Marketing Exam 2 Study guide

In the context of the AIO dimensions for measuring consumers' lifestyles, "A" stands for ________.

"Activities", Interest, and Opinion

Family is one of the ________ factors that influence consumer behavior.s

"Social" Factors consists of the following organizations -Small Groups -Social Networks -Family -Roles and Status p 138

Which of the following is the first stage in the new product adoption process?

(1) Awareness-The consumer becomes aware of the new product but lacks information about it. (2) Interest- The consumer seeks information about the new product. (3) Evaluation- The consumer considers whether trying the new prod makes sense. (4) Trial- tries the prod on small scale to improve their estimate of its value (5) Adoption- The consumer decides to make full and regular use of the product.

The buyer decision process consists of five stages. Which of the following is NOT one of these stages?

(1) Need recognition -> (2) Information search -> (3) evaluation of alternatives -> (4) Purchase decision -> (5) Postpurchase behavior (P.175)

Five characteristics are important in influencing an innovation's rate of adoption. Which of the following is NOT one of those characteristics?

- Relative Advantage - Compatibility - Complexity Divisibility - Communicability (P.156)

Which of the following is true about business purchases?

Business purchases often involve large sums of money, complex technical and economic considerations, and interactions among people at many levels of the buyer's organization. The business buying process also tends to be longer and more formalized. p165

The decision-making unit of a purchasing organization is called its ________.

Buying Center

A(n) ________ controls the flow of information to others in the buying center.

Gatekeeper

The ________ market consists of schools, hospitals, nursing homes, prisons, and the like that provide goods and services to people in their care.

Institutional

A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept.

Personal Factors - Personal characteristics such as the buyer's age, life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept.

After the purchase of a product, consumers will be either satisfied or dissatisfied and engage in ________.

Postpurchase behavior (p.177)

The first step of the business buying process is ______

Problem Recognition

Through ________ differentiation, brands can be differentiated on features, performance, or style and design.

Product

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.

Product

A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.

Product Line

________ involves adding more items within the present range of the product line.

Product Line filling

A ________ consists of all the product lines and items that a particular seller offers for sale.

Product Mix

A ________ refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products.

Product position

________ refers to the stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.

Product specification

Which of the following statements characterizes the introduction stage of the PLC?

Profits are nonexistent (heavy expenses of prod. intro)

In which stage of the business buying process does the buyer contact suppliers for bids?

Proposal Solicitation

________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.

Psychographic

A person's buying choices are influenced by four major psychological factors. Which of the following is NOT one of these factors?

Psychological Factors consist of the following: - Motivation - Perception - Learning - Beliefs and attitude

________ refers to the unique psychological characteristics that distinguish an individual or group.

Psychological Factors p145

In routine buying situations, which of the following members of the buying center has formal or informal power to select or approve the final suppliers?

Deciders

Which of the following is true with regard to e-procurement?

Definition: Purchasing through electronic connections between buyers and sellers- usually online -can connect with customers online to share marketing information -sell products and services -provide customer support services -maintain ongoing customer relationships -a lot of info I would look into this section

The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ________ demand.

inelastic and more fluctuating demand p165

If a buying center is most influenced by authority in the business buying process, it can be safely concluded that ________ factors have a major influence on its buying behavior.

interpersonal

The major product line decision involves product ________, the number of items in the product line.

line length

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.

measurable.

In a ________ situation, the "in" suppliers may become nervous and feel pressured to put their best foot forward to protect an account and the "out" suppliers may see the present situation as an opportunity to make a better offer and gain new business.

modified rebuy p167

Since business marketers have fewer buyers than consumer marketers, business buyers often face ________ than do consumer buyers.

more complex buying decisions

Lubricants, coal, paper, and pencils are examples of ________.

operating supplies

James has decided to buy a new vehicle. His brother John has recently purchased a new truck and recommends the same model to James. James finally decides to buy the same truck. Which of the following sources of information has most likely influenced James' purchase decision?

personal source

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

positioning statement.

