Marketing Exam 2
__ are free online publicity that helps the company.
Positive customer reviews
Which of the following forecasting methods is least dependent on historical sales data?
A market test
Which of the following describes the pull dynamic of distribution using digital media?
A woman uses her iPhone app to locate the nearest Starbucks.
Barnes and Noble sells online through its website, while also selling through physical store locations. This type of retailing is referred to as
Barnes and Noble sells online through its website, while also selling through physical store locations. This type of retailing is referred to as
Comcast offers different types of cable packages. Its digital economy has over 45 channels. Its digital preferred package offers over 220 channels. Its XFINITY TV 200 Latino offers over 150 channels, including more than 50 Spanish channels. What type of segmentation variable is Comcast likely using when developing its different packages?
Behavioristic
Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?
Market density
Mrs. Baird's is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Mrs. Baird's places the product in Atlanta supermarkets for a period of four months. In this instance, Mrs. Baird's is using which forecasting method?
Market test
Who is likely to win in a reverse auction?
The lowest bidder
When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n)
expert forecasting survey.
Alps Ski Co is looking for new markets for both its brick and mortar retail stores and its catalog division. Alps Ski Co would most likely use a(n) ______ base for market segmentation of its stores and a(n) ______ base for market segmentation of its catalog division.
geographic; behavioristic
Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.
segmentation
Some companies use ____ as internal tools for teams working on a project requiring lots of documentation.
wikis
In the consumer buying decision process, a buyer will search his or her memory for information about products that might solve the problem they have identified in the
internal search.
When Chan realizes his liquor cabinet supply was devastated by last weekend's party, he first retrieves information from his memory about what types of liquor he and his friends like most and then asks the attractive clerk at the liquor store what she would recommend. Chan started with a(n) ____ search and then progressed to a(n) ____ search.
internal; external
Extended decision making is the type of consumer decision-making process that
is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.
Eighteen-year-old students do not form a market for alcoholic beverages because they
lack the authority to purchase this type of product.
Marketers often provide consumers with free samples, sometimes coupled with coupons, to help them gain experience with their products and facilitate consumer
learning.
Jack spends most of his free time participating in extreme sports and traveling to exotic locations with a group of close friends who share his interests and opinions about most things. This is a description of Jack's
lifestyle.
The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is
lifestyle.
Kaitlyn recently visited a Teavana store and wanted to purchase its $79.95 ice tea maker. She has never bought from Teavana before, but she knows it is owned by Starbucks. Kaitlyn views Starbucks very positively and loves their drinks. Kaitlyn will most likely use ______________ when determining whether to purchase the ice tea maker.
limited decision making
When a new variety of Quaker whole-grain breakfast cereals is first introduced, consumers will most likely engage in ____ when deciding whether or not to purchase this new product.
limited decision making
When a consumer purchases products occasionally or needs information about an unfamiliar brand in a familiar product category, he or she will most likely engage in
limited decision making.
Although it may seem logical to target higher-income consumers, many marketers choose to target lower-income segments because
lower-income consumers represent a much larger population globally.
Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n)
market.
____ includes any attempt to intentionally conduct dishonest activities online.
Online fraud
What is a primary difference between business and consumer buyers?
Business buyers generally make larger orders than consumer buyers.
Tao recently purchased a Ford F150 truck and has owned it for about a week. Earlier in the day, he received a call from Scott, the sales representative who sold him the truck. Scott called to check to see whether Tao had any questions or problems with the truck and if he had learned how to navigate all the bells and whistles. Scott also reminded Tao about how Ford is highly regarded as one of the best automobile brands and that the Ford truck is the #1 truck brand in the United States. What phenomenon is Scott trying to prevent by contacting his customer?
Cognitive dissonance
_ involves the use of digital networks to provide linkages between information providers and users.
Connectivity
Credit card companies maintain staffs of professionals whose primary responsibility is to monitor the activity on cardholders' accounts to spot potential fraudulent purchases or stolen cards. These staffs are employed to prevent which of the following?
Consumer misbehavior
Demand for business products is characterized as derived. From what is the demand derived?
Demand for consumer products
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
Which of the following products would probably require extended decision making before a purchase?
Expensive products
Jordan and Cindy are searching for an apartment. They will most likely engage in which one of the following forms of decision making?
Extended decision making
High school seniors who are trying to decide which college to attend and newlyweds looking to buy their first home exhibit the same behavior with respect to their level of involvement in their buying process. Which of the following best describes this common buying behavior?
