Exam 1 332
Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark?
Blue - a cell phone that is designed for music lovers and has a very low market share in a market that is growing steadily
BlueBear is a shoe manufacturer based in the United States. Which of the following indicates that the company is following a market development strategy?
BlueBear introduces its shoes in the Indian and South-East Asian markets.
Which of the following is most likely true about business legislation?
Business laws that are enforced by government agencies have a major impact on a company's marketing performance.
A firm has a huge amount of individual customer data saved in different databases. Which of the following can be used to integrate, analyze, and apply the available information effectively?
CRM systems
________ is a discomfort caused by postpurchase conflict.
Cognitive dissonance
________ is the degree to which the results of using an innovation can be observed or described to others.
Communicability
Hammond Corp. operates in the highly aggressive electronics market. The firm aims to obtain early warnings of opportunities and threats caused by the actions of other firms that are doing well in the industry. Which of the following sources would best serve Hammond's purpose?
Competitive marketing intelligence
Which of the following is true of focus group discussions?
Consumers are not always honest and open about their opinions.
Which of the following is most likely true about people's beliefs and values?
Core beliefs and values have a high degree of persistence.
________ is the total combined customer lifetime values of all the company's current and potential customers.
Customer equity
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is referred to as ________.
Customer relationship management
Which of the following best describes a marketing department with a functional organization?
Different marketing activities are headed by specialists such as sales managers, advertising managers, marketing research managers, and customer service managers.
________ is the degree to which an innovation may be tried on a limited basis.
Divisibility
________ is the act of obtaining a desired object from someone by offering something in return.
Exchange
"At Dodson, we sell shoes" is a market-oriented business definition.
F
A company's customer value delivery network does not include members external to the organization.
F
A customer buys a can of Pepsi from a Walmart store. In this scenario, Walmart is a supplier in Pepsi's value delivery network.
F
A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia.
F
According to Maslow's theory, safety and social needs must be fulfilled after self-actualization needs
F
Barnacles are customers who are potentially profitable but not loyal.
F
Big data presents marketers with big opportunities
F
Club marketing programs reward customers who buy frequently or in large amounts.
F
Customer equity is a measure of the past value of a company's customer base.
F
Customer relationship management focuses on retaining existing customers but not on acquiring new customers.
F
Holiday Inn divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called diversification.
F
In markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships.
F
In the 4Ps of the marketing mix, promotion refers solely to advertising.
F
In the context of income distribution, the middle class in the United States has grown in size over the past several decades.
F
In the marketing mix, product refers to activities that communicate the merits of a product and persuade target customers to buy it.
F
Many SBUs start out as stars and move into the question mark category if they succeed.
F
Market offerings are limited to physical products.
F
Marketing intermediaries supply resources needed by a company to produce its goods and services.
F
Marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships.
F
Most firms begin the strategic planning process by developing detailed marketing and departmental plans that support a company-wide plan.
F
People use the same products and services as they progress through each life-cycle stage.
F
Since less than ten percent of smartphone owners use their phones for shopping-related activities, mobile marketing is a slow growing digital marketing platform.
F
The Office Depot Foundation serves its financial publics through a variety of programs.
F
The growth rate of a strategic business unit that is classified as a star remains constant over time
F
The more loyal a firm's profitable customers, the lower its customer equity.
F
The most important actors in a company's microenvironment are its competitors.
F
The position of a strategic business unit in the growth-share matrix typically remains constant over time.
F
When backed by buying power, wants become needs.
F
When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia
F
Xenon Corp. releases frequent updates to improve its expensive software products. This marketing approach used by the firm is most likely based on the production concept.
F
Cause-related marketing techniques are typically unprofitable for businesses, which is why it is a rarely used form of corporate giving.
False
Early mainstream adopters are opinion leaders in their communities and adopt new ideas early but carefully.
False
Early mainstream adopters are venturesome and typically try new ideas at some risk.
False
Exploratory research would be used to gather data about the market potential for a new product.
False
Generation X is the least educated group to date.
False
In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment.
False
Internal databases usually are more expensive to use than other market information sources.
False
Observational research is the most widely used method of primary data collection.
False
People's orientation to their society does not impact their consumption patterns and attitudes toward the marketplace.
False
Primary data can usually be obtained more quickly and at a lower cost than secondary data.
False
Stringent product regulations have helped to lower research costs and decrease time between new product ideas and their introduction to the market.
False
The Consumer Product Safety Commission has created complex regulations for testing new drugs before they are sold to the public.
False
The least significant demographic trend in the United States is the changing age structure of the population.
False
The most common form of marketing organization is the product management organization.
False
Tom usually buys new devices such as PDAs, DVRs, and MP3 players only after his friends and family start owning these devices. In this case, Tom is an innovator.
False
Which of the following is an example of consumer-generated marketing?
Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park.
Which generational group is characterized as the most educated and the least materialistic?
Generation X
Which generational group consists of the kid, teen, and tween markets?
Generation Z
Which generational group is most comfortable using digital technologies?
