Marketing chapters 1-8

Acquisitions are not considered a source of new products for organizations True/False

False

In the marketing mix, product refers to activities that communicate the merits of a product and persuade target customers to buy it. True/False

False

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process True/False

False

People use the same products and services as they progress through each life-cycle stage? True/False

False

During the decline stage of the product life cycle, product sales may plunge to zero, or they may drop to a low level when they continue for many years True/false

True

Marketers have a better chance of taking advantage of a person's secondary beliefs than their core beliefs True/False

True

The distinction between a consumer product and industrial products based on the purpose for which the product was purchased True/False

True

The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction True/False

True

Value marketing has become the watchword for marketers True/False

True

When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity True/false

True

The most effective sources of information about a product tend to be _____ A. Commercial B. Public C. Experimental D. Personal E. Paid

D. Personal

Casual research is used to _____ A. Test hypotheses about cause and effect relationships B. Gather preliminary data to define problems and their underlying causes C. Collect information on the demographics of customers D. Collect information on the attitudes of consumers E. Generate hypotheses about the causes of a marketing problem

A. Test hypotheses about cause and effect relationships

_______ is a discomfort caused by postpurchase conflict A. Selective retention B. Cognitive dissonance C. Selective attention D. Restraint bias E. Subliminal perception

B. Cognitive dissonance

Maaging the marketing function begins with a complete analysis of the company. A thorough ______ is typically undertaken to guide decision making A. External assessment B. internal assessment C. Industry review D. SWOT analysis E. Portfolio analysis

D. SWOT analysis

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's _____ A. Product length B. Product Mix C. Product depth D. Product consistency

B. Product mix

A company adding new features to a product will most likely asses each feature's value to customer's relative to its ______ A. Cost to the company B. Performance in the market C. Benefits to the company D. Cost to the customers E. Benefits to the supplier

A. Cost to the company

Burger town introduced a new hamburger and released in two different cities at two different places. 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 _____ A. Experimental research B. Exploratory research C. Survey research D. Netnography research

A. Experimental research

Which of the following is a social factor that influences consumer buying behavior? A. Family B. Life-cycle stage C. Economic situation D. Personality E. Occupation

A. Family

In the ____ stage, a firm most likely faces a trade-off between high market share and high current profit A. Growth B. Decline C. Maturity D. Introduction E. Product development

A. Growth

The two dimensions the BCG approach uses to evaluate and manage SBUs are A. Market growth rate and relative market share B. Market growth rate and market penetration C. Market growth rate and market development D. Relative market share and product development E. Relative market share and market penetration

A. Market growth rate and relative market share

Which of the following is the first stage of the buyer decision process? A. Need recognition B. Information search C. Evaluation of alternatives D. Purchase decision E. Postpurchase behavior

A. Need recognition

Zeal is a popular automobile brand, and its positioning statement is "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement? A. Point of difference B. Target audience C. Brand name D. Product category E. Need

A. Point of difference

Both market penetration strategies and market development strategies primarily involve ______ A. Selling a company's current products B. Modifying the company's product line C. Selling in new as well as existing markets D. Developing a new product E. Leaving a current market

A. Selling a company's current products

Which of the following statements is true in the context of the BCG growth-share matrix? A. Stars often need heavy investment to finance their rapid growth in a market B. The positions of SBUs in the growth-share matrix rarely change over time C. The income from one SBU cannot be used to support other business units D. Dogs promise to be large sources of cash E. Cash cows typically turn into stars

A. Stars often need heavy investment to finance their rapid growth in a market

Which of the following is most likely true about companies that take a proactive approach toward the marketing environment? A. They develop strategies to change the marketing environment B. They believe that marketing strategies are bound by the current environment C. They passively accept the marketing environment in its current state D. They view the marketing environment as an uncontrollable element E. They design strategies according to environments forces in the market

A. They develop strategies to change the marketing environment

Which of the following best describes product positioning? A. Differentiating a market offering to create superior customer value B. Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers C. Identifying consumer needs and creating a product to meet those needs D. Evaluating each market segment's attractiveness and selecting one or more segment to enter E. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

B. Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

______ occurs when two established brand names of different companies are used on the same product A. Liscencing B. Co-branding C. Private branding D. Brand equity E. Branding