Extended problem-solving behavior
Which of the following regulates and makes rules for privacy, fraud, and misappropriation of copyrighted intellectual property, as well as other illicit Internet activities?
Federal Trade Commission
Which type of business market tends to have the most complex buying procedures?
Government
You recently raised your prices on the products you sell to your business customers. To your surprise, these customers did not change the amount of units they purchase from you. It was as if the price increase did not matter to these customers. Which of the following types of business demand most accurately describes this situation?
Inelastic demand
What stage of the consumer buying decision process comes after problem recognition?
Information search
What must the government do when it wants to buy a standard product?
It sends out a detailed description of the product to qualified bidders.
Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?
Market tests
During which stage of the consumer buying decision process does a consumer decide from which seller he or she will buy the product?
Purchase
When purchasing large amounts of light bulbs, which purchase method would an organization most likely use?
Sampling
Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible?
Sampling
Jenny is the purchasing manager for the local public school system. Recently, the school received a large grant to make technology-related purchases to enable students to have better access to computers and utilize the Internet. Jenny is working with the teachers, and they recently developed product specifications that are necessary or required for tablet or laptop computers. What is the next stage in the purchase decision process for Jenny and the teachers?
Search and evaluate possible products and suppliers
The U.S. Army recruits soldiers based on the slogan, "Army Strong," implying that people can reach their full personal potential in the U.S. Army. This is an appeal to what need according to Maslow's hierarchy of needs?
Self-actualization
Carl Davideau is assigned by his sales manager to come up with the names and addresses of 20 firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Carl looks in
Standard & Poor's Register.
Which of these statements is not true about business markets?
The purchase is always made by more than one individual.
The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:
The variables should be based solely on demographic characteristics.
Which of the following is not a physical surroundings factor influencing buying decisions?
Time
Most business buying decisions are made by
a firm's buying center.
The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is
a market test.
The ability of a marketer to identify customers before they make a purchase is called
addressability.
Nicholas Smart of Rex Corning Fiberglass talks to Martin Halls, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Nicholas then multiplies that number by the total number of builders in the territory. He is using a ____ approach to measure sales potential.
buildup
The car-related website and media company, Edmunds, provides reviews and ratings of vehicles and is well respected by individuals in the car industry as a neutral source. Consumers appreciate their advice and information and know they can trust Edmunds for non-biased information. In addition to its own website and magazine, Edmunds is using the ________ Pinterest to post photos and links to recent articles as well as answer questions posed by members of Pinterest.
bulletin-board site
Seller Company sells small refrigerators. It usually sells these refrigerators to hotels and offices. However, sometimes its customers choose to buy their refrigerators because they do not have a lot of room for a full-size refrigerator in their houses and apartments. Its primary market is the _____________ market, but it also sells to the _____________ market.
business; consumer
In a buying center, purchasing agents or purchasing managers are also known as
buyers.
Routinized response behavior is what a consumer does when
buying frequently purchased, low-cost items that need little search effort.
Marketers must understand a target group's culture if they hope to construct an effective marketing mix for the target group. Culture is the accumulation of values, customs, beliefs, and knowledge the target group possesses. Culture includes tangible items such as _____________. Additionally, culture includes intangible items such as ________________.
clothing; laws
After purchasing a new Infiniti, Kris sees a Lexus pass by on the street and begins to wonder if he made the right choice. Kris is experiencing
cognitive dissonance.
If Braum's calculates that it could sell up to 25% of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's
company sales potential.
A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy.
concentrated
When shopping for detergent, Zachary looks at Tide, Fresh Start, Persil, and All and chooses the one that is on sale. These four brands make up his ____ set.
consideration
In shopping for a new laptop computer for her master's degree program, Joelle has narrowed the alternatives to four brands. She is considering Dell, Toshiba, Sony, and Hewlett-Packard. These four brands make up Jocelyn's
consideration set.
You are shopping for a laptop or tablet to use for taking notes, research, and studying. In this case, you belong to a(n
consumer market.
Children often achieve ____ by observing parents and older siblings in purchase situations and then through their own purchase experiences.
consumer socialization
Milton Bradley/Parker Brothers are producers of many board games, such as Monopoly, Battleship, Yahtzee, and Clue. The company has posted online cash rewards for consumer reviews of their games. In doing so, Milton Bradley/Parker Brothers is striving to utilize
consumer-generated marketing.
Due to external pressures and concerns for privacy, Yahoo now has an opt-out option for Internet-based advertising. This is an example of
control.
