Bus 346 Final Questions Metcalf

A buying center whose members reach a decision based on a collective agreement is known as an autocratic buying center. True or False

FALSE A consensus buying center is one in which all members of the team must reach a collective agreement to support a particular decision.

A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order. True or False

FALSE A straight rebuy is typically used for additional purchases of things that are bought regularly. In this case, a new buy is the most likely choice.

Brands that have developed loyal customers have a higher price elasticity of demand. True or False

FALSE Brands with loyal customers have lower price elasticity of demand; in other words, demand will decrease more slowly as price goes up.

The maturity phase of the product life cycle is characterized by greatly reduced competition. True or False

FALSE Competition intensifies in the maturity phase because the only way a firm can gain customers is typically to take them away from the competition.

What does a Klout score measure? Select one: a. social reach, influence, and extended network b. media influence c. conversion rates d. page views and sales e. click path and bounce rate ratio

a. social reach, influence, and extended network

Sandisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In BCG portfolio analysis, the Sansa would be considered a dog. True or False

TRUE The Sansa has low relative market share in a low-growth market, which is the definition of a dog.

Even the best marketing communication can be wasted if the sender does not gain the attention of the consumer. True or False

TRUE The first step in moving a consumer toward taking action is to raise awareness and gain attention.

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 or False

TRUE The product life cycle is a general model of the life of a product; however, there is no way to know precisely what stage a product is in.

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the Select one: a. shareholders. b. marketing managers. c. customers. d. competition. e. employees.

e. employees.

The three general objectives of advertising are to select, target, and promote. True of False

FALSE The three general objectives of advertising are to inform, persuade, and remind.

When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4, and the competitive parity was 10. The gross rating points for her firm's campaign were A. 160. B. 1600. C. 400. D. 40. E. The answer cannot be determined from this information.

A. 160. Gross rating points (GRP) are computed by multiplying reach by frequency. Thus, in this case, GRP = 40 x 4 = 160.

Gene's Complete Cameras offers its customers an interactive website to help them choose the best camera for their lifestyle. But the site's most-used feature is its user blog in which customers—both satisfied and unsatisfied—talk about products they have purchased and the service received at Gene's. The user blog best describes which of the 4E frameworks for the store's customers? A. Engage B. Energize C. Excite D. Experience E. Educate

A. Engage Through social media tools such as blogging and microblogging, customers actively engage with firms and their own social networks. Such engagement can be negative or positive. Positively engaged consumers tend to be more profitable consumers, purchasing 20 to 40 percent more than less engaged customers.

Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle? A. Laggards are a major focus of marketing efforts. B. Price competition is intense. C. Marketing costs increase as firms defend their market share. D. The market may become saturated because nearly all potential customers have adopted the product. E. To increase the customer base, firms consider entry into new markets and new market segments.

A. Laggards are a major focus of marketing efforts. The late majority, not laggards, should be the focus of marketing efforts in the maturity stage.

Which of the following is an example of an institutional buyer? A. Mayo Clinic Hospital B. Procter & Gamble C. U.S. Marine Corps D. Nucor Steel Corporation E. Walmart

A. Mayo Clinic Hospital Institutional buyers include organizations such as hospitals, colleges, and churches.

_________ are the three types of attribute sets. A. Universal, retrieval, and evoked B. University, relatives, and expression C. United, relations, and exploration D. Urban, random, and exchange E. Unanimity, rule, and express

A. Universal, retrieval, and evoked and categorizes alternatives to aid his or her decision process. Universal sets, retrieval sets, and evoked sets are the three types of sets identified.

Sally could recall the brand of toothpaste she used only when a marketing researcher mentioned the brand. This is known as A. aided recall. B. unaided recall. C. top-of-mind awareness. D. brand preference. E. brand indifference.

A. aided recall. Aided recall is when consumers recognize the brand when the name is presented to them.

In the AIDA model, the think stage is the __________ stage. A. awareness B. action C. interest D. desire E. intention

A. awareness The think stage in the AIDA model is awareness.

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. A. benefit B. geodemographic C. psychographic D. loyalty E. demographic

A. benefit These promised results are all benefits that a target market might seek.

One difficulty associated with using advertising as part of a marketer's IMC efforts is A. breaking through the clutter of other messages targeted for the same audience. B. that it is more expensive than personal selling. C. that it only works when communicating to the most uninformed consumers. D. that government regulations have significantly decreased allowable advertising frequencies. E. that it is considered old-fashioned by many younger consumers.

A. breaking through the clutter of other messages targeted for the same audience.

When studying culture, the challenge for marketers is to determine whether culture A. can help to identify a particular group that might be interested in the marketer's products. B. is regional or subregional. C. reinforces stereotypes. D. is related to educational achievement. E. offers opportunities for competitors.

A. can help to identify a particular group that might be interested in the marketer's products. The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people.

For which of the following purchases would consumers most likely engage in limited problem solving? A. college courses B. a new car C. a home D. coffee to go, for a regular coffee drinker E. a location for a large wedding reception

A. college courses A new car, a home, and a wedding location are major decisions that will probably lead to extended problem solving. Coffee to go for a regular coffee drinker is probably a habitual purchase. But college courses will probably lead to limited problem solving. Students will check available options, consider their choices, and might consult friends or past course evaluations for more information; however, they are unlikely to engage in extensive information search or extensive evaluation of alternatives, especially since some courses will be required for a degree.

In the IMC process, noise can occur as a result of lack of message clarity, a poor choice of medium, or A. competing messages. B. an extended feedback loop. C. indirect encoding. D. inhibited decoding. E. excessive reach.

A. competing messages. Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lack of clarity in the message, or a flaw in the medium.

A firm's macroenvironment includes all of the following EXCEPT A. competition. B. culture. C. demographics. D. economics. E. political/legal issues.

A. competition. Competition is part of the immediate environment, not the macroenvironment.

An online retailer needs to be able to measure how well its website converts purchase intentions into actual purchases. This is known as the A. conversion rate. B. collection ratio. C. consumer index. D. customer total. E. buyer quotient.

A. conversion rate. The conversion rate is percentage of purchase intentions that are converted into actual purchases.

Southwest Airlines operates a blog called "Nuts About Southwest." A group of employees share the responsibility for posting items of potential interest to customers—for example, short videos about Southwest's travel destinations, articles (with photos) about special events, and news about airline promotions. "Nuts About Southwest" is an example of a A. corporate blog. B. network blog. C. personal blog. D. professional blog. E. social blog.

A. corporate blog.

Whether targeting consumers or resellers, marketers need to focus on A. creating value for their customers. B. buying center synergy. C. private exchange efficiency. D. corporate profit sharing. E. reducing derived demand.

A. creating value for their customers. Value creation is a key consideration for both B2C and B2B marketing.

Which of these is a macroenvironmental factor? A. culture B. corporate partners C. competition D. company E. competencies

A. culture

If the price for a product increases, the demand for the complementary product will A. decrease. B. increase. C. stay the same. D. become more elastic. E. become more inelastic.

A. decrease. Complementary products are things that are used together; if the price of one product increases, the demand for the complementary product will decrease because the total cost of using the two products together has increased.

Television advertising has recently expanded to include mini-ads, which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. This type of advertising will be more useful to marketers engaged in __________ segmentation. A. demographic B. psychographic C. behavioral D. benefits E. geographic

A. demographic Gender is a demographic variable.

Marketers often use principles and theories from sociology and psychology to better understand consumers' actions and to A. develop basic strategies for dealing with their behavior. B. contribute to the theoretical knowledge in those disciplines. C. avoid cultural reference group problems. D. maximize postpurchase cognitive dissonance. E. satisfy ritual consumption needs while avoiding overconsumption.

A. develop basic strategies for dealing with their behavior. Sociology and psychology have both contributed many theories to marketing knowledge.

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into Butterball turkeys. In the process, the company A. differentiated its product. B. streamlined its delivery process. C. created a new class of micromarketing. D. defined consumers' basic needs. E. redefined mass customization.

A. differentiated its product. Swift took an undifferentiated product—frozen turkeys—and differentiated its turkeys by branding it Butterball, enabling them to position its turkeys as something special.

Danielle is creating an advertising message designed to appeal to consumers' fears of having their home broken into. Danielle's message will focus on a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

A. emotional This describes an emotional appeal, which tries to reach the consumer by forging a bond between the consumer and the brand.

Automobile manufacturers often use television advertising showing an attractive man or woman driving the manufacturer's stylish new car on a winding road along an ocean vista. These types of ads have __________ appeal. A. emotional B. ethical C. informational D. institutional E. reminder

A. emotional An emotional appeal tries to reach the consumer by forging a bond between the consumer and the brand.

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is NOT one of these factors? A. ethical B. cultural C. political D. technological E. demographic

A. ethical CDSTEP stands for Cultural, Demographic, Social, Technological, Economic, and Political forces.

Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the __________ step of the marketing planning process. A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

A. evaluate performance Craig should still evaluate performance, even if results were good. There's always a chance that he was successful due to luck, not due to the quality of his plan. There's also a chance that he did well, but that he could have done even better with a stronger plan.

The consumer's level of involvement can lead to two types of buying decisions: __________ and __________. A. extended problem solving; limited problem solving B. culturally influenced; autonomous C. economic; social D. physiological/safety; esteem/self-actualization E. habitual; extended

A. extended problem solving; limited problem solving Extended problem solving typically occurs under a high level of involvement; limited problem solving typically occurs under a low level of involvement.

An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the __________ for this telecast. A. frequency B. reach C. gross rating points D. ROI E. click-through rate

A. frequency Frequency is the number of times the audience is exposed to a communication within a specified period of time.

When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing __________ needs. A. functional B. prepurchase C. social D. psychological E. functional and psychological

A. functional Mountain climbers need clothing that will allow them to handle the tough conditions on a Mount Everest climb. This is an example of a functional need.

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A. geodemographic PRIZM and ESRI start with geographic segmentation and then layer on demographic and lifestyle variables, creating geodemographic segmentation schemes.

The phrase "birds of a feather flock together" captures the idea of __________ segmentation. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A. geodemographic The basis of geodemographic segmentation schemes like PRIZM is that the people who live in a neighborhood have more in common than geographic location.

The many demands on consumers today have made it more difficult for marketers to A. grab consumers' attention. B. decide what to offer. C. deliver products just-in-time. D. differentiate between the needs of seniors and Baby Boomers. E. offer green marketing solutions.

A. grab consumers' attention. Getting consumers' attention in the time-poor society is difficult.

Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to? A. green marketing B. time-poor society C. cultural diversity D. technological advances E. regulatory issues

A. green marketing By eliminating the cardboard core, a form of consumer waste is eliminated, which would be of interest to consumers concerned about the environment—in other words, this is an example of green marketing.

During the __________ stage of the product life cycle, there are few but an increasing number of competitors. A. growth B. introduction C. maturity D. decline E. innovation

A. growth During the growth stage, competitors have been exposed to the product and can evaluate how it is doing in the market. Based on their observation, several may begin to participate.

Marvin is looking for data to help him with a new market research study assigned to him. When reviewing existing secondary data from a past research study, Marvin should pay careful attention to A. how the secondary data were collected. B. where the data were warehoused. C. whether the Bureau of the Census has certified the research. D. whether the data were transformed into information. E. how often primary data were substituted for secondary data.

A. how the secondary data were collected. To use secondary data appropriately, it is important to understand how and when they were collected.

Kelly is the head of marketing for a nonprofit agency that supports the arts. She just received the go-ahead from her board of directors to conduct the agency's first-ever advertising campaign. Her first step will be to A. identify the target audience. B. set the advertising objectives. C. determine the advertising budget. D. evaluate and select the media. E. create the advertisements.

A. identify the target audience. The first step in development of an advertising campaign is to clearly identify the target market.

The __________ stage of the advertising campaign planning process can be described by the question, "Who are we trying to talk to?" A. identifying target audience B. setting advertising objectives C. conveying the message D. assessing the impact E. determining the advertising budget

A. identifying target audience This is the "identify target audience" stage of the process.

Most big box retailers regularly move products from one aisle to another. They also put personal care products in the pharmacy area, many aisles away from the grocery products. They do this because consumers who spend more time walking through the store are likely to buy things they hadn't planned to buy, or make A. impulse purchases. B. limited problem solving decisions. C. extended problem solving decisions. D. ritual consumption purchases. E. affective alternative decisions.

A. impulse purchases. Research has shown that the more customers can be moved through various sections of a store, the more likely they are to notice things they hadn't intended to get and to buy them, which is what impulse purchase refers to.

Randall wants to do an online survey of college professors about the factors that influence their textbook selection. He would like to use a structured survey but is not sure what responses to include for each question. Randall could use __________ to help him develop his survey. A. in-depth interviews B. experiments C. surveys D. observation E. primary data mining

A. in-depth interviews In-depth interviews are a good way to collect detailed opinions from a small number of individuals.

Tess is the marketing manager for a fast food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to A. increase profits. B. increase sales. C. decrease competition. D. build customer satisfaction. E. broaden the product line.

A. increase profits. A target return strategy focuses on achieving a particular return on investment, which is a way of increasing profits.

Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Donald, Jeremy is a(n) __________ in the diffusion of innovation curve. A. innovator B. laggard C. late majority D. early majority E. early adopters Jeremy, who always has the latest computer technology,

A. innovator is likely to be among the first group to adopt a new type of computer. This makes him part of the innovator group.

Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model. A. innovators; early adopters B. early adopters; early majority C. early majority; late majority D. late majority; laggards E. laggards; innovators

A. innovators; early adopters There are two primary new product pricing strategies: skimming, which focuses on selling at a high price to the innovators and early adopters on the diffusion of innovation curve, and market penetration, which focuses on selling at a low price to gain market share as quickly as possible.

When Creative Pen Company designed a new pen that was particularly comfortable to use, it wanted to literally get the pen in the hands of as many consumers as possible. Creative Pen will probably choose __________ distribution for its new product. A. intensive B. exclusive C. selective D. collective E. variable

A. intensive Intensive distribution refers to getting a product into as many outlets as possible.

Distribution intensity is commonly divided into three levels: A. intensive, exclusive, and selective. B. primary, secondary, and tertiary. C. administered, vertical, and independent. D. global, national, and local. E. corporate, contractual, and independent.

A. intensive, exclusive, and selective. The three types of supply chain intensity are intensive, selective, and exclusive.

Which of the following types of data would be the best choice for Wendy's fast food restaurants if the headquarters office wants to know how many hamburgers versus chicken sandwiches it has sold in past years? A. internal secondary data B. external secondary data C. survey responses D. focus group data E. primary data

A. internal secondary data Internal secondary data are based on a company's day-to-day operations.

During the __________ stage of the product life cycle, sales are low and profits are small or negative. A. introduction B. leveling C. maturity D. growth E. decline

A. introduction The introduction stage, the first stage of the product life cycle, is marked by low sales and small or negative profits.

Compared to mass media advertising, a key advantage of direct marketing is that A. it allows for personalization of the message. B. it reaches a larger audience. C. it involves face-to-face contact. D. it uses the rule-of-thumb budgeting method. E. it is used almost exclusively for B2B marketing.

A. it allows for personalization of the message. Direct marketing can be easily personalized to each consumer.

Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because A. it is based on underlying reasons people make choices. B. it is easier to use than demographics. C. the travel business doesn't respond well to other approaches to segmentation. D. psychographics is the preferred method for service businesses. E. psychographic segmentation is the least expensive method.

A. it is based on underlying reasons people make choices. Psychographics is related to the way we describe ourselves—our self-concept, values, and lifestyle. These characteristics are closely related to our behavior and to the reasons for the choices we make.

A(n) __________ is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption. A. marketing channel B. distribution center C. logistics chain D. strategic relationship E. electronic data interchange

A. marketing channel A marketing channel consists of all the institutions and marketing activities in the marketing process. This is virtually the same thing as a supply chain.

Lauren decides to use Twitter to market her hand-painted scarves to other women on her campus. She sets up a Twitter account with the name @uniquedesignsbylauren, and posts this on her Facebook page, making sure to tweet every few days. Soon Lauren is selling a lot of scarves. Lauren's Twitter account is an example of A. microblogging. B. media sharing. C. thought sharing. D. professional networking. E. social bookmarking.

A. microblogging.

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of A. micromarketing. B. concentrated targeting. C. psychographic segmentation. D. differentiated targeting. E. undifferentiated targeting.

A. micromarketing. This is a form of micromarketing—on a one-to-one scale—since each consumer receives a customized product.

Which of the following is being used by a store owner who sends out a text message to all of her preferred customers, announcing the arrival of this season's new clothing? A. mobile marketing B. social marketing C. personal selling D. sales promotions E. advertising

A. mobile marketing Mobile marketing sends messages through wireless handheld devices, such as cellular telephones.

Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage. Earl perceived price as ________________, while most consumers recognize price as the ______________ made to acquire a good or service. A. money paid; overall sacrifice B. variable cost; fixed cost C. fixed cost; variable payment D. overall sacrifice; monetary payment E. break-even amount; price elasticity

A. money paid; overall sacrifice Earl was thinking only of the money he would spend and not considering the overall sacrifice (which included his time).

When pursuing a market development strategy, expanding into international markets is generally A. more risky than expansion in domestic markets. B. impossible due to negative attitudes about American products. C. executed with the help of international trade subsidies. D. simplified by creating new products for export markets.

A. more risky than expansion in domestic markets.

The buying decision is likely to be most complex and take longest to complete in a(n) __________ B2B buying situation. A. new buy B. modified rebuy C. straight rebuy D. adapted buy E. generic buy

A. new buy The new buy decision is generally the most complex since the organization does not have experience with purchasing the product, nor any existing vendor relationships.

In which buying situation is the buyer most likely to proceed through all six steps in the buying process? A. new buy B. modified rebuy C. straight rebuy D. generic buy E. adapted buy

A. new buy The new buy decision is generally the most complex since the organization does not have experience with purchasing the product, nor any existing vendor relationships. For this reason, the firm is likely to go through all six steps of the process.

Jenny was feeling frustrated. "What's taking them so long to make a decision? It's been weeks since I first met with them, and they all seem interested in the product. I've also jumped through all their paperwork hoops." Jenny is likely selling to a firm in what kind of buying situation? A. new buy B. modified rebuy C. straight rebuy D. generic buy E. adapted buy

A. new buy The time being consumed and the amount of paperwork are probably hallmarks of a new buy situation, which will involve extra analysis and negotiations.

When consumers are unable to articulate their experiences, __________ becomes particularly useful in understanding consumers' preferences. A. observation B. surveying C. in-depth interviewing D. primary data mining E. a focus group

A. observation Observation is especially helpful if people are unable to explain their experiences and preferences. Instead of asking them to think about these issues, people's actual behavior can be observed.

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation. A. occasion B. loyalty C. geographic D. psychographic E. demographic

A. occasion Behavioral segmentation based on when a product or service is purchased or consumed is called occasion segmentation.

Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)? A. occasion segmentation B. geographic segmentation C. lifestyle segmentation D. benefit segmentation E. loyalty segmentation

A. occasion segmentation Behavioral segmentation based on when a product or service is purchased or consumed is called occasion segmentation.

With a pull marketing strategy, A. orders for merchandise are generated at the store level based on sales data captured at POS terminals. B. there is a greater likelihood of being overstocked or out of stock than in a push supply system. C. merchandise is allocated to stores on the basis of demand forecasts. D. inventory management is less responsive to customer demand. E. it is more difficult to manage conditions of high uncertainty than in a push supply chain.

