Marketing Test 1

An Internet Service Provider (ISP) charges $19.95 per month. Variable costs are about $1.50 per account per month. With marketing spending of $0.50 per month, their retention rate is 100% per month. An a monthly discount rate of 1%, what is the CLV of a customer? (Hint: CLV = Margin ($) * Retention Rate (%) / (1+Discount Rate(%) - Retention Rate(%)) )

1795

________ was first demonstrated by experiments performed on dogs by Ivan Pavlov, a Russian physiologist doing research on digestion in animals.

Classical conditioning

_____ is how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations.

Self-concept

Henry would like to have Phil for a roommate. They seem to get along fine and have many common interests. However, Phil smokes and Henry does not. The eventual solution to this problem is that Phil agrees to smoke outside the apartment and tries to quit by using nicotine patches. Henry agrees not to complain about the smell on Phil's clothes and to be supportive of his attempts to quit smoking. This illustration is an example of which of the following?

balance theory

Calypso Motors recently rolled out its hatchback, Proteus. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?

benefit segmentation

Which of the following terms refers to a specific mix of human traits that may be attributed to a particular brand?

brand personality

Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities—that is, "we are what we consume." According to this premise, consumers ________.

buy products to support their self-images

Elisandra, a marketing manager at a regional chain restaurant, has decided to create a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.

consumer-generated marketing

Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers?

customer equity

The primary key to delivering customer satisfaction is to match product performance with ________.

customer expectation

Rose is shopping for a new camera. She has set a maximum of $250 as the highest price she will pay, so she doesn't even bother considering cameras that cost more than that. Rose is narrowing the number of available choices by using a:

cutoff

Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for another segment that wants both good taste and low calories. When Stouffer's chose to serve two well-defined market segments and develop distinct marketing mixes for each, it was implementing a(n) _____ strategy.

differentiated marketing

In the portfolio matrix, a business unit that has low growth potential and a small market share is called a(n):

dog

Claritas uses hundreds of demographic variables in its PRIZM system when classifying residential neighborhoods. This system breaks down over 250,000 neighborhood areas in the United States into 66 types based on consumer behavior and lifestyle. Each of the types has a name that theoretically describes the type of people living there, such as Upward Bound, Boomtown Singles and Monday and Brains. PRIZM is an example of ____________. Correct!

geodemographic segmentation (multiple segmentation)

TelStar Plastics is in the process of dividing a market into distinct groups of buyers with different needs, characteristics, and behaviors who might require separate products or marketing programs. Which of the following is this firm doing?

market segmentation

Paul Pendergraff is evaluating each market segment's attractiveness and is in the process of selecting one or more segments for his firm's product to enter. What is Paul doing?

market targeting

The buying decision process starts with ________, in which the buyer spots a problem.

need recognition

Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________.

opportunity

The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture is called:

perception

According to Maslow's hierarchy of needs, the lowest order (e.g., most basic) of needs is ________.

physiological

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

positioning

Recent research of cell phone features (e.g., calendar, push-to-talk, text messaging) used a two-dimension _____ with the axes ranging from low- to high-technological advancement and high-entertainment to high utility to show consumer perceptions of a company's brands versus competing products on important buying dimensions.

positioning map

In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________.

product

SRI Consulting has developed a typology of consumers based on values and lifestyles (VALS). What kind of segmentation is used by VALS?

psychographic

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________.

question mark

All of the following are examples of personal factors that affect the decision-making process for consumers EXCEPT:

reference groups

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

selective distortion

Which of the following needs is addressed by the U.S. Army's advertising slogan "Be all you can be"?

self-actualization needs

According to the criterion of _____ a selected segment must be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.

substantiality

Which of the following is a disadvantage of using a differentiated marketing strategy?

the costs of doing business increase

Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?

the marketing concept