Exam 2
ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result?
A decrease in total revenue
Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result?
An increase in total revenue
Which of the following consists of three major components: cognitive, affective, and behavioral?
Attitude
Which of the following is calculated by dividing the variable costs by the number of units produced?
Average variable cost
Buyers recognize the existence of a new product during which of the following stages of the product adoption process?
Awareness
Online marketplaces where buyers and sellers can exchange information, goods, services, ideas, and payments are best described as _______.
B2B e-commerce sites
Which of the following is the strongest and most desired by marketers?
Brand insistence
The Double-A of American Airlines, the peacock of NBC, and the apple with a missing bite of Apple are examples of a _______.
Brand mark
Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product?
Breakeven point
Which of the following is a major advantage of nonprice competition?
Building customer loyalty toward the brand
ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use?
Cash discount
Behavior that violates generally accepted norms of a particular society is best described as _______.
Consumer misbehavior
Copying computer software, video games, movies, or music without paying the producer for them is an example of _______.
Consumer misbehavior
In the case that a preferred brand is not available, which of the following consumer product types will a shopper be most likely to choose a substitute brand?
Convenience
The Federal Trade Commission (FTC) is investigating ACME Corp. for using misleading price tags at its outlet stores to deceive customers into believing they are getting a bargain on Wile E. branded items. Which of the following does the FTC believe ACME is guilty of?
Deceptive pricing
Sales fall rapidly during which of the following?
Decline Stage
Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant?
Demand curve
Commodities and raw materials are typically purchased using which method of business buying?
Description
ACME Corp. is using all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers. This is best described as _______.
Digital marketing
Which of the following identifies old technologies that can be exploited in new ways or develops new business models to give customers more than they've come to expect from current products in a specific market?
Disruptive innovation
Which of the following are viewed as "in the know" by many product adopters?
Early adopters
Which of the following is NOT one of the factors that influence the assessment of value?
Elasticity of demand
Which of the following refers to the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing?
Electronic marketing
In which of the following stages of the consumer buying decision process does a person use evaluative criteria to assess a consideration set?
Evaluation of alternatives
Page visits, reach, and CPM (cost per thousand exposures) are all examples of what type of social media metric?
Exposure
The process through which a person acquires the knowledge and skills to function as a consumer is best related to which of the following social influences on the buying decision process?
Family Influence
ACME Corp. has decided that all of its products' packages should be similar. ACME is using which of the following?
Family packaging
Which of the following alters a product's versatility, effectiveness, convenience, or safety?
Functional modification
Which of the following markets may have complex buying procedures due in part to their public accountability?
Government markets
During which of the product life cycle stages do sales rise rapidly?
Growth
When a product's performance characteristics are at least equal to those of competitive brands and it is priced lower, which of the following is appropriate?
Head-to-head positioning
You are thinking about buying a tablet to help with your classes and for entertainment purposes. When you search your memory for information about products that might address these needs, you are engaging in which aspect of the consumer buying decision process?
Internal information search
Which of the following is NOT true about digital marketing as a new distribution channel?
It increases inefficiencies throughout the marketing channel.
Before creating a social media advertising campaign, Sarah embeds quantitative and qualitative metrics at the onset of her strategy that can allow almost real-time measurement and evaluation. What are these metrics called?
Key Performance Indicators (KPIs)
The development of a product that is closely related to one or more products in the existing product line, but designed specifically to meet somewhat different customer needs is best described as a(n) _______.
Line extension
Which of the following is NOT a means of repositioning a product?
Maintaining the product's marketing mix
Which of the following is responsible for managing the marketing activities that serve a particular group of customers?
Market manager
Which of the following is characterized by intense competition?
Maturity
ACME Corp. has ordered widgets from Wiley Widgets several times before, but now it would like Wiley Widgets to offer a lower per-unit price in exchange for a larger order. ACME is using which of the following types of business purchases?
Modified rebuy purchase
Which of the following is NOT one of the ways that business transactions differ from consumer transactions?
Orders by businesses are frequently small and inexpensive
Which of the following deletion strategies makes no attempt to give a declining product a new life?
Phase-out
Which of the following is used by retailers or wholesalers to develop more efficient promotion, generate higher gross margins, and change store image?
Private distributor brands
Gorton's Seafood buys large amounts of fish to use in its frozen dinners and dinner components. Gorton's Seafood belongs in which of the following business markets?
Producer market
During which phase of the new product development process is a new product idea turned into a prototype or working model?
Product development
Which of the following is responsible for a product, a product line, or several distinct products that make up an interrelated group within a multiproduct organization?
Product manager
Which of the following is the total group of products that an organization makes available to customers?
Product mix
The internet is viewed as a _______ medium because users determine which material they are going to view.
Pull
Which of the following pass on to a business customer the cost savings gained through economies of scale?
Quantity discounts
Which of the following markets includes wholesalers or retailers?
Reseller markets
When a business buyer invites vendors to bid to supply a specified good or service in competition with each other, with the lowest bidder winning the right to sell to the buyer, this is best described as _______.
Reverse auction
ACME Corp. is going through the new product development process and is selecting ideas with the greatest potential for development for further review. ACME is in which phase of the new product development process?
