Marketing Test 2

Instead of using survey information, Martha decides she would rather use ________ to find hidden information within her customer relationship management database to find links between spending habits and which types of entertainment should be marketed by the Coffee Collective.

data mining

Through the use of __________, a catalog retailer might determine from its database that customers who purchased silver frames would also have a high probability of buying vintage hatpins. As a result, its sales representatives were instructed to offer a special price on hatpins when a customer places an order for a silver frame.

data mining

Though the percentages are not always the same, a general rule in business says that the large majority of a firm's revenues come from what percent of its customers? 5% 20% 35% 50%

20%

Which of the following best explains the 80/20 rule? 80% of a firm's expenses are devoted to issues that cause 20% of its operational problems. 80% of a firm's sales are obtained from 20% of its customers. Only 20% of a firm's employees constructively contribute to a firm's sales process.

80% of a firm's sales are obtained from 20% of its customers.

The study of consumer __________ helps marketers understand why people choose one brand over another and how they make these choices. search patterns efficiency routines behavior

behavior

trend extrapolation

best known statistical method of forecasting involves extending a pattern observed in past data into the future

Tim Totes, Inc. is a U.S. cell phone manufacturing company. When the company introduced a new model into its existing market, people stopped using the older Tim Totes model, which had been the major source of profits for the company until then, and switched to the new model. Which of the following is being illustrated in the given scenario? Product differentiation Upselling Cannibalization Mass customization Segmentation

cannibalization

Walmart is opening 12 stores to test the concept of Walmart Express, stores that are one-tenth the size of its supercenters and sell groceries. One risk to this effort is __________. aggregation cannibalization segmentation differentiation

cannibalization

To dispel mothers' concerns about ingredients in its mayonnaise, Hellmann's successfully communicated the product's high Omega 3 content, which is known to be essential to human health. This is an example of using which attitude change strategy? changing beliefs about the extent to which a brand has certain attributes encouraging the consumer to use stimulus generalization adding new attributes to the product encouraging the consumer to use stimulus discrimination

changing beliefs about the extent to which a brand has certain attributes

The feeling of postpurchase psychological tension or anxiety is referred to as choice-supportive bias. selective retention. selective comprehension. risk perception. cognitive dissonance.

cognitive dissonance.

Which of the following is a form of secondary data? questionnaires personal interviews experiments social media company sales reports

company sales reports

Head-to-head positioning is an approach to product positioning that involves introducing a new product that could pull down the sales of another product by the same firm. seeking a less competitive, smaller market niche in which to locate a brand. creating different departments within a company for the same product. competing directly with competitors on similar product attributes in the same target market.

competing directly with competitors on similar product attributes in the same target market.

Which of the following is a criterion used to select a target market segment? competitive position potential for increased profit similarity of needs of potential buyers within a segment difference of needs of buyers among segments

competitive position

data mining

the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions

As a situational influence, antecedent states include the purpose of the purchase. other people present. the mood of the shopper. the time of day.

the mood of the shopper.

sales forecast

total sales of a product that a firm expects to sell during a specific time period under specified environmental conditions and its own marketing efforts

All of the following are independent variables a market researcher may use in a marketing experiment EXCEPT: price. distribution outlet. free samples. unit sales. product color.

unit sales.

Marketers of high-involvement products are more likely to use repetitive advertising messages to reinforce a consumer's knowledge about the brand. avoid using comparative advertising as it could indirectly promote competitor brands. refrain from providing detailed information on product attributes and features. avoid stock-out situations so that buyers don't purchase a competing brand. use social media and Internet search engines to assist buyers.

use social media and Internet search engines to assist buyers.

Sarah wants to purchase a new laptop. After a thorough research, she decides to buy either a Lenovo Ultrabook or an HP Notebook. These two brands constitute Sarah's sociocultural influences. situational influences. consideration set. psychological influences.

consideration set.

In a marketing decision, __________ are likely to be restrictions on the time and money available to solve the problem.

constraints

measure of success

criteria or standards used in evaluating proposed solutions to the problem

asked a question ranging from strongly disagree to strongly agree

Likert scale

_____ segmentation is based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers

Psychographic

5 steps to purchase decision process

(1) problem recognition; (2) information search; (3) alternative evaluation; (4) purchase decision; and (5) postpurchase behavior.

