Marketing 303 Exam 2
What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan?
associated services
Students regularly seek out Professor Hunter to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, ________ is the most important of the five service quality dimensions.
assurance
In developing marketing strategies, why is price often the most challenging of the four Ps to manage?
because it is the least understood element of the marketing mix
Mariska is working to create greater brand awareness for her company's new line of sports bracelets. Which of the following is important for increasing brand awareness?
brand name
The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the
break-even point
the purchase information from each individual store is typically aggregated by the retailer as a whole, which creates an order for new merchandise and sends it to the manufacturer. This is an example of information flowing from the
buyer to the manufacturer.
Caruso's Office Supplies has large stores resembling warehouse environments, with racks stocked from floor to ceiling with different types of office supplies. Its assortment of office supplies is the largest in town, and its prices are low. Caruso's is a(n)
category specialist.
More accurate sales forecasts are possible when retailers ________ rather than ________.
create one forecast for a distribution center; survey every current customer
Which of the following is required to build a successful strategic relationship?
credible commitments
For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company ________ when certain product lines failed to meet this expectation.
decreasing product mix breadth
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
decreasing the price elasticity of demand
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
decreasing the price elasticity of demand.
The first step of the marketing research process is
defining the objectives and needs
The customers at Janelle's Quik Coffee Shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Janelle keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Janelle's shop is suffering from a ________ gap.
delivery
The first step in the STP process is to
establish the overall strategy or objectives.
Ambyah 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, Ambyah Fashions will most likely choose ________ distribution.
exclusive
McKenna directs her salespeople to increase the company's share of wallet. McKenna is directing her salespeople to
focus on increasing sales to their best customers
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.
inelastic
Liam relocated 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
inseparability
In the United States, most consumer packaged goods found in grocery and discount stores are already in the ________ stage of the product life cycle.
maturity
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
micromarketing
One of the key characteristics of brainstorming sessions is
no idea is immediately accepted or rejected
Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation.
occasion
If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using
off-price retailers
Which of the following is a key component of a value proposition?
offering name or brand
When retailers extend their services to the Internet and become ________ retailers, they are able to satisfy a broader range of customers' needs and wants.
omnichannel
In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because
other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals
The complete set of all products offered by a firm is called its
product mix
LeeAnna knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. LeeAnna is concerned with the supply chain management goal of
providing products at the right time
Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by
providing support and incentives for their employees.
sarita is opening an upscale women's clothing store in a growing suburban residential area. Sarita knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis, so she will most likely use ________ as a basis for targeting her market.
real estate values by subdivision
Darlene has identified four potential market segments for her Don't Do It Yourself handyman service. She will now evaluate whether or not each segment is attractive relative to all of the following except
realistic
Greta had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an antidandruff shampoo. The new ads suggest that Head & Shoulders has most likely been
rebranded
Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can
reduce inventories needed to satisfy retailers' demand
Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can
reduce inventories needed to satisfy retailers' demand.
Walmart may have ________ power if a supplier desperately wants to be associated with Walmart, because being known as an important Walmart supplier enables that supplier to attract other retailers' business.
referent
Celeste will let only Martiné cut her hair. She has tried other stylists, but she knows from experience that Martiné cuts her hair well every time. For Celeste, ________ is the most important of the five service quality dimensions.
reliability
Marketing executives at Duracell want to analyze the number of Energizer customers who switch to its battery when Duracell is offered at a deep discount. What data would likely show this information?
secondary panel data
Gerardo wants to develop an Internet-based auction business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Gerardo now has to
select a target market
In which of the following categories would a dry cleaning business be placed?
services retailer
Which of the following markets is most likely to be characterized by oligopolistic competition in the United States?
smartphone service providers
Wilhelm owns Do-It-Right 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. Wilhelm has observed the impact of ________ on demand for his service.
the income effect
In the Circles for a Successful Value Proposition framework, the value proposition is represented by
the intersection between customer needs/wants and the firm's product's benefits
The more substitutes that exist in a market,
the more sensitive consumers will be to changes in the price of a particular product.
Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle
until a superior product comes along to replace it.
Franchising is the most common type of contractual ________ marketing system.
vertical
The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize its sales. But Home Depot carries a mix of tool brands so it can maximize the sales in its tool category. This misalignment of goals will likely lead to a ________ channel conflict.
vertical
Companies offer real-time promotions on their
websites
Each time you go to the grocery store and have your purchases scanned while using a loyalty or bonus reward card, you are contributing to a database that can help marketers determine
what a typical shopping list looks like.