A. orders for merchandise are generated at the store level based on sales data captured at POS terminals. In a pull supply chain, stores place orders based on actual sales. In a push supply chain, merchandise is shipped to stores based on sales forecasts, not actual sales. Pull supply chains are generally more sophisticated and more efficient than push supply chains.

Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a A. partnering relationship. B. shared mission statement. C. common marketing system. D. corporate vertical marketing system. E. linked supply chain.

A. partnering relationship. Felicia's customer is proposing a partnering relationship, in which she and the customer will look for opportunities that are mutually beneficial and will seek to maintain the relationship over the long term.

Limited problem solving usually relies on A. past experience more than on external information. B. situational stimuli and attitudes. C. external search for information. D. financial analysis of performance risk. E. evaluation of the universal set.

A. past experience more than on external information. Limited problem solving usually relies primarily on internal information based on past experience, perhaps combined with a small amount of external information. For example, a consumer might quickly scan the shelves at a store and make a choice based on past experience with these and other brands.

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged? A. planning B. implementation C. control D. segmentation E. metrics

A. planning

After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed new information collected to address his research questions. Marvin will need __________ data to address the questions in his market research study. A. primary B. secondary C. mined D. syndicated E. warehoused

A. primary Because existing secondary data do not answer his questions, Marvin may need to collect primary data.

When a research team has gathered data for specific research needs, this is known as A. primary data. B. data mining. C. secondary data. D. data recovery. E. data modeling.

A. primary data. Primary data are those data collected to address specific research needs. Secondary data are data that were originally obtained for another purpose but that may assist in answering the research question.

Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available--to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

A. product development

Reminder advertising is primarily used to A. prompt repurchase of a product. B. create and build brand awareness. C. accelerate market acceptance. D. gather information about consumers. E. persuade consumers to change existing perceptions.

A. prompt repurchase of a product. Reminder advertising reminds or prompts repurchase, especially for products in the maturity stage of the product life cycle.

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would focus on A. providing classes at convenient times and offering online courses. B. discount pricing for students taking more than twelve credit hours. C. the higher average salaries earned by college graduates. D. the great variety of classes offered. E. the number of Nobel Prize winners on the faculty.

A. providing classes at convenient times and offering online courses. The benefit sought by the target market is speed and convenience of getting a degree; thus, convenient class times and the ability to take classes online would be important criteria.

Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of A. providing products at the right time. B. providing products at the right locations. C. providing the right quantities. D. satisfying the service levels supply chain participants expect. E. minimizing system-wide costs.

A. providing products at the right time. Naomi is concerned with providing products at the right time; making sure holiday merchandise arrives in time so that it will be available to customers who want it.

In _______________, many firms provide similar products that are considered substitutes for each other. A. pure competition B. oligopolistic competition C. monopolistic competition D. a monopoly E. a duopoly

A. pure competition Pure competition refers to a market in which firms provide similar, undifferentiated products. This includes commodities like soybeans, salt, and sugar.

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by A. reducing the price elasticity of demand. B. making demand more oligopolistic and less monopolistic. C. increasing the income effect. D. reducing fixed costs and increasing the gray marketing effect. E. shifting the market from a monopoly to pure competition.

A. reducing the price elasticity of demand. Brand loyal customers are less sensitive to price increases. The more such customers exist in a market, the less price elastic demand will be.

Beverage firms sometimes hire attractive young people to sit at fashionable bars, sipping the company's latest product offering. The firms hope these models will serve as a(n) __________ and influence consumers. A. reference group B. risk avoider C. cultural determinant D. cognitive learning experiment E. evoked set

A. reference group The firms hope the models will serve as a reference group, due to their attractiveness, and that others will identify with them and copy their behavior.

In New England, foot-long sandwiches are called grinders, while in many other parts of the country they are called subs. This is an example of the impact of A. regional culture. B. country culture. C. generational factors. D. social trends.

A. regional culture. These types of language differences are typical examples of regional cultural differences.

When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is A. responsive. B. identifiable. C. reachable. D. substantial. E. reactive.

A. responsive. For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's offering. This is referred to as a responsive segment.

If marketing communications are effective, they will A. result in purchases by some consumers receiving the communications. B. offset any negative publicity the firm may have received. C. minimize the number of communication channels used by the firm. D. generate interest in the product in over half the consumers reached. E. include all steps of the AIDA model with equal weighting to each step.

A. result in purchases by some consumers receiving the communications. Although many measures of marketing communications look at things like number of exposures, the eventual goal is to move a consumer to take action (make a purchase).

Marketers frequently design customer relationship management programs to A. retain loyal customers. B. attract consumers who have safety needs. C. reinforce postpurchase cognitive dissonance. D. increase internal information search. E. improve profit margins.

A. retain loyal customers. Customer relationship management programs are aimed at current customers, to build loyalty.

Red Bull sends out student brand managers to distribute free samples to their peers. What form of marketing communication is this? A. sales promotion B. direct marketing C. public relations D. mobile marketing E. advertising

A. sales promotion Free samples are a form of sales promotion.

When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by A. segmenting, targeting, and positioning. B. offering everything to everyone. C. trying lots of options to find out which one works. D. continual test marketing. E. focusing exclusively on its Pink brand.

A. segmenting, targeting, and positioning. Victoria's Secret uses segmentation, targeting, and positioning by offering color, fabrics, and styles designed to appeal to different target audiences.

Joanna lives according to her own rules, unconcerned about designer labels, brand names, and luxury items. Joanna is at what level in Maslow's hierarchy of needs? A. self-actualization B. safety C. love D. esteem E. physiological

A. self-actualization Self-actualization occurs when you feel completely satisfied with your life and how you live, and are not concerned about what others think.

The traditional marketing strategy of selling umbrellas when it is raining is an example of how __________ factors influence consumers' decisions. A. situational B. psychological C. shopping D. interpersonal E. economic

A. situational This is an example of a situational factor, taking advantage of a weather condition that creates specific needs.

Which of the following is most likely to be characterized by pure competition in the United States? A. soybeans B. cereal C. soft drinks D. computer operating systems E. fast food restaurants

A. soybeans Pure competition refers to a market in which firms provide similar, undifferentiated products. This includes commodities like soybeans, salt, and sugar.

In established businesses, a large proportion of B2B purchases fall into the __________ category. A. straight rebuy B. new buy C. adapted buy D. modified rebuy E. generic buy

A. straight rebuy A straight rebuy occurs when the company is buying more of a product it has bought in the past. Businesses typically repurchase many products they have purchased in the past—supplies, raw materials, and parts, for example.

TT Toys manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys' A. supply chain. B. corporate vertical marketing system. C. distribution center. D. CFPR. E. voluntary chain.

A. supply chain. Supply chain management is a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation.

Public relations is the component of IMC that A. supports other promotional efforts by generating free media attention. B. has received the greatest increase in spending. C. converts mass media advertising into direct marketing. D. most effectively uses IMC encoding. E. generates the most gross rating points.

A. supports other promotional efforts by generating free media attention. Public relations manages a firm's communications to achieve a variety of objectives, including building and maintaining a positive image and maintaining positive relationships with the media. As such, it strives to generate free attention from the media to support the rest of the IMC strategy.

Benefit-cost analysis in market research weighs A. the benefits of answering questions against the cost of the research. B. the benefit of qualitative research against the cost of quantitative research. C. the benefit of primary data research against the cost of secondary data research. D. the benefit of a data warehouse against the cost of syndicated data. E. the benefit of internal secondary data against the cost of external secondary data.

A. the benefits of answering questions against the cost of the research. Every research project must be evaluated to ensure that the benefits of obtaining answers exceed the cost of getting those answers.

One of the reasons marketers use loyalty segmentation is A. the high cost of finding new customers. B. government tax incentives. C. accounting difficulties associated with identifying new customers. D. rapid population increases. E. the failure of micromarketing as a workable strategy.

A. the high cost of finding new customers. It is generally much more expensive to find a new customer than to keep an existing one; thus, it is in the best interests of a firm to retain current customers. For this reason, many firms develop loyalty segmentation-based marketing mixes.

Heather has been assessing a number of her firm's products using, the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine: A. the product's relative market share. B. the market growth rate. C. a source of competitive advantage. D. the impact of population shifts on future demand. E. cash equivalent values for each product.

A. the product's relative market share. A company's relative share of a market is determined by comparing its market share to market shares of competitors.

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 A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

A. the value proposition. By emphasizing the low price and high quality, the university president is focusing on value.

One problem in relying on price elasticity and demand curves when setting prices is that A. the way a product or service is marketed can have a profound impact on price elasticity. B. the underlying ideas of the demand curve and elasticity are less relevant in the modern economy. C. only economists can properly analyze demand curves and set prices using this tool. D. competitors can construct the same demand curves, so there is no advantage in using them. E. marketing split from economics over the ideas of demand and elasticity.

A. the way a product or service is marketed can have a profound impact on price elasticity. Demand curves and price elasticity are the result of many factors, not the least of which is the nature of the marketing mix.

Marketers should not assume that they can target all Asian consumers in the United States with one strategy because A. they speak different languages and come from different cultures. B. Asians do not respond to marketing efforts. C. there are not enough Asians in the United States to effectively target. D. each major city tends to have only one group of Asians in large numbers. E. one strategy is likely to be more expensive than multiple strategies.

A. they speak different languages and come from different cultures. Asian consumers are not a single group—they come from many nations (including China, Japan, Korea, Vietnam, Thailand, and many more) with different languages and cultures.

When an office supply store offers self-checkout, extended hours at its stores, and online shopping with next-day delivery, it is trying to address what social trend? A. time-poor society B. greener consumption C. health and wellness D. privacy concerns E. tech savvy

A. time-poor society The time-poor society refers to consumers looking to find short cuts to maximize their time.

Neville is trying to create an advertising message that tells consumers how his company's cell, pager, instant messaging, and Internet services differ from other alternatives in the market. Neville is trying to create a(n) A. unique selling proposition. B. proportional benefit communication. C. institutional advertising message. D. PSA. E. flighting ad strategy.

A. unique selling proposition. A unique selling proposition is a statement of the unique benefits a product offers to the target market.

A(n) __________ is a supply chain whose members act like a unified system. A. vertical marketing system B. independent marketing system C. concentrated marketing system D. conventional marketing system E. strategic marketing system

A. vertical marketing system A vertical marketing system is a supply chain in which the members act as a unified system, and there are three types: administered, contractual, and corporate.

Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis. A. weakness B. opportunity C. threat D. strength E. business mission

A. weakness

__________ is when two or more firms join forces to reach a target audience in a short-term effort. A. Promotional co-branding B. Cross-promotion C. Joint-venture promotion D. Multi-target promoting E. Convenience promoting

B. Cross-promotion This is the definition of a cross-promotion.

Consumers use and process different aspects of advertising or messages. __________ yields greater attention and deeper processing, and leads to strong attitudes and purchase intentions. A. An external locus of control B. High involvement C. Low involvement D. Differential content E. Internet advertising

B. High involvement High involvement often leads to extended problem solving, with more attention to the task, more information sought, and more evaluation of alternatives. This involves greater attention and deeper processing.

Which of the following is NOT one of the five groups in the diffusion of innovation curve? A. Innovators. B. Non-adopters. C. Late majority. D. Early majority. E. Early adopters.

B. Non-adopters. The five groups in the diffusion of innovation curve are innovators, early adopters, early majority, late majority, and laggards.

In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office. A. UPC B. POS terminal C. aggregate D. ASN E. data warehouse

B. POS terminal The point-of-sale (POS) terminal records the purchase information and electronically sends it to the corporate office.

_________________ measures consumers' sensitivity to price changes. A. Cross-price elasticity of demand B. Price elasticity of demand C. Income elasticity of demand D. Competitive profit elasticity of demand E. Inelastic demand price parity

B. Price elasticity of demand Price elasticity of demand measures how changes in price affect the quantity of the product demanded.

In the AIDA model, the do stage is the __________ stage. A. awareness B. action C. interest D. desire E. intentions

B. action This is the action stage, the final stage of the AIDA model.

Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that A. natural gas creates more environmental greenhouse effects than coal. B. an increase in the price of natural gas will increase demand for his electrical heating systems. C. gas heating systems and electrical heating systems are complementary goods. D. when the price of natural gas goes up, the quantity demanded also rises. E. the demand for natural gas is price elastic.

B. an increase in the price of natural gas will increase demand for his electrical heating systems. Gas and electrical heating systems are substitutes. This means that if the price of natural gas goes up, it makes electrical heating systems seem to be a better value by comparison, and demand for electric heat pumps will rise.

Which of the following is likely the LEAST common emotional appeal for advertisers? A. fear B. anger C. humor D. love E. nostalgia

B. anger The most common types of emotional appeals are fear, safety, humor, happiness, love (or sex), comfort, and nostalgia.

Marketers in the United States are paying increasing attention to ethnic groups because A. they represent a majority of the population in non-urban areas of the country. B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. C. they are more susceptible to marketing messages. D. government subsidies assist marketers attempting to communicate value to these groups. E. country culture is replacing regional culture as a key marketing consideration.

B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

Segmentation, targeting, and positioning A. are terms that can be used interchangeably in developing marketing plans. B. are part of a firm's marketing strategy. C. should be done simultaneously so synergies can help streamline the effort. D. are part of the marketing plan but bear little direct relationship to the marketing mix. E. are optional elements of a marketing plan.

B. are part of a firm's marketing strategy. The third step of the strategic marketing planning process, following defining the mission and objectives and conducting a situation analysis, is the STP process. Segmentation, targeting, and positioning are not interchangeable concepts—they are three separate steps of the process, and are not executed simultaneously.

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 resumés, and look for new jobs. What segmentation method is LinkedIn using? A. loyalty segmentation. B. benefit segmentation. C. psychographic segmentation. D. geodemographic segmentation. E. demographic segmentation.

B. benefit segmentation. This is benefit segmentation. Many LinkedIn users also have a Facebook account, but LinkedIn offers them the opportunity to network with their colleagues and contacts in a professional environment. It might seem like demographic segmentation, but LinkedIn spans a very wide range of ages, occupations, and income levels.

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.

B. cash cows. Cash cows are product lines with high relative market share as the result of past investment, but in low-growth markets. They typically generate excess cash that can be used to support other product lines.

This type of thought-sharing site typically provides the highest level of control for companies. A. professional blog B. corporate blog C. personal blog D. Flickr E. Google+

B. corporate blog Corporate blogs, which are created by the companies themselves, have the highest level of control, because to a large degree, they can control the content posted on them

The key to a successful emotional advertising appeal is to use the emotion to A. make consumers cry. B. create a bond between the consumer and the brand. C. get consumers to think about the benefits of the product. D. balance social marketing with product-focused advertising. E. deliver a logical message.

B. create a bond between the consumer and the brand. An emotional appeal tries to reach the consumer by forging a bond between the consumer and the brand.

Informative advertising is used to A. prompt repurchase of a product. B. create and build brand awareness. C. trigger an emotional response. D. gather information about consumers. E. convince consumers to take action.

B. create and build brand awareness. Informative advertising is used to build brand awareness, often for new products.

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their A. social concerns. B. culture. C. demographics. D. generational cohorts. E. religion.

B. culture. This is the definition of culture. Some of the answer options (such as religion) are aspects of culture, but it is a broader concept.

Price advertisements should never A. include puffery. B. deceive customers to the point of doing harm. C. include the price. D. use advertising allowances to increase sales promotion. E. use price skimming after using price penetration.

B. deceive customers to the point of doing harm. Ethical marketers should not engage in deceptive pricing tactics such as bait and switch pricing or the use of deceptive reference prices.

In recent years, the component of IMC that has received the greatest increase in spending is A. media advertising. B. direct marketing. C. public relations. D. sales promotions. E. publicity.

B. direct marketing. Direct marketing has received the greatest recent increase in aggregate spending.

A _______________ is a facility for the receipt, storage, and redistribution of goods to company stores or customers. A. circulation center B. distribution center C. supply chain hub D. collaborative replenishment office E. floor-ready franchising center

B. distribution center This is a description of a distribution center.

A major advantage of primary data collection is that A. it can be easily accessed through syndicated databases. B. it can be tailored to meet the specific research needs. C. it takes less time to collect than secondary data. D. it is general enough to meet many researchers' needs. E. all of these are advantages of primary research data.

B. it can be tailored to meet the specific research needs. Primary data collection, though it can be expensive and time-consuming, can also be tailored to the precise needs of the research.

Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n) A. cross-docking exchange. B. electronic data interchange system. C. floor-ready bundling system. D. vertical conflict reduction system. E. radio frequency identification system.

B. electronic data interchange system. Electronic data interchange (EDI) is the computer-to-computer exchange of business documents from a retailer to a vendor and back.

Thanh has to decide which college to attend. This is the most important, riskiest, and most expensive decision she has ever made. She will be engaged in A. low involvement decision making. B. extended problem solving. C. habitual decision making. D. prepurchase dissonance. E. limited problem solving.

B. extended problem solving. Due to the cost, importance, and relative risk involved, Thanh will probably engage in extended problem solving.

Suppose that the Chipotle restaurant chain held a competition offering free food for a year to the customer who visited—and checked in—to the largest number of Chipotle restaurants via the FourSquare mobile app. This promotion would be an example of A. media sharing. B. gamification. C. sentiment analysis. D. a microblog. E. a new social network.

B. gamification. Location-based gamification consists of encouraging loyalty by making it part of a game to visit the stores.

Differences in weather and climate create opportunities for A. concentrated targeting. B. geographic segmentation. C. benefit segmentation. D. psychographic segmentation. E. demographic segmentation.

B. geographic segmentation. Climate and weather are two factors that create geographic differences and, thus, opportunities to segment a market by geographic region.

Strategic efforts to supply consumers with environmentally friendly merchandise are called A. reduce, reuse, recycle. B. green marketing. C. the green generation. D. the inconvenient truth. E. earth marketing.

B. green marketing. Green marketing refers to the marketing of environmentally responsible products.

Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called A. fake greening. B. greenwashing. C. greenbaiting. D. green puffery. E. red marketing.

B. greenwashing. Greenwashing is the practice of claiming environmental benefits for your product that are not genuine.

Which of the following is the third step in the marketing planning process? A. define the business mission B. identify opportunities C. evaluate using a matrix D. implement marketing mix and allocate resources E. situation analysis

B. identify opportunities The steps, in order, are: (1) define the business mission, (2) situation analysis, (3) identify opportunities, (4) implement marketing mix and allocate resources, and (5) evaluate performance.

After creating awareness that the firm's products or services exist, the next goal of integrated marketing communications is to A. generate consumer action. B. increase the level of interest among consumers. C. determine the level of desire needed to sustain action. D. gain the attention of the consumer. E. create intentions to purchase the product.

B. increase the level of interest among consumers. The steps in the AIDA model are awareness, interest, desire, and action.

Lamar is assessing the long-term effectiveness of his firm's IMC efforts. He will probably analyze the firm's success in A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of his firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.

B. increasing market share, sales, and customer loyalty. Typical long-term IMC goals include increasing sales, market share, and customer loyalty.

A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) ________________ price elasticity demand. A. elastic B. inelastic C. cross-price D. income effect E. substitution effect

B. inelastic If a 10 percent price increase results in a two percent reduction in demand, price elasticity of demand is equal to -2/10 = -0.2. Price elasticity greater than -1.0 reflects inelastic demand.

