procedural
The growth phase of the product life cycle is always dynamic. Which of the following occurs in this phase? Profits decrease as sales increase. Profits increase as economies of scale are attained. No competitors will enter the market with similar products. There will be fewer product adopters. Price competition with protracted price wars will erode profits.
Profits increase as economies of scale are attained.
Which of the BRIC nations is most literate? Russia South Africa Brazil India China
Russia
Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu? a brand extension a line extension a copycat brand a premium brand a multi-brand
a line extension
The United States imports more goods than it exports. This is known as gross national income (GNI). a trade surplus. gross domestic product (GDP). a trade deficit. an import imbalance.
a trade deficit.
The first step in the segmentation process is to select a target market. identify and develop a positioning strategy. use a particular method or methods to segment the market. articulate the vision or objectives of the company's marketing strategy clearly. evaluate the segment's attractiveness.
articulate the vision or objectives of the company's marketing strategy clearly.
What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan? actual product associated services product style product position product concept
associated services
The service dimension called ________ refers to the ability of the firm's employees to convey trust and confidence. assurance reliability responsiveness empathy tangibles
assurance
Which of the following is included in the five dimensions used by consumers to determine overall service quality? assurance certifiability acceptability heterogeneity intangibility
assurance
Thomas wants to position his firm against his competitors. In doing so he should never select a competitor in the same neighborhood. avoid making the competitor's product look undesirable. avoid looking too much like the competitor so as not to confuse the target segment. avoid discussing the strengths of his product so that competitors won't be aware of his product quality. avoid discussing the weaknesses of his competitors, so they won't retaliate.
avoid looking too much like the competitor so as not to confuse the target segment.
Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using ________ segmentation. benefit geodemographic psychographic loyalty demographic
benefit
Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What segmentation method is LinkedIn using? loyalty segmentation benefit segmentation psychographic segmentation geodemographic segmentation demographic segmentation
benefit segmentation
YouEye is developing eye tracking technology that works with an individual's webcam. Instead of needing to spend thousands of dollars on eye tracking equipment and having customers come into labs, firms will be able to utilize everyday webcams to track not only what a person attends to on a computer screen but also his or her emotional reactions to these products. Firms such as YouEye are automating the premarket testing process. alpha testing process. beta testing process. evaluation process. concept testing process.
beta testing process.
To reach more customers in India, which represents a vastly promising market but where the GDP is less than $2,000 per capita, Netflix offers subscription plans priced lower than those offered in the United States. This market is known as globalization. glocalization. purchasing power parity. top of the pyramid. bottom of the pyramid.
bottom of the pyramid.
Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offerings emblazoned with its horse logo. It has also licensed its logo to 68 different products, from sunglasses to guitars. Ferrari might be at risk of which of the following? brand awareness perceived value brand extension brand dilution line extension
brand dilution
For a company like Pepsi-Cola, ________ occurs when it sells more product than the competition. corporate branding brand extension brand licensing brand association brand dilution
brand dilution
Matilda developed a toothpaste using only natural ingredients, and she has been quite successful selling the product in health food stores and some grocery stores. She has recently developed a toothbrush using bamboo and natural components. Matilda is considering a ________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness. cobrand brand extension premium brand joint brand natural brand
brand extension
When a restaurant chain, Curt's Homestyle Cooking, launches its own brand of frozen meals, this is an example of a brand extension. line extension. licensed brand. copycat brand. premium brand.
brand extension.
Jeremiah always buys Boar's Head cold cuts. He does not even consider alternatives. Jeremiah is a ________ customer. price-sensitive brand-persuasion-oriented brand-association-oriented brand-extension-oriented brand-loyal
brand-loyal
Pioneer or breakthrough products will likely result in late maturity buying. can change consumer preferences. incorporate reverse engineering outputs. require the use of concept testing services. must be geographically centered
can change consumer preferences.
In many cases, pioneers lose their market lead and initial market share to imitators who capitalize on the pioneers' weaknesses. create similar products with reduced value to consumers. utilize alpha-beta testing. ignore patents and copyrights. target late maturity consumers.
capitalize on the pioneers' weaknesses.