Generation Z
The "Stop the Texts. Stop the Wrecks." campaign co-sponsored by the Ad Council and the National Highway Traffic Safety Administration is an example of a marketing offering for a(n) ________.
Idea
Susan Hart, the manager of a children's boutique, collects data from her monthly records of sales, costs, and cash flow. In this case, Susan is making use of ________ databases.
Internal
Mail surveys have many disadvantages so many marketers have switched to ________.
Internet-based surveys
________ is the final step in the marketing research process.
Interpreting and reporting the findings
ToyBox is a toy manufacturer based in the United Kingdom. Which of the following indicates that the company is following a market penetration strategy?
It acquires toy rights for a popular cartoon character to boost its sales.
Which of the following is true of a good marketing information system?
It balances the information that a firm would like to have against what they really need.
Which of the following is true of competitive marketing intelligence?
It can be obtained from information that is available in the public domain.
Which of the following is true about customer relationship management (CRM)?
It consists of sophisticated software and analytical tools.
Which of the following is true of strategic planning in a firm?
It deals with adapting the firm to take advantage of changing marketing opportunities.
Which of the following has the primary function of helping a company target and promote its products to the right markets?
Marketing services agencies
Members of which generational group are referred to as echo boomers?
Millennial
Which of the following is the most financially strapped generation in the post-recession era?
Millennial
Technology is a way of life for ________, the largest generational group.
Millennials
________ marketing is perhaps the fastest-growing marketing platform.
Mobile
Fargo Inc. is a carbonated beverage manufacturer that has many manufacturing plants around the world. It is planning to shift from using thermal power to wind power for its manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of energy. This scenario depicts Fargo's concern for its ________ environment.
Natural
________ are defined as states of felt deprivation
Needs
Greyzone, a company that creates customized household furniture, is based in Terrania and is looking to enter other countries as well. The company identifies the country of Nyevka as a good option because the entry barriers for new companies are low in Nyevka. Which statement indicates that Greyzone follows a diversification strategy?
Noting that Nyevka lacks well-established suppliers of office equipment, Greyzone begins to manufacture and supply office equipment.
Which of the following is true of question formats in questionnaires?
Open-ended questions are useful in exploratory research to find out what people think.
The most effective sources of information about a product tend to be ________.
PERSONAL
________ refers to working closely with people inside and outside the company to jointly bring more value to customers
Partner relationship management
In a marketer's macroenvironment, the ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
Political
________ data consist of information collected for the specific purpose at hand.
Primary
________ are distribution channel firms that help a company find customers or make sales to them.
Resellers
Hallmark's classic "When you care enough to send the very best" slogan appeals to which need category in Maslow's hierarchy?
SOCIAL
According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as ________.
STARS
Managing the marketing function begins with a complete analysis of the company's situation. A thorough ________ is typically undertaken to guide decision making.
SWOT analysis
Sally purchased a newly introduced moisturizing lotion. By attempting to find out if the lotion's perceived performance matched her expectations, Sally was measuring her level of customer ________
Satisifaction
Organizations that follow the societal marketing concept most likely practice socially and environmentally responsible marketing.
T
Product, price, place, and promotion make up the elements of a firm's marketing mix.
T
SBUs identified as cash cows need less investment than stars.
T
Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe.
T
Subcultures are groups of people with shared value systems based on common life experiences and situations.
T
Success at delivering customer value rests on how well a company's entire supply chain performs against competitors' supply chains.
T
The 4As framework takes into consideration the buyer's view of the market.
T
The distribution of income in the United States has created a tiered market.
T
The marketing concept is a customer-centered, sense-and-respond philosophy.
T
The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features.
T
The product-market expansion grid, like the BCG matrix, is used to identify growth opportunities.
T
The purchasing power of a population is part of the demographic environment of a company's macroenvironment.
T
Through consumer-generated marketing, consumers themselves are playing a bigger role in shaping their own brand experiences and those of others.
T
Value marketing has become the watchword for many marketers.
T
Walmart's microenvironment includes suppliers.
T
Which of the following is most likely a true statement about generational groups in the United States?
The Generation Xers are the most educated generation to date.
Firms that develop strategies to change the environment are considered proactive.
True
Government regulations are intended to protect consumers, companies, and societal interests.
True
In reverse auctions, companies put their purchasing requests online and invite suppliers to bid for their business.
True
In the marketing mix, product includes the goods and services the company offers to the target market, while promotion includes advertising.
True
In vendor-managed inventory, buyers share sales information directly with key suppliers.
True
Individual interviews cost three to four times as much as telephone interviews.
True
Many companies have started to target the LGBT market segment which has significant buying power.
True
Marketers have a better chance of taking advantage of a person's secondary beliefs than his or her core beliefs.
True
Marketing researchers can conduct their own searches of secondary data sources by using commercial online databases.
True
Once the research problems and objectives have been defined, researchers must determine the exact information needed.
True
The Federal Trade Commission enforces laws that prevent unfair competition in business.
True
The major advantage of survey research is its flexibility.
True
The rapid increase in the number of people who telecommute has created a booming small office/home office market in the United States
True
The response rate in mail surveys is often very low.