Generally speaking, all advertising messages are designed to A. meet the needs of society. B. inform, persuade, or remind customers. C. comply with FCC rules combined with FTC antitrust regulations. D. entertain or apprise. E. match production scheduling with consumer demand.

B. inform, persuade, or remind customers. Informing, persuading, and reminding are the three general objectives of advertising.

Which of the following is NOT one of the steps in the AIDA model? A. awareness B. intention C. action D. desire E. interest

B. intention The steps in the AIDA model are awareness, interest, desire, and action

Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget. He receives offers from a variety of advertising media, spends money on his firm's public relations efforts, and is considering electronic media alternatives. Carl must recognize that each IMC alternative A. will stand on its own. B. is part of the whole. C. is part of noncommercial free speech. D. is less important than stealth marketing. E. is dictated by the nature of the supply chain.

B. is part of the whole. An integrated marketing communication strategy will have many components that must be coordinated into an integrated whole.

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy A. leads the marketer to being the low-cost seller. B. is supported by consistent advertising and distribution strategies. C. challenges consumers to discard their perceptions of value. D. is consistent with a competitive target return strategy. E. is measured against the competition.

B. is supported by consistent advertising and distribution strategies. The question describes a customer orientation in pricing, which can be effective since it is based on value, as long as other aspects of the marketing mix support the strategy.

The CEO of David's firm just came back from a business seminar, and he called David into his office. He 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." David needs to think fast for a good answer because he knows that A. the product life cycle is not a useful concept. B. it is often impossible to identify with precision where a product is in the product life cycle. C. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. D. the idea has been discredited by recent research. E. his job may be threatened by the answer.

B. it is often impossible to identify with precision where a product is in the product life cycle. Although the product life cycle concept can be useful in guiding marketing strategy, it is difficult and often impossible to determine a product's precise stage of the product life cycle.

Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't have one. George would probably be considered a(n) __________ in the diffusion of innovation process. A. innovator B. laggard C. late majority D. early majority E. early adopter

B. laggard Cell phones are almost fully diffused through U.S. consumer markets. Anyone who does not have at least a basic cell phone at this point would probably be considered a laggard, a member of the last group of adopters of new products.

When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous forty years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones. A. innovator B. laggard C. late majority D. early majority E. early adopter

B. laggard Uncle Burton is a laggard—a consumer who either adopts the innovation long after nearly the entire population has done so, or who never adopts it at all—when it comes to telephone technology.

Christopher bought Timberland boots because he felt they were perfect for his outdoor activities. Patrick bought the same kind of boots because he felt they were stylish, especially with the logo clearly visible. The psychological factor driving Patrick's behavior is A. a functional need. B. lifestyle. C. brand association. D. learned behavior. E. his evoked set.

B. lifestyle. Of the factors listed, lifestyle is the best choice because it represents the way Patrick chooses to spend his time and money. He wants to be stylish, and so chooses the boots. This is an example of a psychological, not a functional need.

Last semester, Henri bought his textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and he needs to decide right away how and where to purchase his books. Henri will most likely engage in a(n) __________ process. A. impulse buying B. limited problem solving C. extended problem solving D. ritual consumption E. affective decision

B. limited problem solving Henri will probably use a limited problem solving process. He doesn't have time for extended evaluation of all his options. Besides, his recent positive experience buying books online will probably influence him to do the same this time (unless he has waited too long and can't get his books in time).

Which of the following is NOT one of the four product life cycle stages? A. introduction B. location C. maturity D. growth E. decline

B. location The four stages of the product life cycle are introduction, growth, maturity, and decline.

Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his A. postpurchase dissonance. B. locus of control. C. reference group identification. D. attribute sets. E. social risk.

B. locus of control. Jaden seems to have an internal locus of control for this flight—he thinks he has control over the outcome. This seems misguided, since he lacks the experience to evaluate the condition of the aircraft and since he does not know how to fly a plane.

Because Americans are working longer hours without increases in real, disposable income, and are using an army of communication devices to keep up with the demands in their personal and work lives, retailers are A. increasing their budgets for traditional advertising outlets like television and radio. B. making their products available whenever and wherever consumers want them. C. outsourcing marketing communications to global production facilities. D. focusing only on those demographic cohorts that have time to relax. E. de-emphasizing U.S. sales and expanding globally.

B. making their products available whenever and wherever consumers want them. It is not necessary to abandon the U.S. market—the time-poor society simply requires retailers to consider consumer convenience, and make sure consumers can get products where and when they want them—online, via mobile devices, or at unusual hours, for example.

A __________ growth strategy employs the existing marketing offering to reach new market segments. A. product proliferation B. market development C. market penetration D. diversification E. product development

B. market development

H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B. market development

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies. A. product proliferation B. market development C. market penetration D. diversification E. product development

B. market development

Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a __________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B. market development

Walmart's "Everyday low prices" selling proposition is effective primarily because it is A. unique to the industry. B. meaningful to the consumer. C. variable over time. D. a one-time message. E. generally unsustainable.

B. meaningful to the consumer. Walmart's message is meaningful to the consumer because of the low-price promise it conveys. In addition, a unique selling proposition should be unique to the brand, sustainable over time, and supportive of repetition.

Karlie likes to post fancy cupcakes and cookies on Pinterest. She also posts pictures of fun kitchen equipment in sherbet colors, and looks for baking ideas and equipment. What type of social media site is Karlie using? A. microblogging B. media sharing C. thought sharing D. social networking E. social bookmarking

B. media sharing

YouTube is an example of what type of social media site? A. microblogging B. media sharing C. thought sharing D. social networking E. social bookmarking

B. media sharing

In a(n) __________ situation, the buyer has purchased a similar product in the past but has decided to change some specifications. A. new buy B. modified rebuy C. straight rebuy D. adapted buy E. generic buy

B. modified rebuy A modified rebuy situation is one in which the buyer has purchased similar products in the past, but now wants to modify some specifications.

When Walmart considers reordering items for its stores, its buyers are instructed to negotiate price concessions, quality improvements, and/or added options. In this situation, Walmart buyers are engaged in a(n) __________ situation. A. new buy B. modified rebuy C. straight rebuy D. adapted buy E. generic buy

B. modified rebuy A modified rebuy situation is one in which the buyer has purchased similar products in the past, but now wants to modify some specifications.

When a business buyer decides to change specifications such as quality or options associated with products purchased in the past, the buyer is engaged in a(n) __________ situation. A. new buy B. modified rebuy C. straight rebuy D. adapted buy E. side by side

B. modified rebuy A modified rebuy situation is one in which the buyer has purchased similar products in the past, but now wants to modify some specifications.

Research indicates that positively engaged consumers tend to be A. more socially outgoing. B. more profitable consumers. C. older and wealthier than average. D. younger and poorer than average. E. more critical consumers.

B. more profitable consumers. Through social media tools such as blogging and microblogging, customers actively engage with firms and their own social networks. Such engagement can be negative or positive. Positively engaged consumers tend to be more profitable consumers, purchasing 20 to 40 percent more than less engaged customers.

A(n) __________ is a need or want strong enough to cause the person to seek satisfaction. A. locus of control B. motive C. attitude D. perception E. learning curve

B. motive Motives are needs that drive the person to take action.

Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' __________ change(s) over time. A. ethnic background B. needs, wants, and ability to purchase C. culture D. just-in-time processes E. demographics

B. needs, wants, and ability to purchase The firm must continually scan the environment, because consumers' wants and needs are not static.

The __________ situation usually involves more members of a buying center and involves more time to complete than the other buying situations. A. modified rebuy B. new buy C. adapted buy D. straight rebuy E. generic buy

B. new buy The new buy decision is generally the most complex since the organization does not have experience with purchasing the product, nor any existing vendor relationships. For this reason, the process often takes longer and involves a larger buying center.

Hinsdale High School has recently decided to sponsor a rugby team. It is in the process of considering where to buy the uniforms. This is a ________ situation. A. straight rebuy B. new buy C. straight new buy D. modified new buy E. modified rebuy

B. new buy This is a new buy situation. There is no such thing as a straight new buy.

When comparing the various communication channels available to marketing professionals, it becomes apparent that A. consumers prefer advertising over other channels. B. no single channel is better than another channel. C. public relations is the least expensive but the most successful. D. personal selling is the most expensive but the least successful. E. online marketing is taking the place of advertising and public relations. .

B. no single channel is better than another channel. No single channel is necessarily better than another channel; the goal of IMC is to use them in conjunction so that the sum exceeds the total of the individual channels

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas to A. engage in micromarketing for hard-to-fit shoe customers. B. obtain a bigger share of the shoe market. C. use mass marketing techniques. D. use geographic segmentation. E. generate economies of scale in advertising expenditures.

B. obtain a bigger share of the shoe market. Adidas can adopt a differentiated targeting strategy, in which it builds a different marketing mix around each of its brands to serve a different target market. By doing so, Adidas can target a larger portion of the shoe market and gain a greater market share.

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because A. they prefer products from established market leaders. B. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. C. they are especially price conscious. D. they are easily influenced by reminder advertising. E. they encourage competitors to enter the market.

B. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. As the first group to adopt a new product, innovators help the product to gain initial market acceptance. Innovators may recommend the product to friends, creating word-of-mouth referrals.

Generally, people buy one product or service instead of another because they A. want to get the lowest price possible. B. perceive it to be the better value for them. C. prefer to avoid doing extended problem solving. D. have conducted a thorough internal search for information. E. are unaware of key determinant attributes.

B. perceive it to be the better value for them. Value, the difference between what the customer gives and gets in an exchange, drives most consumer decision making.

Cross-price elasticity is the A. percentage change in quantity of a product demanded divided by the percentage change in its price. B. percentage change in quantity demanded of product A compared to the percentage change in price of product B. C. change in price of product A divided by change in quantity demanded for product B. D. change in quantity of a product demanded divided by the change in its price. E. change in quantity of a product demanded divided by the change in its elasticity.

B. percentage change in quantity demanded of product A compared to the percentage change in price of product B. Cross-price elasticity looks at the impact of a change in one product's price on demand for another product. The two products might be substitutes or complementary products.

P&G's Tide laundry detergent has been around since 1948 and is still a market leader. P&G has used __________ advertising to reposition Tide several times over the product's life, trying to motivate new consumer segments to use the product. A. informative B. persuasive C. reminder D. discussive E. institutional

B. persuasive In the later stages of the product life cycle, firms may use persuasive advertising to promote products to new segments or for new uses.

When a product has gained a certain level of brand awareness, firms use __________ advertising to motivate consumers to take action. A. informative B. persuasive C. institutional D. discussive E. reminder

B. persuasive Persuasive advertising seeks to motivate the consumer to take action.

Campbell's soup Company ran a series of radio ads tied to local weather forecasts. Before an impending storm, the ads said "Time to stock up on Campbell's soup." During the storm, the ads said, "Stay home and stay warm with Campbell's soup." The first ad was __________ advertising, whereas the second ad was __________ advertising. A. informative; persuasive B. persuasive; reminder C. reminder; persuasive D. discussive; informative E. institutional; persuasive

B. persuasive; reminder The first ad is persuasive because it seeks to persuade consumers to go to the store and buy some Campbell's soup. The second ad is a reminder ad—it does not seek to motivate consumers to go to the store and buy soup, but rather reminds them of the soup that is probably already in the pantry.

Chet was struggling selling his golf photography outside a PGA event. When he offered a tee shirt with a golf photograph on it with any framed golf photo, sales picked up. Chet discovered the value of sales promotions—specifically _________—in encouraging customers to buy. A. deals B. premiums C. samples D. sweepstakes E. rebates

B. premiums A premium offers an item for free or at a bargain price to reward behavior such as sampling, buying, or testing. In this case, Chet is rewarding the purchase of his photos with a free tee shirt.

If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is A. cross-price elastic. B. price inelastic. C. price elastic. D. status quo elasticity. E. derived demand inelastic.

B. price inelastic. Demand is said to be price inelastic if a percentage increase in price results in a smaller percentage increase in demand.

The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely A. decrease national cultural identity. B. reduce regional cultural differences. C. make it difficult to collect demographic information. D. create a demand for a new generational cohort. E. make it more difficult for companies to differentiate their products.

B. reduce regional cultural differences. Regional cultures represent differences between regions of a country. The more people move from one region to another, the more the cultures will tend to blend and become more similar.

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is A. e-books. B. refrigerators. C. the VCR. D. smartphones. E. None of these. No product can stay in the maturity phase and survive for very long.

B. refrigerators. Refrigerators have been in the maturity phase for decades and are likely to stay that way for quite some time. E-books and smartphones have not yet reached maturity. The VCR is in the decline stage, having been mostly replaced by DVDs, DVD writers, and DVRs.

Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in A. popular culture. B. regional culture. C. demographics. D. generational cohorts. E. country culture.

B. regional culture. Regional culture refers to cultural differences across different areas of a country.

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions. A. competitive response B. resource allocation C. product line D. market growth E. mission statement

B. resource allocation Monique has chosen a target market, determined positioning strategies, and developed marketing mixes. She now has to consider available resources and determine how they will be allocated across the different options available for implementation.

When Magda decided to buy a new computer, she considered all the brands she could recall seeing advertised. This represents Magda's __________ set. A. universal B. retrieval C. evoked D. deterministic E. behavioral

B. retrieval The universal set represents all brands, regardless of whether the consumer is aware of them. The retrieval set represents all brands the consumer can recall (as in this case). The evoked set represents all brands the consumer would consider buying.

Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is A. primary data. B. secondary data. C. syndicated data. D. neuromarketing. E. qualitative research.

B. secondary data. In political settings, such secondary data can be critical for candidates running for office.

Anbinh Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is handcrafted, and production volumes will be very low. To emphasize the unique nature of this jewelry, Anbinh Fashions will probably choose _________ distribution. A. luxury B. selective C. monopolistic D. intensive E. exclusive

B. selective Anbinh Fashions should use exclusive distribution. This will reinforce the unique nature of the jewelry and match the low production volumes.

Suppose that Burger King wanted to evaluate social media content to find out how well its most recent advertising campaign was being received by consumers. This could be done using A. Google Analytics. B. sentiment analysis. C. click path analysis. D. keyword analysis. E. gamification.

B. sentiment analysis. Sentiment analysis analyzes data from a variety of social media sites to collect consumer comments about products, services, or (in this case) promotional campaigns. Tools such as Salesforce.com evaluate these comments for insights, both positive and negative.

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. They overcome that aspect of consumers' search process by offering a free, no questions asked return policy. A. specialty B. shopping C. convenience D. ritual E. impulse

B. shopping Shoes are typically a shopping good, where consumers compare alternatives.

As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will probably A. interview vendors and seek their feedback. B. specify and weight performance factors and score the vendors. C. develop an RFP for vendor analysis. D. recruit new suppliers. E. use a modified rebuy vendor form.

B. specify and weight performance factors and score the vendors. Vendor analysis evaluates a selected supplier's performance in delivering on the current order, helping the firm to decide whether to continue to do business with the supplier. Various performance metrics are calculated, along with weights for these metrics matching the buyer's priorities.

Most B2B buying situations can be categorized as new buys, modified rebuys, and A. generic buys. B. straight rebuys. C. ordinary rebuys. D. adapted buys. E. minor buys.

B. straight rebuys. The three kinds of B2B buying situations are new buys, modified rebuys, and straight rebuys.

Integrated marketing communications include all of the following EXCEPT A. advertising. B. supply chain management. C. direct marketing. D. public relations. E. sales promotion.

B. supply chain management All of these except the supply chain are channels used in the IMC process.

According to a typical demand curve, the higher the price, A. the greater the income effect. B. the lower the quantity consumers will buy. C. the lower the output of producers. D. the greater the production costs. E. the lower the cross-price elasticity.

B. the lower the quantity consumers will buy. A typical demand curve shows quantity purchased decreasing as price increases.

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and A. the number of destinations. B. the number of impressions. C. the cost per click. D. how much time consumers spend viewing the ad or page. E. the total number of clicks recorded by the industry.

B. the number of impressions The click-through rate is computed by dividing the number of clicks by the number of impressions.

David travels a great deal in the course of his business. He has noticed ads in many new places, including fortune cookies, baggage claim conveyor belts, on the sides of buses, etc. Marketers would like to reach David, and are responding to concerns about A. privacy of communications. B. the time-poor society. C. green marketing. D. increased costs of air travel. E. federal restrictions on advertising.

B. the time-poor society. The time-poor society leaves consumers with less time to consume traditional media like TV, radio, newspapers, and magazines, so marketers are increasingly trying nontraditional alternatives that consumers may see while going about their busy lives.

Advertisers can determine how effective their media mix has been in reaching their target audience by calculating __________ of the advertising schedule. A. the click rate B. the total GRP C. the conversion rate D. the media mix E. the USP

B. the total GRP Advertisers can determine how effective their media mix has been in reaching their target audience by calculating the total GRP (reach times frequency) of the advertising schedule.

Getting merchandise floor-ready entails A. distributing and dispatching. B. ticketing and marking. C. vertical supply chain wholesaling. D. intensive cross-docking. E. selective checking.

B. ticketing and marking. "Floor-ready" refers to merchandise that has been ticketed and marked with price and identification labels.

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do NOT help marketers determine A. how old their customers are. B. what their customers need. C. where their customers live. D. which customers have young children. E. what income brackets their customers are in.

B. what their customers need. Demographic and geographic segmentation of retail customers is fairly easy to do with readily available data; however, translating segment membership to actual needs is more complex. Firms often follow up initial demographic and/or geographic segmentation with segmentation based on lifestyles or benefits, which are more closely connected with customer needs.

Once the marketing communication has captured the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from A. "I want it" to "I like it." B. action to desire. C. "I like it" to "I want it." D. interest to awareness. E. feeling to thinking.

C. "I like it" to "I want it." The interest stage of the AIDA model is represented by "I like it"; the next stage, desire, is represented by "I want it."

__________ refers to a potential customer's ability to recall that the brand name is a particular type of retailer, product, or service. A. Product familiarity B. Brand association C. Brand awareness D. Marketing recall E. Cognitive association

C. Brand awareness The first step of the AIDA model seeks to achieve brand awareness among consumers—knowledge that the brand name is in a particular category.

The __________ is the primary enforcement agency for mass media advertising. A. FDA B. FCC C. FTC D. BATF E. USPS

C. FTC The Federal Trade Commission (FTC) is the primary enforcement agency for most mass media advertising.

__________ appeals help consumers make purchase decisions by offering facts in advertising messages and strong arguments built around relevant issues, explaining key benefits of the firm's products and services. A. Emotional B. Niche marketing C. Informational D. Institutional E. Reminder

C. Informational This describes an informational appeal, which tries to reach the consumer through reason and logic.

__________ appeals help consumers make purchase decisions by offering facts in advertising messages and strong arguments built around relevant issues, explaining key benefits of the firm's products and services. A. Emotional B. Niche marketing C. Informational D. Institutional E. Reminder

C. Informational This describes an informational appeal, which tries to reach the consumer through reason and logic.

Which of the following is true about quantitative research? A. It is always conducted using primary data collection. B. It revises the research objective based on data mining. C. It confirms insights and provides a basis for taking a course of action. D. It offers conclusions that are always correct. E. It includes focus group interviews.

C. It confirms insights and provides a basis for taking a course of action. The purpose of quantitative research is to confirm insights and provide a basis for managerial decision making and action.