The number of firms with which the seller needs to deal to get its merchandise to the consumer determines the complexity of a global communication strategy. channel. currency exchange policy. home-country market. product strategy plan.
channel.
Roanoke Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on backorder and would be in stock next week. When the customer returned, the item was still unavailable. The owner's policy created a(n) ________ gap. knowledge empowerment communication standards tangibility
communication
The ________ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less knowledge communication delivery standards empowerment
communication
When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a ________ gap knowledge standards social expectations delivery communications
communications
One of the categories of products for which brand extension is especially logical is generic goods. generic services. commodities. complementary goods. licensed brands.
complementary goods.
Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are ________ goods. specialty shopping convenience ritual impulse
convenience
By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by keeping up in a market where sales come mostly from new products. satisfying the changing needs of the technological research staff. avoiding market saturation from products that have just been introduced to the market. creating diversification and reducing risk. spreading out production costs.
creating diversification and reducing risk.
Imagine that you are the marketing manager of a restaurant group that wants to implement a customer reward and loyalty program. You research the firm Guest Hospitality Solutions, which offers its services to restaurant chains to develop and execute these types of programs. Guest Hospitality Solutions is a company that focuses on customer relationship management. building brand awareness. building brand associations. increasing perceived value. increasing brand equity.
customer relationship management.
For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company ________ when certain product lines failed to meet this expectation. increasing product line depth decreasing product line depth decreasing product mix breadth increasing product mix breadth introducing brand extensions
decreasing product mix breadth
Boho Clothing an online trendy women's clothing site, targets college-educated women between 25 and 40 years old with average household income of $70,000 or more. This is a form of ________ segmentation. benefit geodemographic psychographic demographic geographic
demographic
To meet or exceed customers' expectations, marketers must know where customers live. know how often consumers buy their products. determine what those expectations are. recognize that expectations are tangible. empower customers to meet their own expectations.
determine what those expectations are.
Brands can be extremely valuable domestically but challenging internationally. Companies can help overcome language difficulties in using brands by keeping the brand name the same in all languages, regardless of meanings, as long as the brand logo and symbol are displayed prominently. avoiding the use of the brand name in advertising and focusing on feature and benefits. translating advertising copy for the entire ad except the brand name. developing brand names that have no preexisting meaning in any known language. adhering to the UN Convention on Naming Rights.
developing brand names that have no preexisting meaning in any known language.
In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company differentiated its product. streamlined its delivery process. created a new class of micromarketing. defined consumers' basic needs. redefined mass customization.
differentiated its product.
Stefan arrived at the hotel to find that, although he had a guaranteed reservation, the hotel had no rooms available. He became angry when the hotel made him a reservation at a more expensive hotel but refused to pay the difference in room rates. Stefan was upset because, in his opinion, the hotel's solution did not incorporate intangible fairness. distributive fairness. procedural fairness. service fairness. empowerment fairness.
distributive fairness.
Empowerment of employees helps address the delivery gap because employees directly involved with the customer can respond effectively at the moment the problem occurs. customers appreciate feeling empowered. management then doesn't need to devote time and energy to resolving service delivery problems. employees spend less time resolving problems than managers would. it ultimately contributes to employee knowledge and retention.
employees directly involved with the customer can respond effectively at the moment the problem occurs.
When Dr. Ross checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over 12 hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Dorina, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Ross got a few hours of sleep. Dorina's actions are an example of the variability associated with service quality performance. empowerment of employees to meet customers' needs. procedural fairness. specific service standards. public relations to increase puffery.
empowerment of employees to meet customers' needs.
Marketing expenditures allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty for the brand, which all enhance the brand's positioning. licensing. association. equity. solvency.
equity.
When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who export goods to other countries. import goods from other countries. engage in countertrade. enforce import quotas. outsource labor.
export goods to other countries.
When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as exporting. franchising. a strategic alliance. a joint venture. direct investment.
exporting.
When entering a foreign market, the least risky strategy is franchising. exporting. joint venture. direct investment. strategic alliance.
exporting.