B. Co-branding

Which of the following is considered a major influence on business buyer behavior? A. General need B. Organizational factors C. Social forces D. Demographic criteria E. Performance reviews

B. Organizational factors

______ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumers. A. Differentiation B. Positioning C. Market targeting D. Market segmentation E. Mass marketing

B. Positioning

The objective of _____ research is to gather preliminary info that will help define the problem and suggest hypotheses A. Descriptive B. Exploratory C. Casual D. Corrective

B. Exploratory

P&G was among the first to use _____ segmentation when it introduced Secret, a deodorant brand specially formulated for women's chemistry A. Age and life-cycle B. Gender C. Behavior D. Psychographic E. Geographic

B. Gender

The new product development process starts with _____ A. Idea screening B. Idea generation C. Concept development D. Concept testing E. Market strategy development

B. Idea generation

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create a consumer awareness of a product and its features? A. Product development B. Introduction C. Growth D. Maturity E. Decline

B. Introduction

Demographic, economic, natural, technological, political and cultural forces form the _____ of an organization A. Supply Chain B. Macroenvironment C. Marketing intermediary network D. Internal environment E. Microenvironment

B. Macroenvironment

______ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization A. Test marketing b. Marketing research C. Commercialization D. Integrated marketing E. Exclusive distribution

B. Marketing research

Craft Inc. Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Compeittors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the _______ stage of the product life cycle. A. introduction B. Maturity C. Growth D. Delcine

B. Maturity

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices? A. More-for-the-same B. More-for-less C. Same-for-less D. More-for-more E. Less-for-much-less

B. More-for-less

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 A. Personality B. Motive C. Attitude D. Learning E. Perception

B. Motive

Which of the following would most likely use informal research methods to obtain marketing insights? A. Multinational firms B. not-for-profit organizations C. Pharmaceutical firms D. Brick-and-mortar companies E. Family-owned businesses

B. Not-for-profit organizations

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal? A. Change distributors B. Offer coupons for the toy C. Change the packaging of the toy D. Launch an online advertising campaign E. Cut prices of the toy to attract new customers

C. Change the packaging of the toy

Which of the following sources of product information can marketers control completely? A. public B. personal C. commercial D. Experimental E. Experiential

C. Commercial

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? A. sales data from exclusive Hammond retailers B. Archival data on the company performance C. Competitive marketing intelligence D. Research on demographics of its existing customers E. Internal survey on employee performance

C. Competitive marketing intelligence

The boom in online, mobile, and social media has created a new set of social and ethical standards for companies. Their greatest concern involves _____ A. Failure to provide value-priced products for online customers B. Protecting the privacy of knowing and unknowing customers C. Providing too many alternative products online which confuses customers D. Rarely following the marketing orientation when devising promotional offers E. failing to reach their target customers through online marketing

B. Protecting the privacy of knowing and unknowing customers

The ________ environment is perhaps the most dramatic force shaping the decisions of individuals and offering exciting opportunities for marketers A. Demographic B. Technological C. Political D. Social

B. Technological

Which of the following is an approach where firms target a whole market based on common consumer needs? A. Demographic segmentation B. Undifferentiated marketing C. Micromarketing D. Concentrated marketing E. Geographic segmentation

B. Undifferentiated marketing

Laundry detergent, candy, magazines, and fast food are purchased frequently by customers. They are examples of ______ products. A. unsought B. Shopping C. convenience D. Specialty

C. Convenience

_______ is often the most difficult but most critical step in the research process A. Developing the research plan B. Collecting and analyzing the data C. Defining the problem and research objectives D. Interpreting the findings E. Gathering secondary data

C. Defining the problem and research objectives

The marketing manager at Frizzles' Eateries target customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as _____ segmentation A. Age and life cycle B. User status C. Benefit D. Demographic E. Geographic

C. Benefit

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to _____ A. Reduced sales in each market segment B. Weaker product position in each market segment C. Higher costs of doing business D. Redundancy in product design across market segments E. Smaller market share in the industry

C. Higher costs of doing business

Which of the following is true of the product life cycle (PLC)? A. All products generally go through all five stages of PLC B. All products pass through the stages of PLC in the same order C. It is generally difficult to forecast the sales level at each PLC stage D. The PLC concept can be applied to styles but not to fashion and fads E. Product forms have longer life cycles than product classes