Five situational influences have an impact on the purchase decision process:

(1) the purchase task; (2) social surroundings; (3) physical surroundings; (4) temporal effects; and (5) antecedent states.

_____ involves starting with the last known value of the item being forecast and making the final forecast.

A lost-horse forecast

In which of the following examples are external secondary data being gathered? Managers at Fortran Foods analyze e-mails from customers to gather marketing insights. Marketers conduct a focus group to understand the health concerns of older people. Marketers at Toys, Inc. visit preschools to observe young children using their products. A manager calls customers to collect information on their purchase patterns at his store. A manager purchases a research report on the hiring practices of Fortune 500 companies.

A manager purchases a research report on the hiring practices of Fortune 500 companies.

Jonathan, a research analyst, is distributing questionnaires among the customers of an industrial machinery outlet that has recently been established by his client. He wants to find out the likelihood of customers purchasing products from the new outlet in the next six months. Which of the following sales forecasting techniques is Jonathan using?

A survey of buyers' intentions forecast

Gerard is the CFO of a multinational bank. He is ambitious, goal-directed, and highly committed to his career and family. He prefers shopping online due to his busy schedule and purchases products only from well-established brands. According to the VALS psychographic system, which of the following consumer groups does Gerard belong to? Thinkers Strivers Achievers Experiencers

Achievers

Which of the following statements is most accurate about build-to-order (BTO) manufacturing? BTO involves manufacturing products only when a customer places an order. BTO manufacturing leads to an increase in work-in-process inventories. BTO manufacturing increases delivery times to customers since factories are usually not located near most customers. BTO manufacturing, such as the process Apple uses, allows firms to offer many different models for their products.

BTO involves manufacturing products only when a customer places an order.

Which of the following criteria does selecting a target market segment involve? Similarity of needs of potential buyers within a segment Cost of reaching the segment Estimated time to reach the break-even point The number of products that a company currently offers Differences in customer needs between two segments

Cost of reaching the segment

During which of the following stages of the systematic marketing research approach are research objectives set by marketers? ~Taking marketing actions ~Defining the problem ~Developing the research plan ~Developing findings ~Collecting relevant information

Defining the problem

Which of the following is the first step of the systematic marketing research approach? ~Developing the research plan ~Collecting relevant information ~Developing findings ~Taking marketing actions ~Defining the problem

Defining the problem

During which of the following stages of the systematic marketing research approach do marketers identify the data needed for marketing actions? Collecting relevant information Defining the problem Taking marketing actions Developing findings Developing the research plan

Developing the research plan

Which of the following is a major challenge that marketers face while conducting marketing research? ~Implementation of inappropriate findings ~Budget constraints ~Dishonest answers from respondents ~Failure to collect relevant information ~Failure to develop an accurate research plan

Dishonest answers from respondents

Which of the following is true of marketing research? ~Research is one of the few perfect and absolute domains in marketing. ~Getting honest answers from respondents is a challenge faced by marketing researchers. ~Marketing research can rarely improve the quality of a marketing decision. ~Research always provides the best solutions to problems that marketers commonly face. ~Marketing research generally increases the risk of making important marketing decisions.

Getting honest answers from respondents is a challenge faced by marketing researchers.

Which of the following is the first step in the market segmentation process? Estimate size of markets Group potential buyers into segments Develop a market-product grid Take marketing actions to reach target markets Select target markets

Group potential buyers into segments

Which of the following is a role that an individual is likely to assume in the purchase process that occurs within families? Influencer Experiencer Believer Striver

Influencer

Which of the following is true of information technology? Information technology can be used to retrieve data only from internal sources. Information is usually stored in databases, which collectively form a data warehouse. Information technology is mainly used in the last step of the marketing research approach. Information technology always generates qualitative results. Information technology can be used to retrieve data only from external sources.

Information is usually stored in databases, which collectively form a data warehouse.

________ data, or the facts and figures that have already been collected about the Coffee Collective prior to the research at hand, would include information relating to budgets, previous marketing activities, sales and customer communications.