A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive. True False
false
A customized mailbox for your house is an example of a convenience product true false
false
Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products. true false
false
If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line extension True False
false
Of the various methods for segmenting, or breaking down, the market, demographic segmentation is the one that delves into how consumers actually describe themselves. True False
false
On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters true false
false
On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters. true false
false
On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available true false
false
On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available. true false
false
Renatta was employee of the month at Sonic Subs, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension true false
false
The BRIC countries are Bolivia, Russia, Italy, and China.
false
The STP process is made up of strategy, targeting, and promotion. True False
false
The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation True False
false
The knowledge gap is where "the rubber meets the road," where the customer directly interacts with the service provider. true false
false
The maturity phase of the product life cycle is characterized by greatly reduced competition true false
false
When Pierre asked a few of his regular customers to test his prototype wine press, he was engaging in alpha testing. true false
false
Globalization refers to the processes by which goods, services, capital, people, information, and ideas are onshored and offshored. flow across national borders. are integrated through IMF facilitation. are similar in various markets. affect corporate culture.
flow across national borders.
The Tapestry™ Segmentation system divides and sorts small geographic areas into categories using 65 or more demographic and lifestyle characteristics. This market research tool is an example of ________ segmentation. geodemographic benefit psychographic loyalty geographic
geodemographic
When a marketer adjusts the marketing mix to give customers a clear, distinctive, desirable understanding of what the product does, the marketer is engaging in market positioning. psychographic segmentation. competitive analysis. geographic segmentation. micromarketing
geographic segmentation.
Warren's Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of cultural shift. glocalization. ethnic sensitivity. promotional flex. unethical marketing practices
glocalization.
Of the five strategies for entering new markets, direct investment creates the least investment cost. greatest potential risk. most franchisee control. best opportunity for strong strategic alliances. greatest coordination of efforts of global and local partners.
greatest potential risk.
Procter & Gamble is a huge national brand manufacturer. By owning its brands like Downy and Oral-B, P&G can monopolize store brands. has greater opportunity to dictate retail pricing. has greater control over its marketing strategy. can increase brand dilution. can eliminate any local competition
has greater control over its marketing strategy.
The decision to delete a product is never taken lightly because, generally, manufacturers have offered the product line to other firms for purchase. have made substantial investments in product development and manufacturing. have promised consumers they will maintain the product. have used brand repositioning to improve results. must meet federal standards when taking products off the market.
have made substantial investments in product development and manufacturing.
Many services marketers use training and standardization to reduce service knowledgeability. inseparability. intangibility. heterogeneity. perishability.
heterogeneity.
Because of ________, many companies have altered their "no questions asked" return policies to include time limits, "restocking" fees, and store-credit-only refunds. government regulations Better Business Bureau guidelines high costs accounting concerns well-publicized liability cases
high costs
Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over how they communicate the services they promise. the price of ingredients. the attitudes of customers. the way customers view them compared to competitors. the knowledge gap consumers create
how they communicate the services they promise.
If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are visual images of how we should live our lives. our underlying motivations. how we live our lives to achieve our goals. motivations turned into perceptual maps. determined by demographics.
how we live our lives to achieve our goals.
Effective service recovery efforts can lead to lower purchase intentions. increased positive word of mouth. decreased customer satisfaction. higher levels of satisfaction than prior to the service failures. increased dependence on technology to prevent future service failures.
increased positive word of mouth.