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. A. Target marketing B. Market segmentation C. Market positioning D. Allocation E. Value capture

C. Market positioning Market positioning involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

__________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings. A. Processing B. Perceptualizing C. Positioning D. Proportioning E. Prospecting

C. Positioning This is the definition of positioning, the final step in the STP process.

__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area. A. Intensive B. Endogenous C. Selective D. Collective E. Variable

C. Selective Selective distribution intensity, in which a few sellers in a given area are permitted to sell a product, is a good strategy for maintaining an image and controlling the flow of merchandise without resorting to the more extreme solution, exclusive distribution

Often, advertisers will employ a variety of media to deliver their message. When using different media, advertisers need to deliver A. value-based posttesting. B. niche media emotional appeals to the mass market. C. a consistent and compelling message. D. selective, continuous pulsing. E. mild puffery.

C. a consistent and compelling message. Advertisers should strive for a consistent, compelling message across all media to avoid confusing consumers or presenting a muddled brand image.

Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and A. supply chain effectiveness. B. enhanced decoding processes. C. a consumer's purchase. D. the level of noise in the IMC channel. E. the reach/frequency ratio.

C. a consumer's purchase. The lack of a direct link to a consumer's purchase makes it difficult to measure the impact of marketing communications.

Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. an extended feedback loop. E. a flaw in the medium.

C. a poor choice of medium. Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lack of clarity in the message, or a flaw in the medium. In this case, the choice of the wrong channel can cause most members of the target market to fail to receive the message.

The RFP stage of the B2B buying process is NOT required for A. a new buy. B. a modified rebuy. C. a straight rebuy. D. either a new buy or a modified rebuy. E. an adapted buy.

C. a straight rebuy. A new buy or a modified rebuy may require an RFP; however, straight rebuys do not require one since they are simple repurchases of previously purchased products.

When a pharmaceutical company develops a new medication, it typically applies for a patent to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish A. an operational excellence macro strategy. B. a market penetration growth strategy. C. a sustainable competitive advantage. D. an efficient supply chain. E. product efficiency.

C. a sustainable competitive advantage.

Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a list of different brand names when Cheryl stopped her and said, "I recognize that one." Marketers call this A. selective recall. B. free association. C. aided recall. D. recall mapping. E. top-of-mind awareness.

C. aided recall. Aided recall refers to consumers recognizing a brand name when they see or hear it.

Negative attitudes are typically difficult for marketers to change because A. most consumers' attitudes depend on prices. B. consumers weigh performance risk against functional needs when assessing their attitudes. C. attitudes are learned and long lasting. D. attitudes shift consumers from limited to extended problem solving situations. E. consumers' attitudes are derived from unchanging decision rules.

C. attitudes are learned and long lasting. While attitude change is possible, it is difficult since attitudes are long lasting.

The product life cycle is theoretically __________ shaped with regard to sales and profits. A. Y B. lightning bolt C. bell D. circle E. flat line

C. bell In theory, the product life cycle curve is bell shaped with regard to sales and profits.

Trina is developing a marketing campaign for an organic stain-removal product. As "stain removal" is rather dull, she is trying to educate consumers about the value and uniqueness of the product, and appeal to the environmentally conscious. Which of the following is the BEST social media application for this task? A. YouTube B. LinkedIn C. blog D. FourSquare E. SCVNGR

C. blog Thought-sharing sites, like blogs, are excellent for providing customer education.

Yana has identified the target audience for her line of Russian jewelry. For optimum success, she is creating an advertising plan that will A. allow her to skip the assessment stage at the end of the campaign. B. offer discounts to media as an incentive to carry out her plan. C. clarify the specific goals that the advertising is designed to accomplish. D. encapsulate her unique selling proposition. E. maximize puffery.

C. clarify the specific goals that the advertising is designed to accomplish.

Yana has identified the target audience for her line of Russian jewelry. For optimum success, she is creating an advertising plan that will A. allow her to skip the assessment stage at the end of the campaign. B. offer discounts to media as an incentive to carry out her plan. C. clarify the specific goals that the advertising is designed to accomplish. D. encapsulate her unique selling proposition. E. maximize puffery.

C. clarify the specific goals that the advertising is designed to accomplish. Specific, measurable objectives are important both in directing campaign strategy and in measuring results.

The first step in the STP process is to A. identify the segmentation methods to be used. B. produce a list of strengths and weaknesses of the firm's past marketing strategies. C. clearly articulate the firm's vision or marketing strategy objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified.

C. clearly articulate the firm's vision or marketing strategy objectives. The first step in the segmentation, targeting, and positioning process is to clearly identify the firm's strategy and objectives to ensure that the segmentation process supports those objectives.

The first step in the STP process is to A. identify the segmentation methods to be used. B. produce a list of strengths and weaknesses of the firm's past marketing strategies. C. clearly articulate the firm's vision or marketing strategy objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified. The first step in the segmentation, targeting, and positioning process is to clearly identify the firm's strategy and objectives to ensure that the segmentation process supports those objectives.

C. clearly articulate the firm's vision or marketing strategy objectives. The first step in the segmentation, targeting, and positioning process is to clearly identify the firm's strategy and objectives to ensure that the segmentation process supports those objectives.

When firms set prices similar to those of competitors, they are following a strategy of A. me-too pricing. B. copycat pricing. C. competitive parity. D. market-broadening pricing. E. industry-standard pricing.

C. competitive parity. A competitive parity strategy is a type of competitor-oriented strategy in which the firm sets prices similar to those of the competition.

Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing? A. internal pricing B. profit-oriented pricing C. competitor-oriented pricing D. customer-oriented pricing E. sales-oriented pricing

C. competitor-oriented pricing When firms take a competitor orientation, they strategize according to the premise that they should measure themselves primarily against their competition.

For an advertiser, the target audience can be understood as A. consumers who currently use or like the product. B. consumers who do not use the product. C. consumers whom its research designates as its target market. D. consumers who prefer the competitor's product. E. consumers who are unaware of the product.

C. consumers whom its research designates as its target market. Firms must keep in mind that their target audience may or may not be the same as current users of the product. They must conduct research to identify their target audience.

Marketers selling milk, bread, and other consumer staples know most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods. A. specialty B. shopping C. convenience D. ritual E. impulse

C. convenience Milk, bread, and other consumer staples are convenience goods for most shoppers. They will not compare many alternatives, but will simply purchase what they need.

Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of A. regional culture. B. generational cohort characteristics. C. country culture. D. a red/blue marketing campaign. E. the Walmart Effect.

C. country culture. Country culture consists of a country's shared beliefs and values, which included a strong thread of patriotism after the WTC attacks.

In the movie Field of Dreams, one of the memorable phrases is, "If you build it, he will come." The AIDA model would suggest that after marketers build a product or service and create awareness among consumers, they need to A. determine the level of desire needed to sustain action. B. promote sufficiently to gain global attention. C. create interest among consumers, persuading them to investigate further. D. offer discounts to increase purchase intentions. E. take steps to encourage immediate purchase.

C. create interest among consumers, persuading them to investigate further. The steps in the AIDA model are awareness, interest, desire, and action.

In a modified rebuy situation, __________ are likely to have an advantage in getting the order. A. consumers B. resellers C. current vendors D. gatekeepers E. buying centers

C. current vendors A modified rebuy situation is one in which the buyer has purchased similar products in the past, but now wants to modify some specifications. Thus, current vendors may have an advantage since they have an existing relationship with the buyer, as long as they are able to adapt to the changed specifications.

When marketers look at advertising media, they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using __________ to see whether the media fit with their advertising agenda. A. country culture B. regional culture C. demographics D. micromarketing measures E. scenario planning

C. demographics Age, income, gender, and race are demographic factors.

Psychographics is the segmentation method that delves into how consumers A. adjust to demographic changes. B. allocate scarce incomes to a variety of goods and services. C. describe themselves. D. value their livelihoods. E. believe other people see them.

C. describe themselves. Psychographics is related to the way we describe ourselves—our self-concept, values, and lifestyle.

The process by which the use of a new product or service spreads throughout a market group is referred to as A. new product introduction. B. lead user dispersion. C. diffusion of innovation. D. the product life cycle. E. product development diffusion.

C. diffusion of innovation. The adoption of an innovative product or service spreads through the population over a period of time and generally follows a bell-shaped curve (called the diffusion of innovation curve). The product life cycle is a related but different concept that traces sales (not initial adoption) of a product throughout its life.

Cora will be a bridesmaid next summer and has purchased her dress online. When she turns on her computer again, Cora is surprised to see special offers for matching accessories. This is an example of which marketing strategy? A. sales promotions B. media advertising C. direct marketing D. personal selling E. public relations

C. direct marketing Direct marketing is the form of marketing communication that is most easily personalized, including increased use of customer databases to track purchases made online

The basic motivating factor in designing supply chains is that A. collaboration creates transactional relationships. B. the most powerful member of the supply chain always wins. C. each party wants something from the others. D. the participants must create the best possible EDI system. E. retail floor salespeople need emotional support from management.

C. each party wants something from the others. Supply chains stay together because each member of the chain wants something from the others—goods, services, or assistance providing goods and services to end consumers.

Break-even analysis is useful because it allows managers to A. quantify the relationship between price elasticity and product elasticity. B. reposition products based on their break-even positioning revenue. C. estimate the quantity they will need to sell at a given price to break even. D. determine the relationship between price and quantity demanded. E. analyze the different elements contributing to their variable costs.

C. estimate the quantity they will need to sell at a given price to break even. It is useful to know how many units a company must sell at a given price to break even. It helps in evaluating the financial feasibility of a proposed price.

Which of the following is NOT a stage in the product life cycle? A. introduction B. growth C. evaluation D. maturity E. decline

C. evaluation The product life cycle is made up of introduction, growth, maturity, and decline.

When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would only consider those brands she could buy at her local Best Buy electronics store. This represents Maya's __________ set. A. universal B. retrieval C. evoked D. deterministic E. behavioral

C. evoked The universal set represents all brands, regardless of whether the consumer is aware of them. The retrieval set represents all brands the consumer can recall. The evoked set represents all brands the consumer would consider buying (as in this case).

Martin has hired a market research company to bring together a small group of soft drink consumers and get feedback on the three new advertising slogans his firm is considering. The market research firm might conduct a(n) __________ to provide the information Martin has requested. A. industry survey B. experiment C. focus group D. observational study E. primary data mining analysis

C. focus group Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.

Tyree is concerned about a competitor's new line of outdoor barbeque grills that provide most of the same features as his products. Tyree might consider using __________ to gather qualitative information from consumers about the competitor's offerings. A. industry surveys B. experiments C. focus groups D. observation E. primary data mining

C. focus groups Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation. A. micromarketing; loyalty B. lifestyle; macromarketing C. geodemographic; lifestyle D. geographic; loyalty E. behavioral; geodemographic

C. geodemographic; lifestyle Kim starts by identifying a geodemographic segment (active retirees in a nearby community). She then moves on to design a marketing mix based on the lifestyle of her target market.

Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will likely involve determining A. how Disney World crowds will affect his business. B. which employees to promote or fire. C. how to allocate resources among his four stores. D. what new government regulations might create opportunities or threats. E. when to shift from a customer excellence to an operational excellence strategy.

C. how to allocate resources among his four stores. Lamar should already have considered a strategy shift in an earlier step of the planning process, and should have evaluated the impact of Disney World and of possible government regulation in a situation analysis. After STP analysis, he should be considering his implementation plan for the four Ps and deciding how to allocate resources. In this case, he could invest equally in all four stores, or he could adjust his allocations according to the situation at each store.

Greg is planning an advertising campaign to promote his kayak tour company. The success of his ad campaign depends on A. the quality of his kayaks. B. how much money he spends. C. how well he can identify his target audience. D. how much consumers like him. E. whether he can gain commitments from manufacturers for complementary products.

C. how well he can identify his target audience. First and foremost, Greg must be able to identify the target audience for his campaign to ensure its success

As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy's efforts will likely help him to A. avoid cognitive dissonance. B. implement just-in-time marketing promotions. C. identify potential opportunities. D. avoid the need to understand regional culture. E. achieve cost savings.

C. identify potential opportunities. Close attention to the marketing environment and customer needs is one of the best sources of opportunities.

Zan wants to collect considerable information about the current opinions of his ten most important customers. Zan will probably use the __________ research method. A. social media monitoring B. experimental C. in-depth interview D. primary data mining E. observation

C. in-depth interview In-depth interviews are a good way to collect detailed opinions from a small number of individuals.

Using __________, researchers ask questions, listen to and record responses, and ask additional questions based on initial responses. A. questionnaires B. experiments C. in-depth interviews D. primary data mining E. observation

C. in-depth interviews In-depth interviews allow participants to give detailed responses and allow researchers to ask follow-up questions based on initial responses to planned questions.

Brenda was planning a small dinner party and had gone to a new specialty food store with coupons she'd found in the food section of the paper. At the store, she also found a buy one, get one free deal and a gift offered with the purchase of a particular dessert. She altered the menu as a result of the __________ and ended up spending less than she'd planned. A. in-store demonstrations B. packaging C. in-store promotion D. product placement E. store atmosphere

C. in-store promotion Promotions in stores can influence purchase decisions, as in this case.

Naomi is IMC manager for a chain of regional income tax service providers. Franchisees pay a percentage of their revenue to an IMC account allocated to her. As she establishes the short-term goals for her firm's IMC efforts, her goals are likely to include A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of her firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.

C. increasing inquiries, awareness, and trial of her firm's services. Typical short-term IMC goals include generating inquiries, increasing awareness, and prompting trial of the firm's products.

Estella is trying to create an advertising message that communicates the tangible features of her company's laptop computers, telling consumers about the relative advantages of her products as compared to other offerings in the market. Estella is trying to create a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

C. informational This describes an informational appeal, which tries to reach the consumer through reason and logic.

Jamara knows that his spring-break travel packages are the best deal on campus. He also knows his competitor is sloppy, often waiting until the last minute to provide the needed tickets and documents to students buying his island packages. Jamara wants to develop an advertising message that emphasizes the key benefits he provides. He will develop a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

C. informational This describes an informational appeal, which tries to reach the consumer through reason and logic.

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company's overall strategy, it will choose __________ distribution. A. primary B. independent C. intensive D. exclusive E. selective

C. intensive Intensive distribution refers to getting a product into as many outlets as possible.

In the AIDA model, awareness leads to A. intention, which hopefully leads to desire and then action. B. integration, which hopefully leads to desire and then action. C. interest, which hopefully leads to desire and then action. D. intention, which hopefully leads to desire and then attention. E. interest, which hopefully leads to determination and then action.

C. interest, which hopefully leads to desire and then action. The steps in the AIDA model are awareness, interest, desire, and action.

A major disadvantage of primary data collection is A. it can only be accessed through syndicated databases or unstructured data mines. B. it cannot be tailored to meet specific research needs. C. it takes more time to collect than secondary data and is more costly. D. it is too general to meet researchers' and managers' needs. E. it does not offer behavioral insights that can be obtained from secondary data.

C. it takes more time to collect than secondary data and is more costly. Primary data collection can be expensive and time-consuming, but it can also be tailored to the precise needs of the research.

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. A. innovator B. laggard C. late majority D. early majority E. early adopter

C. late majority Sales level off around the time when the late majority adopts the product.

When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

C. late majority The late majority is the last group to enter a new product market after sales have leveled off and prices have dropped.

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service. A. innovator B. laggard C. late majority D. early majority E. early adopter

C. late majority The late majority is the last large group of consumers to adopt a new product.

Abercrombie & Fitch, a clothing retailer, includes a SHARE link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

C. market penetration

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy. A. segment development B. market development C. market penetration D. diversification E. product development

C. market penetration

Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

C. market penetration

By the time BMW and Mercedes Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

C. maturity BMW and Mercedes delayed entry into the mini-SUV market, with the result that they did not enter until this market was already mature.

During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. A. introduction B. leveling C. maturity D. growth E. decline

C. maturity Intense competition can lead to a decline in profits in the maturity stage.

Kimberly has just learned that Caribou Coffee is looking for a new source of commercial-grade coffee makers, one of the products she sells. She knows Caribou has been in business for many years, but she has not been able to get any business from them. When developing her marketing strategy, Kimberly will probably assume that this represents a __________ situation for Caribou Coffee, and she will want to find out why Caribou is considering alternatives. A. adapted buy B. new buy C. modified rebuy D. straight rebuy E. generic buy

C. modified rebuy Caribou is apparently looking for a new supplier for a product it has purchased in the past, which makes this a modified rebuy situation. Kimberly will want to find out why Caribou Coffee is not simply executing a straight rebuy, since this will give her insight into the company's unmet needs.

A(n) __________ situation in B2B marketing is similar to limited problem solving in the B2C process. A. adapted buy B. new buy C. modified rebuy D. straight rebuy E. generic buy

C. modified rebuy Limited problem solving in the B2C process has elements in common with a modified rebuy situation in the B2B process. Both involve a limited search for information and evaluation of alternatives—not to the same degree as a new buy (or extended problem solving), but also not the straightforward, simple process of a straight rebuy (or habitual decision making).

If a firm in a purely competitive market can differentiate its product or service, it becomes part of a _______________ market. A. pure competition B. oligopolistic competition C. monopolistic competition D. monopoly E. duopoly

C. monopolistic competition The difference between pure competition and monopolistic competition is that in pure competition, products are not differentiated, but in monopolistic competition, they are.

In a market with _______________, there are many firms providing differentiated products. A. pure competition B. oligopolistic competition C. monopolistic competition D. a monopoly E. a duopoly

C. monopolistic competition This is a monopolistic competition situation, where many firms compete and each seeks to differentiate its offerings.

Which step in the buying process is most likely to happen in a straight rebuy situation? A. product specification B. RFP process C. need recognition D. proposal analysis E. supplier selection

C. need recognition Straight rebuys often enable the buyer to recognize the firm's need and go directly to the fifth step in the B2B buying process, skipping the product specification, RFP process, proposal analysis, and supplier selection steps.

Normally, BC bottling company attaches plastic labels to its bottles. However, a new company is launching a product that requires the use of fabric labels. To use this latest innovation, BC bottling company must now source these fabric labels from another company. This is an example of A. a modified rebuy situation. B. vendor analysis. C. need recognition. D. a straight rebuy situation. E. an RFP.

C. need recognition. This new requirement has created a need, setting off the first stage in the B2B buying process.

The greater the discrepancy between a consumer's __________, the greater the consumer's need recognition will be. A. financial risk and performance risk B. search for alternatives and alternatives found C. needy state and desired state D. universal set and evoked set E. external and internal information search

C. needy state and desired state A greater discrepancy between the two states will create a stronger drive to satisfy the need.

Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses media and finally, she determines the cost for each product to be promoted. Julie is using the __________ method of establishing an IMC budget. A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

C. objective-and-task The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.

For new product marketers, early adopters are important because they tend to be A. few in number. B. the first to adopt a new product. C. opinion leaders. D. fond of prototypes. E. alpha testing enthusiasts.

C. opinion leaders. Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders.

In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars. A. weakness B. threat C. opportunity D. operational advantage E. locational advantage

C. opportunity Higher gas prices should make consumers more likely to consider buying electric cars, so this is a positive factor. It is external to the firm since it is beyond the firm's control. An external positive factor is an opportunity.