Several conditions must exist for market segmentation to be successful. These conditions include all of the following except
customers' needs for the product must be homogeneous.
Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.
demographic
The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is
derived.
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is
determining which segmentation variables to use.
Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.
differentiated
If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to support the strategy.
differentiated; more
Brad Glickman of WP International, a major marketer of word-processing software, calls the secretary of Raine Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.
gatekeeper
Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.
heterogeneous
The first step in the target market selection process is
identifying an appropriate targeting strategy.
As a result of the increasing usage of digital media, some of the marketer's control over dispensing product information has been placed
in the hands of the consumer.
In the process of perception, individuals receive sensations through sight, sound, taste, smell, and hearing. These sensations are called
information inputs.
When charitable organizations such as the American Cancer Society, Second Harvest Food Bank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.
institutional
CVS has set up a website that enables customers to converse with the company and communicate their needs and wants. This is an example of a(n) ____ website
interactive
When a business is making its initial purchase of an item to be used to perform a new job, it is known as a ____ purchase.
new-task
An attitude is
one's evaluation, feelings, and behavioral tendencies toward an object or idea.
Jiniva now feels that her teeth are not white enough after seeing advertisements for whitening toothpaste. Marketers promote these brands based on ____ needs, appealing to sex appeal.
physiological
Seo-yeon is beginning to wonder if she has made the right decision about purchasing a new HP laptop after she sees a friend with a new Dell. Seo-yeon's doubt whether she made the right decision occurs during the ___________ of the buying decision process.
postpurchase evaluation phase
You commute a long distance to get to work every day, and the cost of gasoline is putting a strain on your personal finances. You realize that you need to look at buying a new car that gets better gas mileage, or that doesn't run on gasoline at all. In terms of the traditional consumer buying decision process, you are currently in the ___________ stage, and you are about to enter the ___________ stage.
problem recognition; information search
The Hilex Poly plastic bags used at Walmart are supplied by Novolex. From Novolex's perspective, Walmart is part of the ___________ market.
producer
Barry Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel, and thus Barry has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is
product use.
The most significant factor influencing a buyer's level of involvement is
risk.
Marilyn went to Sam's Wholesale Club to shop for a party she was hosting on the weekend. She knew that she could buy larger quantities of food items than she normally did, and they would also be much less expensive. She checked everything off her list and proceeded to the checkout lines. Passing a display of fresh flowers, she thought, "Wouldn't those be nice for the party?" She selected one of the bouquets and placed it in her cart. Marilyn has most likely engaged in ______ when selecting the food for her party, and ____ when selecting the flowers.
routinized decision making; compulsive response behavior
While shopping at a local grocery store, Brandon sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as
routinized response behavior.
Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of
sales per square foot of selling area.
The third stage in the business buying decision process is to
search for products and suppliers.
The state of Colorado is preparing to buy a large quantity of frozen orange juice for use in a large school district. Fresh Squeeze, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Fresh Squeeze's first step must be to
secure a slot on the list of qualified bidders.
Alberto loves Chipotle Mexican Grill. He views it as being socially responsible and loves the food. The other day he read in the paper that several people got sick from E. coli from Chipotle Mexican Grill restaurants. The article also detailed safety measures Chipotle was instituting to prevent this from happening again. Alberto would expect nothing less from Chipotle. He feels confident that Chipotle will institute highly effective safety measures. This is most likely an example of
selective retention.
People's needs to grow, develop, and achieve their full potential are referred to by Maslow as ____ needs.
self-actualization
A consumer's buying decisions are affected in part by the people around him or her. Such people and the forces they exert on an individual buyer are called
social influences.
The buildup approach measure of sales potential
starts with forecasts about demand for a specific product within a relatively small area.
Market researchers for a local bakery determined that Jewish people consume 63% of the portion of bagels sold in New York City. This is an example of ____ influence on consumer buying decision processes.
subcultural
The group of people within a business who are involved in making business buying decisions is referred to as
the buying center.
Two trends that have caused consumer-generated information to gain importance are
the increase of consumers sharing their opinions through digital media and the consumer's mistrust of information from corporations.
The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is
the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.
Consumers are changing ____ and consumption behaviors to fit with emerging technologies and trends.
their information searches
Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses, clothing, and toys. Walmart advertises itself as a store where "we save people money so they can live better," focusing on its low prices as the customer's most important need. Walmart's advertising appears to use a(n) _____ strategy to a market that is
undifferentiated; homogeneous
In the consumer buying decision process, the information search stage
yields a group of brands that a buyer views as possible alternatives.