Consumer products refer to ________.

products and services bought by final consumers for personal consumption.

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying.

unsought products

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

usage rate

A new task situation presents ________.

which the buyer purchases a product or service for the first time.

Which of the following is NOT a benefit of using multivariable segmentation systems?

Definition: Use multiple segmentation bases in an effort to identify smaller, better-defined target groups Benefits -Can help segment markets -Can help segment people and locations into marketable groups of like-minded consumers -Identify and better understand key segments, reach them more efficiently, and tailor market offerings to their specific needs

What is the most important consumer buying organization in society?

Family. p140

Which stage of new product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?

Business Analysis

________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday in the NBA or WNBA.

Aspirational groups p138

A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Attitude (P.149)

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

Behavioral

A(n) ________ is a descriptive thought that a person has about something

Belief (p.149)

A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service.

Brand

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment.

Capital items

Which of the following is an organizational factor that influences business buyers?

Company procedures(

When consumers are highly involved with the purchase of an expensive product and they perceive significant differences among brands, they most likely will exhibit ________.

Complex buying Behavior (p.150).

________ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

Convenience products

________ are minor stimuli that determine where, when, and how a person responds to an idea.

Cues (p.149)

________ is the most basic determinant of a person's wants and behavior.

Culture p135

Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.

Derived demand. p166

________ marketing is more suited for products that vary in design.

Differentiated

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.

Differentiated (segmented) marketing.

________ involves actually distinguishing the firm's market offering to create superior customer value.

Differentiation

When consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands, they most likely will exhibit ________.

Dissonance-reducing buying behavior ( p. 174)

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

Growth

Which of the following consumer buying behaviors is related to conditions of low-consumer involvement and little significant brand difference?

Habitual buying behavior (p.174)

________ consumers are the most brand conscious of all the ethnic groups, are extremely brand loyal, and shop frequently.

Hispanic American Consumers p136

Eric Mason, an employee of Huntington Steelworks, is responsible for defining product specifications and providing relevant information for evaluating alternatives in his organization's buying center. Eric, whose opinions affect the buying decisions of his organization to a great extent, is most likely a(n) ________.

Influencer.

Donna wants to buy a new coat. During the ________ stage of the buyer decision process she will ask her friends to recommend stores that sell good quality winterwear clothing. She will also go through newspapers and magazines to look out for offers and sales on coats.

Information Search (p.176)

________ show(s) consumer perceptions of a company's brands versus competing products on important buying dimensions.

Perceptual positioning maps

A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand.

Label

________ describes changes in an individual's behavior arising from experience.

Learning (p.149)

Product mix ________ refers to the total number of items a company carries within its product lines.

Length

What are the two dimensions of product quality?

Level and consistency

Which of the following is NOT part of Maslow's hierarchy of needs?

Maslow's Hierarchy consist of the following: Sale Actualization: self-development and realization Esteem needs: -esteem, recognition, status Social needs: sense of belonging, love Physiological needs: hunger, thirst p 171

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.

Mass Customization

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.

More for more

A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction.

Motive p145

In which stage of the business buying process does a buyer ask users to rate their satisfaction with the supplied materials?

Performance Review

Which of the following marketing strategies is most suitable for smaller firms with limited resources?

Niche Marketing

Which of the following plays the most important role in government buying?

Non Economic Criteria -Asked to favor depressed business firms and areas -Small business firms -Minority-owned firms -Firms that avoid race, gender, or age discrimination

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Occasion

Which of the following is characteristic of online social networks?

Online social communities where people socialize or exchange information and opinion. ex. blogs, message boards, social media sites, shopping sites etc. p139

A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a ________ to the band's fans.

Opinion Leader - A person within a reference group who, b/c of special skills, knowledge, personality, or other characteristics, exerts social influence on others.

The stage of the business buying process in which the chosen supplier(s) is given the final order is the ________ stage.