True
When managers glean information from their company's accounting and sales records stored in the company computer system, they are using an internal database.
True
Companies have responded to consumers' back-to-basics sensibility in their lifestyle and spending patterns through ________.
Value marketing
A brand's ________ is the set of benefits that it promises to deliver to consumers to satisfy their needs.
Value proposition
JetBlue's promise to put "You Above All" by "bringing humanity back to travel" is their ________.
Value proposition
Which of the following is most likely a true statement about diversity in the United States?
Various ethnic groups mix together but also retain their cultural differences
________ are the form human needs take as they are shaped by culture and individual personality.
Wants
Which of the following companies is using a divesting strategy?
When sales of its clothing division decline, Blackstone sells the division to a competitor.
Which of the following products would the electronics company CypressSound classify as a cash cow in its BCG matrix?
Xpress - an MP3 player that has a high market share in a market that is not expected to grow significantly
Which of the following is an example of a local public?
a community organization that addresses welfare issues in its neighborhood
Suppliers and resellers can update their accounts, arrange purchases, and check orders against inventories through ________.
a company's extranet
The societal marketing concept holds that ________.
a company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment
Which of the following is part of the microenvironment of a company's marketing environment?
a just-in-time inventory system used by the company when making purchase decisions
________ refers to a channel stretching from raw materials to components to final products that are carried to final buyers.
a supply chain
________ is best suited for descriptive research
a survey
The 4Ps model has been challenged because it omits or underemphasizes important activities such as services. It's also been criticized for taking a seller's, rather than a buyer's, viewpoint. The more recent 4As framework complements the traditional model and includes ________.
acceptability, affordability, accessibility and awareness
According to Sigmund Freud's theory, a person's buying decisions are ________.
affected by subconscious, hidden motivations
In a SWOT analysis, which of the following would most likely be considered a strength of a company?
an improvement in the company's production technology
Which of the following illustrates the changing composition of the American family?
an increase in the number of non-family households
Which of the following best describes product positioning?
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Business portfolio analysis is defined as the process in which management ________.
assesses the attractiveness of an SBU's market and the strength of its position in the market
The initial function of a marketing information system is ________.
assessing the information needs of a company
A(n) ________ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.
attitude
Companies that practice marketing by ________ create offerings and messages that engage consumers rather than interrupt them.
attraction
To which of the following generational groups do zoomers belong?
baby boomer
Which of the following generational groups account for a third of the U.S. population but half of all consumer spending?
baby boomer
Secure is a financial services and insurance company. The company's most profitable division is one that sells the Secure Future Plan. The Secure Future Plan targets customers who are entering retirement and want long-term savings so they can remain financially independent in the later years of their life. The marketing team at Secure has most likely targeted the plan at ________.
baby boomers
Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong
baranacles
Procter & Gamble's Tide detergent does not phone or call on all of its consumers to get to know them personally. Instead, Tide creates engagement and relationships through brand-building advertising, Web sites, and social media presence. Which of the following types of associations would be most profitable for the firm to develop with these customers?
basic relationships
A practice called ________ allows marketers to use online data to target ads and offers to specific customers.
behavioral targeting
Mattel's American Girl Doll creates special ________ between the dolls and the girls who adore them.
brand experiences
Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand?
brand personality
Dextora Technologies manufactures microprocessors and caters exclusively to private manufacturers that produce high-end computers. Which type of market does Dextora directly target?
business market
Efforts to convert ________ into loyal customers are rarely successful.
butterflies
A consumer who is potentially profitable but not loyal to a firm's offerings is referred to as a ________.
butterfly
________ involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company's products.
buzz marketing
Stew Leonard's has created what has been the "Disneyland of Dairy Stores," complete with costumed characters, scheduled entertainment, and a petting zoo. It's built 30 additions onto the original store, which now serves more than 300,000 customers each week. This legion of loyal shoppers is largely a result of the store's passionate approach to customer service. Instead of focusing on individual transactions, Stew and his staff are putting a priority on ________.
capturing customer lifetime value
Simone bought two bottles of wine from two vineyards in Bordeaux. When asked for an opinion on the quality of the wines, she later mentioned that the Pontet Canet tasted like alcoholic grape juice, but the Chateau Margaux had a crisp taste that she really enjoyed. Which of the following stages of the buyer decision process do Simone's remarks reflect?
postpurchase behavior
Governments most likely enact business legislation to ________.
prevent unfair competition in the market
Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?
problem recognition
The ultimate aim of customer relationship management is to ________.
produce high customer equity
Design, packaging, service, and features are elements of the ________ component of a company's marketing mix.
product
Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market?
product
Under Armour's decision to add athletic shoes to its apparel line in 2006 is an example of a ________ strategy.
product development
During which stage of the business buying decision process is a buyer most likely to conduct value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively?
product specification
The selling concept holds that ________.
consumers will not buy enough of a firm's products unless the firm undertakes large-scale persuasion and promotion efforts
Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on ________.
consumers' existing wants
The McDonald's corporate brand name and golden arches can be classified as ________ that may potentially stimulate an individual's attention and decision about whether or not to dine at the restaurant.