Screening
Purchasing agents at ACME Corp. are looking in company files and trade directories, contacting suppliers for information, soliciting proposals from known vendors, and examining various online and print publications. They are in which of the following stages of the buying decision process?
Searching for and evaluating potential products and suppliers
When you are using the internet to research a school project, and you ignore the banner ads on websites even though you see them flashing on the page, you are probably engaging in the process of _______.
Selective Exposure
One of the most important benefits of e-marketing is the ability of marketers and customers to _______.
Share information
When retailers go to great lengths to create physical settings that appeal to their target market and are conducive to making purchase decisions, they are attempting to shape which of the following influences on consumer buying behavior?
Situational
Which of the following influences on the consumer buying decision process result from time, circumstances, and location?
Situational
Which of the following is a website (or app) where users can create a profile and interact with other users, post information, and engage in other forms of web-based communication?
Social Network
Which of the following is an open aggregate of people with similar social rank?
Social class
Which of the following product elements derives from customers' involvement with the product, which may convey additional value to many products (and brands) for buyers?
Symbolic or experiential benefits
Which of the following is NOT a way that consumers rationalize pirating software, video games, and movies online?
They worry about getting arrested.
Which of the following is NOT a typical function of packaging?
To prevent efficient handling of the product
Which of the following is one of the biggest mistakes a marketer can make when engaging in digital marketing?
Treating it like a traditional marketing channel
Free samples can help move consumers into which of the following?
Trial
Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers?
Uniform geographic pricing
Which of the following are purchased when a sudden problem must be solved, products of which customers are unaware of until they see them in a store or online, and products that people do not plan on purchasing?
Unsought products
Examining quality, design, materials, and possibly item reduction or deletion to acquire the product in the most cost-effective way is best described as _______.
Value analysis
Maria is concerned about both price and quality of a product. Marketers would best describe her as which of the following?
Value-conscious
Which of the following is responsible for all aspects of developing a product: research and development, production and engineering, finance and accounting, and marketing?
Venture team
ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost market share of their widgets. This is best described as _______.
a price war
ACME Corp. is developing a software program that can run on mobile devices so that customers can interact with the firm, view product information, and see the status of an order. This is best described as a(n) _______.
app
Companies often use social media influencers popular with their target market to promote their products. In this case, the influencers represent a(n) _______.
aspirational reference group
To compete effectively on a price basis, a firm should _______.
be the low-cost seller of the product
Two trends have elevated the importance of consumer-generated information: (1) The growing tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions; and (2) _______.
consumers' tendencies to trust other consumers over corporations
Delivery and installation, financing arrangements, customer training, warranties and guarantees, repairs, layaway plans, convenient hours of operation, adequate parking, and information through toll-free numbers and websites are examples of _______.
customer services
During the final stage of the consumer buying decision process, a person might experience cognitive dissonance, which is _______.
doubts in the buyer's mind about whether purchasing the product was the right decision
High-involvement, unfamiliar, and expensive products such as cars are most likely to involve _______.
extended decision making
A company's rental of production space is an example of a _______.
fixed cost
The Red Cross raises money to help people survive natural and manmade disasters. Red Cross can best be described as a(n) _______.
idea
A price increase or decrease does not significantly alter demand for a product with _______.
inelastic demand
A price developed in the buyer's mind through experience with the product is a(n) _______.
internal reference price
Quality, the overall characteristics of a product that allow it to perform as expected, has two components: _______ and _______.
level; consistency
When buyers purchase products occasionally or from unfamiliar brands within a product category, they are most likely to use _______.
limited decision making
An internal energizing force that directs a person's activities toward satisfying needs or achieving goals is best described as _______.
motive
Any attempt to conduct dishonest activities online would be described as _______.
online fraud
One of the most significant privacy issues relates to marketers' use of _______.
personal information
The "bricks-and-clicks" model involves maintaining _______.
physical stores and an online shopping site
The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds are best described as _______.
positioning
To estimate the purchase potential of business customers, a marketer must find a relationship between a variable available in industrial classification data, such as number of employees, and the size of _______.
potential customers' purchases
Huy Fong Foods is buying peppers and vinegar to make its iconic Sriracha sauce. For Huy Fong Foods, these are best described as _______.
process materials
Kimberly-Clark is in the process of eliminating products from the product mix because it no longer satisfies a sufficient number of customers. This is best described as _______.
product deletion
The process of creating and designing products so that customers perceive them as different from competing products is best described as _______.
product differentiation
A _______ is a specific version of a product, while a _______ is a group of closely related products that are considered to be a group because of marketing, technical, or end-use considerations.
product item; product line
Price is a key element in the marketing mix because it relates directly to the generation of total _______.
revenue
Online marketing efforts make the buying process far more efficient because it _______ and _______.
saves time; reduces costs
When a product's packaging can be reused for an additional purpose, this is best described as _______.
secondary-use packaging
The North American Industry Classification System (NAICS) is a(n) _______.
single industry classification system used by the United States, Canada, and Mexico to generate comparable statistics
John's lawnmower stopped working midway through mowing his front yard. His interest in researching replacement lawnmower brands is most likely to be _______.
situational involvement
The group of people within an organization who make business buying decisions are best described as _______.
the buying center
A product modification differs from a line extension in that _______.
the original product does not remain in the line
When a company offers many product lines, it can be said to have a _______.
wide product mix
