Marketing Exam 2 (chapter 6-10)

Fresh Air, an online retailer of sports equipment, was trying to decide what action to take regarding the company website. The management decision problems involved learning whether a rebuilt website would increase Fresh Air's market share and profits. These issues were less specific than Fresh Air's actual marketing research problem. Which of the statements is true about Fresh Air's management decision problems? a. They tend to be much broader in scope than marketing research problems. b. They must be narrowly focused if the research effort is to be successful. c. They are far less general than marketing research problems. d. They tend to be information oriented.

a. They tend to be much broader in scope than marketing research problems.

Howell Printing Inc. manufactures and sells printers, scanners, and copiers to various corporate offices. This is an example of _______. a. business marketing b. licensing c. franchising d. contract manufacturing

a. business marketing

L&T, an international manufacturer of electrical and electronic products and systems, also manufactures custom-engineered switchboards for industrial sectors such as power, refineries, petrochemicals, and cement. In the electronic segment, L&T offers a range of meters and provides control and automation systems for industries. The company manufactures __________ and markets exclusively to _________. a. business products; business customers b. industrial products; final consumers c. consumer products; business customers d. consumer products; businesses

a. business products; business customers

The Freedom Company sells building supplies and wants its customers to be satisfied. By sending postpurchase letters and giving guarantees on products and services to consumers, marketing managers at Freedom Company can help reduce the consumers' _______. a. cognitive dissonance b. want-got gap c. selective exposure involvement d. internal stimuli

a. cognitive dissonance

Grocery stores in West Texas carry a complete selection of canned Asian foods, freshly made sushi, and Asian spices. Because of the large Asian population, grocery stores want to carry products that their customers like. This is an example of _______. a. ethnic segmentation b. age segmentation c. psychographic segmentation d. benefit segmentation

a. ethnic segmentation

All powder laundry detergent is packaged in small 2 oz. packets so it will be more affordable for low-income consumers. All detergent convenience packets are small enough to be sold in vending machines to make them handy for students on a tight budget living on campus. This is an example of _______. a. income segmentation b. gender segmentation c. age segmentation d. ethnic segmentation

a. income segmentation

The step of choosing a basis or bases for segmenting a market requires creativity, market knowledge, and _______. a. managerial insight b. organizational skills c. technical savvy d. managerial directive

a. managerial insight

Javier is the captain of the Permian High School volleyball team. During practices and games, Javier sits on the sidelines and watches his teammembers play. He can watch their strengths and weaknesses in volleyball. Javier is conducting _______. a. observation research b. a web-survey system c. survey logic d. secondary research

a. observation research

Honda buys steel, paint, and batteries from suppliers and uses these items to make cars that are sold to the public. Producers like Honda are often called _______. a. original equipment manufacturers (OEMs) b. wholesalers c. resellers d. distributors

a. original equipment manufacturers (OEMs)

Isabella wants to gather competitive intelligence (CI) on toy manufacturers before she launches her toy company, which has developed remote-controlled dinosaurs. Her dinosaurs are designed for children over 6 years old. Isabella plans to check some noncomputer sources. She could use all of the following sources EXCEPT _______. a. scanner research b. industry experts c. suppliers d. CI consultants

a. scanner research

The Shinn Company wants to manufacture a new mouthwash designed to fight cavities and whiten teeth. The Shinn Company looks at the previously collected data over the last three years on consumer preferences in mouthwash and looks to social media to see what customers are saying about its products. This is an example of _______. a. secondary data b. primary data c. management research objective d. marketing research

a. secondary data

Since marketing research is a main data source for management information systems, _______. a. the findings of marketing research become data for management decision making b. the findings of marketing research lead to inaccurate forecasts as the marketplace changes c. it cannot help managers serve future customers d. it does not allow managers to explore alternatives

a. the findings of marketing research become data for management decision making

Fantasy Inc. is an apparel store. It has separate sections for casual wear, office wear, and party wear. It offers a broad selection of clothing across various price ranges to accommodate consumers at different income levels. In this way, Fantasy caters to different socioeconomic groups. Fantasy targets its market segments using _______ as its base for product positioning. a. competitor b. product user c. application d. product class