Internal secondary data

Which of the following is true of a market-product grid? It shows the profits made by different product categories of a firm. It is primarily used for understanding the expected growth rate of a firm. Each cell in the grid shows the expenses incurred in a particular product category. It is developed to trigger marketing actions to increase sales and profits.

It is developed to trigger marketing actions to increase sales and profits.

Which of the following do the horizontal rows of a market-product grid signify? Market shares of each segment Product marketing channels Product offerings Market segments

Market segments

The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions?

Marketing research

Which of the following is true of the subcultures that exist in the U.S.? African Americans are recent immigrants who cling to their native languages and customs. Marketing to Hispanics has been a challenge due to language barriers. African Americans represent the largest ethnic subculture in terms of spending power. The Asian subculture is fairly homogenous.

Marketing to Hispanics has been a challenge due to language barriers.

Which two of the following demographic segmentation variables would firms use to segment organizational markets? usage rate and type of outlet global region and statistical area statistical area and annual sales lifestyle and statistical area NAICS code and number of employees

NAICS code and number of employees

_____ refers to the place a product occupies in consumers' minds based on important attributes relative to competitive products. Channel value proposition Customer value proposition Marketing orientation Positioning

Positioning

_________ data includes information collected from national TV ratings, mystery shopper experiences and neuromarketing techniques.

Primary observational

Which of the following types of data can be collected using focus groups?

Questionnaire data

Which of the following is an example of a single product with multiple market segments? Reebok makes tennis shoes, running shoes, walking shoes, and Weeboks. Reach Toothbrush is available in a soft, medium, and hard bristle for adults and kids. Kellogg's and Post both make bran cereals with raisins to reach health-conscious consumers. Residence Inn only offers suites that are larger than traditional hotel rooms, appealing to both business travelers and families with children.

Residence Inn only offers suites that are larger than traditional hotel rooms, appealing to both business travelers and families with children

Which of the following is an advantage of secondary data? The definitions and categories in secondary data are always apt and correct. Secondary data help researchers save time. Compared with primary data, secondary data are more flexible. Secondary data generally provide up-to-date and relevant information. Compared with primary data, secondary data are usually more specific to the problem being studied.

Secondary data help researchers save time.

_____ involves interpreting information so that it is consistent with one's attitudes and beliefs. Selective exposure Cognitive learning Selective comprehension Selective retention

Selective comprehension

According to the hierarchy of needs proposed by Abraham Maslow, which of the following is true? Self-actualization needs include the need for achievement, prestige, and self-respect. Physiological needs involve self-preservation as well as physical and financial well-being. Social needs are concerned with love and friendship. Safety needs are basic to survival and must be satisfied first.

Social needs are concerned with love and friendship.

Which of the following steps in the marketing research approach deals with the evaluation of results? Developing the research plan Defining the problem Collecting relevant information Developing findings Taking marketing actions

Taking marketing actions

Which of the following is a situational influence that can impact the consumer purchase decision process? The lifestyle of a consumer The advertisements that a consumer has viewed in the past The values, beliefs, and attitudes of a consumer The physical surroundings of a consumer

The physical surroundings of a consumer

Which of the following statements about word of mouth is most accurate? Word of mouth is the second most powerful information source after product endorsements. Teaser advertising campaigns are meant to correct consumer beliefs that produce negative word of mouth. Music and humor in advertising diminish the effectiveness of word-of-mouth activity. Word of mouth is perceived as lacking credibility by all but Generation Y consumers. The power of word of mouth has been amplified by the Internet.

The power of word of mouth has been amplified by the Internet

Which of the following is a statistical method used for sales forecasting? Trend extrapolation A survey of buyers' intentions forecast A lost-horse forecast A salesforce survey forecast A direct forecast

Trend extrapolation

__________ assumes that the underlying relationships in the past will continue into the future; the method is simple but not always correct. Trend extrapolation Sensitivity analysis Lost-horse forecasting Statistical inference A survey of buyers' intentions

Trend extrapolation

Which of the following acts as a basis for conducting behavioral segmentation of business markets in the U.S.? Employee lifestyle NAICS code Usage rate Number of employees Statistical area

Usage rate

Running horizontally across a market-product grid, each row represents an opportunity for efficiency in terms of a product grouping. a market segment. sustainable synergies. supplier synergies.

a market segment.