C. It is generally difficult to forecast the sales level at each PLC stage

______ refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. A. Market divesting B. Market diversification C. Market targeting D. Market mixing E. Market positioning

C. Market targeting

When a company chooses to divest a particular strategic business unit, it _____ A. Increases the advertising budget for that strategic business unit B. Invests more in the strategic business unity to build its market share C. Sells off or phases out the strategic business unit D. Invests just enough in the strategic business unit to keep its share at the current level E. Gradual increases investment in the strategic business unit over time to maximize profit

C. Sells off or phases out the strategic business unit

Which of the following is most likely a true statement about shopping products? A. Shopping product tend to be less expensive than convenience products B. The existence of such products is generally unknown to consumers C. Shopping products are purchased less frequently than convenience products D. Consumers typically spend very little time comparing shopping products

C. Shopping products are purchased less frequently than convenience products

Which of the following is most likely a true statement about social class? A. Members of a social class vary drastically in their values, interests, and behaviors B. In the United States, the lines between social classes are fixed and rigid C. Social classes show distinct product preferences in areas such as clothing D. Wealth is a more important variable than education in measuring social class E. Consumers of the same age belong in the same social class

C. Social classes show distinct product preferences in areas such as clothing

Which of the following is part of the microenvironment of a firm's marketing mix? A. The political state of the country B. The cultural forces that exist in a society C. The suppliers who work with the company D. The technological resources available to the company E. The different demographic trends in the market

C. The suppliers who work with the company

Which of the following is true of perceptual positioning maps? A. They are used by marketers to divide a market into smaller groups with distinct characteristics B. They are used by marketers to identify supplier and retailer perceptions of a product C. They are used to analyze consumer perception of a brand relative to competing products D. They are used to divide buyers into groups based on their perceived income and age E. They are used to plot the geographic segments that company needs to target

C. They are used to analyze consumer perception of a brand relative to competing products

_________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior A. Differentiation B. Mass marketing C. Mass targeting D. Market segmentation E. Positioning

D. Market segmentation

Introducing a new product into the market is called _____ A. Test marketing B. Segmentation C. Product development D. commercialization E. Market penetration

D. Commercialization

When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by _______ A. Pushing one-way commercials at customers B. Identifying and targeting late adopters C. Developing print and radio advertisements D. Generating person-to-brand conversations E. Withdrawing from online social networks

D. Generating person-to-brand conversations

Which of the following is statements is most likely true about the product life cycle? A. Throughout the product introduction stage, sales are zero B. The growth stage is the longest stage in the product life cycle C. Profits are nonexistent in the growth stage D. Growth is a period of rapid market acceptance and increasing profits E. Maturity is the period when sales fall off but profits continue to rise

D. Growth is a period of rapid market acceptance and increasing profits

Which of the following is true of strategic planning in a firm? A. It deals with maintaining the company's current business ventures B. It focuses on the firm's internal environment rather than external C. It occurs at the business-unit, product, and market levels rather than at the corporate level D. It deals with adapting the firm to take advantage of changing marketing opportunity E. It involves preparing short-term investment objectives at the product level

D. It deals with adapting the firm to take advantage of changing marketing opportunity

Which of the following statements about international marketing research is true? A. International marketing research has declined over the past decade due to global economic decline B. Conducting personal interviews in developing countries is generally less difficult and less expensive than doing so in developed nations C. International researchers follow a different set of steps in marketing research than domestic researchers D. Language translation in international marketing research typically increases costs and raises the risk of errors E. International researchers benefit from useful secondary data that is available online, so primary data is typically unnecessary

D. Language translation in international marketing research typically increases costs and raises the risk of errors

______ is the process by which people select, organize, and interpret information to develop a meaningful picture of the world. A. Retention B. Motivation C. Selective perception D. Perception E. Learning

D. Perception

Which of the following demonstrates the real value of a company's marketing research and info system? A. The amount of data it generates B. The variety of contact methods it uses C. the tools it uses to gather information D. The quality of customer insights it provides E. The type of sampling plan it follows

D. The quality of customer insights it provides

Which of the following best describes the value chain of a company? A. The collection of businesses and products that make up the company B. Profits earned by the cash cows and stars in the company's business portfolio C. Touchpoints at which a company or brand interacts with its consumers D. The series of department that design, produce, market, deliver, and support the company's products E. A network made up of the company, its suppliers, and its distributors working together to deliver customer value