A company is assessing opportunities in the BRIC countries and determines that ________ is one of the youngest populations in the world and is increasingly adopting global attitudes. Russia Brazil India Italy China
india
Consumers might not realize that Philadelphia cream cheese and Jell-O products are made by the same company—Kraft. Philadelphia cream cheese and Jell-O are known as individual brands family brands. corporate brands. traditional brands. umbrella brands
individual brands
When Kraft's Philadelphia cream cheese changed its packaging from round to oval to ensure front-facing displays that can't spin and to fit more into the same shelf space, this was a subtle way in which the firm ________ its product. sustained branded repositioned individualized privatized
individualized
Roberto has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Roberto's problems is that services are ________, making evaluation of service quality difficult. quantifiable substantial unequally distributed intangible inconsequential to customers
intangible
The ________ stage of the product life cycle is characterized by negative or low profits. introduction leveling maturity growth decline
introduction
The CEO of Charisse's firm just came back from a business seminar. He called Charisse into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." Charisse needs to think fast for a good answer because she knows that the product life cycle is not a useful concept. it is often impossible to identify with precision where a product is in the product life cycle. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. the idea has been discredited by recent research. the product life cycle works only for certain types of firms.
it is often impossible to identify with precision where a product is in the product life cycle.
Jacques manages an upscale French restaurant in the Philadelphia area. His restaurant offers a few specials each evening in addition to its regular menu. Jacques has trained his servers to report comments and requests for items that have previously been offered only as specials. Jacques uses this information to reduce the ________ gap in services marketing seniority knowledge standards delivery communication
knowledge
When Juanita booked a room at the Wintergarden Resort, she expected that her room would be ready when she got there, the swimming pool would be heated, the advertised singer would be able to sing, and the breakfast would be fresh. When she arrived, she had to wait for her room, found the swimming pool to be 50 degrees, realized the singer could not carry a tune, and the free continental breakfast was stale. The Wintergarden Resort was experiencing a severe ________ gap. communications knowledge standards delivery expectations
knowledge
By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the ________ diffusion of innovation group. innovator laggard late majority early majority early adopter
late majority
Which of the following groups are included in the diffusion of innovation curve? lead users nonadopters late majority pioneers prototypers
late majority
What is a particularly important feature of sustainable packaging? better protection against damage to the product lowers the product cost increases the ability to see the product in multiple retail outlets only using recyclable materials less of a negative impact on the environment
less of a negative impact on the environment
A long-standing staple of ______ has been major league sports teams that play in the MLB, NBA, NFL, or NHL as well as various collegiate sports teams. rights. branding licensing product line rebranding repositioning
licensing
Sometimes all that needs to be done to satisfy a customer complaint is to listen to the customer. demonstrate loyalty. empower the customer. respond in a straightforward manner. get management involved.
listen to the customer.
For marketers, one of the benefits of having achieved brand loyalty is recognition through industry awards. lower marketing costs associated with reaching loyal customers. increased price sensitivity among loyal customers. greater concern about competitors' actions. few worries about copyright infringement.
lower marketing costs associated with reaching loyal customers.
Frequent buyer/user award programs are used to increase price sensitivity. decrease cobranding costs. lower licensing fees. expand product line depth. maintain contact with loyal customers.
maintain contact with loyal customers.
Tariffs protect domestic producers by making imported products more expensive. increasing brand recognition. reducing the cost of production. offering subsidies to exports. avoiding regulation.
making imported products more expensive.
Edmund has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Edmund has identified ________ that respond similarly to his marketing efforts. mass customization consumers geographic segments market segments self-concept customers geodemographic segments
market segments
When selecting a target market, firms will be most successful if they decide between demographic and geographic segmentation methods. seek out opportunities to customize products. develop a strong communication plan. match the firm's competencies with a market segment's attractiveness. reposition the brand
match the firm's competencies with a market segment's attractiveness.
Economic measures like GDP and GNI do not fully account for a country's economic health because they measure only material output. international trade. global expectations. purchasing power parity. poverty potential.
material output.
In the United States, most consumer packaged goods found in grocery and discount stores are already in the ________ stage of the product life cycle growth pioneer introduction decline maturity
maturity
Melinda has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the ________ stage of the product life cycle. introduction growth evaluation maturity decline
maturity
Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from relative advantage. compatibility. observability. complexity. trialability.
observability.
Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows Adidas to use a differentiated targeting strategy to engage in micromarketing for hard-to-fit shoe customers. obtain a bigger share of the shoe market. use mass marketing techniques. utilize geographic segmentation. generate economies of scale in advertising expenditures.
obtain a bigger share of the shoe market.