Asking the firm's salespeople to estimate sales during a coming period is referred to as trend extrapolation. in-house forecasting. a lost-horse forecast. a salesforce survey forecast. a survey of buyers' intentions.

a salesforce survey forecast.

For which of the following items would extended problem solving mostly likely be used? an ice cream cone workout pants a silicon injection a bus ride

a silicon injection

take marketing actions

analyze data, present findings

Kia Motor's 10-year, 100,000-mile warranty is most effective at speeding up cognitive learning. increasing cognitive dissonance. increasing experiential learning. decreasing perceived risk.

decreasing perceived risk.

Five-Step Marketing Research Approach

define the problem develop research plan collect relevant info develop findings take marketing actions

If Martha wants to determine whether or not she should offer open mic night at the Coffee Collective as part of the coffee experience, this would be an example of her ____________.

defining the problem

There are five steps involved in segmenting and targeting a market. What should a marketer do once he or she has grouped both potential buyers and products to be sold? execute marketing program actions develop a market-product grid and estimate size of markets identify market needs take marketing actions to reach the target market

develop a market-product grid and estimate size of markets

If you were asked in a telephone interview if you planned to vote in the fall elections, and were asked to answer either yes or no, this question would be considered

dichotomous.

When McDonald's introduced its low-fat McLean Deluxe hamburger, it used __________ to avoid direct competition with Wendy's and Burger King. head-to-head positioning lateral positioning differentiation positioning competitive positioning

differentiation positioning

Positioning a product or brand effectively involves taking four steps, one of which includes deciding whether to keep or delete a product group or item. deciding which of your competitors would be the most effective partner in a corporate merger. developing a new marketing program that conforms to your leading competitor's offering. identifying market niches that were not previously discovered during the market segmentation process. discovering where the company's product or brand is on the relevant attributes in the minds of potential customers.

discovering where the company's product or brand is on the relevant attributes in the minds of potential customers.

A perceptual map is used by organizations to display in two dimensions the location of products or brands in the minds of consumers. locate the position of each of their SBUs on a growth-share matrix. display graphically their strengths, weaknesses, opportunities, and threats. segment consumers based on their location and psychographic and behavioral attributes.

display in two dimensions the location of products or brands in the minds of consumers.

An important part of creating a market-product grid is to develop marketing actions for each market segment. identify company strengths and weaknesses. estimate the size of the markets. compare, in two dimensions, a firm's position relative to its competitors.

estimate the size of the markets.

Which of the following is a variable that could be used for demographic segmentation of consumer markets? ethnicity city size NAICS code personality

ethnicity

Representatives from Kraft spent several months with consumers in their kitchens, attempting to understand what they wanted in ready-to-serve meals prior to the launch of Kraft Deli Creations. The observational approach Kraft used is called __________ research.

ethnographic

For the purchase of a smartphone, Consumer Reports expects that many consumers use price, display, web browsing, and battery life as __________, since it tests products on these dimensions. value attributes the consideration set a cognitive cluster selective features evaluative criteria

evaluative criteria

Selective __________ is defined as paying attention to messages that are consistent with one's attitudes and beliefs and ignoring messages that are inconsistent. perception retention acuity exposure

exposure

primary data

facts and figures that are newly collected for the project divided into observational data, questionnaire data, and other sources data ways to collect: observing people asking them questions advantages: more flexible and more specific disadvantages: usually far more costly and time consuming

secondary data

facts and figures that have already been recorded prior to th project at hand advantages: the tremendous time savings because the data have already been collected and published or exist internal the low cost such as free or inexpensive census reports disadvantages: may be out of date the definitions or categories might not be quite right for a researchers project — the age groupings or product categories might be wrong data may not be specific to project

questionnaire data

facts obtained by asking people about their attitudes, awareness, intentions, and behaviors

observational data

facts obtained by watching, either mechanically or in person, how people actually behave can be collected by mechanical, personal, neuromarketing

In eight small group sessions with customers, 3M heard them complain that standard steel wool pads scratched their expensive cookware. The findings from this research lead to the development of 3M's internationally successful Scotch-Brite Never Scratch soap pads. The research method 3M used was

focus groups

Mass customization is a segmentation strategy in which

goods and services are tailored to the tastes of individual customers on a high-volume scale.