b. product user

Gilberto wears a Rolex watch because of its style, image, features, and status symbol. Gilberto would not buy a different brand as a substitute and shops carefully for a Rolex when he wants to purchase another watch. This scenario is an example of a(n) _______. a. shopping product b. specialty product c. convenience product d. unsought product

b. specialty product

Shira's mother always shopped at the supermarket once a month. One reason why Shira is such an efficient shopper is that, like her mother, she believes, "Buy only what is essential or needed right now." The norms and values passed on to Shira are an example of _______. a. the role of society in consumer decision making b. the socialization process c. the role opinion leaders play in business decision making d. consumerism

b. the socialization process

Tim Oddo owns a condo in Manhattan and a vacation home in Roxbury, Connecticut. Tim travels to Europe once a year with his family to ski in the Alps. Tim likes to attend art auctions to add to his art collection and visits art galleries whenever he travels. In terms of the U.S. social classes, Tim probably falls into the _______ class. a. lower middle b. upper c. lower d. middle

b. upper

Salesforce.com is a customer relationship management company that integrates every part of a company that interacts with customers—including marketing, sales, and service—onto one CRM platform, Salesforce Customer 360. This product gives teams a shared view of every customer. Salesforce.com shows that CRM aims at all of the following EXCEPT _______. a. getting the right information about customers b. getting information to the right person c. getting information in a timely manner d. getting databases from competitors

d. getting databases from competitors

Force Energy Drinks wanted to find out how its new flavors and new packaging were rated by its customers. After checking on different research methods Force Energy Drinks decided to conduct a study that can be sent out to thousands of potential respondents automatically, that will have a high response rate, and that can also keep costs low. This is an example of a(n) _______. a. mail survey b. in-home personal interview c. focus group d. online survey

d. online survey

Jerry Wong wants to buy corporate gifts for his employees. He considers numerous suppliers of corporate gifts, both familiar and new; solicits bids; and studies all proposals carefully before selecting a supplier. Jerry Wong's purchasing profile could be characterized as a(n) _______. a. close-fisted buyer b. venturist c. satisficer d. optimizer

d. optimizer

Within the family of PepsiCo's products are many types of waters. Sparkling water, flavored water, and vitamin-enriched water are all included. Pepsi owns Aquafina and has recently launched LIFEWTR. When Pepsi groups all the different types of waters together, it is referred to as _______. a. product mix width b. product mix c. product line depth d. product line

d. product line

Yoplait, a manufacturer of dairy and plant-based products, sells coffee creamer, milk, and yogurts. It markets a number of yogurts, including Yoplait fat free, Yoplait low sugar, and Yoplait Light. The large variety of yogurts sold by the Yoplait brand is collectively an example of a _______. a. market segment b. product mix c. target market d. product line

d. product line

Dillard's is a chain of department stores that buys clothing at wholesale prices and sells them for a profit. As a retailer, Dillard's is considered to be a _______. a. broker b. distributor c. producer d. reseller

d. reseller

Veronica works in the purchasing department for Medical Center Hospital. She buys gloves, masks, and protective gear from Johnson Hospital Supply. Every month Veronica contacts Johnson Supply and places the order. She has used Johnson Supply for years and sees no reason to consider other companies. Veronica is a(n) _______. a. optimizer b. supplier c. producer d. satisficer

d. satisficer

Southwest Bank serves many oilfield supply businesses in West Texas. Southwest has customers who are small businesses as well as larger, long-standing customers. For its different commercial customers, Southwest offers different services, lines of credit, and overall attention based on their size. This is an example of _______. a. segmentation according to buying processes b. buyers who are satisficers c. providing exactly the same benefits to all customers d. volume segmentation as a basis for business segmentation

d. volume segmentation as a basis for business segmentation

Hector has a business that manufactures farm machinery. He would like to do business with the government, but he doesn't know if the government is buying farm machinery at this time. What should Hector do to get the right information? a. Hector should contact the single buying agency that procures all goods for the government. b. Hector should consult FedBizOpps to learn about government procurement. c. Hector should read the print version of the Commerce Business Daily. d. Hector will not find leads in online sources using a key word search.