Where on a product's packaging would one most likely find nutrient content and country of origin? inside the secondary package inside the primary package on the company website on the label on the store shelf display
on the label
Dartel, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves McDonald's food, he decides to open a McDonald's franchise. directly invest in McDonald's. export McDonald's products to other countries. form a strategic alliance with McDonald's. form a joint venture with McDonald's.
open a McDonald's franchise.
As it relates to positioning, a _________ displays the position of products or brands in the consumer's mind. segmentation map SWOT analysis geographic display self-values map perceptual map
perceptual map
In the product development process, what takes place between concept testing and market testing? securing financial backing conducting marketing research brainstorming determining potential ROI performing product development
performing product development
Whenever Liam calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local businessperson and has been in business over 20 years. Liam is ________ his business relative to his competition. segmenting packaging positioning pricing targeting
positioning
Global pricing strategies should strive to be consistent with offshore distribution facilities. the cost of materials. positioning strategies. domestic pricing. trade surplus guidelines.
positioning strategies.
Because services like cruises and car rentals are perishable, many marketers use pricing strategies to match supply with demand. service quality to extend the life of the product. incentives to encourage staff to deliver according to standards. training to standardize delivery. machines to replace people for standard transactions.
pricing strategies to match supply with demand.
A ________ package is the one a consumer uses. A ________ package is used by retailers to display and sell the product. secondary; primary generic; private-label primary; secondary corporate; manufacturer's cobranded; licensed
primary; secondary
One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked procedural fairness. variability. organizational fairness. intangibility. explanatory fairness.
procedural fairness.
We often see advertisements touting a product as being made with natural ingredients or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on the value proposition. product attributes. symbols. competitive comparisons. profitability.
product attributes.
If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is market testing. product development. brainstorming. reverse engineering. launching of the product.
product development.
The ________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix. pretesting product launch posttesting product development evaluation of results
product launch
A ________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products product line product mix product mix breadth line extension brand extension
product line
Stitch Fix is a successful online clothing company. One of the difficulties in running a clothing company is the need to have significant ________, a large number of items in each product line brand equity product line breadth product line depth product mix depth product mix breadth
product line depth
With access to the Internet nearly universal in the United States, many potential market segments have become more substantial. perceptive. identifiable. reachable. quantifiable.
reachable.
Sarita is opening an upscale women's clothing store in a growing suburban residential area. Sarita knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis, so she will most likely use ________ as a basis for targeting her mark voter registration lists the city phone book real estate values by subdivision public school enrollment data new construction data
real estate values by subdivision
Ravi is gathering information about the general economic environment in Bangladesh. In doing so, he will look for information about the general economic environment, market size and population growth rate, and culture. real income. airport capabilities. political status. religious institutions.
real income.
Greta had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an antidandruff shampoo. The new ads suggest that Head & Shoulders has most likely been rebranded. reformulated. licensed to a premium shampoo manufacturer. extended as a brand. cobranded.
rebranded.
Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their relative advantage. compatibility. observability. associated services. trialability.
relative advantage.
The new hotel manager asked the pastry chef, "Are you sure you know how to cook Baked Alaska?" Which of the service dimensions was the hotel manager expressing concern about? reliability responsiveness assurance empathy tangibles
reliability
For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's offering. In other words, the market segment must be substantial. perceptive. identifiable. reachable. responsive.
responsive.
The manager of Oceanside Yacht Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one "happy hour" special, but few members showed up. The manager did not have a grasp of what would make his target market substantial. responsive. identifiable. reachable. quantifiable.
responsive.
Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood. Internet marketers wholesalers retailers consumer goods manufacturers cable TV networks
retailers
Which of the following would be used in calculating the profitability of a segment? segment perceptions segment size geographic segmentation demographics product positioning
segment size
Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' ________, suggesting "be like me." geographic choices self-concepts loyalty references benefit perceptions demographics
self-concepts
Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call service perceptions. service efforts. service quality. service aspirations. service feedback.
service quality.
