BA 370 Test 2
Denny always liked REI outerwear, so when he was shopping for a winter coat, he ordered one from REI without thinking too much about it. This demonstrates how ______ facilitate purchases.
Brands
Which BRIC country's economic growth in the 21st century can largely be attributed to the expansion of its literate population and the impositions of social programs that have allowed more than half of its 201 million citizens to enter the middle class?
Brazil
A tablet programmed with key customers' birthdates, wine preferences, and food allergies is a(n) ________ tool.
CRM (customer relationship management)
Which of the following statements is true with regard to growth in global markets?
Changes in technology, especially communications, have been a driving force for growth in global markets for decades.
Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?
China
A decrease in a company's product depth will always hurt its marketing efforts.
False
All products and services are intangible.
False
Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country.
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.
False
Global distribution networks that involve wholesalers, exporters, importers, and different transportation systems generally lower costs and prices for products.
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.
False (brand extension)
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.
False (early adopters are the second group, innovators come first)
Of the various methods for segmenting, or breaking down, the market, demographic segmentation is the one that delves into how consumers actually describe themselves.
False (psychographic not demographic)
The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation.
False (psychographic segmentation)
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.
False (relates to responsiveness)
In entertainment licensing, the major risk to licensees is that the brand will become overexposed.
False (risk is dilution)
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.
False (the problem is reachability)
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.
India
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.
Individualized
Rafael and Luisa live in the United States. Rafael recently asked for Luisa's cell phone number, but Luisa said she didn't own a cell phone. Luisa would probably be considered a(n) ________ in the diffusion of innovation process.
Laggard
Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product?
Line extension
One of the key characteristics of brainstorming sessions is
No idea is immediatley accepted or rejected
________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, desirable understanding of the firm's offerings relative to competitors' offerings.
Positioning
Which of the BRIC nations is most literate?
Russia
Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of
Satisfying the changing needs of new and current customers
The diffusion of innovation theory focuses on
The rate at which consumers are likely to adopt a new product or service.
What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?
They are not specific
Which of the following is true of profits in the maturity stage of the product life cycle?
They are peak or are declining
As a promotion technique, samples are often used for new products when ________ will influence the diffusion of the product.
Trialability
A delivery gap is the difference between the firm's service standards and the actual service it provides to customers.
True
Distributive fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss.
True
Effective packaging and labels send consumers the signal "Buy me!"
True
For products like sugar or pepper, marketers should probably use an undifferentiated targeting strategy.
True
In the service context, empowerment means allowing employees to make decisions about how service is provided to customers.
True
New product development adds value to a firm's products and services through innovation.
True
Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.
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 greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country.
True
The most challenging part of applying the product life cycle concept is that managers do not know exactly what shape each product's life cycle will take.
True
To determine if a new product is commercially viable, a firm can conduct premarket testing.
True
When consumers see their friends using an innovation, it often persuades them to try it too.
True
Which of the following best describes the direct investment global entry strategy?
With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country.
The level of economic development, as well as differences in product and technical standards, helps determine the need for and level of product
adaptation
By providing good customer service, firms ________ their products.
add value
Freida is using a test model of her firm's new inline skates to see if they work according to the design specifications. She is involved in
alpha testing
Which of the following is included in the five dimensions used by consumers to determine overall service quality?
assurance
The light beer commercial with the slogan "less filling, tastes great" was based on ________ segmentation.
benefit
For a company like Pepsi-Cola, ________ occurs when it sells more product than the competition.
brand dilution
When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in
brand extension
Efforts to change a brand's focus to target new markets or change the image of a brand are called
brand repositioning
British Airways Visa, created cooperatively by British Airways and Visa, is an example of
cobranding (two or more brands together)
China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy.
communication
Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered ________ with consumers' needs and priorities.
compatibility
One of the categories of products for which brand extension is especially logical is
complementary good (chips and dip)
A company that sells only herbal iced tea should use a(n) ________ targeting strategy.
concentrated
When Curt's Catering first opened, the owner decided to target only events at resorts in its geographic region. Curt's Catering was using a(n) ________ targeting strategy.
concentrated
Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns
consistent with underlying cultural values in a country.