Not A

Which strategy for handling a brand name is useful when a company plans to enter a foreign market with mainly one product and the brand name doesn't have negative connotations in any local markets? a. A one-brand-name-everywhere strategy b. An adaptation and modification strategy c. A strategy that avoids using the local language to name products d. A strategy using different brand names in different markets

a. A one-brand-name-everywhere strategy

Liam owns a laser car wash in New Jersey. His car wash is open six days a week and he employs two attendants to take payment and dry off the cars after they go through the automated wash. How would you classify Liam's product? a. An intangible service b. A product feature c. A product option d. A tangible good

a. An intangible service

Ford wanted to break into the electric vehicle (EV) marketplace. At that time, economic value was more highly prized than form and function. Therefore, Ford chose not to compete with the other brands and targeted the high-end market for electric vehicles. Which base did Ford use to position itself in the market? a. Attribute b. Emotion c. Competitor d. Product user

a. Attribute

A firm which produces replicas of famous paintings of reputed and great artists has as its target customers socialites, celebrities, and the hospitality industry. What type of market segmentation is used in this case? a. Benefit segmentation b. Psychographic segmentation c. Geographic segmentation d. Demographic segmentation

a. Benefit segmentation

_______ is the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next. a. Culture b. Consumerism c. Loyalty d. Perceived value

a. Culture

Which of the following has given consumers unprecedented power to express likes and dislikes, compare prices, find the best deals, sift through huge numbers of recommendations, and have items delivered? a. Digital technology b. Automation c. Consumerization d. Innovation

a. Digital technology

_______ is the most complex type of consumer buying decision and is associated with high involvement on the part of the consumer. a. Extensive decision making b. Routine response behavior c. Low-involvement products d. Limited decision making

a. Extensive decision making

CVS pharmacy collects data from bar-coded products. These data can be evaluated and combined to monitor which CVS products are in demand by customers. CVS uses this method to track pricing data to make sure that CVS pricing is competitive. This is an example of _______. a. InfoScan b. SurveyMonkey c. neuromarketing d. online marketing communities

a. InfoScan

Cascade Insights has been removing uncertainty in the tech sector for over a decade. With custom B2B market research, Cascade Insights helps technology companies up their competitiveness and identify new market opportunities. Clients include FinTech, MarTech, HealthTech, and EdTech. Cascade works only in the B2B tech sector, and does not do B2C. As CI consultants, which benefit does Cascade provide its clients? a. More effectively marketing their products and services b. Identifying areas for company growth c. Improving logistics d. Providing secondary research

a. More effectively marketing their products and services

Which of the following statements is true of the North American Industry Classification System (NAICS)? a. The more digits in an NAICS code, the more homogeneous the group. b. The geographic dispersion of firms cannot be identified with the help of NAICS. c. The system, developed jointly by the United states, Russia, and Mexico, provides a common industry classification system. d. Each classification is relatively heterogeneous in terms of raw material required, components used, and manufacturing processes employed.

a. The more digits in an NAICS code, the more homogeneous the group.

Which of the following statements is true of markets? a. They are composed of people or organizations. b. They influence consumers to buy products they do not need. c. They thrive only with government funds and subsidies. d. They provide discounts for every consumer.

a. They are composed of people or organizations.

NewPhone Inc. has launched a new smartphone in two different versions. Both variants of the smartphone have a similar design but have different hardware specifications and, therefore, different price points. The company uses this strategy to make this smartphone more universally affordable. In this scenario, NewPhone Inc. is most likely using _______. a. age segmentation b. income segmentation c. gender segmentation d. usage-rate segmentation

b. income segmentation

Griffin Corp. is engaged in marketing various goods and services. It buys products from various manufacturers and sells them to businesses and end consumers. Given this information, Griffin Corp. is said to be selling consumer products if _______. a. it sells spare parts to automobile manufacturers b. it sells books to students c. it sells laptops to an IT company d. it sells printers to a partnership firm

b. it sells books to students

Carol has developed a new needle threader for stitching. She has used the needle threader herself and contacted all of the other stitchers in her area. After months of research, she decided that other stitchers were satisfied with the needle threaders they already used and that she couldn't make a profit by selling her new needle threader. This example shows that _______. a. People who enjoy cross-stitch and needlepoint do not form a market segment b. A segment must be large enough to warrant developing and maintaining a product c. Carol should keep trying to sell her product d. Carol's needle threader didn't work very well

b. A segment must be large enough to warrant developing and maintaining a product