Order Routine Specification

________ involves designing and producing the container or wrapper for a product.

Packaging

A ________ consists of the activities an individual is expected to perform, according to the people around him/her.

Role. p149

Shoez Inc., a manufacturer of shoes, has recently launched a brand of sturdy shoes ideal for hiking and other outdoor activities. Which of the following brand personalities could be best associated with the new brand?

Ruggedness p145

Which of the following best characterizes the decline stage of product development?

Sales and profits decline

Since a person's economic situation will affect her store and product choices, marketers watch trends in spending, personal income, interest rates, and ________.

Savings. p144

People tend to interpret new information in a way that will support what they already believe. This is called ________.

Selective distortion (p.148).

________ means that consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands.

Selective retention (p.148)

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Shopping products

According to Freud, a person's buying decisions are primarily affected by ________.

Subconscious motives that even the buyer might not fully understand.

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Targeting

Which of the following is the reason a company may choose not to focus on the largest, fastest-growing segments?

The company may lack the skills and resources needed to succeed in an attractive segment. A company should only enter segments in which it can create superior customer value and gain advantages over its competitors. Ex For example, the economy segment of the automobile market is large and growing. But given its objectives and resources, it would make little sense for luxury- performance carmaker Mercedes-Benz to enter this segment.

All of the following are difficulties associated with selling to government buyers EXCEPT ________.

The different difficulties are -complaining about excessive paperwork -bureaucracy -regulations -decision-making delays -frequent shifts in procurement personnel

Government buyers are affected by all of the following factors EXCEPT ________ factors.

The different factors they are affected by are -Environmental Factors -Organizational Factors -Interpersonal Factors -Individual Factors

Which of the following is NOT one of the major variables used in segmenting consumer markets?

The major variables used are -Geographic -Demographic -Psychographic -Behavioral

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Undifferentiated Mass Marketing

________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

Value Proposition

Product mix ________ refers to the number of different product lines the company carries.

Width

Market offering includes everything from pure tangible goods to pure services, as well as combinations of goods and services. Which of the following is NOT a product or service?

a product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Services are products that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible, such as banking, hotel, tax preparation, and home-repair services.

Product planners need to consider products and services on three levels. At the third level, product planners must build ________.

an augmented product.

According to the model of buyer behavior, which of the following is one of the two primary parts of a "buyer's black box"?

buyer's characteristics & buyer's decision process p 159

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.

channel

Introducing a new product into the market is called ________.

commercialization.

The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.

consistency

individuals and households that buy or acquire goods and services for personal consumption make up the ____

consumer markets

Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, "What is the buyer really buying?"

core customer value

The business marketer normally deals with ________ than the consumer marketer does.

far fewer but larger buyers p165

In the ________ stage of the buying process, the alert business marketer can help the buyers define their needs and provide information about the value of different product characteristics.

general needs description

New product development starts with ________.

idea generation

People cannot focus on all of the stimuli that surround them each day. A person's tendency to screen out most of the information is called ________.

selective attention (p. 148).

________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.

social class 7 classes- upper upper class, lower upper class, upper middle, middle class, working class, upper lower class, and lower class p 138

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________.

specialty products.

The strongest brands are positioned on ________.

strong beliefs.

Each culture contains smaller ________ or groups of people with shared value systems based on common life experiences and situations.

subcultures p136

Members of the buying center at Kid's World, a store for children's clothing, are drawing up a list of desired supplier attributes and their relative importance. Next, they intend to compare several suppliers' proposals to these attributes. In which step of the business buying process is the buying center at Kid's World involved?

supplier selection

Which of the following is an environmental factor that influences business buyers?

supply of key materials

In a straight rebuy, ________.

the buyer reorders something without any modifications.

Business buyer behavior refers to the ________.

the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. p164

Product planners need to consider products and services on three levels. At the second level, product planners must ________.

turn the core benefit into an actual product.