An emotional appeal aims to satisfy consumers' __________, whereas an informational appeal speaks to consumers' __________. A. needs; desires B. institutional focus; personal focus C. personal desires; utilitarian needs D. top-of-the-mind awareness; bottom-of-the-mind reactions E. cost-consciousness; imaginations

C. personal desires; utilitarian needs An emotional appeal tries to reach the consumer by forging a bond between the consumer and the brand based on personal desires. An informational appeal tries to reach the consumer through reason and logic, focusing on utilitarian needs.

An emotional appeal aims to satisfy consumers' __________, whereas an informational appeal speaks to consumers' __________. A. needs; desires B. institutional focus; personal focus C. personal desires; utilitarian needs D. top-of-the-mind awareness; bottom-of-the-mind reactions E. cost-consciousness; imaginations

C. personal desires; utilitarian needs An emotional appeal tries to reach the consumer by forging a bond between the consumer and the brand based on personal desires. An informational appeal tries to reach the consumer through reason and logic, focusing on utilitarian needs.

Jordan loves to read and write. She started a blog about books, including writing hints and book reviews. The readership of her blog gradually increased, and eventually publishers started sending her new books, hoping she would review them. Over time, Jordan's blog has changed from a __________ blog to a __________ blog. A. professional; network B. professional; personal C. personal; professional D. personal; social E. social; network

C. personal; professional By receiving free merchandise in return for reviews, Jordan's blog has moved from a personal blog to a professional blog.

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is __________ his business relative to his competition. A. segmenting B. packaging C. positioning D. pricing E. targeting

C. positioning Donald is positioning his business relative to the competition by focusing on his investment in the local neighborhood and his years of experience serving local customers.

If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is A. cross-price elastic. B. price inelastic. C. price elastic. D. status quo elasticity. E. derived demand inelastic.

C. price elastic. If a 1 percent price decrease results in, say, a 1.1 percent increase in demand, price elasticity is equal to 1.1/-1 = -1.1. Price elasticity of less than -1.0 reflects elastic demand.

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably A. price sensitive. B. price elastic. C. price inelastic. D. income elastic. E. cross-price elastic.

C. price inelastic. Since Barry's customers don't seem to care about the price, we would not expect to see demand change much as price changes. This describes a situation where demand is price inelastic.

Actress Sissy Spacek once objected to a series of movie scenes that included her smoking a certain brand of cigarettes. She was probably objecting to a __________ arrangement the film company had made with an advertiser. A. promotional deal B. mass media buy C. product placement D. loyalty program E. sampling

C. product placement A product placement is a situation in which a marketer has paid to have a product included in a nontraditional situation, such as a scene in a film or TV program. In all likelihood, the cigarette manufacturer had paid the film producer in return for visibility for the brand of cigarettes

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation. A. geographic B. self-concept C. psychographic D. benefit E. behavioral

C. psychographic Segmentation based on self-values is a form of psychographic segmentation.

VALS is the most widely used __________ segmentation tool. A. geographic B. behavioral C. psychographic D. benefits E. geodemographic

C. psychographic VALS, which segments consumers according to primary motivation and resources, is a psychographic segmentation tool.

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation. A. demographic; psychographic B. geographic; geodemographic C. psychographic; demographic D. demographic; behavioral E. demographic; benefit

C. psychographic; demographic Psychographics, with its focus on values and lifestyles, is often more useful for predicting behavior than are demographics, which generalize across groups with similar ages, incomes, education levels, ethnicity, and/or gender. On the other hand, demographic information is usually much more readily available at lower expense.

Each year in December, Anheuser-Busch runs television ads featuring the Clydesdale horses pulling a stagecoach with an Anheuser-Busch logo. The message is low-key, wishing everyone well during the holiday season. This is an example of _________ advertising. A. informative B. persuasive C. reminder D. discussive E. institutional

C. reminder This is reminder advertising. It does not seek to specifically motivate any particular action, but simply reminds consumers that Anheuser-Busch is out there, using the familiar Clydesdales that have long been associated with the brand.

Unlike manufacturers, __________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them. A. producers B. consumers C. resellers D. raw materials suppliers E. gatekeepers

C. resellers Resellers—both wholesalers and distributors—buy products from businesses and sell to other businesses, but do not significantly alter the products involved.

Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood. A. Internet marketers B. wholesalers C. retailers D. consumer goods manufacturers E. cable TV networks

C. retailers Retailers can benefit from geodemographic segmentation because it can help to define the types of customers who live near stores. The other examples given are not particularly dependent on geographic proximity.

Jm was asked to determine the ROI for a particular advertising effort. To do so, he needs to know A. the internal rate of return and the projected expenditure level. B. the total number of units sold and the total cost of sales. C. sales revenue and advertising cost. D. gross margin and advertising cost. E. the advertising cost and the total communications expenditures.

C. sales revenue and advertising cost. The ROI is calculated using sales revenue and advertising cost.

Company sales invoices, census data, and trade association statistics are examples of A. primary data. B. data mines. C. secondary data. D. tertiary data. E. qualitative data.

C. secondary data. These are all examples of secondary data—data that were collected for another purpose but that can be helpful in answering questions.

Which of the following is NOT one of the four major growth strategies marketers typically use? A. market penetration B. market development C. segment development D. diversification E. product development

C. segment development The four growth strategies are market penetration, market development, product development, and diversification.

Which of the following markets is MOST likely to be characterized by oligopolistic competition in the United States? A. soybeans B. pens and pencils C. soft drinks D. men's clothing E. electrical service to the home

C. soft drinks Soybeans are a purely competitive market; pens and pencils have elements of pure competition (for basic pencils) and of monopolistic competition (for particular types of pens). Men's clothing exhibits monopolistic competition due to the large number of providers, and electrical service is often a monopoly. The soft drink market is marked by a small number of companies; in particular, Coca-Cola and Pepsi-Cola dominate the market, with a few other players and some private label brands.

A(n) __________ occurs when the purchasing agent orders additional units of products that have previously been purchased. A. new buy B. modified rebuy C. straight rebuy D. adapted buy E. generic buy

C. straight rebuy A straight rebuy occurs when the company is buying more of a product it has bought in the past.

Phil put down the phone and told Alice, "I just love that customer. I got another big order, and they just keep on coming." Phil is likely selling to a firm in what kind of buying situation? A. new buy B. modified rebuy C. straight rebuy D. generic buy E. adapted buy

C. straight rebuy A straight rebuy occurs when the company is buying more of a product it has bought in the past. It sounds like Phil's customer places straight rebuy orders frequently.

As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including A. competition. B. the economy. C. strengths and weaknesses. D. demographics. E. opportunities and threats.

C. strengths and weaknesses.

The greater the discrepancy between a consumer's needy state and the desired state, the greater A. time needed to satisfy the need. B. the effort consumers will invest in searching for alternatives. C. the consumer's need recognition will be. D. the size of the universal set will be. E. the amount of external information search will be needed.

C. the consumer's need recognition will be. A greater discrepancy will create a stronger drive to satisfy the need

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how ____________ affects demand for products. A. the substitution effect B. the price inelasticity coefficient C. the income effect D. the target return effect E. cross-price elasticity

C. the income effect This is an example of the income effect, where demand tends to shift from lower-priced to higher-priced products as consumers' income increases, and vice versa. In this case, generic orange juice costs less than do the national brands.

Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of ______________ on demand for his service. A. breakeven points B. the price inelasticity ratio C. the income effect D. target profit pricing E. cross-price elasticity

C. the income effect This is an example of the income effect, where demand tends to shift from lower-priced to higher-priced products as consumers' income increases, and vice versa. In this case, keeping one's car and having it repaired costs less than getting a new car.

The right communication channel to use in IMC is A. the traditional channel used in that particular retail sector. B. network advertising, local newspapers, and regional radio stations. C. the one that will connect to the desired recipients. D. the one with the best encoding capabilities. E. the one that maximizes decoding difficulty.

C. the one that will connect to the desired recipients. There is no one right communication channel to use—it depends on the target customers who should receive the message.

The diffusion of innovation theory focuses on A. the geographic boundaries of innovation. B. the relationship between pioneer brands and imitators. C. the psychological traits of innovators. D. the rate at which consumers are likely to adopt a new product or service. E. the way a product moves through the product life cycle.

C. the psychological traits of innovators. The adoption of an innovative product or service spreads through the population over a period of time and generally follows a bell-shaped curve (called the diffusion of innovation curve).

When a customer purchases a DVD at a Best Buy electronics store, all of the following information flows in the supply chain are started EXCEPT A. the sales associate scans the UPC recording the sale. B. the sale is transmitted to Best Buy's distribution center to adjust inventory data. C. the purchase is added to the customer's purchasing habit records. D. Best Buy's buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer. E. the point-of-sale terminal records the sale and sends it to Best Buy's buyer.

C. the purchase is added to the customer's purchasing habit records. Although customer-specific data may be collected at the point of sale, it is not part of the information that flows in the supply chain.

The consumer decision process model represents A. the concept of habitual decision making. B. the retrieval of an evoked set based on physiological needs. C. the steps that consumers go through before, during, and after making purchases. D. the shift from an internal to an external locus of control. E. the types of decisions all consumers must make.

C. the steps that consumers go through before, during, and after making purchases. The consumer decision process model identifies steps involved in purchasing decisions, including before, during, and after purchases.

The consumer decision process model represents A. the concept of habitual decision making. B. the retrieval of an evoked set based on physiological needs. C. the steps that consumers go through before, during, and after making purchases. D. the shift from an internal to an external locus of control. E. the types of decisions all consumers must make.

C. the steps that consumers go through before, during, and after making purchases. The consumer decision process model identifies steps involved in purchasing decisions, including before, during, and after purchases.

If values provide goals, and self-concept is the way we see ourselves, lifestyles are A. visual images of how we should live our lives. B. our underlying motivations. C. the way we live our lives to achieve our goals. D. motivations turned into perceptual maps. E. determined by demographics.

C. the way we live our lives to achieve our goals. Lifestyle (which is one aspect of psychographic segmentation) is the way we live our lives—activities, interests, and so on.

In an administered vertical marketing system, A. no individual participant has control over the others, since a third party administrator oversees the entire supply chain. B. transaction selling is the norm, with the invisible hand guiding the overall functioning. C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives. D. independent firms join together formally to decide as a group how the marketing channel will operate. E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives. A powerful firm can manage a vertical supply chain through its power; this is an administered vertical marketing system.

The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this A. the primacy effect. B. aided recall. C. top-of-mind awareness. D. category dominance. E. elevated awareness.

C. top-of-mind awareness. Top-of-mind awareness means that the consumer mentions the brand name first when asked about a product.

Microsoft's Windows operating system continues to dominate the market, even though it has been around for over twenty years. Windows will likely remain in the maturity stage of the product life cycle A. indefinitely. B. until it rules the world. C. until a superior product comes along to replace it. D. unless Microsoft repositions Windows as an introductory stage product. E. as long as the company doesn't change it.

C. until a superior product comes along to replace it. Products can stay in the maturity stage for a very long time, until a superior product comes along as a replacement.

When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation. True or False

FALSE The question describes positioning, not psychographics.

What is a microblog? A. A blog whose owner doesn't post very often. B. A blog that supports only links to other posts. C. A blog run by a small business. D. A blog service that supports only short posts. E. A blog that targets a very small consumer group.

D. A blog service that supports only short posts. Microblogging sites—of which Twitter is the best known—support very short posts (in the case of Twitter, 140 characters or less).

__________ segmentation is the segmentation method most directly related to value creation for consumers. A. Geographic B. Demographic C. Psychographic D. Benefit E. Geodeomographic

D. Benefit Benefits segmentation seeks to segment customers based on the benefits they seek—in other words, the value they will obtain—from the product.

In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is NOT a good characterization of the flow of information in a supply chain? A. A manufacturer will send and receive information from buyers, stores, and distribution centers. B. Stores will send and receive information from manufacturers, buyers, distribution centers, and customers. C. Distribution centers will send and receive information from stores and manufacturers. D. Customers will send and receive information from stores and manufacturers. E. Buyers will send and receive information from stores and manufacturers.

D. Customers will send and receive information from stores and manufacturers. The information flows in the supply chain do not include customer participation.

Which of the following is NOT one of the federal agencies that regulate advertising activities? A. FDA B. FCC C. FTC D. FRS E. USPS

D. FRS The FDA, FCC, and FTC are the three major agencies regulating advertising; however, other agencies (including the U.S. Postal Service) have some regulatory responsibility as well.

Which statement best describes personal selling? A. It involves a larger audience than advertising. B. It is primarily indirect communication. C. It is primarily informational communication, not persuasive communication. D. It is the two-way flow of communication between a buyer and a seller. E. It involves encoding whereas advertising involves only decoding.

D. It is the two-way flow of communication between a buyer and a seller. Personal selling is the two-way flow of communication between a buyer and a seller.

__________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products. A. Targeting B. Market segmentation C. A sustainable competitive advantage D. Positioning E. A customer excellence strategy

D. Positioning This is the definition of positioning, which is the final activity in STP analysis.

__________ confirms insights and provides a basis for taking a course of action. A. Primary data collection B. Data mining C. Qualitative research D. Quantitative research E. Statistical sourcing

D. Quantitative research The purpose of quantitative research is to confirm insights and provide a basis for managerial decision making and action.

Firms typically repurchase office supplies (paper, ink cartridges, pens, etc.) through straight rebuys on their supplier's website. Should an office supplies sales rep stay in close touch with his/her current customers, and why or why not? A. No; this is a waste of time since straight rebuys are straightforward and easy to handle. B. No; the sales rep should be looking for new customers instead. C. Yes; straight rebuys require a lot of the sales rep's assistance. D. Yes; the sales rep might learn about a new opportunity in the need recognition stage. E. Yes; history has shown that online reordering can't be trusted.

D. Yes; the sales rep might learn about a new opportunity in the need recognition stage While the sales rep probably doesn't need to be involved in the details of straight rebuy orders, there are other reasons to stay involved. In particular, the sales rep might learn of new opportunities just recognized by the firm and get an opportunity to win new business.

During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors. A. introduction B. leveling C. maturity D. growth E. decline

D. growth The growth stage, the second stage of the product life cycle, is marked by rising sales and profits and an increasing number of competitors.

Assume the demand for electricity, a necessity with few substitutes, is -0.2. If the electric company raised its rates by 10 percent, we would expect A. a 10 percent decrease in quantity demanded. B. a 2 percent increase in quantity demanded. C. a 10 percent increase in quantity demanded. D. a 2 percent decrease in quantity demanded. E. a 5 percent decrease in quantity demanded.

D. a 2 percent decrease in quantity demanded. Price elasticity = % change in demand/% change in price. In this case, -0.2 = % change in demand/10. The answer is -2, or a 2% decrease in demand

The consumer buying process begins when A. a consumer enters a store. B. consumers' functional needs are greater than their psychological needs. C. a consumer's performance risk is minimized. D. a consumer recognizes an unsatisfied need. E. learning follows perception.

D. a consumer recognizes an unsatisfied need. Need recognition is the first step in the consumer buying process.

A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage. A. customer value B. a mission statement C. marketing metrics D. a firm's target markets E. a product plan

D. a firm's target markets A marketing strategy identifies three things: a firm's target market, a related marketing mix (its 4 Ps), and the bases on which the firm plans to build a sustainable competitive advantage.

Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a quick-response system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established A. customer loyalty. B. locational excellence. C. a diversification growth strategy. D. a sustainable competitive advantage. E. a related diversification opportunity.

D. a sustainable competitive advantage.

The Lite beer commercial with the slogan, "less filling, tastes great," was based on __________ segmentation. A. geographic B. geodemographic C. psychographic D. benefit E. loyalty ]

D. benefit The ad clearly sets out two benefits: the beer is less filling and yet still tastes great

Because PSAs are a special class of advertising, FCC rules require A. consumers to listen to them. B. court approval before they are aired. C. all advertisers to contribute to them. D. broadcasters to devote a specific amount of free time to them. E. they use only the informative or reminder advertising appeals.

D. broadcasters to devote a specific amount of free time to them. Public service announcements are messages focused on public welfare. All broadcasters, in return for access to the broadcast spectrum, are required by the FCC to devote some free airtime to PSAs

Because PSAs are a special class of advertising, FCC rules require A. consumers to listen to them. B. court approval before they are aired. C. all advertisers to contribute to them. D. broadcasters to devote a specific amount of free time to them. E. they use only the informative or reminder advertising appeals.

D. broadcasters to devote a specific amount of free time to them. Public service announcements are messages focused on public welfare. All broadcasters, in return for access to the broadcast spectrum, are required by the FCC to devote some free airtime to PSAs.

The United States has often been called the melting pot society, integrating people from many cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture A. is socially important. B. is passed from generation to generation orally or by written guides. C. competes with or complements U.S. traditional culture. D. can be used as a relevant identifier for a particular target group. E. is an important immediate marketing environment variable.

D. can be used as a relevant identifier for a particular target group. Some groups in the U.S. preserve their cultural identities while others seek to blend in. The more a group seeks to maintain its identity, the more relevant culture will be to identify a potential customer group.

Variable costs change with A. changes in fixed costs. B. changes in cross-price elasticity. C. changes in target return pricing. D. changes in the quantity being produced. E. competitive parity.

D. changes in the quantity being produced. Variable costs are costs that change as the production quantity changes.

Which of the following is NOT one of the five Cs of pricing? A. customers B. channel members C. cost D. collaboration E. company objectives

D. collaboration The five Cs of pricing are competition, costs, company objectives, customers, and channel members.

In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. Each firm weighs the comparative advantages and disadvantages of its offerings to determine whether to price above, equal to, or below the other hotel. In these markets, the hotels are using a _______________ pricing strategy. A. maximizing profits B. target profit C. target return D. competitive parity E. sales oriented

D. competitive parity A competitive parity strategy is a type of competitor-oriented strategy in which the firm sets prices similar to those of the competition.

When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a __________________ pricing strategy. A. maximizing profits B. target profit C. target return D. competitor-oriented E. sales oriented

D. competitor-oriented Ursula is concerned mostly with pricing relative to the competition, so this is a competitor-oriented strategy.

Compared to other IMC alternatives, advertising is extremely effective for A. closing a sale. B. efficient message decoding. C. reducing the potential for noise. D. creating awareness and generating interest in a product. E. repositioning consumers in the AIDA model.

D. creating awareness and generating interest in a product. Advertising is best suited for creating awareness and interest. Because it is a relatively passive medium, it does not do as well at generating desire and spurring consumers to action.

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

D. growth As a few additional competitors moved into the hybrid car market, opening up production capacity for additional buyers, the hybrid market moved into the growth stage.

Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of A. a sustainable competitive advantage. B. a customer retention program. C. an opportunity, in SWOT analysis. D. customer loyalty. E. the benefits of a locational excellence strategy.

D. customer loyalty. By refusing to consider competitive offerings and staying in a long-term relationship with the salon, Anita is demonstrating loyalty to her stylist and salon. If the salon has a large number of loyal customers due to the quality of its service, that could be considered a sustainable competitive advantage, but one loyal customer isn't enough to establish that.

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation. A. benefit B. geodemographic C. psychographic D. demographic E. geographic

D. demographic This is a demographic segment because it is defined according to demographic variables: gender, age, and income.

Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy to supply her customers. Paula is concerned with __________ demand. A. modified B. secondary C. rebuy D. derived E. delayed

D. derived Derived demand refers to the link between consumers' demand for a company's output and the company's purchase of necessary inputs. The homebuilders' demand for appliances is derived from the demand for its homes.

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

D. diversification

Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to A. develop a business mission statement. B. choose the best target markets. C. reposition existing segments. D. divide the marketplace into subgroups. E. conduct a SWOT analysis.

D. divide the marketplace into subgroups. The first stage of an STP analysis is segmentation, which involves dividing the market into subgroups. Business mission development and SWOT analysis take place before STP analysis starts, and targeting and positioning are later stages in STP analysis.

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

D. early majority Hillary has waited for a more competitive market with lower prices; this occurs when the early majority is adopting the product.

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. A. innovator B. laggard C. late majority D. early majority E. early adopter

D. early majority The early majority is the first large group to adopt the product. Without this group, profits are unlikely to materialize.

The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with A. an evoked set. B. psychological needs. C. social concerns. D. evaluative criteria. E. biased information.

D. evaluative criteria. These attribute recommendations are examples of evaluative criteria, which are the salient, or important, attributes about a particular product a consumer considers when evaluating available alternatives.

The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with A. an evoked set. B. psychological needs. C. social concerns. D. evaluative criteria. E. biased information.

D. evaluative criteria. These attribute recommendations are examples of evaluative criteria, which are the salient, or important, attributes about a particular product a consumer considers when evaluating available alternatives.

The advertising message admonition, "People are not looking for quarter-inch drill bits; they are looking for quarter-inch holes," suggests that advertising messages need to A. emphasize technology. B. focus on quality. C. inform consumers about opportunities. D. focus on solving problems. E. engage in mild puffery.

D. focus on solving problems. Advertising messages should focus on how the product can solve a consumer's problems

Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the U.S., what segmentation method would probably be most useful in choosing new locations? A. loyalty segmentation. B. benefit segmentation. C. psychographic segmentation. D. geodemographic segmentation. E. demographic segmentation.

D. geodemographic segmentation. Geodemographic segmentation is the best choice because Let's Dish needs to be located near its customers. It could compare demographic profiles for neighborhoods near successful current locations, and seek out similar neighborhoods in other geographic areas.

Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them. A. loyalty segmentation; demographics B. undifferentiated targeting; differentiated targeting C. loyalty segmentation; geodemographics D. geodemographic segmentation; lifestyle or benefit segmentation E. lifestyle segmentation; geographic segmentation

D. geodemographic segmentation; lifestyle or benefit segmentation Marketers may start with a segmentation method such as geodemographic segment to identify a segment to target; after that, lifestyle or benefits may be considered when designing the marketing mix to make sure that it meets customers' needs.

Innovators are a critical group of new product adopters because they A. are the major source of innovation. B. act as reverse engineering consultants. C. help with test marketing. D. help the product gain market acceptance. E. extend the product life cycle.

D. help the product gain market acceptance. As the first group to adopt a new product, innovators help the product to gain initial market acceptance.

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to A. develop an advertising plan to promote the upcoming sales. B. find marketing interns or hire new staff to help with implementation. C. create pro forma financial statements to complete the package. D. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. E. use the Internet, catalogs, and vendor information to draw up a list of new products.

D. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. The third step of the strategic marketing planning process, following defining the mission and objectives and conducting a situation analysis, is the STP process.

Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

D. implement marketing mix and resources Carla is dealing with implementation of the marketing mix--price cuts (Price), advertising (Promotion), and distribution changes (Place).

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in A. a product development growth strategy. B. an operational advantage. C. opportunities for diversification. D. increased long term profits. E. more clearly defined market segments.

D. increased long term profits.

A major factor contributing to the growth in the use of direct marketing IMC efforts is A. reduced government regulation of deceptive advertising practices. B. expanded use of personal selling. C. a shift from objective-and-task to rule-of-thumb budgeting. D. increased use of credit and debit cards and online shopping by consumers. E. the reduction in IMC noise, allowing for a decreased lagged effect.

D. increased use of credit and debit cards and online shopping by consumers. Direct marketing is the form of marketing communication that is most easily personalized through the use of customer databases. The growth of these databases has been stimulated by increased use of credit cards and increased online shopping.

After identifying the target audience for the university's new advertising campaign, the advertising team needs to decide whether the advertising objective is to __________, __________, or __________ potential and/or existing students. A. create, stimulate, ignore B. beg, borrow, steal C. pay, buy, entertain D. inform, persuade, remind E. push, pull, sell

D. inform, persuade, remind Informing, persuading, and reminding are the three general objectives of advertising.

After identifying the target audience for the university's new advertising campaign, the advertising team needs to decide whether the advertising objective is to __________, __________, or __________ potential and/or existing students. A. create, stimulate, ignore B. beg, borrow, steal C. pay, buy, entertain D. inform, persuade, remind E. push, pull, sell =

D. inform, persuade, remind Informing, persuading, and reminding are the three general objectives of advertising.

"Now available. The latest fall fashions." is an example of a(n) __________ advertising message. A. persuasive B. reminder C. socially responsible D. informative E. institutional

D. informative This is informative advertising. It builds awareness of the release of fall fashions but does not specifically try to persuade the consumer to purchase them.

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation A. is available only in limited geographic areas. B. is rarely used and unproven. C. offers only one-to-one marketing potential. D. is a more expensive method for identifying potential customers. E. is still an unproven area.

D. is a more expensive method for identifying potential customers. Psychographic segmentation is by no means unproven, and can be used for many applications unrelated to one-to-one marketing. Psychographic segmentation, though, is generally more expensive than demographic segmentation because demographic information is so much more readily available.

One of the limitations associated with break-even analysis is that A. it assumes fixed costs are zero. B. it cannot adjust for high variable costs. C. it only tells marketers what price is needed to break even. D. it assumes that there is only one price. E. it assumes that demand is extremely inelastic.

D. it assumes that there is only one price. Break-even analysis assumes that all products are sold at a single price (or an average price).

When a product is successful in the introductory stage of the product life cycle, A. it moves directly into the maturity stage. B. it is most likely to begin to launch spinoffs. C. competition becomes less important. D. it may start to see profits toward the end of this stage. E. marketing costs increase significantly.

D. it may start to see profits toward the end of this stage. A product that is successful in the introductory stage may begin to see profits toward the end of this stage.

When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries? A. dress B. symbols C. demographics D. language E. social trends

D. language Language would be an important cultural issue; while both countries speak English, there are many differences in vocabulary.

Companies can find out a lot about customers using sentiment analysis on sites like Facebook and Twitter, or put another way, by A. reacting. B. exciting. C. engaging. D. listening. E. educating.

D. listening Sentiment analysis allows marketers to listen, or monitor, what customers say on their social networks, blogs, etc.

When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation. A. benefit B. geodemographic C. psychographic D. loyalty E. geographic

D. loyalty Ron has been identified as a loyal customer, to be handled via the marketing mix the bank has designed via loyalty segmentation.

To determine how attractive a particular market is, using the BCG portfolio analysis, __________________ is established as one axis. A. competitive intensity B. sales dollars C. market size D. market growth rate E. market profit potential

D. market growth rate The BGC matrix uses market growth rate on one axis and relative market share on the other. The other factors are not unimportant--they are simply not part of BGC portfolio analysis.

When selecting a target market, firms will be most successful if they A. decide between demographic and geographic segmentation methods. B. seek out opportunities to customize products. C. develop a strong communication plan. D. match the firm's competencies with a market segment's attractiveness. E. reposition the brand.

D. match the firm's competencies with a market segment's attractiveness. Firms will usually find the most success if they choose attractive segments whose needs match the firm's competencies.

Cathy 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. A. introduction B. growth C. evaluation D. maturity E. decline

D. maturity Although P&G does come out with new variations of the Olay product, it is in the maturity stage because P&G must defend its market share against fierce competition.

Manitoba University is buying a distance learning system. Previously, the school had no distance learning technology. For Manitoba University this represents a(n) __________ situation. A. adapted buy B. modified rebuy C. straight rebuy D. new buy E. generic buy

D. new buy Since Manitoba has no experience buying distance learning systems and no existing vendor relationships, this is a new buy situation.

Kathy has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the __________ associated with her purchase decision. A. evoked set B. reference group C. physiological risk D. performance risk E. financial risk

D. performance risk Kathy is afraid of getting another bad haircut. This represents performance risk, in that Kathy is worried about the quality of the service she will receive.

Advertising slogans such as "Don't text and drive" and "Buy flood insurance before it is too late" are examples of ads designed to A. provide information. B. remind consumers. C. recruit employees. D. persuade consumers to take action. E. generate goodwill.

D. persuade consumers to take action. These are persuasive messages because they seek to persuade the receiver to take some action.

Instagram is an example of what type of social media site? A. microblogging B. media sharing C. thought sharing D. photo sharing E. social bookmarking

D. photo sharing

Because there are only a few firms in markets with oligopolistic competition, A. everyone is a price taker. B. producers do not have to consider the reactions of rival firms. C. government often encourages consolidation to reduce the number of competitors. D. price wars may occur. E. the many competitors will focus on product differentiation.

D. price wars may occur. In markets with a small number of firms, price wars may occur when two firms compete primarily based on price.

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a __________ growth strategy. A. diversification B. market development C. market penetration D. product development E. product penetration

D. product development

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent? A. market penetration B. product penetration C. market development D. product development E. diversification

D. product development

Upscale men's and women's clothing stores like Nordstrom's, Neiman-Marcus, or Saks Fifth Avenue are more likely to appeal to consumers' __________ needs. A. functional B. postpurchase C. safety D. psychological E. situational

D. psychological Upscale clothing can improve a person's image or make him or her feel a certain way, both of which are examples of psychological needs.

Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life. A. regional cultures B. inflationary expectations C. political affiliations D. purchase behavior E. cultural values

D. purchase behavior Generational cohorts are presumed to have similar purchase behavior due to similar life experiences and similarity of life stage.

How does an advertiser calculate the GRP? A. current sales plus new sales B. reach minus frequency C. sales minus advertising costs D. reach times frequency E. reach times range

D. reach times frequency

How does an advertiser calculate the GRP? A. current sales plus new sales B. reach minus frequency C. sales minus advertising costs D. reach times frequency E. reach times range

D. reach times frequency Advertisers can determine how effective their media mix has been in reaching their target audience by calculating the total GRP (reach times frequency) of the advertising schedule.

Unlike product, promotion, or place, price is the only part of the marketing mix A. that offers the opportunity for an oligopoly. B. that is subject to gray market manipulation. C. that leads to competition. D. that generates revenue. E. that is determined by the consumer.

D. that generates revenue. Product, promotion, and place generate costs; price generates revenue.

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage A. sales would rise quickly, profits would jump, and even laggards would buy his product. B. sales would level off, profits would decline, and mature golfers would be attracted to his product. C. sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. D. sales would be low and profits nonexistent, but he would attract golf equipment innovators. E. sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.

D. sales would be low and profits nonexistent, but he would attract golf equipment innovators. The introduction stage, the first stage of the product life cycle, is marked by low sales and small or negative profits. Innovators are the typical buyers.

After using market research to identify the target audience for his advertising campaign, Jorge will next use this information to A. develop creative advertising copy. B. assess the potential effectiveness of his ad campaign. C. buy advertising time. D. set explicit and measurable objectives for the campaign. E. develop PSAs for distribution in lieu of advertising.

D. set explicit and measurable objectives for the campaign. Specific, measurable objectives are important both in directing campaign strategy and in measuring results.

After using market research to identify the target audience for his advertising campaign, Jorge will next use this information to A. develop creative advertising copy. B. assess the potential effectiveness of his ad campaign. C. buy advertising time. D. set explicit and measurable objectives for the campaign. E. develop PSAs for distribution in lieu of advertising.

D. set explicit and measurable objectives for the campaign. Specific, measurable objectives are important both in directing campaign strategy and in measuring results.

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product. A. specialty B. convenience C. unsought D. shopping E. sought

D. shopping Since Meg spent significant time comparing alternatives, this would be considered a shopping product.

Andy likes gourmet popcorn and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good. A. shopping; specialty B. convenience; shopping C. convenience; specialty D. specialty; convenience E. unique; universal

D. specialty; convenience For Andy, popcorn is a specialty product—he is willing to spend time finding his favorite brand. For Joanne, it is a convenience good—she doesn't care about brands and so is unlikely to comparison shop.

Several years ago, changes in advertising restrictions allowed pharmaceutical companies to begin promoting their products through traditional media. Today, it is common to see ads on television ending with, "Ask your doctor about (our medicine)." In addition to creating awareness about their drugs, the companies are hoping to A. reduce deceptive advertising. B. signal encoding symbols to simplify the feedback loop. C. offer objective-and-task marketing communications. D. stimulate interest, persuading consumers to investigate further. E. promote public interest social responsibility communications.

D. stimulate interest, persuading consumers to investigate further. The steps in the AIDA model are awareness, interest, desire, and action.

Steven managed an auto parts store in the 1990s. At that time, stock-outs—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely A. canceled orders and shifted the business to competitors. B. increased promotional outlays to overcome customer dissatisfaction. C. used exclusive geographic territories to reduce supply chain inefficiencies. D. stockpiled inventory, adding to the cost of providing auto parts. E. returned to traditional distribution center logistics.

D. stockpiled inventory, adding to the cost of providing auto parts. In response to supply chain inefficiencies—and particularly stock-outs—many retailers in the 1990s stockpiled inventory, leading to higher inventory carrying costs.

Paula is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Paula knows these __________ factors will influence consumers' purchase decisions. A. interpersonal B. extended habitual C. postpurchase dissonance D. store atmosphere E. social

D. store atmosphere Lighting, color, and merchandise layout are examples of store atmosphere factors.

For B2B salespeople, usually the easiest sale is a(n) __________ situation. A. adapted buy B. new buy C. modified rebuy D. straight rebuy E. generic buy

D. straight rebuy A straight rebuy is the easiest sale since the buyer is purchasing an additional quantity of a product it has bought in the past, with little or no change to the specifications under which past orders were placed.

If a B2B customer is satisfied with an existing supplier, it will probably engage in a(n) __________ to purchase additional quantities of the item. A. new buy B. modified rebuy C. adapted buy D. straight rebuy E. generic buy

D. straight rebuy A straight rebuy occurs when the company is buying more of a product it has bought in the past.

Yvonne uses her customer relationship management (CRM) system to predict when her business customers will need more of her company's packaging materials. When she thinks a customer should be ready to make another order, she contacts it. Yvonne is using CRM to encourage customers to engage in a(n) A. new buy. B. modified rebuy. C. adapted buy. D. straight rebuy. E. generic buy.

D. straight rebuy. A straight rebuy occurs when the company is buying more of a product it has bought in the past. This is what Yvonne is trying to encourage.

Integrated marketing communications include all of the following EXCEPT A. personal selling. B. advertising. C. public relations. D. supply chain management. E. direct marketing.

D. supply chain management Supply chain management is not part of integrated marketing communications. Personal selling, advertising, public relations, and direct marketing are all ways to communicate value to the target market.

Commercial research firms like ACNielsen and SymphonyIRI Group are sources of A. primary data. B. internal secondary data. C. data mining. D. syndicated data. E. public data.

D. syndicated data. These are sources of syndicated data—secondary data that can be purchased from firms that collect it.

Reaching the right audience with marketing communications is becoming more difficult because A. consumers are bored. B. government regulations are constraining free speech. C. personal selling is becoming less expensive, making it more competitive with advertising. D. the media environment has become more complicated. E. the AIDA model no longer represents how marketing communication works.

D. the media environment has become more complicated. The proliferation of communication media—driven largely by technology—has made it much more difficult to choose the best way to reach a target market.

The more substitutes that exist in a market, A. the lower the price elasticity for each product. B. the greater the income elasticity for each product. C. the easier it will be to utilize a target profit pricing strategy. D. the more sensitive consumers will be to changes in the price of a particular product. E. the more likely the market will be characterized as an oligopoly.

D. the more sensitive consumers will be to changes in the price of a particular product. Substitutes, by offering reasonable alternatives, typically make consumers more sensitive to price changes.

The diffusion of innovation theory focuses on A. the geographic boundaries of innovation. B. the relationship between pioneer brands and imitators. C. the psychological traits of innovators. D. the rate at which consumers are likely to adopt a new product or service. E. the way a product moves through the product life cycle.

D. the rate at which consumers are likely to adopt a new product or service The adoption of an innovative product or service spreads through the population over a period of time and generally follows a bell-shaped curve (called the diffusion of innovation curve).

Although conflict is likely to occur in any supply chain, it is generally more pronounced when A. the supply chain members are geographically too close to each other. B. manufacturers pressure retailers. C. retailers pressure manufacturers. D. the supply chain members are independent entities. E. the economy is booming.

D. the supply chain members are independent entities. The more independent the members of the supply chain, the more likely they are to have conflicting goals and thus to experience supply chain conflict.

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy. A. concentrated targeting B. lifestyle segmentation C. benefit segmentation D. undifferentiated targeting E. differentiated segmentation

D. undifferentiated targeting An undifferentiated targeting strategy is appropriate for products for which almost anyone can be a target customer, and where customer needs and wants are similar across all groups. In this strategy, a single marketing mix is designed for all customers.

Since the late 1970s, most American families have seen their income growth stagnate, with income rising only slightly more than inflation. This has changed many American consumers' concept of A. culture. B. demographics. C. scenario planning. D. value. E. green marketing.

D. value. American consumers are increasingly aware of and sensitive to the value provided by different product offerings.

A __________ is a type of reseller, a business that buys from other businesses but does not significantly alter the form of the products it buys. A. manufacturer B. producer C. consumer D. wholesaler E. factory

D. wholesaler Resellers include wholesalers, distributors, and retailers.

Most B2B buying situations can be categorized into three categories: new buys, structured rebuys, and automatic rebuys. True or False

FALSE The three categories are new buys, modified rebuys, and straight rebuys.

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach. A. Geographic B. Psychographic C. Behavioral D. Benefits E. Demographic

E. Demographic Demographic segmentation tends to be easy to define because demographic factors are widely collected and so tend to be readily available.

How can a company find its way out of a market characterized by pure competition? A. Consistently offer the lowest price until other competitors leave the market. B. Increase prices and attract different, quality-oriented customers. C. Decrease the amount of available product until the market reacts. D. Increase the amount of available product to flood the market. E. Differentiate the product in some way, even by packaging, so customers will see it as distinct.

E. Differentiate the product in some way, even by packaging, so customers will see it as distinct. The difference between pure competition and monopolistic competition is that in pure competition, products are not differentiated, but in monopolistic competition, they are. So the way to move out of a purely competitive market is to differentiate the product in some way.

The growth phase of the product life cycle is always dynamic. Which of the following does NOT occur in this phase? A. Profits increase as sales increase. B. Profits increase as economies of scale are attained. C. Some new competitors may enter the market with similar products. D. Some competitors will exit in an industry shakeout. E. Price competition with protracted price wars erodes profits.

E. Price competition with protracted price wars erodes profits. Price competition and price wars are more likely to emerge in the maturity stage.

In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized? A. Strength B. Opportunity C. Weakness D. Segment E. Threat

E. Threat This is a potentially negative factor since it creates stronger direct competition for adidas, and the negative factor is external to adidas. Thus, it is a threat.

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables to give customers A. a more flexible supply chain strategy. B. a perceptual map of the imaging landscape. C. more product features than the competition offers. D. lower prices than the competition offers. E. a clear, distinctive, and desirable understanding of its products relative to competing products.