Two major types of product positioning are competitive; consumer. head-to-head; perceptual. behavioral; psychological. head-to-head; differentiation.

head-to-head; differentiation.

A business firm uses market segmentation to respond more effectively to the wants of groups of potential buyers in order to maintain market share. increase sales and profits. be more socially responsible. use fewer of the firm's resources.

increase sales and profits.

focus groups

informal sessions of 6-10 past, present, or prospective customers in which a discussion leader, or moderator, asks for opinions about the firms products the advantages of online surveys are that the cost is relatively minimal and the turnaround time from data collection to report presentation is much quicker than the traditional methods

Marketing input data and marketing outcome data are examples of

internal secondary data.

When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm, she is using

internal secondary data.

lost horse forecast

involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact and making the final forecast

Satisfaction or dissatisfaction affects consumer communications; while the satisfied buyer typically tells about three other people about her experience, the dissatisfied buyer usually tells no one except the company. tells only one or two. is often too embarrassed about the situation to tell anyone. is likely to complain to about nine people.

is likely to complain to about nine people.

In 2015, a marketing manager for New Balance's Minimus shoe needs to forecast sales through 2017. She begins with the known totals for 2014 and adjusts for positive factors like acceptance of new high-tech designs and great publicity, and for negative factors like the slow economy and predicted moves by the competition. This type of forecast is referred to as

lost-horse forecasting.

The market leader for a(n) __________ product must make special efforts to avoid stock-out situations so that buyers don't substitute a competing brand. situational low-involvement complex expensive

low-involvement

develop findings

make action recommendations, implement action recommendations, evaluate results

A market-product grid has product groupings on horizontal rows and market segments on vertical columns. market segments on horizontal rows and product groupings on vertical columns. market share of products on horizontal rows and product groupings on vertical columns.

market segments on horizontal rows and product groupings on vertical columns

Devin had just been laid off from her job and was watching TV at about 2:00 P.M. when she saw an advertisement for a local trade college. It sounded like just what she needed to get back on her feet, so she went right to the phone to contact the school. Devin's information search was shortened by a perfectly timed advertisement, which is a __________. personal source marketer-dominated source family source consumer-controlled source

marketer-dominated source

data warehouse

marketers use information technology that consists of computers linked together through sophisticated communication networks to access and retrieve data from internal and external sources these data sources are stored, organized, and managed in databases

The extraction of hidden predictive information from large databases is referred to as data _____.

mining

Compared with secondary data, primary data are

more expensive to collect.

Which of the following is a psychological influence on the consumer behavior decision process? motivation culture temporal effects reference groups

motivation

Neuromarketing and mechanical methods are used by researchers to obtain

observational data.

collect relevant info

obtain secondary data, obtain primary data

The problem recognition stage in the purchase decision process generally involves analyzing consumer value perceptions. analyzing the problems and issues with one's consideration set. scanning one's memory for previous experiences with products or brands. perceiving a difference between a person's ideal and actual situations.

perceiving a difference between a person's ideal and actual situations.

a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a __________. crosstabulation perceptual map market-product grid growth-share matrix

perceptual map

Cognitive dissonance is most likely to occur in which stage of the purchase decision process? postpurchase behavior routine problem solving problem recognition information search

postpurchase behavior

The prevalence of working parents and single-parent households has resulted in the elimination of the purchaser role for most children, regardless of age. preteens and teenagers increasingly being the information gatherers, influencers, decision makers, and purchasers of family products. adults resuming sole control of most family decision making because family interaction is limited. the elimination of the information gatherer in family decision making since time is too valuable to waste.

preteens and teenagers increasingly being the information gatherers, influencers, decision makers, and purchasers of family products.

A restaurant is collecting comment cards from customers in order to develop ideas about how to improve their business. The restaurant is collecting

primary data.