cues
A child in the United States is exposed to many values including achievement and success, freedom, individualism, hard work, and material comfort. These are symbolic of American ________.
culture
Ritz-Carlton is fervently dedicated to anticipating customers' slightest needs. Without ever asking, they seem to know when customers want a king-size bed, non-allergenic pillow, extra body gel or the blinds open upon arrival. An amazing 95 percent of departing guests report that their stay has been a truly memorable experience. This is an example of
customer delight
________ companies research customers deeply to learn about their desires, gather new product ideas, and test product improvements.
customer driven
Cylog, a leading provider of personal computer systems, began manufacturing tablet devices after predicting a future consumer need for portability. Which of the following was most likely implemented by Cylog?
customer-driving marketing
Which of the following terms refers to a customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers?
customer-perceived value
According to the text, ________ are the most important actors in a company's microenvironment.
customers
Which of the following is a commercial source of product information?
dealer web sites
Due to the limitations of the BCG and other formal portfolio planning models, many companies are placing responsibility for strategic planning in the hands of cross-functional teams of divisional managers who are close to their markets. In such organizations, strategic planning is ________
decentralized
The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the last two months. The manager decides to conduct marketing research to identify potential causes for the drop in sales. Which of the following should the manager do first?
define the problem and objectives
________ is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
demography
Corning produces Gorilla Glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates ________.
derived demand
Brooke's Boutique plans to launch a new clothing line. For this purpose, the firm first conducts a survey to understand its target audience and identify the demographics of potential buyers. It then conducts experimental research to test whether customers associate discounted prices with lower product quality. Which types of research has the boutique employed in this case?
descriptive followed by causal
Coolers Inc. has decided to launch a new energy drink that will have the fewest calories among its competitors. To understand the market potential for the new drink and the demographics and attitudes of consumers who are likely to buy the product, Coolers should most likely use ________.
descriptive research
Both product development strategies and diversification strategies involve ________.
developing a new product
Which of the following will most likely be included in the "price" component of a company's marketing mix?
discounts
A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets is called ________.
diversification
Under Armour's recent expansion into the digital personal health and fitness tracking market through acquisitions of three fitness app companies is a ________ strategy.
diversification
Which of the following best describes market segmentation?
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors
According to the BCG matrix, products or businesses with a low share of market in a high-growth industry are considered ________.
dogs
______ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.
downsizing
A(n) ________ becomes a motive when it is directed toward a particular stimulus object.
drive
Fred's faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community and best described as a(n) ________.
early adopter
Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect changes in the ________ environment of a company.
economic
Which of the following is a social factor that influences consumer buying behavior?
economic situation
A marketing firm has been assigned the task of watching trends in spending, personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers' ________.
economic situations
A major advantage of a mail survey is that it ________.
eliminates interviewer bias
Which of the following groups is included in both a company's value chain and its value delivery network?
employees
The citizen-action publics in a company's marketing environment include ________.
environmental groups
Recyclable or biodegradable packaging, recycled materials and components, and better pollution controls are ways that marketers have responded to the ________.
environmental sustainability movement
A company that sells personal care products sends a trained observer to watch potential buyers in their natural environments. This is an example of ________ research.
ethnographic
In which of the following stages of the adoption process does a consumer consider whether trying a new product makes sense?
evaluation
Devon is in the market for a new car. She is seriously considering either a Honda Civic or Toyota Corolla because they both have excellent quality and safety ratings and are comparable in price. Devon is in the ________ stage of the buyer decision process.
evaluation of alternatives
A market researcher wants to find the cause-and-effect relationship between using organic ingredients in food and the subsequent consumption by customers. He invites ten respondents to his research firm and asks them to taste two identical dishes. The dishes were prepared in a similar manner, but one has natural herbs for flavoring, and the other has artificial flavors. This is an example of ________.
experimental research
Burger Town introduced a new hamburger and released it in two different cities at two different prices. Marketers of Burger Town then analyzed the sales records of their outlets at the two cities, determined the price that resulted in better profits, and used the information to set a nationwide price for their new offering. This is an example of _______
experimental research
In most marketing research projects, what type of research is conducted first?
exploratory
The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses.
exploratory
"At CL Online, we create customer connectivity, anytime, anywhere" is a product-oriented mission statement.
f
An SBU can be a company division or a product line within a division, but not a single product or brand.
f
Neuromarketing techniques provide easy-to-interpret data that allow researchers to analyze consumer involvement with products.
f
Secondary data consist of information collected for the specific purpose at hand.
f
The information collected for an internal database is typically complete and in the proper form.
f
The most important issue facing online researchers in the United States is the lack of a broad cross section of consumers who have access to the Internet.
f
The objective of descriptive research is to gather preliminary information that will help define the problem and form hypotheses.
f
The wording and ordering of questions is not an important consideration in survey design.
f
When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the evaluation of alternatives process.
f
A business buyer typically makes the greatest number of decisions in a straight rebuy situation and the fewest in a new-task situation.
false
A company buying a product with modified specifications faces a new-task situation
false
Personal sources of information normally inform the buyer, but commercial sources legitimize or evaluate products for the buyer.
