Marketing Tests

________ is an offshoot of ROMI that was developed to apply the same principles to customers.

ROCI

________ target markets are those segments that have reasonable potential but for one reason or another are not best suited for development immediately.

Secondary

Before Carmine opened his restaurant, he brought all his new employees in for training and showed them a diagram of all the activities that would take place, from first customer contact to the customer exiting the restaurant. Carmine created

a service blueprint.

The process cycle for CRM begins with knowledge discovery, and ends with

analysis and refinement.

The choice of generic strategy is usually driven by resource capabilities of the firm, as well as the

competitive landscape

When Kohl's expanded its children's clothing department, it was segmenting the market by primarily considering the demographic variables of gender and income.

false

When State Farm retired the "Auto-Fire-Life" ovals from its logo to create the impression of a more modern company, it was focusing on segmentation.

false

When a manager notices that increases in call wait times are causing customer dissatisfaction, the manager is looking at an external source of data.

false

When consumers order a newspaper subscription, they want the paper delivered early in the morning so that they can read it before setting out for the day. It appears that newspaper publishers are offering form, time, and place utility, but not ownership utility.

false

The brand name "'Burt's Bees" is used for a variety of products, including hand and face cream, lip balms, body wash, and makeup. This is an example of a ________strategy.

family branding

As the marketing manager of a tire company, you are interested in assessing whether it is possible to decrease the amount of time between customers' tire replacement services and whether it is possible to increase average transaction amounts through add-on sales. To assess customer satisfaction with current services, you decide to consult your CRM system to ________customer orders.

identify the frequency and size of

Kyra is frustrated with her primary care doctor's office. Every time she goes for an appointment, she sits in the waiting room for at least 45 minutes before the nurse calls her in. She is asking all her friends for the names of their doctors so she doesn't have to deal with this anymore. This demonstrates how ________can cause switching behavior.

inconvenience

Xia has decided to add the Hulu app to her Roku television. Her friends all watch Hulu and told her that it offers quality programming and is worth the cost. This is an example of which of the three roles that brands play in customer purchase decisions?

information

While goods can be experienced through sensory perception, services cannot. This relates to the ________Blank characteristic of services.

intangibility

When a company is focused on uncovering needs that customers do not realize they have, it is using a ________ strategy.

market-driving

Peter Drucker, the father of modern management, stated that the only business function(s) of an organization include

marketing and innovation.

The National Do Not Call Registry is an example of how the ________environment affects marketing.

political/legal

Considering segmentation within strategic marketing includes both identifying existing segments and creating new ones.

true

When Jo and Nadia opened their bakery in a small rural midwestern town, they knew that their limited customer base could be a problem. To attract more customers, they created character cookies for children, cupcakes for teenagers' birthday and graduation parties, and cakes for weddings and anniversaries. They even designed a special "welcome" cake for seniors moving to senior living centers. Jo and Nadia used differentiated target marketing to reach their customers.

true

When analyzing segment attractiveness, one of the three factors to consider is the segment's strategic fit to the company's goals.

true

When police are investigating a crime, they use video from posted cameras, verbal accounts from eyewitnesses, text from social media, and video and audio from police officers' body cameras. What characteristic of Big Data is BEST represented here?

variety

Which statement is true about B2B marketing?

B2B marketing requires a more personal relationship with the customer than does B2C.

________ indicates the amount of interpersonal contact an individual has with a reference group.

Degree of affiliation

________can be very useful in helping visualize where to make strategic changes to either move your product closer to the main market or further differentiate your product away from the competitive cluster and into more unique market space.

Perceptual maps

Which e-procurement method occurs when companies set up direct links to approved suppliers for purchases?

an extranet

Which element is least likely to be a critical characteristic of post-purchase assessment?

anxiety

Riverside Senior living has a campus with living arrangements for independent living, assisted living, rehabilitation, memory care, and skilled nursing. What type of segmentation is Riverside using?

behavioral

ABC Automobile Manufacturers is the leading brand in economy cars with respect to gas mileage. When the company decided to make hybrid versions of its cars, its current customers filled the waiting list. Which of the five key brand dimensions is best illustrated in this example?

brand loyalty

The probability of a product's success is determined in the ________ stage of the product development process.

business case analysis

Many companies are using popular songs from the 1960s and 1970s in their advertising. When individuals, particularly baby boomers, hear that music, it connects them with positive memories and the product and brand being advertised. This demonstrates

classical conditioning.