The strategy of using different marketing mix activities to help consumers perceive a product as being different and better than competing products is referred to as _____.

product differentiation

Dollar Shave Club asks men to "Shave Money, Shave Time" in its commercials; it offer high-quality blades available by mail for a few dollars a month. Dollar Shave Club's advertising promotes the time- and money-saving aspects of its product as an example of product positioning. mass customization. product differentiation. segments of one and mass customization. repositioning.

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 clusters. product groupings. segment groupings. lifestyle merchandising.

product groupings.

A consumer will use one of three general problem-solving variations, extended, limited, or routine, based on level of involvement and advertising awareness. competitors' actions. demand for the offering. product knowledge.

product knowledge.

People who live active outdoor lives are part of the target market for REI, a retail outdoor outfitter. This suggests that REI would most likely segment the market based on which consumer segmentation basis? psychographic behavioral demographic socioeconomic

psychographic

The VALS system is a(n) __________ measure of consumers. family life cycle involvement level brand loyalty psychographic

psychographic

Last autumn, Will was raking leaves. After making several large piles, he went into the garage and discovered that he had no more large garbage bags. He couldn't finish the job without them. Will has just begun the usage buying sequence. VALS typology. purchase decision process. consumer purchase procedure.

purchase decision process.

Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and __________.

recommending actions

People to whom an individual looks as a basis for self-appraisal or as a source of personal standards are referred to as _____. strivers experiencers innovators reference groups

reference groups

If a consumer is happy with the firm, but natural, hold she gets from her latest purchase of hair spray, this would be considered which variable of the behavioral learning process? drive cue reinforcement discrimination

reinforcement

An advantage of using a panel for marketing research is the discussion leader can help change negative panel responses into positive ones. panel members often help each other by bringing up ideas for discussion that others didn't initially think of, but that were important to them. there will usually be one panel member who dominates the discussion to help keep the conversation focused. researchers can take successive measurements of consumers to determine if they change their purchasing behaviors over time. the panel's continuity and representativeness of the population are unchanged when individual members drop out.

researchers can take successive measurements of consumers to determine if they change their purchasing behaviors over time.

Market segmentation involves aggregating prospective buyers into groups that have common needs and will have access to the products. possess the same attitudes. be open to marketing research. match well with the firm's proposed product differentiation strategies. respond similarly to a marketing action.

respond similarly to a marketing action.

A television ad for Volkswagen features several nervous teens examining the damage immediately following a car accident, and the message, "Your parents can only kill you if you're OK." Marketers at Volkswagen are attempting to appeal to consumers' __________ needs. physiological safety social personal

safety

Two special methods vital to marketing researchers are __________ and __________.

sampling; statistical inference

Ford Consulting uses AC Nielsen/IRI syndicated data in its marketing research. Syndicated data is commercially available data that has already been collected and therefore would be best classified as ____________.

secondary data

A question about an instructor's comportment in the classroom, with a five-point scale ranging from "enthusiastic" on one end to "unengaging" on the other end would be what type of marketing research question?

semantic differential scale

define the problem

set research objectives, identify possible marketing actions

Potential buyers within a market segment should be similar to those from different segments. familiar with the product but not yet brand loyal customers. similar in terms of the advertising media used. cannibalized from competitors' customers.

similar in terms of the advertising media used.

In marketing research, the research objectives are the __________ goals of the decision maker.

specific and measurable

develop research plan

specify constraints, identify data needed, determine how to collect data

While shopping for products such as milk, people are most likely to examine several brands before making a purchase. consider several supermarkets in the area. evaluate a moderate number of product attributes before making a purchase. use a few external information sources for accessing information on the best brand to buy. spend very little time in searching for the product in a supermarket.

spend very little time in searching for the product in a supermarket.

A company is interested in producing self-stick decorative posters. It selects a representative sample of middle school students who currently have one or more standard posters on their walls. After interviewing them and collecting other relevant data, the firm then makes generalizations about what all middle school students want in their posters. The method used is

statistical inference.

Using the same brand name for different products is an application of which concept from behavioral learning theory? selective comprehension stimulus generalization selective retention stimulus discrimination

stimulus generalization