false
The business buying process tends to be shorter and less formal than the consumer buying process
false
The primary objective of causal research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product.
false
Monfax Corporation insures manufacturers, distributors, and consumers against the loss or damage of goods during transportation after a purchase or sale. In this case, Monfax is an example of a ________.
financial intermediary
Which of the following is most likely categorized as a business market?
firms that buy goods and services for further processing
Reseller markets consist of ________.
firms that buy goods and services to sell at a profit
When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________.
generating person-to-person brand convos
Which of the following has resulted from the increased educational levels of the U.S. population?
greater job growth for professional workers
________ are small groups of consumers who interact directly and informally with product designers without a moderator.
immersion groups
The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives is called marketing ________.
implementation
Data collection, processing, and analysis are undertaken during which stage of the marketing research process?
implementing the research plan
Which of the following represents a change in the technological environment of a marketing firm?
increased use of RFID systems to track products
________ are flexible and allow for explanation of difficult questions as well as demonstrating products
individual interviews
A not-for-profit firm uses a small convenience sample to gather data on customer reactions. It invites a small group of customers for lunch and asks them to share what they think about the products they have purchased from the firm. This is an example of ________.
informal surveys
Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find a coat in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process.
information search
In which of the following stages of the adoption process does a consumer seek information about a new product?
interest
Volunteers belong to a company's ________ publics.
internal
True Value Hardware relies on its ________ to coordinate and carry out activities that provide shoppers with the hardware and home improvement products they need at affordable prices along with top-notch customer service.
internal value chain
Erica Jenson has a limited budget to conduct market research. Which of the following research approaches would provide Erica with the most cost-effective way to reach a large number of respondents in a short period?
internet-based surveys
Sample size and location have little impact on costs for ________.
internet-based surveys
________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.
lagging adopters
Which of the following is a personal factor that influences a consumer's buying behavior?
life-cycle stage
Which of the following is a psychographic characteristic of a consumer?
lifestyle
Imaginative Web sites, smartphone apps, and social media allow marketers to deliver messages that are direct and personal so consumers can ________.
live the brand
The town of Genter recently witnessed a devastating hurricane that crippled the town's infrastructure. Q-Mart, a retail chain that plans to open a new retail store in Genter, organizes a program to help the people of Genter. The program consists of providing free meals to those who lost their dwellings in the hurricane. What section of the marketing microenvironment is Q-Mart most likely trying to reach?
local publics
In the BCG growth-share matrix, question marks refer to products or businesses with a _______
low market share in a market with high growth prospects
Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization.
macroenvironment
Kathy Jenkins is planning to conduct research on consumers' personal care routines. Since the questions are likely to be personal and sensitive, Kathy wants to select a contact method that will encourage respondents to answer honestly. Which of the following contact methods is most likely to best serve Kathy's purpose?
mail questionnaires
Although internal databases can be accessed more quickly and cheaply than other information sources, one of the challenges of internal databases is
maintaining the current database
A firm's decision to identify and develop new markets for existing products is a ________ strategy.
market development
Which of the following criteria provides a measure of market attractiveness in the Boston Consulting Group approach?
market growth rate
The two dimensions the BCG approach uses to evaluate and manage SBUs are ________.
market growth rate and relative market share
A strategy for company growth that involves increasing sales to current market segments without changing the product is known as ________.
market penetration
Under Armour increasing its advertising spending and offering an ever-increasing range of styles and colors in its original apparel line is an example of a ________ strategy.
market penetration
Ferrari sells only 2,200 of its very high-performance cars in North America each year at very high prices. The company is appealing to a specific ________.
market segment
When Goodyear sells replacement tires to final consumers, its potential market includes millions of car owners around the world. But its fate in business markets depends on getting orders from only a handful of large automakers. This represents the difference in ________ between business and consumer markets.
market structure
________ refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
market targeting
The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
marketing
The ________ concept holds that consumers will favor goods and services that offer the most in quality, performance, and innovative features.
marketing
Marketers apply ________ to the large and complex sets of data they collect to gain customer insights and gauge performance.
marketing analytics
Which of the following concepts is based on a customer-centered philosophy?
marketing concept
Evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained is called ________.
marketing control
At John Deere, thousands of people both inside and outside the organization make decisions about target segments, branding, product development, pricing, promotion, and distribution. They talk with engineering about product design, advertising agencies about ad campaigns, and large retailers like Lowe's about quality offerings. This is an example of ________.
marketing implementation
Nike's goal to increase sales of its running shoes by 25 percent during the first 6 months of the new fiscal year is an example of a ________.
marketing objective
________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
marketing research
Which of the following is a quantitative approach to research?
marketing surveys
Harmon, a nationwide department store, uses checkout scanners to record shoppers' purchases. Which term best describes Harmon's checkout scanners?
mechanical instrument
A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment.
mission statement
A business buyer is considering a change in product specifications, terms, and possibly suppliers. This buying situation is referred to as a(n) ________.
modified rebuy
Which of the following is a geographic shift that has been observed in the United States in recent times?