E. a clear, distinctive, and desirable understanding of its products relative to competing products. Positioning is the process of defining marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Which of the following data sources would NOT be considered external secondary data? A. U.S. census data B. syndicated data C. newspaper articles D. scanner data E. a survey

E. a survey Secondary data might come from free or very inexpensive external resources such as census data or newspaper articles, or it can be purchased for a fee (for example, syndicated data). A survey is primary data.

What is the appeal of Pinterest to marketers? A. allows big-box stores to compete on a cost basis with online retailers B. helps create exclusive merchandise for retailers C. creates excitement about service or products through gamification D. generates customer engagement with products E. allows products and services to receive unlimited exposure from fans

E. allows products and services to receive unlimited exposure from fans When consumers use Pinterest, marketers can receive unlimited exposure to their products and services as like-minded people share pinned items and services.

As the number of communication media has increased, the task of understanding how best to reach target customers has A. shifted from creating a value proposition to revising a value proposition. B. increased the use of rule-of-thumb targeting. C. become easier. D. focused on reducing communication noise. E. become more complex.

E. become more complex. The proliferation of communication media—driven largely by technology—has made it much more difficult to choose the best way to reach a target market.

When a business customer engages in a straight rebuy, the member of the buying center most likely to be involved in the purchase is the A. decider. B. initiator. C. influencer. D. user. E. buyer.

E. buyer. A straight rebuy occurs when the company is buying more of a product it has bought in the past. For this reason, only the buyer (who handles the paperwork) usually needs to be involved.

The centerpiece of the marketing environment analysis framework is A. green marketing. B. corporate partners. C. culture. D. competitive intelligence. E. consumers.

E. consumers.

After the advertiser has decided on the message, type of ad, and appeal, its attention now shifts to A. logistical support. B. new product development. C. advertising assessment. D. determining why they should advertise. E. creation of the advertisement.

E. creation of the advertisement. Once these decisions are made, it is time to create the advertisements.

Insight Guides, a line of travel books, provides travelers with background information about the people's beliefs, values, and customs. Insight's books educate travelers about a country's A. social concerns. B. political parties. C. demographics. D. generational cohorts. E. culture.

E. culture. People's beliefs, values, and customs relate to their culture.

Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle. A. introduction B. growth C. evaluation D. maturity E. decline

E. decline Sales of vinyl records have been declining even though they are still a viable product.

During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market. A. introduction B. leveling C. maturity D. growth E. decline

E. decline The decline stage is marked by niche marketing and by firms exiting the market.

In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing, Inc., a manufacturer of personal devices and smart phones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would fit together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ____________ step of the marketing planning process. A. situation analysis B. implement marketing mix and allocate resources C. identify and evaluate opportunities D. evaluate performance E. define the business mission

E. define the business mission By considering questions of fit and changing objectives, the planners are considering HP's business mission and how the acquisition might change it.

The increased use of customer databases has enabled marketers to identify and track consumers over time and across purchase situations and has contributed to the rapid growth in A. media advertising. B. publicity. C. public relations. D. sales promotions. E. direct marketing.

E. direct marketing. Direct marketing is the form of marketing communication that is most easily personalized through the use of customer databases.

Brenda wants to reduce mass media IMC and to increase the use of personalized marketing communication messages. To achieve this goal, Brenda will likely increase her use of A. sales promotions. B. advertising. C. public relations. D. price reductions. E. direct marketing.

E. direct marketing. Direct marketing is the form of marketing communication that is most easily personalized.

When purchasing books on Amazon.com, customers are shown other books and a message saying, "Customers who purchased (your book) also purchased..." This is an example of A. mass media advertising. B. publicity. C. public relations. D. sales promotions. E. direct marketing.

E. direct marketing. This kind of personalization is a form of direct marketing.

Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category. A. innovator B. laggard C. late majority D. early majority E. early adopter

E. early adopter Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders.

If the __________ diffusion of innovation group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. A. innovator B. laggard C. late majority D. early majority E. early adopter

E. early adopter Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders. If there are relatively few early adopters to serve as opinion leaders, the market for the product is likely to be small.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to A. categorize each market segment by consumer demographics. B. establish her overall objectives. C. decide on a targeting strategy. D. develop a positioning strategy. E. evaluate the attractiveness of each segment.

E. evaluate the attractiveness of each segment. After identifying potential market segments, the next step is to evaluate the attractiveness of each segment.

Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process? A. need recognition B. postpurchase evaluation C. information search D. situational analysis E. evaluation of alternatives

E. evaluation of alternatives Different sets of alternatives are a factor during the third stage of the consumer decision process, evaluation of alternatives.

Natalie and her fiancée Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow's wedding decisions are most influenced by A. impulse, habitual, and limited problem solving process. B. functional and psychological profit. C. universal, retrieval, and evoked sets. D. cognitive, affective, and behavioral environment. E. family, reference groups, and culture.

E. family, reference groups, and culture. The wedding decision is being influenced by family (Natalie's mother), reference groups (Natalie's friends who have gotten married on the beach), and culture (Dow's Thai heritage).

Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message. Yolanda is asking for __________ data. A. parity and affordability B. sales and promotion C. attitude change D. rule-of-thumb E. frequency and reach

E. frequency and reach Frequency refers to the number of times the audience was exposed to a message, and reach refers to the percentage of the target population exposed to the message.

Airlines were among the first retailers to embrace loyalty segmentation when they created A. business-class seating. B. 30-day advance pricing. C. fuel surcharges. D. in-flight movies. E. frequent flyer programs.

E. frequent flyer programs. Airline frequent flyer programs offer an example of a marketing mix based on loyalty segmentation, since only those who fly on the airline frequently are eligible.

A key to successful marketing is determining how to meet the correct balance of __________ needs that best appeals to the firm's target markets. A. functional and social B. postpurchase and prepurchase C. safety and situational D. psychological and physiological E. functional and psychological

E. functional and psychological Marketers must understand what needs are most likely to drive customers to consider their products, and design offerings to meet those needs.

By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers'__________ needs. A. functional and social B. postpurchase and prepurchase C. safety and situational D. psychological and physiological E. functional and psychological

E. functional and psychological A motorcycle fulfills a need for transportation, but by doing more than that, the motorcycle may also be providing entertainment or excitement.

Which of the following is NOT an element of the factors affecting consumers' search processes? A. perceived benefits versus perceived costs of search B. locus of control C. actual risk D. perceived risk E. functional versus psychological need

E. functional versus psychological need Functional vs. psychological needs are categories of needs that can be recognized. The remaining factors influence information search processes.

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation. A. benefit B. self-actualization C. psychographic D. loyalty E. geodemographic

E. geodemographic This is an example of geodemographic segmentation because it has an element of geographic segmentation (residence in Florida) combined with demographic segmentation (age greater than 65).

Marketers love consumers who engage in __________, buying their company's product with little thought or consideration of alternatives. A. compensatory decisions B. personal problem solving C. extended problem solving D. reference group consumption E. habitual decision making

E. habitual decision making Habitual decision making involves little or no consideration of alternatives—people simply buy what they always buy.

Which of the following research methods would be best in helping a marketer understand how people feel about a product or service on an individual, detailed level? A. focus groups B. surveys C. social media monitoring D. primary data mining E. in-depth interviews

E. in-depth interviews In-depth interviews are a good way to collect detailed opinions from a small number of individuals.

Retailers often perform ticketing and marking functions in their distribution centers rather than in their retail stores because ticketing and marking is often A. the responsibility of the dispatcher. B. too complex for sales personnel to manage. C. done in conjunction with supply chain promotional allowances. D. the responsibility of the logistics department and not the marketing department. E. inefficient and expensive.

E. inefficient and expensive. Before going out onto a sales floor, merchandise must be ticketed and marked—in other words, price and identification labels must be created and attached. This time-consuming job is better suited to a distribution center than to a retail store with little behind-the-scenes space for such activities.

When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships. A. conventional B. vertical C. horizontal D. administered E. interdependent

E. interdependent Interdependence between supply chain members that is based on mutual benefits is key to developing and sustaining the relationship.

Demographic segmentation is segmentation based on all of the following EXCEPT A. age. B. gender. C. education. D. income. E. lifestyle.

E. lifestyle. Age, gender, education, and income are all demographic variables. Lifestyle is a psychographic variable.

In the United States, most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle. A. growth B. pioneer C. introduction D. decline E. maturity

E. maturity In the United States, most consumer packaged goods found in grocery and discount stores are already in the maturity stage.

When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in A. concentrated segmentation. B. geodemographic segmentation. C. benefit segmentation. D. psychographic segmentation. E. misguided geographic segmentation.

E. misguided geographic segmentation. This is an example of geographic segmentation—segmentation by geographic region—but is misguided because snow blowers are not needed in Georgia in April.

When Natasha took over as facilities manager for Burlington Furniture Manufacturing, she was shocked to see the factory was still heated with a coal-fired boiler. She made an immediate decision to upgrade the heating system to something more efficient, and began to research available options. For Natasha and Burlington Furniture, this represented a(n) __________ situation. A. adapted buy B. modified rebuy C. straight rebuy D. generic buy E. new buy

E. new buy Natasha and Burlington Furniture lack experience with updated heating systems, so this will be a new buy situation.

The commercial airline industry is considered what type of market? A. duopoly B. monopoly C. monopolistic competition D. pure competition E. oligopolistic competition

E. oligopolistic competition When a market is characterized by oligopolistic competition, only a few firms dominate.

Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's A. strengths and weaknesses. B. sales history. C. pension plan. D. product specifications. E. opportunities and threats.

E. opportunities and threats.

In a corporate vertical marketing system, A. conflict tends to be a major problem. B. transaction selling is the norm, with the invisible hand guiding the overall functioning. C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives. D. independent firms join together formally to decide how the marketing channel will operate. E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain. A corporate vertical marketing system is one in which all members of the marketing channel are part of the same corporation, which helps to coordinate efforts and minimize conflict.

There are approximately 1 billion people living in India. Only about 200 million of these people earn more than the equivalent of $1,000 per year. According to Maslow's hierarchy, most of the other 800 million Indian consumers are primarily addressing their __________ needs. A. social B. personal C. psychological D. esteem E. physiological

E. physiological Many people in India are living at a subsistence level, able to afford little but basic necessities (if that). This indicates that they are at the lowest level in Maslow's hierarchy, physiological needs.

A demand curve shows the relationship between ___________________ in a period of time. A. income and demand B. demand and cost C. price and elasticity D. profit and price E. price and demand

E. price and demand Demand curves evaluate how changes in price affect demand for the product

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

E. product development

Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

E. profitability. Each of these is an option to consider when positioning a product except profitability.

A firm that places emphasis on developing and maintaining positive relationships with the media is focusing on a(n) ________ strategy. A. personal selling B. mobile marketing C. advertising D. direct marketing E. public relations

E. public relations Public relations is the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media.

Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively A. increased the income effect for its products. B. increased the cross-price elasticity for its products. C. focused on the competitive parity point for its products. D. shifted the golf ball market from a monopoly to pure competition. E. reduced the price elasticity of demand for its products.

E. reduced the price elasticity of demand for its products. Brand loyal customers like Brad are less sensitive to price increases. The more such customers exist in a market, the less price elastic demand will be.

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words. the market segment must be A. substantial. B. perceptive. C. identifiable. D. reachable. E. responsive.

E. responsive. A segment is responsive if its members react similarly and positively to the marketing mix.

From a marketing perspective, what role is played by professional bloggers? A. engaging customers on behalf of companies B. introducing new products to the marketplace C. sharing videos and photos of products D. recruiting employees E. reviewing and giving product recommendations

E. reviewing and giving product recommendations Professional bloggers review products and give product recommendations. Consumers seem to trust professional bloggers' reviews much more than corporate blogs and other more traditional media, like advertising

Maslow's hierarchy of needs includes physiological needs at the lowest level and self-actualization at the top. The three levels in between are A. material goods, safety, and love. B. community, family, and self. C. safety, stability, and striving. D. health, wealth, and happiness. E. safety, love, and esteem.

E. safety, love, and esteem. Maslow's hierarchy, in order from lowest to highest, is (1) physiological, (2) safety, (3) love, (4) esteem, and (5) self-actualization.

If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be __________ distribution. A. moderate B. compromise C. luxury D. evolutionary E. selective

E. selective Selective distribution is a compromise between intensive and exclusive distribution.

Reginald greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays. Reginald hopes that this attention to his regulars will encourage them to A. assist him in meeting his functional needs. B. always include his firm in their universal set. C. extend problem solving beyond ritual consumption. D. internalize impulse attitudes. E. spread positive word of mouth.

E. spread positive word of mouth. Although people are more likely to complain when dissatisfied than to praise when satisfied, Reginald can still encourage positive word of mouth from his regulars.

Sarah goes through the newspaper looking for coupons to help reduce her living expenses. Her roommate Paige doesn't read newspapers, let alone look through them for coupons. But Paige filled out a form from inside a cereal box entering her in a drawing for free exercise equipment. What kind of sales promotion reached Paige? A. loyalty program B. contest C. deal D. premium E. sweepstakes

E. sweepstakes All of these are alternate ways of reaching consumers who do not search for coupons—but a sweepstakes does not require the entrant to complete a task other than buying a ticket or filling out a form.

SymphonyIRI Group, the National Purchase Diary Panel, and ACNielsen are examples of companies that provide A. internal secondary data. B. primary data. C. online survey software. D. website analytics. E. syndicated data.

E. syndicated data. These are all commercial research companies that sell external secondary data for a fee, or syndicated data.

Because there are many firms in monopolistic competition markets, A. everyone is a price taker. B. producers do not have to consider the reactions of rival firms. C. government often encourages consolidation to reduce the number of competitors. D. price controls may be implemented. E. the many competitors will focus on product differentiation.

E. the many competitors will focus on product differentiation Firms in monopolistic competition markets seek to differentiate their offerings to target unique segments

For some products, marketers can combine education level with other data like occupation and income to obtain A. a sense of consumers' regional culture. B. consumers' value sensitivity quotient (VSQ). C. the educational value equation. D. complete profiles of individual consumers. E. useful predictions of purchase behavior.

E. useful predictions of purchase behavior. Certain habits—such as preferences for entertainment—can be predicted with reasonable accuracy from education, occupation, and income.

Labor, materials, and energy are typically __________ costs. A. fixed B. incidental C. prestige D. inelastic E. variable

E. variable Variable costs are costs that change as the production quantity changes.

When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation. True of False

FALSE The question describes positioning, not psychographics.

Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system. True or False

FALSE Conflict is generally more pronounced when the channel members are independent entities. Marketing channels that are more closely aligned share common goals and are therefore less prone to conflict.

Briena is looking at the results of a syndicated study conducted two years ago. Briena is looking at primary data. True or False

FALSE Data collected in advance of the current project is secondary data.

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 or False

FALSE Early adopters are the second group of adopters of an innovation; innovators come first

Fabricworld buys fabric from China and sells it to clothing manufacturers in the U.S. Fabricworld is a retailer. True or False

FALSE Fabricworld is a reseller. A retailer sells directly to a consumer.

Formal performance evaluations of the vendor and the products sold generally occur in the B2C buying process. True or False

FALSE Formal performance evaluations of the vendor and the products sold generally do not occur in B2C buying situations, as they do in the B2B setting.

Gross rating points (GRP) measure how often the audience is exposed to a communication within a specified period of time. True or False

FALSE GRP represents reach (percentage of the target population exposed to the message) multiplied by frequency (how often the audience is exposed to the message).

Gamification refers to the trend in which PC-based games are increasingly available on smartphones. True or False

FALSE Gamification refers to companies who build loyalty by making patronage a game; for example, on FourSquare, users can compete to be the Mayor of a location through having the largest number of check-ins.

The best-known microblogging site is Google+. True or False

FALSE Google+ is an example of a social network. The best-known example of a microblog is Twitter

Setting high customer expectations is a good strategy that will help to avoid customer dissatisfaction in the long run. True or False

FALSE If expectations are set too high, it can lead to dissatisfied customers because the high expectations are so difficult to live up to.

In both new buy and straight rebuy situations, several members of a buying center will be intensely involved in the purchasing decision. True or False

FALSE In a new buy, all members of the buying center will be involved in the purchasing decision; however, in a straight rebuy, it is likely that the buyer will handle the transaction alone.

The implement marketing mix step of the strategic marketing planning process is part of the control phase. True or False

FALSE It is part of the implementation phase, along with STP analysis

Maslow's hierarchy of needs is an interesting concept for psychology, but it has little relevance for marketing. True or False

FALSE Maslow's hierarchy of needs helps to explain motives, which are needs or wants that are strong enough to cause someone to seek satisfaction. In many cases, satisfaction is tied to a purchase decision.

For the average college student, a retirement account would be a shopping product. True or False

FALSE Most college students are not thinking of preparing for retirement, so a retirement account would be an unsought product.

As the owner of a small business with 60 employees that makes custom floor mats, Paul makes all of the buying decisions. Paul is most likely the user. True or False

FALSE Paul is the influencer, decider, buyer, and gatekeeper, but probably not the user.

Firms decide how to allocate resources to their various products and services during the STP step of the marketing planning process. True or False

FALSE Resource allocation takes place during Step 4, in which the marketing mix is implemented and resources are allocated.

Data that have been collected prior to the start of the current research project are considered primary data. True or False

FALSE Secondary data are pieces of information that have been collected prior to the start of the focal research project. Secondary data include both external and internal data sources.

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. True or False

FALSE Segmentation by gender is demographic, not psychographic, segmentation.

An architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center. True or False

FALSE The architect will fill the user role; in addition, he is probably the initiator. The gatekeeper controls information or access, or both, to decision makers and influencers.

The diffusion of innovation curve follows the following sequence: innovators, early majority, early adopters, late majority, and laggards. True or False

FALSE The diffusion of innovation curve generally follows a bell-shaped curve made up of innovators, early adopters, early majority, late majority, and laggards.

Product penetration is one of the four major growth strategies. True of False

FALSE The four major growth strategies are market penetration, product development, market development, and diversification.

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 or False

FALSE The problem here is not responsiveness, but reachability. The consumers might respond very well to the offer if they could receive the message; however, their failure to read will make it difficult to reach them with positioning messages.

As the number of communication media has increased, the task of understanding how best to reach target customers has become easier. True or False

FALSE The proliferation of communication media—driven largely by technology—has made it much more difficult to choose the best way to reach a target market.

Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition to the traditional seats it had always ordered. This is a straight rebuy. True or False

FALSE This is a modified rebuy because the buyer changed some specifications. It could also be considered a new buy because Neighbors hadn't ordered gel seats before.

Jason usually buys Nike shoes, so when his friend asked him what shoes he should buy, he said Nike without thinking about it. Jason's response was an evoked set. True or False

FALSE This is a retrieval set because it is the brand that was readily brought forth from memory without considering other brands.

When Sony released its PlayStation 3 game machines, it charged a high price, attracting the most avid game players. This was a market penetration pricing strategy. True or False

FALSE This was a price skimming strategy, which starts with a high price and then gradually lowers it.

Top-of-mind awareness is when consumers indicate that they know the brand when the name is presented to them. True or False

FALSE Top-of-mind awareness means that the consumer mentions the brand name first when asked about a product.