D. The series of department that design, produce, market, deliver, and support the company's products

Which of the following is an advantage of primary data? A. They are less expensive to obtain than secondary data B. They can be obtained more quickly than secondary data C. They can be accessed from existing information D. They are more relevant than secondary data E. They are more reflective of past problems

D. They are more relevant than secondary data

Which of the following is true of product positioning? A. A product's position is defined by the number of competitors in a market B. Product positioning has little influence on the design of marketing mixes C. Consumers generally reevaluate products every time they make a buying decision D. To simplify the buying process, consumers are likely to position products in the minds E. Consumers cannot position products with or without the help of marketers

D. To simplify the buying process, consumers are likely to position products in the minds

Which of the following is most likely a true statement about diversity in the US A. Most ethnic groups are shedding their ethnic culture and shifting toward American culture B. Asian Americans constitute the largest ethnic group in the US C. Ethnic and cultural differences exist since different ethnic groups remain separate from one another D. Various ethnic groups mix together but also retain cultural differences E. The nation's ethnic populations are set to decrease in coming decades

D. Various ethnic groups mix together but also retain cultural differences

Under Armour's recent expansion into the digital personal health and fitness tracking market through acquisitions of three fitness app companies is a _____ strategy. A. Market penetration B. Market development C. Downsize D. Diversification E. Product development

D. diversification

A _____ is defined as a name, term, sign, symbol, or design, or a combination of these identifies the maker or seller of a product or service A. Prototype B. Paradigm C. Framework D. Patent E. Brand

E. Brand

Which of the following is most likely true about business legislation? A. Business laws enforced only in international markets and not in local markets B. Business laws fail to prevent unfair competition among the different companies in the market and tend to encourage monopolies C. Business laws usually remain constant over time D. Local, national, and state business laws rarely overlap with one another E. Business laws that are enforced by government agencies have a major impact on a company's marketing performance

E. Business laws that are enforced by government agencies have a major impact on a company's marketing performance

According to the text, ______ are the most important actors in a company's microenvironment A. Stockholders B. Employees C. Suppliers D. Resellers E. Customers

E. Customers

To understand the market potential for the new drink and the demographics and attitudes of consumers who are likely to buy the product, they should most likely use ______ A. Exploratory research B. Archival research C. Casual research D. Experimental research E. Descriptive research

E. Descriptive research

Which of the following best describes market segmentation? A. Differentiating a market offering to create superior customer value B. Identifying consumer needs and creating a product to meet those needs C. Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers D. Evaluating each market segment's attractiveness and selecting one or more segment to enter E. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

E. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

Brands vary in the amount of power and value they hold in the marketplace. Iconic brands like Apple, Google, and Harley-Davidson have achieved substantial brand _____ A. Capital B. Personality C. Perception D. Esteem E. Equity

E. Equity

Which of the following is an example of an unsought product? A. Furniture B. Laundry detergent C. Refrigerator D. Toothpaste E. Life insurance

E. Life insurance

Which of the following is a quantitative approach to research? A. Observational research B. Online focus groups C. Ethnographic research D. in-depth interviews E. Marketing surveys

E. Marketing surveys

Which of the following is a geographic shift that has been observed in recent times? A. Fewer Americans moving to sunbelt states B. Fewer Americans moving south C. More Americans moving to the Midwest D. More Americans moving to densely populated cities E. More Americans moving to micropolitan areas

E. More Americans moving to micropolitan areas

A marketing intermediary would most likely help a firm by _____ A. Negotiating with labor unions regarding wages, hours and benefits b. Providing technical expertise on the production and design of goods C. Competing directly with the firm in a certain product category D. Supplying raw materials needed for manufacturing the firm's goods E. Moving the firm's goods from production points to distribution centers

E. Moving the firm's goods from production points to distribution centers

Bass pro shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. Which is the segmentation method called? A. User status B. Usage rate C. Benefit D. Behavioral E. Pyschographic

E. Pyschographic

A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic? A. tangability B. intangibility C. Perishabilitiy D. variability E. inseparability

E. inseparability

A business marketer normally deals with far fewer buyers than a consumer marketer True/False

True

Branding has become so strong today that hardly anything goes unbranded True/false

True

Business and consumer marketers use many of the same variables to segment their markets True/False

True