more Americans moving to micropolitan areas
Which of the following is most likely a consequence of the Great Recession of 2008 to 2009?
more sensible and mindful consumption
A baby boomer decides to purchase a BMW to impress others with her success. This illustrates the importance of understanding the role of ________ in the marketing process.
motive
A marketing intermediary would most likely help a firm by ________.
moving the firm's goods from production points to distribution centers
Which of the following is the first stage of the buyer decision process?
need recognition
A category of ethnographic research used to observe consumers in a natural context in virtual and mobile spaces is referred to as ________
netnography
________ have enabled researchers to gain greater control over who participates in the online sample.
network respondent panels
Which of the following would most likely use informal research methods to obtain marketing insights?
not-for-profit organizations
A(n) ________ is best suited for exploratory research
observation
Annie Carson, the owner of Annie's Dairy Bar, is considering opening a second location. She evaluates several potential sites by assessing traffic patterns, neighborhood conditions, and the locations of competitors. Annie is engaging in ________.
observational research
________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, preferences, and buying behavior.
observational research
In a SWOT analysis, which of the following would be considered a weakness of a company?
obsolete technologies used by the company
Which of the following is a structured method of online research where marketers require direct responses from customers?
online surveys
________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.
opinion leaders
In a SWOT analysis, ________ refer to favorable factors or trends in the external environment that a company may be able to exploit to its advantage.
opportunities
Which of the following is considered a major influence on business buyer behavior?
organizational factors
_______ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
perception
________ refers to the unique psychological characteristics that distinguish a person or group.
personality
Ford Motor Company issuing a recall that requires customers to schedule appointments with car dealerships to repair faulty igniters would have the greatest impact on the ________ component of its marketing mix.
place
Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is in which of the following stages of the buyer decision process?
postpurchase behavior
Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This most likely reflects the ________.
production concept
PC manufacturer, Lenovo, focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices. Lenovo most likely follows the ________.
production concept
When viewing the market from a buyer's point of view, "communication" corresponds to the ________ component of the marketing mix.
promotion
GenX, a manufacturer of sport motorcycles, is seeking a new supplier of motorcycle headlamps and brake lights. After searching trade directories, GenX invites five different suppliers to make formal presentations about how their solutions can create greater value for GenX than competing solutions. GenX is currently in the ________ stage of the business buying decision process.
proposal solicitation
Customer evangelists are those who ______
spread the word about their good experiences with a brand or product
A(n) ________ reflects the general esteem given to the different roles of a person by society.
status
According to Maslow's hierarchy of needs, which of the following is most likely an esteem need?
status
Which of the following is most likely a financial public?
stockholder
A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.
straight rebuy
In which of the following customer relationship groups do organizations generally avoid investing?
strangers
________ are customers who show low potential profitability and little projected loyalty.
strangers
CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?
strength
Which of the following is most likely the final stage of the business buying decision process?
supplier performance review
American Honda purchases over $20 billion worth of auto parts and materials every year. ________ are key players in the company's success.
suppliers
________ marketing is defined as socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
sustainable
________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers.
systems selling
A role consists of the activities people are expected to perform according to the people around them.
t
CRM analysts use big data and marketing analytics to unearth patterns in customer data.
t
Each population member has a known chance of being included when a probability sampling procedure is used.
t
Ideally, a sample should be representative so that a researcher can make accurate estimates of the thoughts and behaviors of the larger population.
t
In a convenience sample, a researcher selects the easiest population members from whom to obtain information.
t
Reference group influence on consumer buying behavior varies across products and brands.
t
Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.
t
The questionnaire is the most common research instrument.
t
Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ________.
target marketing
The ________ environment is perhaps the most dramatic force shaping the destiny of individuals and offering exciting opportunities for marketers.
technological
The migration trend towards micropolitan and suburban areas has caused a shift in where people work. This has resulted in a rapid increase in the number of people who ________.
telecommute
Which of the following is an example of a media public?
television station
Customers who are classified as true believers ________.
tell others about their good experiences with a company
Causal research is used to ________.
test hypotheses about cause-and-effect relationships
Which of the following statements about buying centers is true?
the buying center is not a fixed and formally identified unit within a buying organization.
Which of the following best describes a company's business portfolio?
the collection of businesses and products that make up the company
Which of the following sources constitutes the internal database of a company?
the company's sales records
Which of the following transforms marketing strategies into real values for consumers?
the four p's of marketing.
Which of the following are examples of internal publics of a company?
the managers, board of directors, and workers of the company
Which of the following best describes the value chain of a company?
the series of departments that design, produce, market, deliver, and support the company's products
Which of the following concepts calls for sustainable marketing?
the societal marketing concept
Which of the following is part of the microenvironment of a firm's marketing environment?
the suppliers who work with the company
In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance.
threats
Market offerings include entities such as people, places, information, and ideas.
T
Consumers' needs and wants are fulfilled through ________.
Marketing offerings
Marketers must practice constant marketing control to ensure that objectives are attained.
T
Marketing ROI measures the profits generated by investments in marketing activities.
T
Marketing dashboards are used to monitor strategic marketing performance.