Direct and personal marketing efforts will continue to grow to meet the needs of consumers who no longer have the time to spend shopping and making purchase decisions. Which tool helps marketers meet this demand of consumers? a. Personalization b. CRM c. Perceptual mapping d. Positioning

b. CRM

Taking into consideration business relationships in Japan, which of the following best defines the term amae? a. It is the lack of economic competition in the market. b. It is the feeling of nurturing concern for, and dependence upon, another. c. It is the lack of motivation among employees in businesses. d. It is a legal consolidation and collaboration of companies into a single entity.

b. It is the feeling of nurturing concern for, and dependence upon, another.

Lotex Inc. is a manufacturer of mother boards for computer systems, which sells its product to the firms which manufacture assembled computers. Which of the following is true in this scenario? a. A special feature of component parts is that they cannot retain their identity after becoming part of the final product. b. The finished items are ready for assembly or are products that need very little processing before becoming part of some other product. c. The goods are less expensive and shorter lived than major equipment. d. The expense items do not become part of a final product.

b. The finished items are ready for assembly or are products that need very little processing before becoming part of some other product.

Competitive Insight Specifics is a company that utilizes its clients' data alongside external data such as collated web content and social media from credible outlets. Competitive Insight Specifics reaches out to industry experts, customers, and competitors to get its clients the most diverse perspective. Then the Competitive Insight Specifics data warehouse provides robust analytics and insights to its clients. This is an example of the use of competitive intelligence used for _______. a. judgment samples b. data-driven decision making c. InfoScan d. focus group research

b. data-driven decision making

Manu works for an auto parts company in New York. He provides information and advice that are not available online to his clients, who are mainly small businesses like Briarcliff Auto. Manu provides credit to Briarcliff Auto, coordinates supplies of parts from several sources to Briarcliff Auto, delivers parts to Briarcliff Auto, and processes returns. Manu is a _______. a. marketer b. distributor c. reseller d. businessmen

b. distributor

GE's Instagram account shares behind-the-scenes looks at its business and employees. One post about the first female wind technician in Western Canada received over 1,000 likes. With regard to business-to-business social media marketing, this effort by GE is an example of the _______ marketing metric. a. product adaptation b. engagement c. review d. conversion

b. engagement

Kim Inc, a battery manufacturing company, began marketing its products as environmentally friendly and biodegradable, even though this has not been scientifically verified. In this scenario, Kim Inc. has used _______ to sell its products. a. quality modification b. greenwashing c. repositioning d. product line extension

b. greenwashing

Xin's Candy Company uses the tools of customer relationship management. Xin has learned that mothers want to give their children candy that is healthy. Xin has used this customer information to develop a product line of vitamin-enriched candy. Which of the following is the step that Xin's Candy Company must now follow in the CRM cycle? a. Identify its best customers b. Understand the interactions with its current customer base c. Leverage customer information d. Capture relevant customer data from interactions

c. Leverage customer information

Which of the following refers to a type of package labeling that focuses primarily on a promotional theme or logo and consumer information is secondary? a. Informational labeling b. Greenwashing c. Persuasive labeling d. Packaged labeling

c. Persuasive labeling

Which positioning base for a product or service focuses on a personality or type of consumer? a. Emotion b. Attribute c. Product user d. Product class

c. Product user

_______ occur when consumers feel that making the wrong decision might cause some concern or anxiety. a. Physiological risks b. Financial risks c. Psychological risks d. Social risks

c. Psychological risks

_____ refers to the phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product. a. Inelastic demand b. Fluctuating demand c. The multiplier effect d. Reciprocity

c. The multiplier effect

Allure, a manufacturer of bath and beauty products, predominantly sells convenience products. Given this information, which is a characteristic of Allure's products? a. They are bought very rarely by consumers. b. They are purchased after more planning effort than specialty products. c. They require wide distribution in order to sell sufficient quantities. d. They will be more expensive than shopping products.

c. They require wide distribution in order to sell sufficient quantities.