Jorie was looking for historical information on urban populations, so he used an online, or ________Blank, database.

cloud

Bob runs a U.S.-based company. Recently, some of his customers with global operations have placed additional orders that require Bob to work with their foreign subsidiaries. As a result, Bob has developed local distribution and service reps in three foreign markets. What stage of the global experience learning curve is Bob experiencing?

companies with foreign marketing

Barbara didn't have time to shop for holiday gifts, so she ordered everything from Amazon. This shows how Amazon's ________leadership is one way the company creates differentiation in its offerings.

convenience

The early majority represents a good portion of total product sales. Generally, this group needs to be

convinced of the product's claims and value proposition before making a commitment.

CRM helps in determining which customers to target based on known or learned characteristics that will drive growth. This describes which of the three CRM objectives?

customer acquisition

Using Miles and Snow's strategic types, which type would be exhibited by a firm that focuses on protecting its market with a limited product line?

defender

To remain competitive, firms collect intelligence on a number of external factors. Information related to population change is referred to as ________information.

demographic

A food company has always limited its products to U.S. customers but recently decided to introduce one of its products in Belgium. The company does not plan to change anything about the product before introducing it. This is an example of a

direct product extension.

Emilio's Pizza promised delivery in 30 minutes, but it averaged closer to 60-minute deliveries. Eventually Emilio's began to lose customers to other pizza restaurants because they didn't trust Emilio's promise of quick delivery. What positioning error did Emilio's make?

doubtful positioning

The most significant global economic trend in the past 15 years has been the

emergence of regional market zones.

Every time Andrea pays bills for her cell phone or car insurance, services that are important for her, she is practicing the central tenet of marketing called

exchange

"Little m" marketing is often referred to as strategic marketing.

false

A new car contains a warranty that covers various components of the car. This is a general warranty.

false

A yogurt shop wants to survey its customers about their recent experiences. The shop has a database with all 100,000 customers who have been to the shop. The company will randomly select 10 percent of those customers to call and survey about their experience. The shop is using a nonprobability sampling method.

false

As a result of data breaches and cyberattacks, companies are putting more emphasis on marketing research to protect private user information.

false

Brand strategy is a summary of unique qualities attributed to the brand.

false

External factors such as social and cultural forces have little effect on the consumer in the decision process.

false

If companies engage in foreign marketing, they must use intermediaries.

false

In the B2B buying process, the gatekeeper is the one who starts the buying decision process.

false

Misunderstanding or making information fit existing beliefs is known as selective awareness.

false

Proctor and Gamble sells hair products, oral care products, soaps, detergents, baby care products, and personal care products. These make up the company's product line.

false

Product definition has three objectives: define the product's value proposition, identify the key suppliers of raw materials and the nature of those markets, and define the product's characteristics.

false

Return on marketing investment (ROMI) is the impact a firm's financial success has on marketing plan implementation.

false

Societal marketing refers to practices of promoting products to entire consumer markets rather than to individuals.

false

The administration of information security when using CRM is generally part of the marketing manager's job.

false

The four ways to classify a product are consumer, business, durability, and nondurability.

false

The more co-branded products a company has, the stronger its brand image because of the increased exposure of the brand to the public.

false

The most common foreign market entry strategy is foreign direct investment.

false

The primary purpose of the package is to promote product purchase.

false

The three major types of attributes that can be evaluated for goods and services are physical, experience, and credence.

false

Understanding cultural and societal trends is not important in B2B markets compared to B2C markets.

false

Gen Y consumers are much more receptive than their parents and grandparents to electronic commerce as a primary means of receiving marketing communication and purchasing. The marketing change driver represented by this is a shift

in generational values and preferences.