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
creating diversification and reducing risk
In services marketing, the saying "where the rubber meets the road" refers to whether or not a(n) ________ gap exists.
delivery
Beer marketers know that high-school-educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a ________ segment of the beer market.
demographic
Which of the following would be part of the launch of a new product?
determining the market budget for the first year of the product
When Nigeria's economy suffered because of a drastic fall in oil prices, the government encouraged people to buy more local products by
developing a social media campaign
As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and
differences in the way consumers see themselves and in the way they see products and services.
Claire's Classy Accessories has 59 stores in the United States and wants to expand globally. Claire's wants to achieve the highest possible returns and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely
direct investment
Kanton Publishing Company learned that when selling overseas, local fulfillment can be more cost-effective, and it also can decrease delivery time and improve customer service. This is an example of a global ________ strategy.
distribution
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
equity
Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and
establishing an early market share lead
According to purchasing power parity theory, if ________ is(are) in equilibrium, products will cost the same in each country.
exchange rates
Martine wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with
exporting her products
A product label is just a required sticker on a package.
false
Among the various international trade agreements, the USMCA represents the highest level of integration across individual nations.
false
NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.
false
Of the five strategies for entering new markets, direct investment creates the
greatest potential risk
During the ________ stage of the product life cycle, sales rise, profits rise rapidly, and there are an increasing number of competitors.
growth
Which of the following refers to variability in a service's quality?
heterogeneity
In a competitive market, perceived value is determined by consumers mostly
in relation to the value of its close competitors.
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
Jose was complaining to another member of the lawn crew, "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they don't cut anything, and the rest of the equipment is so old that we can't get parts." Jose's company lacks the ________ workers need to be able to do a good job.
instrumental support
Because services are ________, it is often difficult for marketers to convey the benefits to consumers.
intangible
When marketers say that services are ________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.
intangible
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.
late majority
Rinaldo sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are ________, who can provide ideas for new and improved products.
lead users
Alain is a sales representative for an established awnings manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Alain can market his current products only to his current customers or
market the same products to similar customers
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
obtain a bigger share of the shoe market
Which of the following is a key component of a value proposition?
offering name or brand
For new product marketers, early adopters are important because they tend to be
opinion leaders
In the product development process, what takes place between concept testing and market testing?
performing product development
When marketers state that services are ________, they are referring to the fact that services cannot be stored for use in the future.
perishable
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.
positioning
In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as
premarket testing
Suppose that CVS (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would CVS be introducing?
private-label brand
If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is
product development
A university that has separate graduate and undergraduate admission offices recognizes that these are distinct
product lines
The complete set of all products offered by a firm is called its
product mix
Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to
profitability
The growth phase of the product life cycle is always dynamic. Which of the following occurs in this phase?
profits increase as economies of scale are attained
After observing a customer verbally abuse a server, the first thing a manager can do to ensure quality service is to
provide emotional support to the server
Marketers have found that ________ segmentation is often more useful for predicting consumer behavior than ________ segmentation.
psychographic; demographic
The Big Mac Index is a novel measure of
purchasing power parity
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
When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.
responsive
The building blocks of service quality are reliability, assurance, tangibles, empathy, and
responsiveness
Private-label brands are developed and marketed by a(n)
retailer
Brands that are owned by ________ are called private-label brands.
retailers
Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood.
retailers
Which of the following would be used in calculating the profitability of a segment?
segment size
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.
shopping (comparing)
The Big Mac Index
suggests that exchange rates should adjust to equalize the cost of a basket of goods and services all over the world.
Danielle was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Danielle to select an alternative venue?
tangibles
The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ________ service characteristic.
tangibles
The most important consideration when a firm chooses a global product strategy should be
the needs of the target market
Fiona is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will specifically help her in this analysis?
the number of children needing day care in the immediate area
Which of the following sis a main component of a value proposition?
the target market
Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on
the value proposition
Domino's growth plan has focused on Mexico partially because
there is a growing penetration of Internet technologies.
What do the BRIC countries have in common?
they are experiencing significant levels of economic growth
When corporate headquarters announced new service quality standards for pizza franchise owners, Donald knew he would have trouble gaining employees' support because
they were not involved in setting the goals
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
unmet customer needs/wants
Capital One Bank uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Capital One is using a(n) ________ program to improve service quality and service offerings.
voice-of-customer
While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine
what their customer need
Today, many developed countries are experiencing ________ population growth.
zero or negative
