Marketing Practice Questions
Consumer products are classified in terms of
1) effort consumer spends on decision 2) attributes used in making purchase decision 3) frequency of purchase
four basic business management practices
1. Strategy 2. Execution 3. Culture 4. Structure
New Product Development Process
1. define new product strategy 2) idea generation 3) screening and evaluation 4) business analysis 5) product development 6) Test marketing 7) Commercialization
During the postpurchase behavior stage of the organizational buying process, which of these is most likely to occur?
A supplier's performance is formally evaluated
_________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.
A supply partnership
_________ such as straight rebuys and new buys, affect buying center tendencies in terms of the people involved, the decision time, the buying objectives, etc.
Buy Classes
________ is a grassroots movement started in the 1960s to increase the influence, power, and rights of customers in dealing with institutions.
Consumerism
Stars (BCG Matrix)
Dominant share of market and good prospects for growth but use more cash than they generate to finance growth
Promotion and advertising are aspects of marketing closely monitored by the
Federal Trade Commission
product competitors
Firms that compete in the same product class but market products with different features, benefits, and prices
Brand Competitors
Firms that market products with similar features and benefits to the same customers at similar prices
generic competitors
Firms that provide very different products that solve the same problem or satisfy the same basic customer need
________ may present challenges for salespeople by preventing their marketing efforts from reaching the buying center.
Gatekeepers
5 step process of segmenting
Group potential buyers into segments, group products to be sold into categories, develop a market-product grid and estimate size of markets, select target markets, take marketing actions to reach markets
________ firms in some way reprocess a product or service they buy before selling it again to the next buyer.
Industrial
Walmart's value proposition
Less for the same
Five criteria for selecting a target market
Market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization's objectives and resources
________ synergies often come at the expense of product synergies because an individual customer segment will usually need several products, and each of them will have its own production expenses.
Marketing
_________ synergies often come at the expense of product synergies because an individual customer segment will usually need several products, and each of them will have its own production expenses.
Marketing
Target's value proposition
More for less
Rolex value proposition
More for more
________ buyers include all buyers in a nation except ultimate consumers.
Organizational
Share points, which are _________, are used as the common basis of comparison to allocate marketing resources
Percentage points of market share
Service pricing...
Plays a role in balancing consumer demand for services
Benefits to using marketing _________ include justifying expenditures, comparing efficiency with competitors, and increasing accountability
ROI
Independent e-marketplaces are likely to exist in which of these settings?
Sales are time sensitive due to perishable offerings or changing technologies
Dogs (BCG Growth-Share Matrix)
Subordinate share of market and low prospects for growth
Trader Joe's value proposition
The same for less
Which of these is a reason that online buying is so prominent in organizational markets?
This can broaden a firm's potential customer base for many types of products and services
Consumers judge services on the entire sequence of steps that make up the service process. To evaluate the complete service encounter, marketers can use
a customer contact audit
customer contact audit
a flowchart of the points of interaction between consumer and service provider
market-product grid
a framework to relate the market segments of potential buyers to products offered or potential marketing actions
product line
a group of closely related product items
In ________ auction, many sellers compete to provide goods or services for a single buyer.
a reverse
product item
a specific version of a product that can be designated as a distinct offering among an organization's products
One way that marketing mix characteristics differ for organizational buying compared to consumer buying is that for organizational buying
advertising and other promotions are technical in nature
Purchasing and engineering personnel visit suppliers to assess their facilities, capacity, and quality control during which stage in the organizational buying process?
alternative evaluation
Marketers can identify key trends such as the growing popularity of personal shoppers, the increasing emphasis on reuse rather than disposal of products and resources, and the importance of new e-commerce purchasing alternatives by conducting
an environmental scan
The market leader for a low-involvement product must make special efforts to
avoid stockout situations which would result in switching behavior
According to the generic business strategies framework, the two fundamental alternatives a firm can use in seeking a competitive advantage are to differentiate itself from competitors by developing points of difference in its product or marketing or to
become the low-cost producer within the markets in which it competes
Creating a consumer-brand connection is the final step in building
brand equity
If a sustainable fashion designer buys the services of a website designer to be able to offer his clothing for sale online, the website services would be considered a ________ product.
business
In the buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of the contract.
buyers
A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they
can help identify the strategic role that the new product might serve in the firm's portfolio
When new products or new chains steal customers and sales from older, existing ones, it is referred to as
cannibalization
Before PepsiCo stamped freshness dates on its Pepsi cans, few consumers considered cola freshness an issue. After a major advertising campaign accompanying the change, 61 percent of cola drinkers believed freshness dating was an important attribute. This is an example of using which attitude change strategy?