Jorey completed his mission statement for his marketing plan and has written down company goals; now he is focusing on his business's ________, or how he will be able to attain these goals in specific, measurable ways.

objectives

The terms ________Blank and product are interchangeable.

offering

Having too many internal metrics puts the focus on what a company already knows and fails to focus on the unpredictably dynamic external marketplace. Which pitfall of marketing dashboards does this represent?

overreliance on inside-out measurement

When Nike moved manufacturing to China, it took into account China's labor laws when fulfilling hiring needs. Which type of information was being addressed?

political and legal

Which element in the marketing plan is such a common mistake that it is nearly synonymous with poor marketing planning?

poor implementation of action plans

Data collected specifically for the research question under consideration is called ________data.

primary

At Neveen's Natural Potato Chip Corp., the company always takes into account the quality of the ingredients going into the snack foods it produces and recently rejected a supplier who claimed to use all-natural ingredients but actually did not. What part of the marketing mix did this claim affect?

product

After months of in-home research, Kraft discovered that its customers often transferred Chips Ahoy cookies to jars to keep them from going stale. The company solved this problem by creating a patented resealable opening on the top of the bag. This is an example of the ________objective of package design.

protection

Cost reduction is a specific method for introducing lower-cost products to the market. This may involve

reducing features.

A luxury car dealership assigns a service representative to each customer. This service rep handles all routine and emergency service appointments, writes thank-you letters, and advises the car owner when the next service date is anticipated. This dealership has adopted a ________ orientation.

relationship

The ________dimension of the SERVQUAL scale relates to delivering what is promised every time.

reliability

When Jasper has to wait a long time for his takeout order, the server apologizes and offers him a coupon for $5 off his bill on the next visit. This is an example of

service recovery.

A new blouse has a label that says it is guaranteed not to shrink or fade as long as it is dry-cleaned and not hand-washed. This is an example of a ________Blank warranty.

specific

A beer manufacturer noticed that the cost of hops increased four times in the last year. A description of this would be found in the ________ section of the SWOT analysis.

threats

A company is in the process of determining the best way to get enough wood to build the furniture that they need to manufacture. This represents the value-creating activity of inbound logistics.

true

A customer's equity with a brand is the difference between the perceived benefits and costs associated with the brand.

true

A firm with a production orientation assumes that if you have a great product, customers will come to you.

true

A point-of-sale system is an example of a customer touchpoint.

true

A service is a product without physical form.

true

A service-profit chain helps managers understand the key links in a service delivery system that drive customer loyalty, revenue growth, and higher profits.

true

According to the BCG matrix, a business that is classified as a cash cow has high market share and low growth.

true

CRM is now considered to be a critical part of a business strategy because of pressure from competitors.

true

Credit availability, creative pricing, and new financing arrangements enable and even encourage people to engage in aspirational purchases.

true

During the COVID-19 pandemic, rental car companies sold off much of their inventory because the demand wasn't there. Once people started needing rental cars again, there was a shortage of cars. This problem was a result of fluctuating demand.

true

Exploratory research is useful for clarifying the research problem so that a hypotheses can be developed.

true

Globally, the most widely used measure of economic growth is the measure of imports and exports.

true

Goods incorporated into a manufacturer's process to create a finished product are called materials or parts.

true

In the gap model, the area below the line represents the provider side of the service encounter and the area above the line represents the customer side.

true

Marketing analytics includes the use of Big Data to improve marketing-related decision making.

true

Marketing research is called for when the answer to a specific problem or issue is not available from a firm's market information system or other sources.

true

Most products are evaluated on two dimensions—instrumental performance and symbolic performance.

true

Of all the business fields, marketing is the most visible to people outside the organization.

true

Regional market zones usually form as a result of economic and political factors, geographic proximity, and cultural similarities.

true

Some firms come close to one-to-one marketing by employing mass customization.

true

The GE Business Screen portfolio analysis uses three levels—high, medium, and low—to rank business position and market attractiveness.

true

Trial purchase is a key focus in product launch because if you can get customers to try a new product, you can win them over with superior product design, features, and value.

true

Utility may be defined as the want-satisfying power of a good or service.

true

Bailey bought a new car and needed insurance. She contacted her friend's agent and paid for 6 months. This is an example of a(n) ________good.

unsought