Bev is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Bev is least likely to consider
why it took her so long to consider the new product line
A service is any intangible offering that involves a deed, performance, or effort that
cannot be physically possessed
One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for ________ the product.
beta testing
As a type of retailer, category specialists offer
a narrow but deep assortment of merchandise.
What is a particularly important feature of sustainable packaging?
less of a negative impact on the environment
Justin is looking to expand his pet grooming business and wants to evaluate the profitability of a potential new market. The area he is looking at has 2,000 homes and Justin estimates that 20 percent of them would be likely to use his service. He charges $45 per grooming and on average customers groom their pets six times a year. Justin estimates his variable costs to expand his business will be $10 per grooming and his fixed costs are $10,000. How much profit would Justin make on this new segment?
$72,240 Segment profitability = (Segment size × Segment adoption percentage × Purchase behavior × Profit margin percentage) − Fixed costs
________ segmentation is the segmentation method most directly related to satisfying consumers' needs and wants.
Benefit
McKenna directs her salespeople to increase the company's share of wallet. McKenna is directing her salespeople to
focus on increasing sales to their best customers.
Yvonne represents a manufacturer who makes unique, high-end handbags. When making a recommendation about potential retail partners, what should be Natalie's first consideration?
How likely is it for certain retailers to carry this product?
Retail store chains often use ________ data to tailor each store's assortment to the preferences of the local community
geodemographic
________ is an extreme form of a targeting strategy
Micromarketing
How is consumer panel data collected during the test marketing phase of a new product introduction?
Panelists scan their receipts on a home scanning device.
A(n) ________ is a 13-digit code that retailers can use to track inventory.
UPC
Ilana and Gabi are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design of the project. Their next logical step will be to
begin to collect data
When conducting concept testing for her firm's new Internet antipiracy software, which is the most important question that Wanda should ask?
Will respondents purchase the software if it becomes available?
The first question a marketing researcher should ask before embarking on a research study is
Will the research be useful?
The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created
a brand association
Compared to conventional supermarkets, warehouse clubs have
a lower level of service
If you're a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where expert sales associates can assist customers with their selections, you'd most likely choose
a specialty store.
Because of its size and relative power, Walmart can easily impose controls on small manufacturers, such as Brown Betty Dessert Boutique, but with large, powerful suppliers such as P&G, the control is more balanced between parties. Walmart's various marketing channel relationships offer examples of different forms of a(n) ________ marketing system.
administered vertical
Star Heating and Air Conditioning Company specializes in electric heat pumps. Francis keeps track of the price of natural gas, knowing that
an increase in the price of natural gas will increase demand for his electrical heating systems
A product is ________ that can be offered through a voluntary marketing exchange.
anything of value to consumers
How might a book publisher use blogs in its marketing research efforts?
as a source of reviews of its latest releases
If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable
awareness
YouEye is developing eye tracking technology that works with an individual's webcam. Instead of needing to spend thousands of dollars on eye tracking equipment and having customers come into labs, firms will be able to utilize everyday webcams to track not only what a person attends to on a computer screen but also his or her emotional reactions to these products. Firms such as YouEye are automating the
beta testing process
Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in ________, a form of new idea generation.
brainstorming
A ________ refers to the use of the same brand in a different product line.
brand extension
When a restaurant chain, Curt's Homestyle Cooking, launches its own brand of frozen meals, this is an example of a
brand extension
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
demographics and geography; lifestyle or benefit segmentation
The process by which the use of a new product or service spreads throughout a market group is referred to as
diffusion of innovation
Marketers with luxury brands use brand extension cautiously in order to avoid
diluting the core brand.