changing the perceived importance of attributes
The ________ law gives the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise reproduce that work.
copyright
Companies like Disney and Southwest Airlines, which have perfected ________ , integrate their activities to connect with customers at each contact point to move beyond customer relationships to customer loyalty.
customer experience management
Retention rate and margin are variables used to calculate
customer lifetime value
Deletion is an option for a product in the ________stage of its product life cycle.
decline
Colgate-Palmolive secured the endorsements of dentists to make the claim that Colgate Total toothpaste is the number-one recommended toothpaste by most dentists, a tactic that is most effective at
decreasing perceived risk
As consumer demand for new homes increases, lumber, concrete, and steel suppliers may experience an increase in demand for their products, which is an example of ________ demand.
derived
Wix is a company that helps other businesses develop their ecommerce websites. Because Wix relies indirectly on consumers wishing to make purchases online, demand for its website design services is considered ________ demand
derived
The marketing program part of the planning phase of the strategic marketing process includes which of these?
developing the budget
When Samsung introduced its Galaxy Z Fold3 5G, a foldable phone with a high price tag, it used ________ to avoid direct competition with Apple, Google, and others.
differentiation positioning
Laggards are the last to adopt a new product according to which concept?
diffusion of innovation
The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services are known as
electronic commerce
A flight attendant that is comforting and reassuring airline passengers during an electrical storm is exhibiting which dimension of service quality?
empathy
An important part of creating a market-product grid is to
estimate the size of the markets
Comparing the results of the marketing program with the goals in the written plans to identify and act on deviations occurs during the
evaluation phase
When Sadie was buying new soccer cleats at the start of the season, she considered comfort, durability, color, and price, which were her
evaluative criteria
Selective ________ occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent with them.
exposure
Crocs, a clog shoe brand made of plastic resin, was popular in the 2000s, experienced a decline in the 2010s, and resurfaced again as a fashionable item in the early 2020s among a new generation of consumers. This is an example of which type of product?
fashion
total budget competitors
firms that compete for the limited financial resources of the same customers
Under current law, price ________ is illegal while some forms of price discounting are acceptable.
fixing
Children's Benadryl in liquid form comes packaged with a small cup marked with units for correct dispensing. This is an example of which type of benefit that packaging can provide?
functional benefits
Market segmentation involves aggregating prospective buyers into groups that ________ and will respond similarly to a marketing action.
have common needs
Deciders (Buying Center)
have formal or informal power to select and approve final suppliers
Two major types of product positioning are
head-to-head (competing directly with competitors); differentiation (seeking less competitive, smaller market niche)
Influencers (Buying Center)
help define specifications and provide information for evaluating alternatives
Large multistore chain resellers like Target, 7-Eleven convenience stores, and Safeway use a buying committee that differs from the typical buying center in that the former is
highly formalized
Four steps in determining positioning in minds of customers
identify the important attributes for a product or brand class, discover how target customers rate competing products or brands with respect to these attributes, discover where the company's product or brand is on these attributes in the minds of potential customers, reposition the company's product or brand in the minds of potential customers.
The second phase of the strategic marketing process is known as
implementation
Edgar always tries to sit in Bella's section at the grill because he prefers her service to that of other current waitstaff, so he is considering the ________ aspect of services.
inconsistency
To try to moderate the impacts of the ________ aspect of services when consumers attempt to assess and compare them, marketers often try to show the benefits of using the service.
intangibility
Convection ovens for home use required consumers to learn a new way of cooking and alter familiar recipes used with conventional ovens. As a result, these ovens spent years in the ________ stage of the product life cycle.
introduction
The marketing objective for a company with a product at the ________ stage of the product life cycle is to create consumer awareness and stimulate trial
introduction
Stages of Product Life Cycle
introduction, growth, maturity, decline
advertising plays a major role in the __________ stage of the product life cycle and _______ plays a major role in the maturity stage
introductory, product differentiation
The Clayton Act can be considered stronger than the Sherman Antitrust Act because
it forbade certain actions that lessen competition, even if no actual harm has yet occurred.
shopping products
items for which the consumer compares several alternatives on criteria such as price, quality, or style
unsought products
items that the consumer does not know about or knows about but does not initially want
convenience products
items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort
For which item would extended problem solving most likely be used?
knee surgery
Opinion leaders are considered to be ________ , so their opinions influence others' choices.