T
Ainsworth is a toy manufacturer based in Australia. Which of the following most likely indicates that Ainsworth is following a diversification strategy
Ainsworth enters the U.S. market with a line of children's clothing.
________ are the most affluent and brand conscious demographic segment in the United States.
Asian Americans
Abel now has the buying power to purchase the computer that he wanted to buy six months ago. Abel's want has most likely become a ________.
Demand
_______ is the art and science of choosing target markets and building profitable relationships with them.
Marketing management
________ is often the most difficult but most critical step in the research process
Defining the problem and research objectives
Which of the following is true of survey research?
It is the most widely used method for gathering primary data.
Vincent Cosmetics decides to launch a cream with a claim that it makes skin "nine times smoother." The claim is based on a study of 30 respondents who used products of other brands as well. However, a second study on a larger sample reveals only a mild correlation between the use of the cream and smoother skin. In these circumstances, which of the following is the most ethical approach that Vincent Cosmetics can follow?
It should report the result as it is, or improve the product to match its claim
Large companies like P&G, Walmart, and Allstate have designed specialty products and promotions to target a previously untapped market that has grown substantially in recent years. They are appealing to ________.
LGBT community
Which of the following statements about international marketing research is true?
Language translation in international marketing research typically increases costs and raises the risk of errors.
Which of the following is most likely a true statement about people's views about organizations?
Many people view work at an organization as a required chore.
EcoBean, a chain of cafes, has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks. This effort by EcoBean management is most likely an example of ________.
Market penetration
Dividing a market into several sections of customers is known as ________.
Market segmentation
Which of the following is true of marketing ROI?
Marketing ROI measures the profits generated by investments in marketing activities.
Which of the following statements regarding marketing intelligence is true?
Marketing intelligence is the systematic collection, monitoring, and analysis of publicly available information.
Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________.
Segmentation
________ refers to the portion of the customer's purchase that a company gets in its product categories.
Share of customer
Which of the following is most likely a true statement about social class?
Social classes show distinct product preferences in areas such as clothing.
Which of the following statements is true in the context of the BCG growth-share matrix?
Stars often need heavy investment to finance their rapid growth in a market.
A bank that helps a company finance transactions is both a financial intermediary and a financial public.
T
A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
T
A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share.
T
A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices.
T
A firm's marketing department must partner with other company departments to produce superior value for customers.
T
A market is a segment of potential consumers who share a common need or want.
T
Advertising agencies that help a company target a certain section of customers are marketing intermediaries.
T
An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.
T
Companies like Coca-Cola and Facebook deliver customer satisfaction by spreading happiness and connecting individuals through shared experiences.
T
Customer-perceived value is defined as a customer's evaluation of the perceived difference between all the benefits and all the costs of a market offering relative to those of competing offers.
T
In the final step of a marketing process, a company reaps the rewards of its strong customer relationships by capturing value from customers
T
It's advisable for a company to fit its products into existing attitude patterns rather than attempt to change them.
T
Many companies have dropped formal strategic planning models like the BCG because they can be difficult, time consuming, and costly to implement.
T
Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest competitor, Febex, has a 25% share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix?
The demand for analgesic drugs in the Terrania market is expected to remain stable.
Which of the following is a difference between the marketing concept and the selling concept?
The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.
Alice is shopping for a new car, and she has narrowed her decision to a Honda Accord and a Toyota Camry. Both sedans have similar features and prices, but Alice decides to purchase the Honda based on her intuition. Which of the following situations would most likely cause Alice to experience postpurchase dissonance?
The price of the Toyota Camry falls due to an increase in demand.
A company that adopts a reactive marketing stance would most likely view the marketing environment as an uncontrollable element to which it must adapt
True
Which of the following demonstrates the real value of a company's marketing research and information system?
The quality of consumer insights it provides
________ outlines sources of existing data as well as specific research approaches, sampling plans, and measurement instruments.
The research plan
An effective MIS assesses information needs, develops needed information, and distributes the information to help managers with decision making
True
Business-to-business e-procurement lowers purchasing costs and reduces the time between order and delivery.
True
Which of the following is most likely a characteristic of the Millennial generation?
They are more likely to engage with brands using mobile or social media.
Which of the following is an advantage of primary data?
They are more relevant than secondary data.
Which of the following is most likely a true statement about baby boomers?
They are the wealthiest generation in U.S. history.
Which of the following is most likely true about companies that take a proactive stance toward the marketing environment?
They develop strategies to change the marketing environment.
Which of the following is most likely a characteristic of firms that adopt a reactive approach toward the marketing environment?
They take advantage of the opportunities provided by the environment.
Which of the following is most likely a characteristic of Generation Xers?
They were the first group to grow up in the Internet era.
Companies are adapting their promotional efforts to reflect the changing dynamics of American families.