Medical services and assisted living care are examples of services shifted abroad because costs are lower in developing countries. services an aging population will increase the demand for. household maintenance activities that people increasingly pay others to perform. the price elasticity effect on services demand. the ability of empowerment to create tangible service products.
services an aging population will increase the demand for.
When Winifred planned her trip to Cambodia, she spent months evaluating packages, airfares, and hotel accommodations. Winifred's trip is an example of a(n) ________ product specialty convenience unsought shopping sought
shopping
Fashion trends tend to experience ______ product life cycles long annual sequential competitive short
short
The shift of population from rural to urban areas in countries such as India helps global marketers by decreasing pollution. simplifying the supply chain needed to make goods and services available. increasing the human development index. decreasing competition for intellectual capital. increasing nonmaterial GDP output.
simplifying the supply chain needed to make goods and services available.
Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using the value proposition. salient attributes. symbols. the competition. perceptual maps.
symbols.
A marketing professor in Boston, Massachusetts, maintains a museum of failed consumer products. Most new products in this museum failed during the ________ stage of new product development, when they are introduced to a limited geographic area. pretesting product launch test marketing product development concept testing
test marketing
Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of target marketing. test marketing. product marketing. product launching. premarket testing.
test marketing.
When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in pretesting. product launch. test marketing. product development. concept testing.
test marketing.
Most customers want to achieve a fair solution following a service failure. Which of the following factors affect a person's perceptions of "fairness" in these kinds of situations? increased zone of tolerance the customer's experience with other firms the firm's policy on service recovery existence of a voice-of-customer (VOC) program understanding the company's standards gap
the customer's experience with other firms
After assessing the market growth potential in Brazil for his company's baby products, Jaime wanted to evaluate market competitiveness. To do this, Jaime would consider mass marketing of distribution potential and logistical support. the current size of the market and the expected growth rate. ease of pricing control and number of promotional outlets. the number of competitors, entry barriers, and product substitutes. profitability and customer buying behavior.
the number of competitors, entry barriers, and product substitutes.
On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates the product launch. the company's evaluation of results. premarket demonstrations. alpha testing. beta testing.
the product launch.
The diffusion of innovation theory focuses on the geographic boundaries of innovation. the relationship between pioneer brands and imitators. the psychological traits of innovators. the rate at which consumers are likely to adopt a new product or service. the way a product moves through the product life cycle.
the rate at which consumers are likely to adopt a new product or service.
A company has a new concept for a lightweight bicycle that can be easily folded and taken with you inside a building or on public transportation. The company is currently engaged in concept testing. The most important question during this phase of product development pertains to the cost of research and development. the price of the final product. the cost to manufacture the product. marketing and advertising costs. the respondent's purchase intentions if the product were made available.
the respondent's purchase intentions if the product were made available.
Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country. the infrastructure in most developing countries. the direct investment of payroll funds in a foreign bank. the selling of the same product or service in both the home-country market and the host country. the international certification required for working outside the United States.
the selling of the same product or service in both the home-country market and the host country.
Global marketers typically find distribution in developing countries is more complex because they must go through many different types of distribution channels. distribution is more heavily regulated in developing countries. most consumers in developing countries live in densely populated cities. the infrastructure is more advanced in most developing countries. consumers in developing countries have very specific preferences.
they must go through many different types of distribution channels.
Many product-dominant firms use quality service as a way to minimize the cost of production. to support a standards gap. as a way to increase the perishability of their products. to install a voice of the customer program. to maintain a sustainable competitive advantage.
to maintain a sustainable competitive advantage.