As personal computers became popular, the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers. Typewriters are in the maturity stage of the product life cycle. True or False

FALSE Typewriters are in the decline stage. Firms with products in the decline stage either position themselves for a niche segment of diehard consumers or those with special needs or they completely exit the market.

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation. True or False

FALSE VALS is widely used for psychographic segmentation

Firms should not attempt to educate customers about products and services using social media, since customers are busy interacting with friends and will reject attempts to educate them. True or False

FALSE While customers may reject poorly targeted or poorly designed attempts to educate them, social media tools such as blogs, video sharing sites, and HubSpot can be extremely effective in educating customers about the firm's offerings.

When you go to the hospital for an operation, you are the decider in the buying process. True or False

FALSE You are the user. The decider would be the person who chose the supplies for your surgery.

Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness. True or False

False

The components of a SWOT analysis are strengths, weaknesses, opportunities, and tactics True or False

False

Socially responsible marketing is defined as a strategic effort by firms to supply customers with environmentally friendly merchandise. True or False

False This is the definition of green marketing.

Macroenvironmental factors include the company, competition, and corporate partners. True or False

False Macroenvironmental factors are external factors such as culture, demographics, social issues, technological advances, economic situation, and political/regulatory environments. The factors listed in the question relate to the immediate environment.

Demographics are transmitted by words, literature, and institutions from generation to generation. True or False

False The question describes culture, not demographics.

4. Brenda wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs. True or False

TRUE A functional need relates to product performance—for example, dependable transportation. A psychological need relates to personal gratification—for example, having a car that looks good.

A marketing channel and a supply chain are virtually the same. True or False

TRUE A marketing channel is the set of institutions that transfer and move goods from the point of production to the point of consumption; this is essentially the same as a supply chain.

Although it is usually brief, the role of the subhead in print advertisements is to provide additional product information. True or False

TRUE Although both should be short and use simple words, the headline in an advertisement is designed to attract attention, but the subhead provides more information about the product being sold.

A blog is an example of a thought-sharing site. True or False

TRUE Blogs and microblogs are frequently used sites allowing users to share their thoughts

Claire always liked Lands' End raincoats, so when she was shopping for a winter coat, she just ordered one from Lands' End without thinking too much about it. This demonstrates how brands facilitate purchases. True or False

TRUE Brands are often easily recognized by consumers, and because they signify a certain quality level and contain familiar attributes, brands help consumers make quick decisions, especially about their purchases.

The key to a successful emotional appeal is to create a bond between the consumer and the brand. True of False

TRUE Emotional appeals seem to reach the customer on a deeper level and to create a connection.

The target audience for advertisers is not always the same as current users of the product. True or False

TRUE Firms must keep in mind that their target audience may or may not be the same as current users of the product.

It would be logical for bathing suit marketers to use geographic segmentation. True or False

TRUE Geographic segmentation makes sense since bathing suit demand is dependent largely on weather patterns.

As Daphne's business grew, she needed to find a new way to manage payroll for her employees, so she researched payroll companies to see which one would best meet her needs. Daphne was involved in a new buy situation. True or False

TRUE In a new buy situation, a customer purchases a good or service for the first time.

The final step of the business-to-business buying process is a formal vendor analysis. True or False

TRUE In this final step, the selected vendor's performance is evaluated to decide whether to give the vendor additional business in the future.

When the iPad Mini came out, Sasha spent the night in front of the store so she could get one before any of her friends. According to the diffusion of innovation, Sasha is an innovator. True or False

TRUE Innovators are those buyers who want to be the first on the block to have the new product or service.

Frazier is out of milk and bread and needs to decide what is for dinner. He will be stopping at the grocery store on the way home. Frazier will likely engage in limited problem solving. True or False

TRUE Milk and bread might be habitual purchases, or Frazier might consider different types of bread or different sized containers of milk. He must also decide on a menu for dinner and purchase the groceries he needs. None of this requires extended problem solving—in each case he will probably consider only a few alternatives—but a small amount of thought will be needed. This is an example of limited problem solving.

If a firm is engaged in monopolistic competition, it should seek a way to differentiate itself. True or False

TRUE Monopolistic competition occurs when there are many firms competing for customers in a given market but their products are differentiated.

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products. True or False

TRUE Positioning refers to communicating the unique value the product or service provides to its customers, and how it is better than or different from competitive products.

A major advantage of primary data collection is that it can be tailored to fit the pertinent research questions. True or False

TRUE Primary data can be tailored precisely to the needs of the current study.

A disadvantage to using secondary data is that it might not be precisely relevant to the information needed. True or False

TRUE Primary data can be tailored to the information needed; secondary data is not always precisely relevant.

A product will likely remain in the maturity stage of the product life cycle until a superior product comes along to replace it. True or False

TRUE Products can stay in the maturity stage of the product life cycle indefinitely, typically not moving to the decline stage until a superior substitute is introduced.

Manufacturers might use selective distribution by granting exclusive geographic territories to a few retailers so no other retailers in the territory can sell a particular brand. True or False

TRUE Selective distribution policies grant exclusive geographic territories to a few retail customers so no other retailers in the territory can sell a particular brand.

Twitter is a form of blogging and is increasingly used to reach current or potential customers. True or False

TRUE Social media, such as the microblog Twitter, help facilitate the consumer decision process

Marketing channel management creates value by getting products to customers efficiently. True or False

TRUE Supply chain management is a set of approaches and techniques employed to get merchandise to the right places at the right times in the right quantities

Marketing channel relationships evolve when the parties have common goals. True or False

TRUE Supply chains require cooperation to operate efficiently. If the partners have conflicting goals, there may be channel conflict.

The B2B buying process tends to be more formal than B2C buying. True or False

TRUE The B2B buying process is more structured, involving written specification of needs and formal proposals

Giant Food Stores in suburban Washington, D.C., adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation. True or False

TRUE The segmentation approach described combines geography (the area where the store is located) with demographics (ethnic backgrounds of the residents) and so is an example of geodemographic segmentation.

In U.S. markets, there are many substitute products for Fruit Loops cereal, suggesting the price elasticity of demand for Fruit Loops is high. True or False

TRUE The substitution effect is one of the factors that increases price elasticity.

Consultative buying centers use one person to make a decision but solicit input from others before doing so. True or False

TRUE This is the definition of consultative buying centers.

Fashion trends tend to experience short product life cycles. True or False

TRUE This is true. Consequently, fashion designers produce entirely new product selections a few times per year

What social trend has influenced retailers to make their products available wherever and whenever customers want them?

The time-poor society has influenced retailers this way.

The term "time-poor society" refers to the lack of leisure time people have today. True or False

True

Josie became the Mayor of Charming Charley's accessories store during the first few months of school, and earned a store coupon. Josie doesn't realize it, but she is helping to promote Charming Charley's to other FourSquare users. True or False

True Companies use apps such as FourSquare to build loyalty by making patronage a game, a process known as gamification. They can compete with other users for the title of Mayor by achieving the most number of check-ins at a retail location in a 60-day period.

Jeanne, who lives in Boston, refers to Pepsi as tonic, while Paul, who lives in Chicago, calls it pop. This is an example of a regional culture difference. True or False

True Regional culture affects many aspects of people's lives, including their vocabulary.

What type of pricing tactic is being used when several airlines agree to charge the same fare for a single route? Select one: a. Horizontal price fixing b. Vertical price fixing c. Vertical price discrimination d. Loss leader pricing e. Horizontal price discrimination

a. Horizontal price fixing

__________ involves the planning, direction, and control of personal selling activities, including recruitment, selection, training, motivation, compensation, and evaluation of members of the sales force. Select one: a. Sales management b. Marketing management c. Sales administration d. Integrated marketing communications management e. Human resources management

a. Sales management

Why should marketers be aware of the BRIC countries? Select one: a. They are likely to be the source of most market growth. b. They represent almost half the the world's population. c. They are a microcosm of the rest of the world. d. They have stable population growth, which makes them easier to study. e. They have had the most dramatic changes in culture and consumer buying patterns.

a. They are likely to be the source of most market growth.

The RFP stage of the B2B buying process is NOT required for Select one: a. a straight rebuy. b. a new buy. c. either a new buy or a modified rebuy. d. an adapted buy. e. a modified rebuy.

a. a straight rebuy.

By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers'__________ needs. Select one: a. functional and psychological b. functional and social c. safety and situational d. psychological and physiological e. postpurchase and prepurchase

a. functional and psychological

Marketers love consumers who engage in __________, buying their company's product with little thought or consideration of alternatives. Select one: a. habitual decision making b. reference group consumption c. compensatory decisions d. personal problem solving e. extended problem solving

a. habitual decision making

The Northwoods University IT department is planning to buy additional computers for the computer lab. Pedro Bechara, manager of the lab, is asked for a recommendation, and he suggests buying Macintosh computers instead of Windows PCs. What role does Pedro play in the buying center? Select one: a. influencer b. buyer c. decider d. gatekeeper e. initiator

a. influencer

Jamara knows that his spring-break travel packages are the best deal on campus. He also knows his competitor is sloppy, often waiting until the last minute to provide the needed tickets and documents to students buying his island packages. Jamara wants to develop an advertising message that emphasizes the key benefits he provides. He will develop a/an __________ appeal. Select one: a. informational b. niche marketing c. emotional d. reminder e. institutional

a. informational

Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as Select one: a. inseparability. b. perishability. c. intangibility. d. variability. e. professional competence.

a. inseparability.

When firms pool their resources to enter a new market, they create a/an Select one: a. joint venture. b. strategic alliance. c. export promotion. d. franchise. e. direct investment.

a. joint venture.

Galena is a new agent for a financial services company. She decides to join the local Chamber of Commerce, the local association of businesswomen, and the local chapter of the United Way organization. Galena is attempting to use __________ to generate leads. Select one: a. networking b. the Internet c. customer complaints d. trade shows e. current customers

a. networking

Jordan loves to read and write. She started a blog about books, including writing hints and book reviews. The readership of her blog gradually increased, and eventually publishers started sending her new books, hoping she would review them. Over time, Jordan's blog has changed from a __________ blog to a __________ blog. Select one: a. personal; professional b. social; network c. professional; personal d. professional; network e. personal; social

a. personal; professional

P&G's Tide laundry detergent has been around since 1948 and is still a market leader. P&G has used __________ advertising to reposition Tide several times over the product's life, trying to motivate new consumer segments to use the product. Select one: a. persuasive b. reminder c. institutional d. informative e. discussive

a. persuasive

Several personal traits are listed in the text as being important for successful sales careers. Harvey is a go-getter. He gets up early every morning to check his schedule and arrives at appointments early so he can get in the right frame of mind. Which of the traits listed in the text does Harvey exhibit? Select one: a. self-motivation b. optimism c. empathy d. resilience e. personality

a. self-motivation

In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process? Select one: a. sender b. encoder c. transmitter d. receiver e. channel

a. sender

The traditional marketing strategy of selling umbrellas when it is raining is an example of how __________ factors influence consumers' decisions. Select one: a. situational b. interpersonal c. psychological d. shopping e. economic

a. situational

One of the reasons service failures need to be addressed quickly is to Select one: a. minimize the zone of tolerance. b. avoid negative word-of-mouth from upset customers. c. keep management from finding out what happened. d. increase empowerment zones. e. avoid a situational ethics conflict.

b. avoid negative word-of-mouth from upset customers.

The key to a successful emotional advertising appeal is to use the emotion to Select one: a. deliver a logical message. b. create a bond between the consumer and the brand. c. get consumers to think about the benefits of the product. d. make consumers cry. e. balance social marketing with product-focused advertising.

b. create a bond between the consumer and the brand.

Each year, Doritos sponsors a Crash the Super Bowl contest, encouraging individuals to submit ads for Doritos to the contest. The winning ad is aired during the Super Bowl broadcast. Which segment of social networking users would be most likely to submit an ad for this contest? Select one: a. listeners b. creators c. bonders d. professionals e. sharers

b. creators

To maintain trustworthy customer relationships, companies must take care that they respect customer privacy and respect the ________—that is, the amount of information a customer feels comfortable providing. Select one: a. privacy bubble b. information comfort zone c. information limit d. communication tolerance level e. privacy zone

b. information comfort zone

Regardless of the objective of an advertising campaign, each campaign's objectives must be Select one: a. designed for use in both a pull and a push strategy. b. specific and measurable. c. consistent with those of the available media. d. either informative or persuasive but not both. e. sincere and emotional.

b. specific and measurable.

Often, advertisers will employ a variety of media to deliver their message. When using different media, advertisers need to deliver Select one: a. mild puffery. b. niche media emotional appeals to the mass market. c. a consistent and compelling message. d. selective, continuous pulsing. e. value-based posttesting.

c. a consistent and compelling message.

In most large organizations, several people are responsible for making a purchase decision. This group is called the Select one: a. derived demand cohort. b. expediters. c. buying center. d. decider group. e. reselling team.

c. buying center.

Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of __________ marketers use to assess the effectiveness of their IMC efforts. Select one: a. decoding b. simulations c. feedback d. pre-testing e. encoding

c. feedback

Charges that firms are using sweatshop labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process. Select one: a. marketing mix b. planning c. implementation d. control e. evolution

c. implementation

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time. Select one: a. perishable b. peripheral c. inseparable d. variable e. intangible

c. inseparable

During the RFP stage, B2B buyers Select one: a. recognize obstacles that the firm must work around. b. negotiate contract terms. c. invite suppliers to bid on supplying what is requested. d. proceed to vendor analysis. e. revise their need recognition analysis.

c. invite suppliers to bid on supplying what is requested.

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make __________ complicated. Select one: a. exchange control planning b. purchasing power parity c. segmentation, targeting, and positioning d. reducing trade surpluses e. trading bloc coordination

c. segmentation, targeting, and positioning

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a/an __________ program to improve service quality and service offerings. Select one: a. quality gap analysis b. zone of tolerance c. voice-of-customer d. empowerment e. standards analysis

c. voice-of-customer

How did Johnson and Johnson recently respond to new limits on acetaminophen dosages? Select one: a. It pulled all Tylenol products off the shelf until it could be sure it wasn't causing problems for consumers. b. It didn't do anything and waited to see if there would be a problem with its products. c. It changed the dosages to significantly lower levels. d. It reminded people not to take more than the recommended dosage. e. It changed its packaging to reflect the new standards.

d. It reminded people not to take more than the recommended dosage.

The office policy and procedure states that any purchase requests that are $3,000 and over must be given to Ms. Reynolds, who will obtain authorization from the Chief Financial Officer. Ms. Reynolds serves as a __________ in the buying center. Select one: a. buyer b. initiator c. decider d. gatekeeper e. user

d. gatekeeper

Karlie likes to post fancy cupcakes and cookies on Pinterest. She also posts pictures of fun kitchen equipment in sherbet colors, and looks for baking ideas and equipment. What type of social media site is Karlie using? Select one: a. thought sharing b. social bookmarking c. social networking d. media sharing e. microblogging

d. media sharing

In _______________, many firms provide similar products that are considered substitutes for each other. Select one: a. oligopolistic competition b. monopolistic competition c. a monopoly d. pure competition e. a duopoly

d. pure competition

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen—quit their jobs. This example illustrates Select one: a. the lack of information needed to make ethical decisions. b. that the extravagant spending should have been kept quiet to minimize damage to the university. c. the need to identify issues. d. that the impact of unethical actions can affect the organization in unanticipated ways. e. that universities are more corrupt than companies.

d. that the impact of unethical actions can affect the organization in unanticipated ways.

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how ____________ affects demand for products. Select one: a. the price inelasticity coefficient b. the target return effect c. the substitution effect d. the income effect e. cross-price elasticity

d. the income effect

GDP is defined as Select one: a. the gross purchasing power of domestic goods and services plus international income. b. great domestic product. c. national income minus national taxes. d. the market value of goods and services produced in a country in a year. e. the value of a country's exports minus its imports.

d. the market value of goods and services produced in a country in a year.

A recent poll conducted by Time magazine found that 38 percent of U.S. consumers Select one: a. were concerned with social responsibility, but not the ethical behavior of a company. b. purchased from companies they perceived to be ethical or not ethical equally. c. had no idea if the companies they purchased from were responsible. d. didn't care if a company acted responsibly. e. actively tried to purchase from companies they considered responsible.

e. actively tried to purchase from companies they considered responsible.

Trina is developing a marketing campaign for an organic stain-removal product. As "stain removal" is rather dull, she is trying to educate consumers about the value and uniqueness of the product, and appeal to the environmentally conscious. Which of the following is the BEST social media application for this task? Select one: a. FourSquare b. YouTube c. SCVNGR d. LinkedIn e. blog

e. blog

Lars wants to purchase a gift for a colleague whose home he will be visiting. He decides to bring luxury chocolates, because he knows most people enjoy them. Although he is not sure about specific products, Lars heads directly for a store selling Godiva Chocolates because he knows this is a high-end brand. Lars can be said to have Select one: a. brand recall. b. brand image. c. aided recall. d. brand preference. e. brand awareness.

e. brand awareness.

Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing? Select one: a. profit-oriented pricing b. internal pricing c. customer-oriented pricing d. sales-oriented pricing e. competitor-oriented pricing

e. competitor-oriented pricing

The break-even point is estimated by Select one: a. dividing fixed contribution per unit by variable costs. b. multiplying revenue per unit times the quantity sold. c. dividing variable costs by fixed costs. d. multiplying fixed costs by contribution per unit. e. dividing fixed costs by contribution per unit.

e. dividing fixed costs by contribution per unit.

Chesnee works in the office of a building materials company. One of her jobs is to identify new building projects and to determine who will make the building materials purchase decisions. Chesnee is involved in the _______________ step of the selling process. Select one: a. closing the sale b. follow-up c. preapproach d. sales presentation e. generate leads

e. generate leads

When using the objective-and-task method of IMC budgeting for multiple products and services, how often must the process be repeated? Select one: a. only when a product is removed from the line b. once by each management team member c. never, after the first product/service d. when the prior year's budget is exceeded e. once for each individual product and service

e. once for each individual product and service

Americans often equate bigger with better, and prefer larger cars, TV screens, homes, even meals. Researchers suspect that in doing so, we are trying to reduce __________ risk in the consumer decision process. Select one: a. performance b. financial c. social d. physiological e. psychological

e. psychological

Many Hollywood movie stars were among the first to buy electric and hybrid vehicles. These stars often became __________, influencing other consumers' behavior. Select one: a. cultural icons b. internal loci of control c. cognitive parameters d. evoked images e. reference groups

e. reference groups

Marketers considering operations and trade with a specific country must consider whether the country belongs to a trading bloc. A trading bloc is a group of countries Select one: a. using the same currency. b. located next to each other. c. with similar political views. d. with similar cultural shopping patterns. e. that have established a formal agreement to manage trade activities.

e. that have established a formal agreement to manage trade activities.

The right communication channel to use in IMC is Select one: a. the one with the best encoding capabilities. b. network advertising, local newspapers, and regional radio stations. c. the one that maximizes decoding difficulty. d. the traditional channel used in that particular retail sector. e. the one that will connect to the desired recipients.

e. the one that will connect to the desired recipients.

Services marketing managers have learned that more employees will support a quality-oriented process if Select one: a. perishable services are replaced with tangible services. b. customers are responsible for setting service quality standards. c. the process involves both part-time and full-time employees. d. they are required to diverge from existing standards. e. they are involved in setting the goals.

e. they are involved in setting the goals.