True
The final step in the marketing process is ________.
capturing value from customers
In the BCG matrix, ________ refer to low-growth, high-share businesses or products.
cash cows
Experimental research is best suited for gathering ________ information.
casual
Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research
casual
P&G "Tide Loads of Hope" program provides mobile laundromats and loads of clean laundry to families in disaster-stricken areas. This is an example of ________ marketing.
cause-related
Ursa Martin, a book publisher, has decided to work with Hope in Children, a charity foundation that helps feed and educate children in poor countries. Ursa Martin has decided that a percentage of revenue from every book it sells will go to the charity. The books are marketed by conveying this message to customers. Which of the following marketing techniques describes Ursa Martin's association with Hope in Children?
cause-related marketing
A consumer advocacy group challenges a firm's decision to build a new warehouse in a small community. The advocacy group is an example of a ________ public.
citizen-action
Kelstone Developers is planning to build a new shopping mall that would require the partial acquisition of a nearby public park. Walking Green, an environmental group, challenges the plan citing environmental destruction. In response to the demands of Walking Green, Kelstone Developers promises to build a huge park-like walkway around the mall. Walking Green is an example of a(n) ________ in this scenario.
citizen-action public
Customer-driven marketing is most effective when ________.
clear needs exist and customers know what they want
Apple encourages customers to form local Apple user groups. This is an example of a ________.
club marketing program
Which of the following sources of product information can marketers control completely?
commercial
GE operates a company trading site where it posts purchasing needs, invites bids, negotiates terms, and places orders. This is an example of a(n) ________.
company buying site
________ is the degree to which an innovation fits the values and experiences of potential consumers.
compatibility
Which of the following is not considered a source of competitive intelligence?
competitors' internal databases
Electric cars are not considerably different or difficult to drive relative to gas-powered cars. However, this is not aligned with the perceptions or conceptual concerns held by the public about the new technology. This will likely slow the adoption rate due to the ________ of the innovation.
complexity
Ethnographic research is ________
conducted in settings where people live and work
________ markets consist of individuals and households that buy goods and services for personal use.
consumer
For the past nine years, PepsiCo's Doritos brand has held a "Crash the Super Bowl" contest in which it invites 30-second ads from consumers and runs the best ones during the game. This is an example of
consumer-generated marketing
The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________
protecting the privacy of knowing and unknowing customers
P&G's decision to eliminate dozens of major brands from its portfolio including Crisco, Folgers, and Jif to focus on household care, beauty, and grooming products is an example of ________.
pruning
Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next?
purchase decision
The most common research instrument, whether administered in person, by phone, by e-mail, or online, is the ________.
questionnaire
A shoe company's ads feature the members of a popular country music band. Product sales increase significantly among the band's fans. From the fans' viewpoint, the band is a ________.
reference group
________ is the degree to which an innovation appears superior to existing products.
relative advantage
In a straight rebuy, a buyer ________.
reorders something without any modifications
JJ Distributors Ltd. buys electronic products from manufacturers for wholesale and sells them to various retail outlets. To which of the following markets does JJ Distributors Ltd. directly cater?
reseller markets
Which of the following is the means by which companies post purchase requests online and invite suppliers to bid for their business?
reverse auctions
Information collected from commercial online databases or through Internet search engines are examples of ________ data.
secondary
________ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.
selective retention
Which of the following needs in Maslow's hierarchy is generally satisfied last?
self-actualization
Both market penetration strategies and market development strategies primarily involve ________
selling a company's current products
When a company chooses to divest a particular strategic business unit, it ________.
sells off or phases out the strategic business unit
Various government agencies have launched campaigns to encourage energy conservation and concern for the environment as well as discourage smoking, illegal drug use, and obesity. This illustrates ________ marketing.
social
Many leading business and marketing thinkers are now preaching the concept of "shared value" which recognizes that ________ needs, not just economic needs, define markets.
societal
Cosmetic retailer Lush knows that doing what's right benefits both customers and the company. Their premium beauty products are made by hand from the freshest possible natural ingredients. This is an example of the ________ concept.
societal marketing
Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?
to give customers the complexion they dream about by providing products suited to their needs
The responsibility for setting a company's mission, objectives, broad strategies, and policies primarily lies with its ________.
top management
Many marketers now embrace a ________ strategy, integrating ethnic and cross-cultural perspectives within their mainstream marketing.
total market
A business marketer normally deals with far fewer buyers than a consumer marketer.
true
A small increase in consumer demand can cause a large increase in business demand.
true
In a straight rebuy, a buyer reorders something without any modifications.
true
Interpersonal factors are a major influence on business buyer behavior.
true
Marketing research is the systematic design, collection, analysis, and reporting of data directly relevant to a specific marketing situation facing an organization.
true
The buying center consists of key decision makers from both the buying organization and the supplier
true
The larger the gap between expectations and performance of a product, the greater a consumer's dissatisfaction.
true
A customer who is both loyal and profitable is referred to as a ________.
true believer
The Amazon Prime program strives to convert casual shoppers into loyal customers. An Amazon Prime customer can be classified as a ________.
true believer
According to the five-step model of the marketing process, the first step in marketing is ________.
understanding the marketplace and customer needs and wants
A ________ is made up of a company, its suppliers, its distributors, and its customers who partner with each other to improve the performance of the entire system.
value delivery network
In which of the following circumstances is an organization likely to engage in full partnerships with key consumers?
when the market has few customers and high margin