The value of a brand is often calculated by assessing the
earning potential of the brand over the next 12 months
The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. Employees are instructed to always address a guest by name, if possible. To accomplish this, employees are trained to listen and observe carefully to determine a guest's name. Which service characteristic is this an example of?
empathy
Darius is deciding whether to purchase brand-name sneakers or a less expensive store brand. He has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Darius is likely to purchase the store-brand sneakers because they offer
greater perceived value
The decision to delete a product is never taken lightly because, generally, manufacturers
have made substantial investments in product development and manufacturing
A valuable use of big data involves how data collected from social media communities allows you to
heighten customer service and engagement
Vikram stood outside the mall and asked people which stores they visited and if they bought anything. If they said yes, he asked them what they bought and how they came to the decision to buy that item. What form of research was Vikram most likely conducting?
in-depth interviews
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?
in-depth interviews
Demographic segmentation is segmentation based on
income
Effective service recovery efforts can lead to
increased positive word of mouth
Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of
instrumental support
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.
intensive
When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships.
interdependent
Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation
involves knowing and understanding self-values, self-concept, and lifestyles
One of the limitations associated with break-even analysis is that
it assumes that there is only one price.
A ________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.
knowledge
Candace's marketing research returned the finding that customers were staying away from her home goods store because of a lack of services like gift cards, return policies, and special orders. Candace was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." Candace is likely suffering from a(n) ________ gap.
knowledge
When Juanita booked a room at the Wintergarden Resort, she expected that her room would be ready when she got there, the swimming pool would be heated, the advertised singer would be able to sing, and the breakfast would be fresh. When she arrived, she had to wait for her room, found the swimming pool to be 50 degrees, realized the singer could not carry a tune, and the free continental breakfast was stale. The Wintergarden Resort was experiencing a severe ________ gap.
knowledge
Which of the following adopter categories refers to the last large group of buyers to enter a new product market?
late majority
In the past, ________ controlled supply chains.
manufacturers
When selecting a target market, firms will be most successful if they
match the firm's competencies with a market segment's attractiveness
A product in the ________ stage of the product life cycle has a high number of competitors and competitive products.
maturity
In a market with ________ there are many firms providing differentiated products.
monopolistic competition
What is one of the main criteria used for determining how "good" a brand is, or how much equity it has?
perceived value
A ________ is often used to illustrate the position of a firm's products or brands in consumers' minds.
perceptual map
Rafi manages a Sleep-Wise Inn along an interstate highway. He knows from experience that 5 to 10 last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Rafi has empowered his staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. He knows his service is ________, meaning that if no one stays in the room, it generates no revenue that evening.
perishable
The Apple iPod is a ______ product.
pioneer
The diffusion of innovation theory is useful to marketers in helping them
predict which types of customers will buy their product immediately and later
Sarita belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Sarita is part of is engaged in
premarket testing
French luxury goods manufacturer and retailer Hermès is known for making expensive leather goods. But paying $300,168 for a handbag at auction, which is over the standard retail price of $280,000, is extraordinary, and not for the casual shopper. The handbag is considered a
prestige product
A demand curve shows the relationship between ________ during a specific period of time.
price and demand
Because services like cruises and car rentals are perishable, many marketers use
pricing strategies to match supply with demand
When a research team has gathered data for specific research needs, this is known as
primary data
One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked
procedural fairness
When the marketing research problem is not clearly defined, a researcher will likely engage in ________ research.
qualitative
When Walmart promises to purchase larger quantities if a manufacturer will lower its wholesale price, it is exhibiting ________ power.
reward
When Adele decided to open up a tea shop in the center of town, she chose a group of customers who represent her customers of interest. This group is called a
sample
A marketing research project often begins with a review of the relevant ________ data.
secondary
To develop psychographic segments, the marketer must understand consumers
self-values, self-concept, and lifestyles
By setting appropriate service standards and measuring service performance, firms can attempt to close a ________ gap.
standards
Training service providers to know exactly what a "good job" entails is setting service
standards
Byron gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection. Byron told the manager to always match the gasoline prices of the other store. Byron is using a ________ pricing strategy.
status-quo
Returnable packaging, use of 3D printing, and flexible packaging are examples of
sustainable packaging
Which of the following would be considered a logo without words?
symbol
Commercial research firms, such as IRI and Nielsen, are sources of
syndicated data
Jaleel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends including sales by different musical styles, online downloads, and concert attendance. Jaleel will most likely use ________ to gather this type of data.
syndicated data
The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ________ service characteristic.
tangibles
The diffusion of innovation theory focuses on
the rate at which consumers are likely to adopt a new product or service.
During the research design step of the marketing research process, researchers identify the type of data needed and
the type of research necessary to collect the data.
Vanessa wants to position her financial services company. She can position her services according to
the value proposition
From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about
their fundamental right to privacy.
In an administered vertical marketing system,
there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.
a customer orientation toward pricing implicitly invokes the concept of
value