knowledgable about or users of particular products
Cash Cows (BCG Matrix)
low growth, high market share
A regional rollout might occur in which step of the new-product process?
market testing
Your marketing dashboard shows sales performance by SBU, which is an example of a ________
marketing metric
Designing a sales presentation for a new product line is an example of which of these?
marketing tactic
Firms must focus on controlling overall marketing cost through promotional and distribution efficiency during which stage of the product life cycle?
maturity
Worldwide sales of video game consoles have been between 35 and 45 million for each of the last four years, which is similar to the previous four years, with the same top competitors being Nintendo, Xbox, and Sony PlayStation. Gaming consoles would most likely be in the ________ stage of the product life cycle.
maturity
Ways to manage a product through its life cycle
modifying the product, modifying the market, and repositioning the product
Which of these is a psychological influence on the consumer behavior decision process?
motivation
Procter & Gamble's purchase of a multimillion-dollar fiber-optic network from Corning, Inc., for its corporate offices in Cincinnati represents a
new buy
In routine problem solving, the number of external information sources used is typically which of these?
none
There are eight marketing reasons why a new product can fail. One of these is
not satisfying customer needs on critical factors
marketing synergies
opportunity for efficiency in terms of a market segment
When it comes to implementation, management experts warn against
paralysis by analysis
Impression, or evidence, management is most related to which of the seven Ps of services marketing?
physical environment
The __________ phase of the strategic marketing process usually results in __________ that sets the direction for the marketing activities of an organization.
planning, a marketing plan
During which stage of the purchase decision process do consumers determine how satisfied they are with their purchases?
postpurchase behavior
Important variables in the family life cycle are age, marital status, and
presence of children
Secret Clinical Strength is a deodorant that is described as offering the protection of a prescription product with less irritation. Promoting this unique combination of benefits is an example of
product differentiation
Kitchen World has put its offerings in store locations based upon the cooking activity—the way consumers prepare and present various meals. Everything for baking is in one spot, while food preparation utensils are in another, and table settings are in yet another. This strategy uses
product groupings
Though it is less risky than the introduction of other types of new products and may add new customers, a ________ also has the twin dangers of increasing expenses and cannibalizing current products.
product line extension
Four divisional groupings to implement marketing plans
product line groupings, functional groupings (which represent the different departments and business activities), geographical groupings, market-based groupings (use specific customer segments)
The person responsible for managing the marketing efforts for a close-knit family of products or brands is called the
product or brand manager
Useful both internally and outside the organization, a ________ identifies the target market and needs satisfied, the product (service) class or category, and the offering's unique benefits or attributes in a concise manner.
product positioning statement
7 P's of Service Marketing
product, price, place, promotion, people, physical environment, process
The VALS system is a(n) _______ measure of consumers.
psychographic
An Iowa corn farmer operates in which form of competition?
pure competition
In BCG's business portfolio analysis, __________ require large injections of cash just to maintain their market share, much less increase it. Thus managers must choose the right ones to invest in and phase out the rest.
question marks
Potential buyers within a market segment should be
reachable by marketing actions
Services evaluated by comparing expectations with actual experience on these dimensions
reliability, tangibility, responsiveness, assurance, empathy
Annual Marketing Plans typically include
revenue and expense projections
Quaker Oats appeals to customers with an FDA-approved claim that oatmeal, as part of a low-saturated-fat, low-cholesterol diet, may reduce the risk of heart disease. The company is likely repositioning by reacting to a
rising trend
Some buyers remain uncertain about the actual cost of all-electric-powered car ownership, which increases resistance to their adoption. This would be considered a________ barrier.
risk
_______ is the stage of the product design process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.
screening and evaluation
Jaden sees an ad for an immersive Van Gogh exhibit coming to a museum in his town. The museum's ad is attempting to appeal to consumers' ________ needs according to the Maslow hierarchy.
self-actualization
On the ________ a fast-food restaurant is about half tangible products (the food) and half intangible services (courtesy, cleanliness, speed, and convenience)
service continuum
In a ________ test market, participants are exposed to products and advertising and then given money and allowed to choose between buying the firm's product or the products of competitor.
simulated
A notable change of values in the United States in recent decades is towards
sustainability
If a firm picks too broad a set of _______ , the extra expense may exceed the increased sales and profits
target market segments
brand equity
the differential effect that knowing the brand name has on customer response to the product or its marketing
Not only do businesses see benefits from the protections of ________ , consumers do as well; they allow consumers to correctly identify the products they want to purchase.
trademarks
Which of these is a commonly used organizational buying criterion?
warranties and claim policies