Charles Marie is a children's clothing shop that specializes in the tween market. To learn what tweens really like in order to stock the shop correctly, Charles Marie refers to data collected from social media, emails, audio files, and YouTube videos. This is an example of the use of _______. a. primary data b. marketing data c. big data d. secondary data

c. big data

New technology that allows marketers to collect detailed information of customers offers marketers a more cost-effective way to reach customers and _______. a. position the product b. choose which segment or segments to target c. enables businesses to personalize their messages d. review general activity on the website

c. enables businesses to personalize their messages

Alba wants to learn how to grow orchids and looks online for a podcast that discusses the correct variety, soil mixture, amount of light needed, and how often to water the plants. This is an example of content marketing because_______. a. it includes equipment such as portable drills and microcomputers b. it includes materials such as steel or lumber mills and food canners c. it includes media such as videos, podcasts, webinars, and blog posts d. it includes components such as spark plugs and electric motors

c. it includes media such as videos, podcasts, webinars, and blog posts

Carol buys Glamor Sunscreen 70, which costs $25 for a small tube. She believes that this brand is so effective that it will prevent sun damage that could lead to wrinkles or skin cancer. The value that Carol expects to obtain from the pricey sunscreen is called _______. a. utilitarian value b. hedonic value c. perceived value d. actual value

c. perceived value

Mala, the manager of a jewelry store, conducts statewide market research and collects data on customer preferences for various jewelry items. Based on her findings, she has to create a forecast of the items that customers are most likely to purchase. In this scenario, Mala will most likely be performing the _______ of marketing research. a. diagnostic role b. prescriptive role c. predictive role d. descriptive role

c. predictive role

Thumbs Up sells soft drinks, juices, different types of waters, sports drinks, energy drinks, and teas. Taken together, these products are considered Thumbs Up's _______. a. product mix width b. product line depth c. product mix d. product line

c. product mix

Frederica Perfumes is a premium, exotic women's fragrance company. The manufacturers of Frederica Perfumes want to establish its products as specialty products. In this case, which of the following would be an objective of the manufacturers of Frederica Perfumes? a. To increase the distribution network b. To employ mass advertising strategies c. To decrease the prices of the products d. To focus on establishing a brand name

d. To focus on establishing a brand name

_____ exists when one party has confidence in an exchange partner's reliability and integrity. a. Keiretsu b. Commitment c. Amae d. Trust

d. Trust

Unlike hedonic value, utilitarian value _______. a. is obtained from products rather than services b. can be enjoyed without making a purchase c. is a form of perceived value d. can be viewed as a means to an end

d. can be viewed as a means to an end

Which of the following most accurately defines the concept of a probability sample? a. Any sample in which little or no attempt is made to get a representative cross section of the population b. A sample arranged so that every element of the population has an equal chance of being selected as part of the sample c. A sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives d. A sample in which every element in the population has a known statistical likelihood of being selected

d. A sample in which every element in the population has a known statistical likelihood of being selected

The administrative head of the Glenview company proposes to replace and revolutionize the office furniture for the employees' comfort. Which of the following roles does the administrator play in this scenario? a. Influencer b. Gatekeeper c. Purchaser d. Initiator

d. Initiator

Which statement is true of market segmentation? a. It allows marketers to adopt a single marketing mix across all market segments. b. It allows marketers to use an undifferentiated targeting strategy. c. It helps marketers focus on satisfying customer needs. d. It helps marketers design marketing mixes that match the characteristics of one or more segments.

d. It helps marketers design marketing mixes that match the characteristics of one or more segments.

Which of the following statements is true about the federal government? a. Much of the federal government's buying is decentralized. b. Not many goods and services are used by the federal government. c. The U.S. federal government buys goods and services worth less than $875 billion per year. d. No single federal agency contracts for all the government's requirements, and no single buyer in any agency purchases all that the agency needs.

d. No single federal agency contracts for all the government's requirements, and no single buyer in any agency purchases all that the agency needs.

Whenever a particular fashion house brings out a new product line, it publicly launches the products in a grand social event, invites society's who's who, and lavishly displays its new products. What term best describes this type of consumer involvement? a. Interest product involvement b. Situational involvement c. Previous experience d. Social visibility

d. Social visibility

Which of the following defines the specific information needed to solve a marketing research problem that will provide insightful decision-making information? a. The marketing research problem b. The management decision problem c. Secondary data d. The marketing research objective

d. The marketing research objective