As a promotion technique, samples are often used for new products when ________ will influence the diffusion of the product relative advantage compatibility observability complexity trialability
trialability
Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the ________ of its products relative advantage compatibility observability complexity trialability
trialability
Adidas sells shoes, clothing, and athletic gear. These products represent the breadth of Adidas' products true false
true
Brands enable customers to quickly differentiate one firm or product from another. true false
true
Byron traded in his old car for his heart's desire, a new Mustang convertible. The Mustang is considered a specialty product. true false
true
Distributive fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss. true false
true
Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage true false
true
Global expansion often begins when a firm receives an order for its product or service from another country. true false
true
In most European countries, retailers can't sell below cost, and in others they can't advertise "before" prices if the product hasn't been sold at that price for two weeks
true
In the service context, empowerment means allowing employees to make decisions about how service is provided to customers. true false
true
It would be logical for bathing suit marketers to use geographic segmentation. True False
true
New product development adds value to a firm's products and services through innovation. true false
true
Rafi wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and communications capabilities in each country.
true
The communication gap can be reduced by managing customer expectations. true false
true
The fact that the Apple iPad is easy to try—demo units are available at Apple stores as well as other retail stores—is helping it diffuse more quickly. true false
true
The failure rate for new products is high true false
true
The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country.
true
The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service. true false
true
To determine if a new product is commercially viable, a firm can conduct premarket testing true false
true
Frederico was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider the features the engineers feel are most important. the ways the sales representatives have been positioning the firm's products. the characteristics that helped his firm win a statewide award for excellence in manufacturing. what the target market would consider the most important features. the safety record of the firm and its products
what the target market would consider the most important features.
Frederico was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider the features the engineers feel are most important. the ways the sales representatives have been positioning the firm's products. the characteristics that helped his firm win a statewide award for excellence in manufacturing. what the target market would consider the most important features. the safety record of the firm and its products.
what the target market would consider the most important features.
When Camden Bank required all customers to use its online banking services, over 30 percent of its customers closed their accounts. In this scenario, Camden Bank's service fell outside customers' zone of tolerance. delivery gap. zone of intolerance. service gap. patience zone.
zone of tolerance.
A familiar brand name always helps the sales of a product. True False
False
Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be. True False
True
Which of the following is true of profits in the maturity stage of the product life cycle? They are negative. They are low. They peak or are declining. They are rapidly rising. They are slowing rising.
They peak or are declining.
Harry is a loyal Coca-Cola customer. Loyal customers like Harry require lower marketing expenditures, benefiting businesses like Coca-Cola. True False
True
A product label is just a required sticker on a package. True False
false
A product is anything that is of value to a consumer and can be offered through a voluntary marketing exchange
true
When deciding how to promote his new medical oncology center, Dr. Smith decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Smith was engaged in a concentrated targeting strategy. True False
true
Geert Hofstede's cultural dimensions concept focuses on six dimensions of ________ in a country. symbols underlying values buying patterns personality visible artifacts
underlying values
In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn't overlap with anything else represents the firm's value proposition. competitors' value propositions. low-priority needs and wants that customers are willing to give up. unmet customer needs/wants. unknown customer needs/wants that the firm does not understand.
unmet customer needs/wants.
Maintaining a unique ________ can be sustained in the long term only in monopoly situations or monopolistic competition situations. market position value proposition salient attribute marketing communication market segmentation
value proposition
Robin laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues to sociocultural factors. He was looking at both ________ and ________. product uses; currency rates language; trading blocs and social structure potential tariffs; symbols visible artifacts; underlying values verbal communication; logistic
visible artifacts; underlying values
Customers have a defined ________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store voice-of-customer quotient empowerment standard tangibles gap zone of tolerance quality gap
zone of tolerance
Because a market is saturated, firms may attempt to enter new geographical markets that may be less saturated. For example, pharmaceutical companies are realizing that they need to turn to ________ for continued growth in the coming years BRIC countries third-world countries communist countries Germany France
BRIC countries
According to Hofstede's cultural dimensions concept, which BRIC country posts high scores in the dimension of power distance and low on individualism? Russia Brazil India China Iran
Brazil
Which country has a rapidly aging population due to its one-child policy? Brazil Russia India China Japan
China
Which country has embraced market-oriented economic development in spite of maintaining communist political ideals? Brazil Russia Iran China Afghanistan
China
All products and services are intangible true false
false
______________offers the firm complete control over its operations in the foreign country. A joint venture Franchising A strategic alliance Exporting Direct investment
Direct investment
An effective global pricing strategy can be easily established by setting the same prices in every market around the world.
false
